The best 7 online banks of 2024

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Long gone are the days of having to visit a physical branch to do your banking. Many financial institutions have adapted to consumer needs by offering robust online banking.

Digital-only banks often offer perks you won’t find at brick-and-mortar institutions, like higher rates and fewer fees.

With an online bank, you can manage your money anytime, anywhere (with an internet connection). The best online banks come with competitive interest rates, ATM access, bonus financial tools, and no (or low) fees. 

To help you narrow down your choices, we've compiled a list of the top 7 online banks for 2024, along with their key features, pros, and cons.

What are the best online banks of 2024?

Based on our analysis of interest rates, fees, account options, and digital banking features, here are the 7 best online banks for 2024:

• SoFi
• Quontic Bank
• Capital One 360
• Ally Bank
• Alliant Credit Union
• CIT Bank
• LendingClub 

Whether you're looking for a high-yield savings account, a free checking account, or a CD with a competitive rate, these online banks offer some of the best options on the market. Let's take a closer look at each one.

1. SoFi

Banking products: Savings, checking, student account

ATM network: 55,000+

Fees: None

Minimum deposit: None

SoFi offers a combined checking and savings account along with other lending products, investment services, and a credit card.

Its savings account offers up to 4.60% APY on your funds and includes a checking account that earns 0.50% APY. Remember that you need to set up direct deposit to earn the highest APY.

SoFi’s bank accounts also come with added features to help you save. For example, their Roundups tool automatically rounds up debit card purchases to the nearest dollar and deposits them into your savings account. You can also use the savings Vaults feature to track your separate savings goals easily.

SoFi members can also enjoy early direct deposit, fee-free overdraft protection of up to $50 (if you have monthly direct deposits of $1,000 or more), and supplemental FDIC coverage of up to $2 million.

You can deposit cash at retail locations offering GreenDot for a fee. You can make fee-free withdrawals at over 55,000 Allpoint ATMs nationwide. 

2. Quontic Bank

Banking products: Savings, checking, MMAs, CDs 

ATM network: 90,000+

Fees: None

Minimum deposit: $100-$500, depending on the product

Quontic Bank is a great option if you’re looking for an all-in-one digital banking experience. It offers several banking products:

• High-yield savings account: Earns 4.50% APY and requires a $100 minimum deposit
• High-interest checking account: Earn up to 1.10% when you make at least 10 qualifying debit card transactions of $10 or more per month.
• CDs: Earns 4.30%-5.05% depending on the term, which ranges from six months to five years. There’s a $500 minimum deposit to open an account.
• Money market account: Earns 5.00% APY and requires a $100 minimum deposit

Quontic Bank offers a range of accounts tailored to consumers with different needs. This includes checking and high-yield savings accounts, a money market account, and several CDs with terms ranging from six months to five years.

There are two checking accounts to choose from. Quontic’s high-interest checking account offers an impressive 1.10% APY when you make 10 qualifying debit card transactions (of $10 or more) per statement cycle. Their cash rewards checking account offers 1% cash back on all eligible debit card purchases.

One of the key features that sets Quontic Bank apart is its commitment to inclusivity. Quontic Bank focuses explicitly on those other banks overlook, including entrepreneurs, immigrants, and those with non-traditional income streams.

While you’ll need to make an initial deposit to open an account, there are no monthly service fees on any accounts. Their checking account has several money management tools, including remote check deposit, automatic bill pay, and free credit monitoring. You can also get a wearable payment ring to make contactless payments.

If you need access to cash, Quontic has a nationwide network of over 90,000 fee-free ATMs.

3. Capital One 360

Banking products: Savings, checking, CDs

ATM network: 70,000+

Fees: None

Minimum deposit: None

If you’re not quite ready to give up in-person banking but want a more digital-friendly experience, Capital One may be a good option. This bank offers the same products as other big banks but with robust mobile and online support:

• Performance Savings account: Earn 4.25% APY with no minimum deposit
• Checking account: Earn 0.10% APY with no minimum deposit
• CDs: Earn 4.00%-5.10%, depending on the term.

