The days of handing a paper check to a teller at a brick-and-mortar bank are gone for many of us. Nowadays, online banks give you the option of banking from the comfort of your home.
Online banks provide much more than convenience. Online banks typically pay higher interest rates and charge fewer fees since they do not have to pay for physical branches.
Below are our top picks for online banks right now. Considering that everyone defines “best” differently, we listed each bank’s strengths and limitations.
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Ally Bank’s savings account offers a 0.50% APY, and its checking account earns 0.10% APY for balances under $15,000 and 0.25% for balances of $15,000 or more. Its certificates of deposit have competitive rates as well. Ally doesn’t allow customers to deposit cash; accounts must be funded by transferring money from an external account, depositing a check via mobile or mail, or using a wire transfer.
- High APY
- No minimum opening deposit
- No monthly service fees
- Savings buckets help you save for different goals
- Surprise savings transfers help you save extra money from your checking account
- No physical branch locations
- No way to deposit cash
Ally’s accounts don’t have minimum opening deposits, so you can open one with whatever amount you want.
Ally’s High Yield Savings Account makes it particularly easy for you to save. You can set up separate savings buckets for different goals, such as emergency savings and travel funds. The Surprise Savings feature assesses your checking account balance three times per week to determine how much you can afford to save, then transfers funds into your savings account.
You can reach Ally customer support 24 hours a day, 7 days a week via phone or live online chat.
What to look out for: The Ally Interest Checking Account is a solid account, but it doesn’t come with any special features, such as cashback or a competitive interest rate. For rewards checking account, you might want to look at another bank on this list.