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Best Online Banks (May 2024)
Top Online Banks in May 2024A recent MarketWatch Guides survey found that nearly half of Americans (47.4%) primarily access their finances through their bank's website or mobile app – regardless of their age. Only about 10% prefer to physically visit their bank. For people who don't need in-person banking services, online financial institutions may offer a way to access competitive interest rates and potentially more account features.
It's important to compare online banking options to make sure you're not missing out on any necessities. We at the MarketWatch Guides team will give you an overview of our picks for the best online banks, plus tips on how to choose one for yourself.
We've explored the best banks online to help you find the right features for your personal finance needs. In our review of more than 100 banks and credit unions, the 10 financial institutions covered below were the top-scoring online-only options that offered both checking and savings accounts. You can see how we score each bank here. Having a checking account can be especially helpful if you bank online, as savings accounts may limit withdrawals or not provide ATM access.
Advantages of Online BanksChoosing an online bank may come with several benefits. First, online financial institutions have lower overhead costs than traditional banks and credit unions as they don't have to maintain physical locations and staffing. As a result, they are typically able to charge less fees and offer higher APYs on deposit accounts. Many of the financial institutions on this list have savings account interest rates that are more than 10 times the national average rate, according to the Federal Deposit Insurance Corp. (FDIC). In terms of fees, many online banks also have low or no fees for items like monthly account maintenance, overdrafts and ATM withdrawals.
Ask an Expert
Brandon Renfro
Ph.D., CFP, RICP, EA
"Online banks offer many of the same services as traditional brick-and-mortar institutions, but not all of them. There are some advantages, such as typically higher rates and more robust mobile services, but you need to be sure that you are comfortable with not having a local branch to visit in person."
According to FDIC data, Americans are increasingly relying on digital ways to access their bank account. Initially, it was through online banking, but since 2017, mobile apps have become the most popular way people access their banks. Online banks are a convenient way to manage your money through your smartphone or computer. These institutions often have sophisticated mobile apps and online banking features that let you easily transfer and deposit funds and track your balances.
Online Banks vs. Traditional BanksWhile online banks offer convenience and flexibility, tthey don't have physical branches or tellers to field your questions. Still, not getting a lollipop may be worth it for what you save in fees. If you're on the fence about whether to choose a brick-and-mortar bank or an online one, our comparison table can help you decide:
MarketWatch Online Bank Top Picks Chase Bank Bank of America Wells Fargo Monthly maintenance fee $0-$10 $12 $4.95 to $25 $5 to $35 Overdraft fee $0 to $37 $34 $0 to $10 $35 Stop payment fee $0 $25 $30 $0 Checks $0 ~$20 ~$20 $0 to $17 Checking APY 0.00% to 2.00% 0.00% 0.00% 0.00% to 0.01% Savings APY 1.2% to 5.21% 0.01% to 0.02% 0.01% to 0.04% 0.01% to 2.51% CD APY 2.00% to 5.45% 0.01% to 4.75% 0.05% to 4.75% 1.50% to 5.01%>> Related: Learn more about the biggest banks in the United States
How To Choose the Best Online BankOnline-only banks are convenient, but they don't all offer the same features and benefits. Some, for instance, don't offer paper checks. That could be inconvenient if you have even one monthly bill that requires payment by check.
Ben Alvarado, executive vice president and director of core banking at California Bank & Trust, recommends basing your decision on your financial priorities. Consider things like fees, ATM access, interest rates and customer service, he told MarketWatch Guides.
Ask an Expert
Ben Alvarado
Executive Vice President and Director of Core Banking, California Bank & Trust
"Today, most checking accounts come with online and mobile banking, so ease of use and features of the app may be more important to you."
To decide which bank is right for you, start making a list of online banks that have the financial products you need. Then compare features such as interest rates, monthly fees and ATM access.
Some banks have requirements that must be met before you can access the best features or rates. For instance, you may need to maintain a minimum balance or receive monthly direct deposits.
Here are some other tips for comparing online banks:
There are a few other services you may want to consider when choosing an online bank. This allows you to tailor your banking experience to your needs and expectations.
Checks: Some online banks don't offer paper checks, so if you need them, choose a bank that offers that feature, such as SoFi or Discover.
