The 20 Best Online Banks of 2022

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Online banks offer many of the same products and services as traditional brick-and-mortar institutions, but often have lower fees and higher interest rates due to their lower overhead costs. As the popularity of online banking has grown, so have the number of institutions providing this service, so it can be hard to know which bank may be the best for you and your needs. To help you decide, GOBankingRates has analyzed nearly three dozen online banks across the following factors:

  • Total assets
  • Checking account annual fee
  • Savings account APY
  • 12-month CD APY
  • Customer service products offered
  • Bauer rating
  • Products/services offered
  • Average mobile app rating

GOBankingRates’ Top Picks: Best Regional Banks of 2022
And More: Best National Banks of 2022

Based on GOBankingRates’ analysis, these are the Best Online Banks of 2022.

Our Best Online Bank

Ally Bank

Why it stands out: Ally Bank offers competitive rates on its products, and it also provides a slew of other products for your financial needs if you want to bank all in one place.

Pros:

  • Competitve rates on savings and CD
  • No monthly checking fee

Cons:

  • Can find higher rates at a few other online banks

What to look for: Ally Bank has a variety of products for your financial needs, and it offers solid rates on its savings account (0.50%) and one-year CD (0.55%). It also doesn't have a monthly checking account fee so you keep more of your money.

READ OUR FULL REVIEW
A Better Way to Bank

More of the Best Online Banks 2022

Discover Bank

Why it stands out: With no monthly checking fee, Discover Bank provides customers with a lot, including CDs, credit cards and more.

Pros:

  • No monthly checking fee
  • Diverse product line available

Cons:

  • More competitive rates can be found elsewhere

What to look for: Discover Bank makes the list of top online banks thanks in part due to its diverse product line that includes checking and savings accounts, as well as credit cards and retirement accounts. This bank comes with no monthly fee and competitive rates. It's savings account has an APY of 0.40%, while its one-year CD rate is 0.50%.

READ OUR FULL REVIEW

TIAA, FSB

Why it stands out: TIAA, FSB's competitive rates and no monthly checking fee keep it competitive with other banks on this list and make it worth checking out.

Pros:

  • Competitve rates on savings and CD
  • No monthly checking fee

Cons:

  • Can find higher rates at a few other online banks

What to look for: This bank offers solid rates on its products: Its savings account has an APY of 0.50% and its one-year CD has an APY of 0.55%. There's also no monthly checking account fee here. You'll also have access to over 80,000 fee-free ATMs through TIAA.

READ OUR FULL REVIEW
A Better Way to Bank

Axos Bank

Why it stands out: With a very competitive APY on its savings account, Axos Bank could be a good place to put your money if you're looking to grow it.

Pros:

  • No monthly checking fee
  • Strong APY on savings account

Cons:

  • Less competitive APY on 1-year CD

What to look for: Axos Bank offers a very strong APY on its savings account at 0.61%. It does have a 0.20% APY on its one-year CD, although better rates can be found elsewhere. Its checking account does not have a monthly fee. If you run a business, Axos also provides financial products for various business needs.

READ OUR FULL REVIEW

First Internet Bank

Why it stands out: Its 1-year CD comes with a strong APY compared to other online banks. It also has no monthly checking fee so you don't lose any of your money that way.

Pros:

  • No monthly checking account fee
  • Strong APY on 1-year CD

Cons:

  • Lower APY on savings account

What to look for: First Internet Bank has a stronger APY on its one-year CD at 0.60% compared to some of the other top online banks. The APY on its savings account is a bit lower at 0.25%. Its checking account does not have a monthly fee tied to it. It also offers a variety of products that include loans like for autos, houses and more.

READ OUR FULL REVIEW
A Better Way to Bank

Marcus by Goldman Sachs

Why it stands out: Marcus by Goldman Sachs offers pretty competitive rates on its savings and 1-year CD accounts.

Pros:

  • Competitive savings and 1-year CD rates
  • Diverse product line available

Cons:

  • No checking account

What to look for: Marcus by Goldman Sachs has competitive rates on its products. Its savings account has an APY of 0.50% and its one-year CD has an APY of 0.55%. While this online bank does have a diverse product line that includes investment products, it does not have a checking account like many of the other banks on this list.

READ OUR FULL REVIEW

Synchrony Bank

Why it stands out: Synchrony Bank comes with strong rates for its savings and 1-year CD accounts, if saving and growing money is at the top of your financial needs list.

Pros:

  • Competitive savings and 1-year CD rates

Cons:

  • No checking account

What to look for: This online bank offers competitive rates on its products. Its savings account has an APY of 0.50% and its one-year CD has an APY of 0.55%. While Synchrony Bank does offer other products like credit cards, it does not have a checking account available.

