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Do You Need a Rainy Day Fund If You Already Have an Emergency Fund?10 Best Online Banks of 2025
The best online banks offer a mix of competitive rates, low fees, reasonable requirements and innovative digital tools. These banks typically have lower overhead costs than their traditional brick-and-mortar peers and often pass on some of those savings to customers.
As you compare online banks, you’ll want to consider annual percentage yields (APYs), minimum balance requirements and customer experiences. Our list highlights 10 online banks that excel in these areas, enabling you to earn the best rates with minimal fees and customer-friendly features.
Why you can trust DepositAccounts:
DepositAccounts strives to produce high-quality content that meets your needs and exceeds your expectations. Content is fact-checked to ensure accuracy and objectivity. DepositAccounts analyzed 225 federally insured online institutions based on APYs, fees, minimum balance requirements, customer service reviews, products and digital tools.
Best online banks of 2025
Overview: Ally Bank offers a checking account, a high-yield savings account and a money market account as well as certificates of deposit (CDs). All of Ally Bank’s deposit accounts earn interest, from a checking account with a 0.10% APY to a high-yield nine-month CD with a 3.90% APY.
Why we picked it: In business for 15 years, Ally Bank is a well-established online financial institution with a strong record of growth. The bank frequently offers competitive rates, particularly on CDs. Ally also delivers customer-friendly features, including a large fee-free network of ATMs and no monthly maintenance or overdraft fees on deposit accounts.
Beware: You won’t have access to branch locations for service, and you can’t make cash deposits. You’re limited to 10 withdrawals and transfers per statement period on your savings account, and the bank could close your account if you regularly exceed the limit.
Overview: Capital One is a traditional bank with a variety of personal and business banking products. Customers can access accounts using the bank’s mobile app, website, branches, cafés and more than 70,000 fee-free ATMs. You can earn as much as 4.00% APY with Capital One’s one-year online CD.
Why we picked it: Established in 1933, Capital One has a long history of reliable banking. Capital One offers the best of both worlds, with the competitive rates of an online bank and the conveniences of a traditional branch-based bank. Deposit accounts have no monthly fees, no minimum balance requirements and no overdraft charges.
Beware: Capital One has nearly 300 branches — far fewer than some traditional banks, which may have thousands. Capital One’s rates tend to be competitive but generally aren’t the highest available compared with online-only banks. Also, not all in-network ATMs accept cash deposits.
Overview: CIT Bank marries 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 provides personal savings accounts and CDs as well as an eChecking account. The bank’s Platinum Savings account competes with the highest APYs available on deposit accounts, offering 4.10% APY for balances of $5k or more.
Why we picked it: CIT Bank’s roots reach back to 1898. Savings accounts have competitive rates, including the Savings Connect account, which earns 4.00% APY and requires a $100 initial deposit. Choose from a variety of CDs and terms, including an 11-month CD with a 3.50% APY and no penalty for early withdrawal.
Beware: Savings accounts require a $100 minimum opening deposit, and all but the Savings Connect account has a minimum balance requirement. The eChecking account also requires a $100 deposit and earns an APY of 0.10% with a balance of up to $25k or an APY of 0.25% with a balance greater than $25k.
Overview: CFG Bank is a Baltimore-based institution that has accounts online, including checking and money market accounts and CDs. It offers 4.15% APY on a 12 Month CD and 4.32% APY on a high-yield money market account.
Why we picked it: With this top-earning money market account, customers can earn a competitive APY with a minimum deposit and a minimum balance of $1k. You can access accounts with online and mobile banking and use more than 55,000 ATMs in the Allpoint ATM network.
Beware: Checking accounts don’t have monthly maintenance fees, but savings accounts do. You’ll need to maintain a $100 minimum daily balance to avoid a $2 monthly fee on the Premier Savings account and a $1,000 minimum daily balance to dodge a $10 monthly fee on the money market account.
Overview:Discover® offers fee-free online banking, with online checking, savings, money market and CD accounts. You can earn up to 4.00% APY on a 12 Month CD or 3.60% APY on an Online Savings Account. Discover®’s checking account doesn’t earn interest, but you can pocket 1% cash back on up to $3,000 in debit card purchases monthly.
Why we picked it:Discover® has a relatively long history — it was founded in 1986 — and a full suite of deposit accounts, including checking, savings, CD, money market and retirement accounts. Discover®’s savings and CD rates generally aren’t the highest available but are competitive with other online banks.
Beware: Discover® has solid rates on CDs, but you’ll need to deposit $2,500 to get started. An online-only bank, Discover® has no in-person branches. If you need to make a cash deposit, you must visit a U.S.-based Walmart and deposit at least $20 using your Discover® debit card.
Overview: Evergreen Bank Group has free high-yield online savings and rewards checking accounts as well as CDs — all of which offer competitive rates. The rewards checking earns between 0.25% and 4.00% APY depending on your account balance, and all checking accounts earn at least 0.05% APY. CDs receive as high as 4.10% APY for a six-month term, and high-yield online savings balances of up to $1 million earn 4.25% APY.
Why we picked it: Evergreen’s free online checking account makes it easy to earn interest on money as you’re spending it. Evergreen Bank Group’s deposit accounts have a history of competitive rates, so you can earn respectable rates whether you’re using a checking, savings or CD account.
Beware: You’ll have to deposit at least $100 to get started with a checking or savings account, and CDs typically require a $500 minimum deposit. The best rate may require a much higher deposit, however, such as $10,000. You won’t have monthly maintenance or online bill pay fees, but charges may apply if you close an account within 90 to 180 days.