Cash deposits: Since online banks don't have physical branches, options for depositing cash are limited. Some partner with third-party networks to accept cash deposits, usually for a fee. Discover lets you make cash deposits at Walmart at no cost. SoFi partners with stores such as CVS and Dollar General to let you make cash deposits at the counter for a fee.
ATM access: Online banks usually give you access to a network with thousands of fee-free ATMs. Many banks charge a fee for using out-of-network ATMs.
Customer support: Check customer reviews and the bank's website to learn about the availability and quality of customer support options including phone, email and online chat.
>> Related: Learn more about how to switch banks
Pros and Cons of Online BankingOnline banking comes with both benefits and drawbacks compared to brick-and-mortar banks.
ProsConvenience: Many banking tasks can be done online or with a mobile app, including depositing checks. Online banks often have features that make it easy to manage your account via your smartphone or computer.
Often lower costs: Online accounts often don't have monthly maintenance fees or require a minimum deposit or daily balance to keep your account open. So if you don't keep a lot of cash in your accounts and want to avoid accumulating fees, online banking could be a good option.
Potentially higher savings rates: You'll generally earn more on your balance with an online bank that offers high-yield deposit accounts. On our list of the best online banks, many have APYs ranging from 3.00% to 5.00% for savings accounts, which is far above the national average. ConsSometimes limited cash transactions: Many online banks don't allow you to deposit cash. And if you want to make a withdrawal, you'll likely need to find an in-network ATM to avoid fees.
Paper checks may not be available: You may find that your online bank does not provide paper checks and only lets you pay for things with your debit card, digital wallet or with a bill-pay feature.
May have direct deposit requirements: You might have to enroll in direct deposit to qualify for many online banks' benefits. Check the eligibility requirements before you apply for an account.
Recap of Our Top Online Banks Frequently Asked Questions What is online banking?Online banking generally refers to connecting to your bank accounts using your bank's website or mobile app, instead of going inside a physical bank branch to make a transaction. It can also mean using a bank or financial institution that doesn't have physical branches – typically called a digital or online bank – to do all of your banking.
Common online or mobile banking transactions include transferring money from one account to another, depositing a check on your mobile app, paying someone via Zelle or paying a bill through automatic bill pay.
What is the No. 1 rated online bank?Our top-ranked pick for online banks is SoFi. Both its checking and savings accounts have competitive interest rates. It offers a sign-on bonus of up to $300 and features perks like cash-back rewards and early access to direct deposits.
What is a good online bank account?Our top online bank account picks are SoFi Bank, Discover, Ally Bank and Varo Bank, among others. Look for financial institutions that are reputable, charge few if any fees, have high APYs on the accounts you're interested in and have high customer satisfaction.
How safe is online banking?Online banking is safe in general, but make sure a credit union or bank you're considering is NCUA- or FDIC-insured. When banking digitally, follow best practices such as using complex passwords and two-factor authentication.
Our MethodologyOur team researched more than 100 of the country's largest and most prominent financial institutions, collecting information on each provider's account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
For our list of the best online banks, we selected the highest-scoring online-only options that offer both savings and checking accounts. These banks earned high scores for features that help customers avoid extra costs and do more of their banking in one place, such as having low or no monthly fees, providing free ATM access and offering CDs and money market accounts.
To gain additional insights into consumer banking trends, MarketWatch Guides surveyed 1,000 American adults via Pollfish. Results were post-stratified to generate nationally representative data based on age, gender, marital status and household income. Pollfish employs organic random device engagement sampling. The margin of error is +/- 3 points with 95% confidence.
*Data accurate at time of publication.
**Rates and promotions accurate as of May. 29, 2024.
Editor's Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person's situation and needs are different.
U.S. Bank Vs. Chase: Which Bank Is Right For You?
Many or all of the products here are from our partners that compensate us. It's how we make money. But our editorial integrity ensures our experts' opinions aren't influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.Bottom line: Chase is better for its higher CD rates and larger network of banks, while U.S. Bank has lower monthly fees on its savings and checking accounts.
Chase vs. U.S. Bank: Account options Checking accounts
Chase and U.S. Bank both offer standard personal checking accounts. The U.S. Bank Smartly® Checking has a waivable $6.95 monthly fee, a $25 minimum opening deposit, and overdraft protection.
Likewise, the Chase Total Checking® has a waivable $12 monthly service fee, no minimum opening deposit, and overdraft assistance. Between the two, U.S. Bank's checking account is both cheaper and comes with more ways to waive the fee, including being 24 and under, 65 or older, or a member of the military.