READ OUR FULL REVIEW
A Better Way to Bank

Quontic Bank

Why it stands out: Quontic Bank offers good rates on its savings and 1-year CD accounts, along with no fee for its checking account.

Pros:

  • No checking account fee
  • Competitive savings and 1-year CD rates

Cons:

  • Some online banks do offer stronger rates

What to look for: Quontic Bank offers very strong rates on its savings account at 0.55% as well as on its one-year CD at 0.60%. Those rates are stronger than many of the other top online banks. It also does not have a monthly fee for its checking account. You can also use this bank for a mortgage loan.

READ OUR FULL REVIEW

Sallie Mae Bank

Why it stands out: Sallie Mae Bank offers the highest savings account APY on this list. It also offers a good range of products for your other banking needs.

Pros:

  • Very strong savings account APY
  • Diverse product line available

Cons:

  • No checking account

What to look for: The rates are very competitive at Sallie Mae Bank. Its savings account offers an APY of 0.70%, making it higher than the other banks ahead of it on this list. Its one-year CD APY is 0.60%. However, Sallie Mae Bank does not offer a checking account despite having a pretty diverse line of products.

READ OUR FULL REVIEW
A Better Way to Bank

Comenity Bank

Why it stands out: With a diverse product line, Comenity Bank also offers competitive rates on some of those products to keep it competitive with the other online banks.

Pros:

  • Pretty competitive rates
  • Diverse product line available

Cons:

  • No checking account

What to look for: Bank does not offer a checking account, although it does have a solid line of products for your financial needs. Its rates are competitive for its savings account (0.55%) and its one-year CD (0.65%).

READ OUR FULL REVIEW

TAB Bank

Why it stands out: TAB Bank has a diverse product line and a checking account that doesn't include a monthly fee.

Pros:

  • No monthly checking fee
  • Diverse product line available

Cons:

  • Better rates can be found elsewhere

What to look for: TAB Bank does have fairly strong rates on its savings account (0.50%) and one-year CD (0.50%), although better rates can be found at other online banks. It doesn't have a monthly fee for its checking account. It also has a diverse product line for both your personal and business needs.

READ OUR FULL REVIEW
A Better Way to Bank

lendingclub bank logo

LendingClub Bank

Why it stands out: LendingClub Bank offers a diverse product line to fit many customer needs, which includes banking options for both personal and business needs.

Pros:

  • No monthly checking fee
  • Diverse product line available

Cons:

  • Less competitive savings and 1-year CD rates

What to look for: LendingClub Bank has a solid line of products that you can use for both personal and business needs. Its checking account doesn't come with a monthly fee like many of the other banks on this list. However, its rates are not as competitive. Its savings account APY is 0.33% and its one-year CD APY is just 0.10%.

READ OUR FULL REVIEW

CIT Bank

Why it stands out: CIT Bank offers customers a well-diversified line of products along with a fairly good APY on its savings account.

Pros:

  • Good APY on savings account
  • Diverse product line available

Cons:

  • No checking account
  • Less competitive APY on 1-year CD

What to look for: CIT Bank offers a diverse line of products for almost all your banking needs -- it does not offer a checking account. The APY on its one-year CD is lower than some of the other online banks at 0.30%, however, its APY on its savings account is more competitive at 0.42%.

READ OUR FULL REVIEW

American Express National Bank

Why it stands out: American Express National Bank offers a diverse line of products including credit cards and various other loans.

Pros:

  • Diverse product line available

Cons:

  • No checking account
  • Less competitive APY for 1-year CD

What to look for: American Express National Bank offers plenty of products like credit cards and more, all with the familiar American Express name attached. However, it does not offer a checking account. The rates on its products are decent, although not the strongest. Its savings account has an APY of 0.40% and its one-year CD has an APY of 0.20%.

READ OUR FULL REVIEW

iGObanking.com

Why it stands out: Beyond a decent APY on its 1-year CD, iGObanking.com also offers a diverse line of products including investment services.

Pros:

  • No monthly checking account fee
  • Diverse product line available

Cons:

  • Less competitive APY on savings account

What to look for: iGObanking.com has a competitive rate on its one-year CD compared to others on this list: It comes in at 0.55% APY. Its savings account rate isn't as strong at 0.25%. This online bank does offer a checking account with no monthly fee as well as many other products you might need for your financial matters.

READ OUR FULL REVIEW

Amboy Direct

Why it stands out: With a fairly decent amount of financial services, Amboy Direct also offers good rates on different products to keep its options competitive.

Pros:

  • Good rates on its savings and 1-year CD accounts

Cons:

  • No checking account

What to look for: Amboy Directs rates are somewhat competitive with others on this list. Its one-year CD has a pretty strong rate of 0.50% APY, while its savings account APY is 0.40%. There is no checking account offered at Amboy Direct, which could be a problem for people who want their banking in one place.

