The finest online banks have minimum costs, and some charge none at all if your balance is zero. You should also get reasonable rates on savings accounts, a wide range of products, and highly secure banking and mobile applications that are simple to use and contain useful extras such as budgeting and savings tools.

What are online banks?

Online banks are finance companies that primarily conduct business through the internet. These establishments help us manage your accounts from anywhere at any time using a computer or mobile device. Branch access is frequently unavailable or restricted with online banks, but certain online divisions of physical banks or hybrid banks still have the opportunity to visit a branch site.

Online banks typically provide better rates on bank deposits and charge fewer fees since they do not bear the overhead of opening and operating a network of branches. Keep in mind that because of this trade-off, you may not be able to just walk into a branch even if there is an issue. To address any concerns, you will instead communicate by phone, email, or online chat.

The Best Online Banks of 2022

So out of all the online bank recommendations out there, we chose the best banks with either checking and savings accounts or just savings accounts. Let’s see what they are and their pros and cons.

Ally Bank

Ally, a comprehensive online bank, constantly delivers competitive rates with minimal costs and no monthly maintenance costs or minimum balance restrictions on its products. It has a large ATM network and reimburses costs incurred at out-of-network ATMs up to $10 every statement cycle.

Customers of Ally also have access to the bank’s savings tools. With Ally’s savings account, you may define up to ten distinct savings objectives within a single account by creating “buckets.” The bank also features a “round up” option that searches your checking account for transactions that it may round up to the nearest whole number and deposit to your savings account. And the bank’s “surprise savings” tool searches your Ally current account for money that is safe to keep and immediately transfers it to your savings account.

Ally Bank has a customer support department that is available via phone 24 hours a day, seven days a week. You can also receive answers to your queries by live chat, email, or standard mail.

Pros

• It provides useful saving tools.
• Customer satisfaction is high.
• Customer service is available 24/7.
• Fees and minimums are minimal to none.
• When using an out-of-network ATM, you may be eligible for an ATM charge refund of up to $10 per month.

Cons

• Competing banks and credit unions offer better rates.
• There is no method to deposit money immediately.

Axos Bank

Axos Bank ticks several boxes. It has low costs and reasonably high APYs. The required minimum deposit is reasonable. Customers also get access to over 91,200 ATMs across the United States, as well as unlimited domestic ATM charge refunds for out-of-network ATM use.

Axos also provides customer care through phone and encrypted internet messaging 24 hours a day, seven days a week (including Thanksgiving and Christmas). During regular business hours, the site also offers a live chat option.

Axos also performs well in mobile banking. The bank’s app, which is well rated on the App Store and Google Play, allows customers to handle basic banking needs while on the road.

Pros

• Competitive interest rates.
• Low costs and limitless refunds for ATM expenses.
• fantastic smartphone app
• Customer service is available 24/7.
• Full-service financial institution.

Cons

• Certain credit unions and banks offer higher interest rates.
• CD rates are below average for an internet bank.

Discover Bank

Discover Bank maintains its fees as low as possible. It has no monthly maintenance costs, no insufficient funds fines, and no fees for accessing out-of-network ATMs. In addition, there are no fees for stopping financial transaction orders given, returned products, or excessive withdrawals.

Each month, the bank’s checking account receives 1% cash back on up to $3,100 in eligible debit card transactions. Customers also have access to a huge ATM network. Discover offers a variety of banking products and services, including a cheap savings account.

Discover also provides mobile banking; the app has received great ratings in the App Store and Google Play. Customer assistance is accessible 24 hours a day, 365 days a year.

Pros

• There are extremely small fees.
• Competitive interest rates and cash-back profits
• fantastic smartphone app
• The ATM network is extensive.
• Customer service is available 24/7.

Cons

• Many other credit unions and banks offer higher interest rates.
• The checking account does not earn interest.