Chase and U.S. Bank each offer a variety of student and business checking accounts as well.
* Chase Total Checking®
*With Chase Overdraft Assist℠, we won't charge an Overdraft Fee if you're overdrawn by $50 or less at the end of the business day OR if you're overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day (you have until 11 PM ET (8 PM PT) to make a deposit or transfer). Chase Overdraft Assist does not require enrollment and comes with eligible Chase checking accounts.
You'll find a variety of account options with both Chase and U.S. Bank.
Savings accountsChase and U.S. Bank both offer a basic savings account, the U.S. Bank Standard Savings Account and Chase Savings℠. Between the two, the U.S. Bank Standard Savings Account has a slightly cheaper monthly maintenance fee -- $4 compared to the $5 fee on Chase's account -- but it also has a $25 minimum opening deposit, whereas the Chase has none.
Both accounts give you multiple ways to waive the fee, such as maintaining a daily balance of $300. Neither account has a competitive APY, at least not in respect to high-yield savings accounts.
CDsChase and U.S. Bank both offer standard and special CDs with a variety of terms. Between the two, Chase CDs generally have higher rates, but its minimum opening deposit is double U.S. Bank -- $1,000 versus $500. You also need a Chase checking account to snag the best APYs.
In regards to term lengths, Chase also has more to offer its clients. Whereas U.S. Bank has 11 CD terms to choose from (ranging from one to 60 months), Chase has 17 (ranging from one to 120 months). This might make Chase a better choice for those looking to build a long and more varied CD ladder.
Rates as of May 14, 2024APY = Annual Percentage Yield
Offer Member FDIC. Member FDIC. Account Chase Standard CD U.S. Bank Standard CD 6 Mo. 3.00% 0.05% 9 Mo. Up to 4.75% 0.05% 1 Yr. 2.00% 0.05% 1.5 Yr. 2.50% 0.05% 2 Yr. 2.50% 0.05% 3 Yr. 2.50% 0.10% 4 Yr. 2.50% 0.15% 5 Yr. 2.50% 0.25% Min. Deposit $1,000 $500 Early Withdrawal Penalty Yes Yes Next StepsChase vs. U.S. Bank: APYs
Chase generally has higher APYs for its CDs, though it doesn't have a savings account to compete with the U.S. Bank Elite Money Market Account.
As far as Chase CD APYs go, the bank's standard, non-relationship rates are pretty abysmal, coming in at just 0.01% for every term. It does, however, offer decent APYs for a few terms that it dubs "relationship rates," meaning for customers with a linked Chase personal checking account. As rates can change at any time, it's best to check Chase's website for its current rate sheet showing available relationship rates.
U.S. Bank generally offers rates between 0.05% and 0.25%, though occasionally you'll find special CDs with competitive rates.
Although most U.S. Bank CD rates are not on par with Chase CDs, the U.S. Bank Elite Money Market Account has a decently competitive APY of up to 4.25% when you maintain a $25,000 deposit. This ranks it among some of the top money market accounts in terms of APY. Chase doesn't currently have a money market account or high-yield savings account to compete with this.
Chase vs. U.S. Bank: Customer service
Chase and U.S. Bank are neck in neck in customer service reviews. Chase has a slight edge in that it ranked higher on the J.D. Power 2023 National Banking Satisfaction Study, which gave it a score of 674, significantly higher than the study's average of 653. U.S. Bank had a score of 652, below the study's average along with several other big national banks.
On the Better Business Bureau, Chase has an A+, while U.S. Bank's rating is currently under review ("NR"). They both share a "bad" rating on Trustpilot (1.3 stars) and roughly one star on their BBB profiles.
Chase vs. U.S. Bank: Mobile apps
Both banks have highly rated mobile apps with similar banking features and tools. They both let you deposit mobile checks, give you personalized insights to your spending, and let you link external accounts to get a full picture of your personal finances. Both apps also let you send and request money with Zelle and also let you access and monitor your credit score.
Chase's app has a collective 4.6 stars on both the Apple App Store and Google Play, while U.S. Bank has a slightly higher collective rating of 4.75 stars across both.
Chase vs. U.S. Bank: Which is right for you?
If you're looking for the cheapest savings or checking account from a big national bank, U.S. Bank might be right for you. The bank also gives you plenty of ways to waive fees, including holding a U.S. Bank credit card or being a member of the military.