Capital One offers one of the best free checking accounts out there, with no minimum balance requirements and no monthly fees. You can also access CDs with terms ranging from six months to five years. Capital One also offers credit cards, mortgages, and other loans to meet your unique funding needs.

Account holders get access to a vast network of more than 70,000 fee-free ATMs nationwide. You can make a cash deposit at any physical branch, Capital One Cafe, or at Duane Reade, CVS, or Walgreens locations.

Capital One also offers a variety of other lending services and other accounts, including a top-rated savings account for kids and teens. 

4. Ally Bank

Banking products: Savings, checking, money market, CDs

ATM network: 43,000+

Fees: None

Minimum deposit: None

Ally Bank offers some accounts with competitive interest rates (including its top-rated high-yield savings account). There are no monthly maintenance fees, minimum balance fees, or overdraft fees on any of its accounts:

• Savings account: Earn 4.20% APY
• Spending (checking) account: Earn 0.10% APY
• High-yield CD: Earn 3.00%-4.50%, depending on the term
• Money market account: Earns 4.20% APY

Ally’s spending account makes it easy for customers to access their cash. You can deposit cash via the mobile app with remote check deposit, electronically, or by mail. Ally will reimburse up to $10 per statement cycle in out-of-network ATM fees.

Ally also features a “buckets” tool that groups your money into categories to help you track different savings goals. You’ll also get personalized savings recommendations, overdraft protection, and early direct deposit.

Ally offers many CDs with terms ranging from three months to five years. You can also access different types of CDs, including no-penalty and bump-up CDs. 

5. Alliant Credit Union

Banking products: Savings, checking, CDs

ATM network: 80,000+

Fees: None 

Minimum deposit: $25 to $1,000, depending on the account

Alliant Credit Union is one of the few credit unions offering checking, savings, and CD accounts with competitive returns:

• Checking account: Earn 0.25% with no minimum deposit
• Savings account: Earn 3.06% with $25 minimum deposit
• CDs: Earn 4.30%-5.03% depending on the term, with a $1,000 minimum deposit

Alliant’s savings account offers a lower APY than other options on this list, but it’s still competitive. It’s also one of our picks for the best joint savings account.

There are some rules to keep in mind, though: You’ll need to make a $25 initial deposit to open an account. You’ll need to maintain a monthly average balance of at least $100 to earn interest. You’ll also need at least $5 in your account to keep it open.

There are no monthly fees (as long as you sign up for e-statements) for any of Alliant’s accounts.

Customers can also access over 80,000 ATMs to make cash deposits and withdrawals for free. Alliant's checking account also includes out-of-network ATM rebates and Courtesy Pay, which may cover specific overdraft fees.

While Alliant’s CDs have a high minimum deposit, you’ll earn a competitive rate. Or you can explore the credit union’s auto loans, mortgages, and credit card offerings if you have other financial needs beyond basic banking.

Keep in mind that Alliant is a credit union, which means you need to be a member to open an account. Membership is available to all Americans, including eligible non-U.S. residents. 

6. CIT Bank

Banking products: Savings, checking, money market, CDs

ATM network: None

Fees: None

Minimum deposit: $100 to $1,000, depending on the account

If you have a decent amount of money to deposit and want to maximize interest, consider CIT Bank. This online bank offers three different savings accounts, four different types of CDs, a money market account, and a checking account:

• Savings Connect: Earns 4.65% APY with a $100 minimum initial deposit
• Platinum Savings: Earns 5.05% APY on balances of $5,000 or more with a $100 minimum initial deposit (0.25% APY for balances below $5,000)
• eChecking: Earns 0.25% APY on balances over $25,000 and 0.10% APY on balances under $25,000, with a minimum $100 initial deposit
• Money market: Earn 1.55% APY with a $100 minimum initial deposit
• CDs: Earn 0.30%-3.50% APY, depending on the term length

While you may need to make a large deposit to earn a decent rate with CIT's high-yield and checking accounts, you won’t pay any monthly fees. You also won’t pay any online or wire transfer fees with CIT’s checking account.

Unlike other online banks, CIT offers different types of CDs, including bump-up and no-penalty CDs, giving you more flexibility. Keep in mind that some of their CDs offer lower-than-average APYs. All require a high minimum initial deposit of $2,500.