Overview: Rising Bank has CDs and high-yield savings accounts that can help you grow your money. CD terms range from six months to three years, offering a competitive 4.30% APY on six-month CDs. With a high-yield savings account, you can earn 4.30% APY as long as you have a $1k minimum balance.
Why we picked it: Established in 2018, Rising Bank doesn’t have a long history — but it does have some of the top deposit account rates. Whether you choose a CD or a high-yield savings account, you can generally earn at least 4.30% on your balance.
Beware: fees. Rising Bank has insufficient funds, overdraft and chargeback — transaction reversal — fees. You’ll also have to pay a fee if you close your account within 120 days of opening.
SoFi® Bank, N.A. (Member FDIC)
Overview: A well-known online bank, SoFi® Bank, N.A. offers a high-yield savings and checking account combo called SoFi Checking and Savings. The high-yield savings account automatically comes with a checking account that can earn 0.50% APY. Savings accounts earn up to 3.80% APY.*
Why we picked it: SoFi® Bank, N.A. does not charge monthly fees, minimum balance fees or overdraft fees, covering 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 one-time sign-up bonus of up to $300 when you sign up for and set up direct deposit***.
Beware: You’ll only earn SoFi® Bank, N.A. ’s top APY by enrolling in SoFi Plus with Direct Deposit or by paying the SoFi Plus subscription fee every 30 days, or with $5,000 or more in qualifying deposits every 30 days. Fee-free overdraft coverage requires at least a $1,000 direct deposit every 30 days. Also, plan to pay a fee of up to $4.95 to make a cash deposit with a participating retailer.
Overview: TAB Bank has interest-earning checking, savings, money market and CD accounts. TAB Spend Rewards Checking, the bank’s online checking account, is particularly competitive, earning 3.50% APY and 1% cash back on your debit card purchases. TAB Save, a High Yield Savings account, earns one of the best APYs available at 4.26%.
Why we picked it: The rates on TAB Bank’s deposit accounts make earning interest on your funds easy to do. The checking and savings accounts are free of fees, with no fees to open, maintain or use the accounts and no minimum balance requirements. Savings accounts have no balance caps, though the standard federal insurance limits apply.
Beware: TAB Bank’s products generally offer above-average APYs, but its money market account only earns 0.25% APY. Note that CDs require a $1,000 minimum opening deposit.
Overview: USALLIANCE Financial is a credit union with checking, savings, money market and certificate accounts — the credit union equivalent of CDs. With a High Dividend Savings account, you can earn 3.75% APY, and a 12 Month Certificate Special receives a special rate of 4.30% APY. You’ll also have the benefit of branch service in Connecticut, Massachusetts, New Jersey and New York, along with anytime digital banking.
Why we picked it: Earning 3.75% APY, the High Dividend Savings account has a long history of competitive rates. Likewise, CD rates are strong.
Beware: While USALLIANCE Financial offers competitive rates on some products, not all accounts have excellent rates. For example, MyLife Savings accounts earn 2.00% APY on your first $500 — and amounts over that earn just 0.02% APY. Also, keep in mind that customer service hours are limited and not available on Sundays.
What is online banking?
Online banking, also known as internet banking, allows you to conduct banking through an internet connection. You can access online bank accounts, including checking and savings accounts, using bank websites or mobile apps to check your balance, pay bills and transfer money.
While traditional banking may require you to visit a branch in person during operating hours, you can bank online any time you have internet access. Online banking tends to be convenient, offering customer-friendly features such as account alerts, early direct deposit for faster access to paychecks, and extensive ATM networks.
Many online bank accounts come with little to no monthly maintenance fees and employ advanced security measures.
Pros and cons of online banks
Pros:
- Online banks generally have lower overhead costs than traditional banks, and they can pass along those savings as lower fees and higher interest rates on savings accounts.
- With 24/7 access to banking services, you can manage your account anywhere, anytime.
- Online banking typically offers user-friendly features, including robust mobile banking apps, budgeting tools and transaction alerts.
Cons:
- Online banks may not have brick-and-mortar locations for in-person service.
- Services may be limited compared with traditional banks, such as no options for cash deposits.
- Customers who aren’t tech-savvy may struggle to interact with online banking.
Is online banking safe?
Online banking is safe as long as you choose a federally insured financial institution. The Federal Deposit Insurance Corp. (FDIC) insures banks, and the National Credit Union Administration (NCUA) insures credit unions, and coverage is automatic with your deposit.
Check for FDIC insurance with the BankFind Suite tool or NCUA coverage with the Credit Union Locator.
You’ll want to make sure the bank has strong, secure measures in place to protect your personal and financial information. Ideally, your bank should use encryption software, multi-factor authentication — more than one way of verifying your identity — and fraud prevention strategies.
But you can also do your part to protect your financial information when banking online. Use a strong password, for example, and don’t share it. Monitor your account for fraudulent activity, and if you spot it, report it immediately to the bank.
How to open an online bank account
The steps to open an online bank account can vary depending on the financial institution, but here’s what you can generally expect:
- Choose a bank. Look for the products you want at competitive rates and helpful features that make it easy to manage your account. Weigh interest rates and fees against how user-friendly the website and mobile app are.
- Gather documents. You’ll need personal information and documentation on hand to complete your application. Your bank will require some type of ID, such as a driver’s license or passport, and must obtain your name, birthdate, address and Social Security number.
- 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. Make sure the site is secure by checking for HTTPS in the URL. Complete the application, and double-check it for accuracy before you submit it to avoid delays in approval.
- Fund your account. Use an electronic transfer from another bank account, a check or a cash deposit. Verify whether a minimum deposit is required to open the account.
- Set up your account. Once your account is approved, you can set up a username and password as well as account alerts to monitor your finances.
*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/.
***Up to $300 Bonus Tiered 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.