Capital One 360°

Capital One 360 is a mix of an online and a traditional bank. You may manage your accounts whenever and wherever online or by using the bank’s well-rated mobile app.

Capital One Cafés can also be found in various locations. Personal assistance can be obtained in a coffee shop setting at these locations. Cafés provide qualified money coaches, money workshops, and assistance with organizing and maintaining Capital One accounts. If you can’t locate a coffee shop near you, Capital One also has full-service locations in several states. Most internet banks do not have physical locations.

Customer care representatives are available by phone seven days a week, from 8 a.m. to 11 p.m. Eno, the bank’s virtual assistant may be reached via SMS or mobile app. You may also contact Capital One on Twitter.

Capital One 360 makes it simple to open and manage your accounts, whether they are savings, checking, or CDs. There is no minimum deposit or balance requirement for any of the bank’s products.

Pros

• Capital One Cafés provide in-person banking assistance.
• Access to the branch.
• Seven days a week, customer support is provided.
• A large ATM network exists.
• There is no need to have a minimum deposit or balance.

Cons

• An overdraft fee of $35
• There is no mutual fund account.
• Capital One Coffee shops and branches are only available in a few states.

Quontic Bank

Quontic provides competitive APYs, the lowest minimum deposit requirement, cheap fees, and access to nearly 90,000 surcharge-free ATMs across the US. As a Quontic client, you get access to any or all of the services you’d expect from a digital bank, as well as 24/7 online banking and a mobile app.

Quontic provides a couple of additional inventive accounts in addition to its typical banking merchandise like High-Interest Checking, High Yield Savings, market accounts, and CDs. The bank offers a money rewards bank account that gives up to 1% money back on eligible charge account credit transactions. Additionally, Quontic provides a Bitcoin Rewards bank account in select states that pays one.50% Bitcoin on qualified charge account credit purchases.

Live chat, email, and phone support are all accessible.

Pros

• Cash-back checking, interest checking, and Bitcoin checking are all available.
• Banking via mobile and web.
• And over 90,000 surcharge-free ATMs are available.
• A CDFI has been designated.
• Full-service financial institution.

Cons

• Certain banks and credit unions may offer greater interest rates.
• Customer assistance is not accessible 24 hours a day, seven days a week.

Synchrony Bank

Synchrony Bank’s High Yield bank account systematically offers every one of the very best APYs out there while not charging monthly fees or requiring any minimum balance, earning it the prize for a test bank account. The mobile app is simple to use and permits mobile check deposits.

You’ll additionally get an associate’s degree ATM card along with your synchrony bank account for straightforward access to your funds. On top of free in-network ATMs, Synchrony can reimburse you for up to $5 per statement in out-of-network ATM fees. As a result of its associate degree ATM network, you’ll make ATM deposits in addition to direct deposits, electronic transfers, and mobile deposits to fund your account.

Synchrony will charge a $25 outgoing wire transfer fee. That is not out of the ordinary, but a number of the best online banks do not charge that. It does not supply a bank account either, but since you’ll get an associate’s degree ATM card along with your bank account, that may not be very necessary.

Pros

• High annual percentage yield.
• There are no monthly maintenance expenses.
• There is no minimum balance requirement.
• Card and approximately $5 per statement in ATM reimbursements.

Cons

• There is no checking account.
• Fee for outgoing wire transfers.
• There are no physical branches.

Schwab, Charles

Charles Schwab is primarily known for its investment services, but it is also one of the simplest online banks, particularly for jet-setters who need to avoid fees while overseas. A Schwab Bank High Yield capitalist bank account is free, and you will not be charged foreign dealings fees while abroad. Plus, you will get unlimited ATM fee rebates worldwide and a modest APY.

While the bank account is wherever this bank shines for travelers, it will provide a Schwab Bank High Yield capitalist bank account further. The speed is not something special; therefore, you may need to keep larger savings balances elsewhere. That said, it is a free bank account with no minimum balance requirement, so it does not hurt to open one with your bank account.

