Best Online Bank | money

Online banks are becoming increasingly popular due to their high annual percentage yields (APYs) and low fees. Thanks to their low overhead costs, they can pass on savings to customers, making them a good choice for those looking for savings accounts or certificates of deposit (CDs) with high APYs and free checking options.

Rates, deposit requirements, customer service options and fees can vary significantly by institution, so in the fall of 2024, we researched major banks and credit unions and identified the best online banks. In January 2025, we verified and updated our data to reflect current offerings. Here are the institutions that we have selected as the best online banks for 2025:

*Rates, APYs and special offers are subject to change. All information provided was correct as of January 22, 2025.

Apart from its credit cards, find out Also known for its banking products. It offers deposit accounts with much higher APYs than usual with no monthly fees and has some unusual perks like rewarding customers for debit card purchases. Discover offers savings accounts, checking accounts, money market accounts and certificates of deposit. Unlike many online banks that only accept electronic transfers or deposits, Discover is one of the few that allows customers to make cash deposits, making it a great option for those who regularly receive tips. or work in cash-based businesses.

Although Discover has lower fees and no minimum deposit requirements for its CDs, it limits how much you can withdraw per month from a savings or money market account, and it charges a $30 outgoing wire transfer fee. – Fees higher than many other institutions. .

Money reviewed from all banks and credit unions, VO Bank It has one of the highest rates for money market accounts, and it doesn’t charge a monthly fee on these accounts. You can open an account with as little as $100 and earn 10x the national average APY with Vio. The bank has savings accounts, money market accounts and CDs, and offers above-average APYs on all of its deposit accounts. This low account boasts minimal and no monthly fees, making it a great choice if you want to grow your money in a safe place.

However, the Vio has some limitations. It doesn’t offer checking accounts, so you’ll need another bank account to get check-writing privileges or access to a debit card, and if you prefer paper statements. So Vio charges a $5 monthly fee. Unlike many online banks, VO has limited online tools and resources. Other financial institutions have robust apps, calculators, budget guides and videos that help people manage their money; VO is more barebones.

Checking accounts rarely pay interest, and when they do, the rates are low — the national average APY is about 0.07%. Redneck Bank A powerful alternative with an ironic name; You can earn a significantly higher rate with its rewards checking accounts, and Redneck Bank doesn’t charge a monthly fee. It offers the highest APY available for its checking account, and you can open a checking account with as little as $500 (no minimum balance or monthly fees required after that). Redneck Bank will also reimburse up to $25 in ATM fees per month, making it easier to access your cash at an ATM.

However, there are some caveats to be aware of. Its highest APY applies only to balances up to $15,000; Amounts above that amount will earn a much lower rate of interest. Additionally, Redneck Bank doesn’t offer savings accounts or CDs, so you’ll likely need another bank for your other financial needs.

Farbright Bank Offers an exceptionally high APY on its Vikas Savings Account, so you can earn an APY that’s 10 times the national average, with no monthly fees. Forbright offers both savings accounts and CDs with high APYs, and you can easily open an account online. With its savings account, there is no limit on the number of withdrawals or transfers you can make per month. This feature is a significant advantage over other banks that typically limit customers to only six withdrawals per month (and charge high additional withdrawal fees).

Unfortunately, Forebright’s savings account doesn’t include debit card access, so you can’t withdraw money from an ATM. And the bank offers checking accounts and money market accounts only through its branches. It operates branches in only two states: Maryland and Virginia.

For those looking for a one-stop option for both banking and investing, acorn Offers innovative and unique options. For a flat membership fee, you can get access to checking and savings accounts with above-average APYs, and you can take advantage of investment account round-up deposits and shopping rewards. When you become an Acorns member, you can open a checking account and a savings account along with your investment account.

As you use your bank accounts, you can activate the “round-up” feature — a micro-savings strategy by rounding up Acorn debit card or banking transactions to the next whole dollar amount and counting the difference in cost. Used to make deposits into your investment account. Once $5 in spare change is deposited into your investment account, Acorns will invest the money in the stock market on your behalf. Acorns also has a paycheck split option, which allows you to automatically invest a portion of your paycheck as it arrives.

However, Acorns does not offer CD or money market accounts, and requires a monthly membership fee.

Bank5Connect Has excellent customer reviews compared to other banks. On TrustPilot, its score is in the “excellent” range, unusual for a bank, and it offers several customer support options. Other banks often have limited customer support options. With Bank5Connect, you can reach customer service by phone, email, live chat or setting up a video meeting – an extraordinary feature. It also has a top-rated mobile app that you can use to manage your accounts, pay bills, and send money to friends or family through Zelle.

Unlike other banks whose CD terms are up to 10 years, Bank5Connect is more limited. It only offers CDs with terms of 36 months or less with a minimum deposit of $500. Plus, to earn the highest rate on its money market account, you’ll need to deposit at least $5,000 — much more than a typical requirement.

American Express Exceeds charge cards or credit cards; It is also an excellent banking option. It offers higher-than-average APYs on deposit accounts, and also has an interest-bearing checking account. Through American Express, you can open a checking account, savings account or CD. These accounts have no monthly fees or minimum balance requirements, and you can even earn Amex Membership Rewards points with your checking account when you use your debit card.

Unfortunately, American Express does not offer money market accounts, and it has CD term options. Although Amex offers CDs with higher APYs, be aware that there are early withdrawal penalties; Depending on the term of your CD, the penalty can be as much as 540 days of interest.

SoFi Offers powerful no-fee bank accounts, meaning it doesn’t charge monthly fees or ATM fees. And if you meet the direct deposit requirements, SoFi won’t even charge overdraft fees. Through SoFi, you can open a combination checking account and savings account; They cannot be opened separately. Both accounts earn above-average APY, and you may even qualify for a new customer bonus based on your deposits.

There are some drawbacks to keep in mind. SoFi doesn’t offer CDs or money market accounts, so you’ll need to look elsewhere for those products. And to earn the full SoFi new customer banking bonus, you’ll need to receive at least $5,000 in direct deposits within 25 days. For some, this need can be difficult to meet.

Most banks that offer new customer bonuses charge monthly fees or require heavy deposit requirements. Allied Credit Union is different; It will reward you with $100 if you save at least $100 per month for 12 consecutive months (and maintain a balance of at least $1,200). This is a significant reward for a no-fee account. Alliant has checking accounts, savings accounts and share certificates — the credit union equivalent of a CD — with above-average APYs and no monthly fees. As with many credit unions, membership is limited to select groups, but Alliance membership is open to residents nationwide.

However, Alliant does not have money market accounts, and has more restrictive share certificate terms than other banks; The maximum tenure is only 60 months. In addition, Alliant charges customers a paper statement fee, which can increase your overall cost.

How we picked the best banks of 2025

To determine our list of the best banks for 2025, MoneyStaff evaluated hundreds of the largest retail banks, credit unions, regional and state banks, ranked by assets, and the 20 most popular online banks. We then compared initial balance requirements, interest paid, fees and features to determine our top picks.

We researched the top 25 digital and online financial institutions to identify the best online banks and credit unions of 2024-2025 and then compared the institutions’ account options, deposit minimums, APYs, fees and customer service. Banks and credit unions were prioritized with no monthly fees and above-average APYs, and we also emphasized tools available through mobile apps and online portals.

You can Read our full procedure here.

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