CIT Bank offers up to $30 monthly ATM rebates if you withdraw funds outside one of the 30,000 Allpoint ATMs. Cash deposits are not accepted and can only be made through ACH, the mobile app, or by check. 

7. LendingClub

Banking products: Savings, checking, CDs

ATM network: 55,000+

Fees: None

Minimum deposit: $25 to $2,500, depending on the account

Though LendingClub is best known for their personal loans, they also offer several consumer bank accounts, including:

• High-yield savings: Earn 5.00% APY with $100 minimum initial deposit
• Checking account: Earn 0.15% APY on balances above $100,000, 0.10% APY on balances between $2,500 and $99,999.99, with a $25 minimum initial deposit
• CDs: Earn 4.00%-5.15% APY with a $2,500 minimum initial deposit

The Rewards Checking account offers 1% cash back on eligible debit card purchases. You can also earn a low (but still competitive) APY by maintaining a balance of $2,500. It’s a great option if you frequently withdraw cash, as you can access cash via 55,000+ ATMs without incurring fees. LendingClub also goes the extra mile by reimbursing all out-of-network ATM fees.

LendingClub's high-yield savings account has a minimum initial deposit but offers a robust interest rate. You also don’t have to worry about maintaining a balance to earn interest.

Lastly, LendingClub offers CDs with terms ranging from six months to five years. While the minimum initial deposit is pretty steep — $2,500 — you can earn some of the highest rates, up to 5.55%.

If you’re a business owner looking for banking options, LendingClub may be a good option for you. We rated their Tailored Checking account as one of the top business checking accounts. 

Online banking vs. traditional banking

You’ll generally have access to similar offerings at online and traditional banks. Still, there are a few key differences between traditional banks and online ones.

• Physical presence: Most online banks don’t have physical branch locations. Instead, all transactions are handled through online and mobile banking platforms. Traditional banks have branches to help you handle banking affairs face-to-face.
• Fees: Online banks have low or no monthly account fees, ATM fees, and minimum balance requirements compared to traditional banks.
• Interest rates: It’s common to find higher APYs on online banks' savings accounts, CDs, and even checking accounts. These banks have lower overhead costs and can pass the cost savings onto consumers through competitive rates.

Online banks are a good fit for those comfortable doing their banking without physical branches or those who make few or no cash deposits. They may also be ideal if you prioritize earning top dollar on your money or avoid fees.

But if you regularly need to access cash or prefer in-person support, a traditional bank may be a better bet.

Is online banking safe?

If your money is in an FDIC-insured bank, it’s in good hands. This insurance covers up to $250,000 per person per account. In other words, you won’t lose your hard-earned money if your bank shuts its doors. Most online banks come with FDIC insurance, but it’s important to double-check before opening an account.

It’s not always enough to rely solely on FDIC coverage to protect your funds. Cyber thieves are always lurking in search of their next victim. You can ward off their attacks by

• Using strong and unique passwords for your online bank accounts
• Enabling two-factor authentication (if applicable)
• Only accessing your account through the mobile app or online dashboard
• Avoid logging into your account on a public Wi-FI network

How do I open an online bank account?

When you’re ready to open an online bank account, here’s how to get started:

1. Explore online banks to find one that’s both FDIC-insured and has features that fit your needs.
2. Complete the application. All online banks will have an online application to open an account. Be prepared to provide information like your Social Security number and driver’s license number.
3. All online banks will have an online application to open an account. Be prepared to provide information like your Social Security number and driver’s license number.
4. If you’re approved for an account, the bank may ask you to upload photos of your ID for verification.
5. Review and agree to the account terms, privacy policy, and any applicable fees.
6. If an opening deposit is required, you must make a deposit to activate the account. You can typically transfer money electronically from a different account.
7. Check for an activation email once your digital profile is set up. Log in to begin using your new online bank account right away.
8. Make sure to secure your account by choosing strong login credentials. Set up security questions and enable two-factor authentication if available.

The bottom line

Online banks offer a convenient way to manage your money, minus the fees. They also come with benefits that aren’t always accessible with traditional banks and credit unions. Be sure to compare accounts to find the right option for you.

Editorial disclaimer: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.