In addition to checking and savings, Schwab also offers an extended list of brokerage, trading, investment, and retirement products. If you reside abroad, Schwab even has skilled services to assist you to work out the way to invest from where you are settled. Plus, its website features a 24/7 live chat, so you do not have to worry about making international calls if you have got a problem.

Pros

• There are no monthly maintenance expenses.
• There are no reserve ratio requirements.
• Worldwide ATM charge rebates are unlimited.
• There are no international transaction costs.

Cons

• The APY is low.
• There are no monetary deposits.

Is online banking safe?

This is a question most users have because when dealing online with your information and your money, getting scammed or hacked is a bigger concern.

Online banking is generally secure. When logging in to their accounts, most banks utilize data encryption, and some enable users to opt-in to two-factor authentication. When it comes to internet banking, customers should also exercise proper security hygiene.

Are they FDIC insured?

This is the second type of question users ask.

Chartered banks are FDIC insured, which means that if the bank fails, your money is federally safeguarded, generally up to $250,000. However, some online financial organizations are not chartered banks. In such circumstances, the financial institution often works behind the scenes with a chartered bank to offer FDIC protection to consumers.

How to opt for an honest online bank?

Since most of you’ve got many issues, allow us to also tell you about the way to create your alternative out of all the web banks accessible to you.

Online banks don’t have the costs associated with ancient brick-and-mortar institutions. As such, they need the inclination to pass those savings on to customers in the form of lower fees, higher rates, and intuitive digital banking merchandise. But not all online banks measure the same, and a couple of them give better merchandise and experiences than others.

•    Fees. Plaguy fees can quickly rag your overall bank balance. Look for an online bank that keeps fees of all types to a minimum. That option has monthly fees, bill of exchange fees, and ATM fees. It’s even higher if the bank reimburses for third-party ATM charges. Analyze your banking behavior to figure out which fees you want to worry about most. You’ll sometimes avoid fees with the right bank.

• APYs. If you’re attempting to get the most for your money, notice a bank that pays a competitive APR on its financial merchandise. Online banks tend to pay higher rates, so do some comparisons if you want to get the best rates.

•    Minimums. Lower minimum deposit associated balance wants sometimes build it easier to stay up an associate account. Notice an online bank with a minimum balance that meets your financial comfort level.

•    Products. Information superhighway bank you opt on depends heavily on the merchandise you want. Some online banks are full-service financial institutions, providing checking, savings, market accounts, CDs, and different merchandise. Others limit their offerings.

•    ATM network. If having access to cash is incredibly vital, look for an online bank that gives you full access to a surcharge-free ATM network. Check the bank’s computing device to make sure they have ATMs on the brink of your location or inside the areas where you travel most.

•    Customer experience. Online banks usually don’t give branch access, and if they’re doing so, it’s sometimes restricted. That’s why it’s essential to keep consumer support in mind once shopping for an online bank. Look for a bank that gives merely accessible consumer service representatives or online chat alternatives.

•    Digital banking experience. Convenience is crucial on the planet of digital banking. With an online bank, your primary interactions occur via the bank’s computing device and mobile app. The best online banks supply an easy online interface and intensely rated mobile apps for banking on the go. Check out reviews of the mobile app on the App Store and Google Play.

•    Safety. Look for a bank insured by the Federal Deposit Insurance Corporation (FDIC) that gives up to $250,000 in insurance per capitalist, per bank, for each account possession category, in the event of a failure. At credit unions, make sure the account is insured by the National Depository Financial Institution Administration (NCUA).

Disclosure

These are purely the opinions of the author based on observations and analysis of financial platforms and a study of public reviews and ratings on the best online banks rated in 2022 by financial sites and experts. Excerpts from various sources have been used to clarify the facts in this article. A glossary of all the sources used can be found at the end of the article. This article is for educational purposes only and is not financial advice.