Best Online Banks of 2025

An online bank may be right for you if you prefer to manage your finances remotely from your computer, smartphone or other digital device. Here are our picks for the best online banks available today, in no particular order.

Best online banks of 2025

Ally Bank

Overview: Ally Bank is an online bank with a variety of account types, including checking, savings, money market and certificate of deposit (CD) accounts. At the time of writing, Ally Bank’s Online Savings Account earns a 3.50% annual percentage yield (APY), and you don’t need a minimum account balance to earn the advertised APY.

Why we picked it: Ally Bank is a well-established online financial institution with a strong record of growth. The bank frequently offers competitive rates, particularly on its savings accounts and CDs. Ally Bank also has customer-friendly features, including a large fee-free network of ATMs and no monthly maintenance or overdraft fees on deposit accounts.

Discover®

Overview: Discover® provides fee-free online banking, with checking, savings, money market and CD accounts. You can currently earn up to 4.00% APY on a 12 Month CD or 3.50% APY on its Online Savings Account. Discover®’s checking account has a unique feature allowing you to earn 1% cash back on up to $3,000 in debit card purchases each month.

Why we picked it: Discover® has a relatively long history — it was established in the 1980s — and provides a full suite of deposit accounts, including checking, savings, CD, money market and retirement accounts. Discover®’s savings and CD rates are generally competitive with those at other online banks.

Capital One

Overview: Capital One is a hybrid bank — part online and part traditional bank — because it has some physical branches. It offers a variety of personal and business banking products, including checking, savings and CD accounts. Access your accounts by using the bank’s mobile app or website, or by visiting branches, Capital One Cafés and more than 70,000 fee-free ATMs. You can currently earn as much as 4.00% APY with Capital One’s 1 Year 360 CD.

Why we picked it: Capital One offers the best of both worlds, with the competitive rates of an online bank and the advantages of a traditional branch-based bank. Deposit accounts have no monthly fees, no minimum balance requirements and no overdraft charges.

CIT Bank

Overview: CIT Bank combines the convenience of digital banking with the trust of an institution that has been around for more than a century. The online-only division of the well-established First Citizens Bank (NC) provides personal savings accounts and CDs, as well as an eChecking account. The bank’s Savings Connect account currently earns 3.90% APY and requires only a $100 minimum opening deposit.

Why we picked it: CIT Bank’s roots reach back to 1898. Savings accounts have competitive rates, including the Platinum Savings, which earns 4.00% APY on balances of $5,000 or more. Choose from a variety of CDs and terms, including an 11-Month No-Penalty CD with a 3.50% APY, a $1,000 minimum opening deposit and no penalty for early withdrawal.

SoFi® Bank, N.A.

Overview: The well-known online institution SoFi® Bank, N.A. offers a high-yield savings and checking account bundle. The high-yield savings account automatically comes with a checking account that earns 0.50% APY. Savings accounts earn up to 3.80% APY.*

Why we picked it: SoFi® Bank, N.A. doesn’t charge monthly fees, minimum balance fees, account fees or overdraft fees**. It covers overdrafts of up to $50 as long as you have a direct deposit of at least $1,000***. You can access cash from more than 55,000 fee-free ATMs in the Allpoint network****, and you can earn a sign-up bonus of up to $300 when you enroll in and set up direct deposit.*****

Quontic Bank

Overview: Quontic Bank issues various online banking products, including three different types of checking accounts, a high-yield savings account and a money market account. It also offers CDs with terms ranging from 3 to 60 months. Quontic Bank’s High Yield Savings Account currently earns 3.85% APY and requires a $100 minimum deposit.

Why we picked it: Quontic Bank’s banking products are comparable to some of the bigger banks on this list. If you’re looking for an everyday checking account, Quontic Bank has three to choose from, including one that currently earns up to 1.10% APY. Quontic Bank customers have access to 90,000 free ATMs.

American Express

Overview: You may be familiar with American Express credit cards, but American Express also offers various personal and business banking products, including checking and savings accounts and CDs. The American Express® High Yield Savings Account currently earns a 3.60% APY and doesn’t have monthly fees or minimum deposit requirements. To qualify for a personal checking account, you must be an American Express credit card holder.