Chase, on the other hand, has the largest branch network in the U.S. With over 4,700 branches in 48 states. It also has more CD terms and generally higher rates. While the fees on its savings and checking accounts are slightly higher than U.S. Bank, it does offer numerous ways to waive them.
Compare savings ratesMake sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
up to 4.60%
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.Sofi.Com/legal/banking-rate-sheet.Min. To earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!
5.00% APY for balances of $5,000 or more
Rate info Circle with letter I in it. 5.00% APY for balances of $5,000 or more; otherwise, 0.25% APYMin. To earn: $100 to open account, $5,000 for max APY
N/A
5.25%
Rate info Circle with letter I in it. To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.Min. To earn: $0
N/A
Our bank and credit union methodologyOur methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how The Motley Fool Ascent rates bank accounts.
FAQsIf you're looking for a large national bank with branches across the 48 contiguous U.S. States, Chase might be right for you. It also might be a good fit for those who want an easy way to waive fees on checking and savings accounts, as its requirements are comparatively low.
U.S. Bank might be a good choice if you want a low monthly fee on your checking and savings account, plus numerous ways to waive it. Its checking account is also well suited for those who are older than 65, younger than 24, a member of the military, or have a U.S. Bank credit card, as account fees are automatically waived.
That said, you have to live in one of the states where U.S. Bank operates to open an account (Arizona, Arkansas, California, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, South Dakota, Tennessee, Texas, Utah, Washington, Wisconsin, and Wyoming).
Bank Of America CD Rates: May 2024
Updated 1:32 p.M. UTC May 22, 2024
Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy.
Many Bank of America's CD terms offer unimpressive rates, with an annual percentage yield (APY) as low as 0.03%. The bank's best offerings, the Bank of America Featured CDs, do offer better yields, but have fewer terms available.
Annual percentage yields (APYs) and account details are accurate as of May 22, 2024.
Overviews of Bank of America CDsBank of America offers two groups of certificates of deposit (CDs):
Once you open the CD, the interest is compounded and added to your account on a monthly basis. Compounding interest is a powerful tool to make money using your money. You have the option to collect the interest at maturity or at intervals throughout the term. Early withdrawal penalties apply.
How much can you earn with Bank of America CDsThe point of a CD is to grow and protect your funds. Here's what you would earn with a $10,000 investment when earnings are compounded monthly.
How Bank of America CDs compareWhile some of Bank of America's CD rates are above the national average, many are well below and all of them are lower than what top competitors offer. Its minimum deposit requirements while affordable, can be beaten. Both Capital One and Synchrony Bank don't have CD minimum balance requirements.
Shop around before diving into a CD with any particular bank. As you consider your CD options, take the time to compare rates and terms across multiple financial institutions. You might be pleasantly surprised to find a better deal.
About Bank of AmericaIn terms of assets, Bank of America is the second largest commercial bank in the United States and has roots that go back more than 240 years. The full-service bank has approximately 3,900 physical branch locations. But, if in-person banking isn't your first choice, you can take advantage of its strong online banking platform and highly-rated mobile app, which has at least 4.6 stars out of five on both Apple and Google's app store.
Frequently asked questions (FAQs) Where can I find CD rates?You can see CD rates directly on bank websites. But it's often easier to shop around for CD rates through a site that compiles up-to-date rates. With the information in one place, you can more easily find a CD that suits your needs — whether you're after the absolute best return on your savings or certain term lengths. Here's how to start investing.
When do I start earning interest on my CD rates?Most CDs compound interest on a daily or monthly basis and will credit the interest earned to your account each month. With Bank of America's Featured CDs, you'll see your interest compounded and credited on a monthly basis.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider's website for the most current information.
Sarah Sharkey is a personal finance writer who enjoys diving into the details to help readers make savvy financial decisions. She covered mortgages, insurance, money management, and more. She lives in Florida with her husband and dogs. When she's not writing, she's outside exploring the coast.
Jenn Jones is the deputy editor for banking at USA TODAY Blueprint. She brings years of writing and analytical skills to bear, as she was previously a senior writer at LendingTree, a finance manager at World Car dealerships and an editor at Standard & Poor's Capital IQ. Her work has been featured on MSN, F&I Magazine and Automotive News. She holds a B.S. In commerce from the University of Virginia.
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