The Best Online Banks of 2022

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.

In order to make the reading experience of this article more convenient, the article has been split up into multiple pages. At the end of each page, you will see a “next” button which will take you to the next page. Enjoy your reading!

Ally Bank

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.

Pros

• 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

Cons

• 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.

Axos Bank

Why it stands out: Axos offers several types of checking accounts, so you’ll likely find one that fits what you’re looking for. Axos already has a large ATM network, and it’s generous about refunding fees an out-of-network ATM provider may charge you. Three of its checking accounts reimburse an unlimited amount in ATM fees each month.

Pros

• High APY
• Unlimited out-of-network ATM reimbursements
• No monthly maintenance fees
• No overdraft fees
• No non-sufficient funds fees

Cons

• $50 opening deposit
• No APY if you can’t meet qualifications
• Few mobile app reviews

If you want to open an Axos High Yield Savings Account, you’ll need at least $250.

With an Axos Bank Rewards Checking account, there are also a few requirements to earn the full 1.00% APY.

If you receive at least $1,500 in direct deposits each month, you will earn 0.40% APY. You must meet this requirement before you can receive additional interest.

To earn 1.00% APY, you must also do the following monthly:

• You need to make 10 debit card transactions (minimum of $3 per transaction) or you need to sign up for Account Aggregation/Personal Finance Manager.
• Keep at least $2,500 in an Axos Managed Portfolios Invest account on a daily basis.
• Invest at least $2,500 in an Axos Self Directed Trading Invest Account on a daily basis.
• You can pay your Axos consumer loan using your Reward Checking account.

Capital One 360

Capital One ranks as No. 1 on the J.D. Power US National Banking Satisfaction Survey. This study evaluates customers’ experiences with banks and measures factors such as trust, handling problems and complaints, and saving time and money.

Capital One does not require a minimum opening deposit. Branches and Capital One cafes are available throughout the US, so it’s a good option if you like online banking but would prefer to speak with a banker face-to-face.

Capital One debit cards are accepted at over 39,000 ATMs nationwide for free, but unlike many online banks, the company does not reimburse fees charged by out-of-network ATMs.

Chime

It stands out because Chime allows you to receive your direct deposits up to two days early. This means you can access your money earlier and start earning interest sooner if you put money into your high-interest Chime Savings Account.

Pros

• No minimum opening deposit
• No monthly service fees
• Receive your paycheck up to 2 days early
• Rounds debit card purchases up to the nearest dollar and puts spare change in your Chime Savings Account
• No overdraft fees for overdrafts up to $200 with SpotMe, if you qualify
• No foreign transaction fees
• Request checks be sent to recipients online

Cons

• $2.50 out-of-network ATM fee
• No overdraft protection for overdrafts exceeding $100
• Deposit cash at Green Dot locations, which may charge fees
• No physical checkbook
• Limited to $200/day or $1,000/month transfers from external bank accounts, if initiated through Chime

Chime does not charge foreign transaction fees, making it an appealing option for international travelers.

To open a Chime Savings Account, you must also open a checking account, so this banking platform won’t be appropriate if you only want to open a savings account. It’s also an online-only bank, so if you’d like to also visit a local branch, consider one of our other choices.

Discover

Discover’s savings account earns a 0.50% APY, and rates for its certificates of deposit are competitive. Discover’s Cashback Debit account offers 1% cashback per month on up to $3,000 in debit card purchases.

Pros

• Earn up to 1% cash back on up to $3,000 in purchases per month
• No monthly service fee
• Over 60,000 ATMs
• Enroll in free overdraft protection

Cons

• Debit card can only be used in the US, Canada, Mexico, and the Caribbean
• Only 1 branch location

Discover is a good option for people who want to do all their banking, investing, and borrowing at one place. It offers a variety of products, including credit cards. Additionally, it offers a strong cash back checking account that gives you 1% back on up to $3,000 of purchases each month.

Although you don’t need to make an initial deposit to open a checking or savings account, you’ll need at least $2,500 for a money market account or CD. Other options do not require an initial deposit.

SiFi

Free management and access to financial advisors and career counselors make SoFi Automated Investing ideal for beginning and younger investors, though the lack of a track record may give some potential customers pause.

Pros

• Broad range of low-cost investments.
• Free management.
• Automatic rebalancing.
• Customer support.
• Access to certified financial planners.

Cons

• Limited account types.
• No tax-loss harvesting.

 SoFi is best for beginner investors in the US who are looking for an intuitive online trading experience and want to open an active or automated investing account, or explore cryptocurrencies. Its limited investment selection and features mean it might not be a good fit for advanced investors. It is only available to US residents.

SoFi (short for “social finance”) began as a student loan refinancing and personal loan company. Several other areas of personal finance have been added since then, including investment accounts and checking and savings accounts.

The company’s stock recently rose after the Office of the Comptroller of the Currency (OCC) approved its request for a national bank charter. Earlier this year, SoFi acquired Golden Pacific Bancorp, Inc., a California-based community bank.

If you have other SoFi accounts, SoFi Invest is also a great option. The reason for this is that SoFi makes moving money between SoFi Money and SoFi Invest very easy.

Since SoFi does not offer stop-loss orders or tax-loss harvesting, it may not be the best choice for advanced investors. However, if you’re just looking to get started with investing, SoFi has everything you need, as well as complimentary access to Certified Financial Planners.

SoFi is currently only available to residents of the United States, so residents of other countries will need to find another brokerage company.