Why we picked it: American Express made this list primarily for its savings and CD offerings. Its high-yield savings account earns a competitive rate, and you can earn up to 4.00% APY with a 14- or 22-month CD.

Synchrony Bank

Overview: Synchrony Bank has a wide range of online banking products, including a high-yield savings account and money market account, as well as CDs and retirement accounts. Synchrony Bank High Yield Savings currently earns 3.80% APY and has no minimum deposit, minimum balance or monthly fee requirements.

Why we picked it: In addition to a competitive savings account rate, Synchrony Bank offers one of the highest CD rates of the banks we researched. Current rates include a 4.15% APY on 15-, 19- and 60-month CDs, with no minimum deposit required.

Alliant Credit Union

Overview: With Alliant Credit Union, you get the benefits of a credit union — such as potentially higher savings rates and lower loan costs — along with the convenience of online banking. Alliant Credit Union provides a High-Yield Checking Account, which doesn’t charge overdraft or minimum balance fees. Customers also get access to 80,000 fee-free ATMs.

Why we picked it: Alliant Credit Union’s savings and CD accounts have competitive rates. Its High-Rate Savings currently earns 3.10% APY and requires a $1,000 minimum deposit. Alliant Credit Union offers CDs with terms ranging from 3 months to 60 months, and you can earn up to 4.10% APY with a 6-month CD.

What are online banks?

As the name suggests, online banks are institutions that function primarily online rather than through physical branches. That means you can complete your everyday banking tasks from anywhere you have an internet or wireless connection.

You can transfer money, pay bills or deposit checks — though the specific services available will depend on your bank or credit union. Because online banks have lower overhead costs, they can generally provide better rates than traditional banks.

How to open a bank account online

The steps to open an online bank account can vary depending on the financial institution, but here’s what you can typically expect:

1. Compare financial institutions. Research the account you want, and compare rates, fees and features. Weigh these factors against the user-friendliness of the bank’s ATM network, website and mobile app.
2. Gather documents. You’ll need personal information and documentation to complete your account application. An online bank will usually require a government-issued ID, such as a driver’s license or passport, and will ask for your name, birthdate, address and Social Security number.
3. Apply for the account. Visit the bank’s website or app to find the application for the type of bank account you want to open. Complete the application and double-check it for accuracy before submitting it to avoid delays in approval.
4. Fund your account. Use a check, cash deposit or an electronic transfer from another bank account to fund your new account. If the account requires a minimum deposit, you’ll need to have at least that much available.
5. Set up your account. Once your account is approved, create a username and password. You can also set up account alerts to monitor your finances.

Pros and cons of online banks

Methodology

To come up with our list of the best banks and credit unions, we considered various factors, including:

• FDIC or NCUA insurance coverage
• Whether the bank offers competitive savings account rates — for this article, that meant a rate higher than a 3.00% APY
• Availability of different banking products, such as checking accounts, savings accounts and CDs
• ATM network, whether owned by the bank itself or by third-party providers such as Allpoint
• Minimal or no monthly account fees
• Low or no minimum deposit to open an account
• Low or no minimum balance to earn interest

Frequently asked questions

Are online banks safe?

Online banks are generally considered to be safe — just make sure to choose an FDIC-insured bank or NCUA-member credit union so your money is protected in the unlikely event of bank failure. Choose a bank with strong security measures in place to safeguard your personal and financial information, such as encryption software, fraud protection and multifactor authentication.

Can I open a bank account online?

Yes, many banks and credit unions allow you to open a bank account online. The process is similar to opening an account in person. You’ll generally need to fill out an application and provide personal information, such as your name, address and Social Security number, and a government-issued ID.

What online banks work with Zelle?

Many online bank accounts offer Zelle, a peer-to-peer payment platform that allows you to easily send and receive money. These banks include:

• Discover®
• Ally Bank
• Quontic Bank
• SoFi® Bank, N.A.
• Capital One

Disclosures

* APY disclosures: SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

** Fee policy: We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.

*** Overdraft coverage: Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with Eligible Direct Deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.

**** ATM access: We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.

***** Up to $300 tiered bonus disclosure: New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.
SoFi members with Eligible Direct Deposit can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.80% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.