With the emergence of online banking, you can conveniently manage your funds online from anywhere. Without the overheads associated with physical branches, online banks can afford to offer various financial products at attractive interest rates. Read on to know the advantages and downsides of the top online banks.
With an APY of up to 2.80%, Varo is a clear choice for high-yield savings accounts.
Base APY of 0.40%
No minimum balance or monthly fee requirements
Access to saving tools online and via mobile app
No CDs or money market accounts offered
Fees for using out-of-network ATMs
If you’re looking for an online bank that offers attractive returns and scores high on customer satisfaction, Ally Bank is a top choice.
Access to a full-service bank with several products
Round-the-clock customer service
No minimum balance requirements
High overdraft fees
No cash deposit facilities
Lower APY than other financial institutions
Quontic Bank offers the best cashback rewards (up to 1.5%) of all online banks.
An extensive network of over 90,000 ATMs
Variety of Checking, saving, MMA, and CD products
Checking APY up to 1.01%
Restricted customer support timings
High overdraft fees
Bank5 Connect offers the combined advantage of attractive interest and rewards.
Variety of banking products with cashback facilities
Low required minimums for account deposits
Smartphone app access
APY only applicable on maintaining minimum balances
Limited timings for customer support
Discover Bank is a great place to park your funds while saving on fees.
Availability of debit cards with cashback rewards
24/7 banking access through a mobile app
Minimal fees charged
60,000 ATMs nationwide
Checking accounts don’t draw interest
Comparatively low APY
Axos Bank is an ideal full-service online institution offering comprehensive services.
Low fees and competitive annual percentage yield (APY) of up to 1.25%.
Access to a network of 91,000 ATMs
Dedicated banking app
Secure 24/7 customer service
Offers lower CD rates than competitors
Armed with the information above, you’ll find it easy to make an educated decision while choosing an online bank that’s right for you.