READ OUR FULL REVIEW

USAA Federal Savings Bank

Why it stands out: USAA Federal Savings Bank's checking account comes with no monthly fee if you're looking for some basic banking benefits.

Pros:

  • No monthly checking fee
  • Diverse range of products

Cons:

  • Low rates on savings and 1-year CD accounts

What to look for: USAA Federal Savings Bank has some of the least competitive rates on this list. Its one-year CD offers an APY of 0.03% and its savings account has an APY of 0.01%. However, its checking account doesn't have a monthly fee. USAA also offers a strong range of products that includes retirement accounts and other investing options.

READ OUR FULL REVIEW

Barclays Bank Delaware

Why it stands out: Barclays Bank Delaware offers a fairly good APY on its savings account for those who want to save and grow their money.

Pros:

  • Fairly good APY on savings account
  • Diverse line of products available

Cons:

  • No checking account
  • Less competitive APY on 1-year CD

What to look for: Barclays Bank Delaware has a fairly strong APY on its savings account at 0.40%. Its one-year CD APY isn't the strongest, but it is above some of the others at 0.25%. However, there is no checking account available here.

READ OUR FULL REVIEW

incredible bank logo

IncredibleBank

Why it stands out: IncredibleBank offers no monthly fee on its checking account.

Pros:

  • No monthly checking fee

Cons:

  • Low rates on savings and 1-year CD accounts

What to look for: IncredibleBank doesn't change a monthly checking account fee, keeping it competitive with other checking accounts on this list. However, its rates are not as competitive. Its savings account has an APY of 0.02% and its one-year CD has an APY of 0.15%. It does offer various products for both personal and business banking.

READ OUR FULL REVIEW

    monifi bank logo

    Monifi

    Why it stands out: Monifi offers one of the more competitive APYs on its savings account.

    Pros:

    • No monthly checking fee
    • Strong APY on its savings account

    Cons:

    • No 1-year CD account

    What to look for: Monifi offers a strong rate on its savings account at 0.60% APY. This online bank also doesn't have a checking account fee. However, Monifi doesn't offer as many products as some of these other online banks. For example, its the only one that doesn't have a one-year CD.

    READ OUR FULL REVIEW

    How To Choose an Online Bank

    Choosing any type of bank is a personal decision that should match your financial needs. However, there are some general characteristics that you should look for in any bank. Here are some suggestions to help guide you toward the best online bank for you.

    Check the Fees

    Banks will loudly promote their $0 monthly-fee accounts but look behind the scenes to determine if there are additional fees for services you typically will use, such as check writing or ATM withdrawals.

    Read the Fine Print

    Some rates or fees might be promotional in nature; read the details to ensure you won’t run into any surprises down the road.

    Check the APY

    Banks usually publish their highest APYs right on their home webpage, but this doesn’t necessarily mean they have high APYs across their entire product line. Always check the APY to make sure it applies to the products you’re interested in now or might be in the future.

    Check Out the Website and App

    Great rates and low fees are important, but if you can’t understand or don’t like an online bank’s user interface, you might not enjoy the experience over the long run, especially since there are no in-branch options. Take the website and mobile app out for a spin before you commit serious money to an online bank.

    FDIC Insurance

    All banks on this list have FDIC insurance, and indeed, most banks do. However, some fintech institutions that seem like banks don’t technically have their own FDIC insurance. Although they work with partner banks that offer FDIC insurance, your deposits aren’t technically insured until they reach those partner banks. Always check to make sure you understand your financial institution’s FDIC insurance policies.

    FAQs About Online Banks

    Because online banking is still relatively new, you might want to know more about it. Here are the answers to some common questions about online banks.

    How Does Online Banking Work?

    With online banking, you open an account on the bank’s website or over the phone. You transfer money into the account or set up direct deposit, and then you access your funds through direct debit, using a debit card or by setting up an account transfer. The process is easy. You have all the services of traditional banking except for a branch to visit.

    Are Online Banks Safe To Use?

    Online banks are FDIC insured, but some may have cybersecurity issues. The top online banks have advanced security measures in place, including two-step authentication and SSL encryption. Some online banks go so far as to provide an online and mobile security guarantee, protecting you from any unauthorized transactions as long as you notify the bank within 60 days.

    Are Online Banks FDIC Insured?

    Legitimate online banks all share the same FDIC insurance as traditional, brick-and-mortar banks. This means your accounts are insured up to at least $250,000 by the FDIC at your online bank.

    Are There Online Bank Account Promotions or Sign-Up Bonuses I Can Take Advantage Of?

    On occasion, online banks have promotions for new account holders, from cash payouts to higher interest rates. Search the homepage of banks you are interested in to find out about any promotions or bonuses you may be eligible for.

    More From GOBankingRates

    John Csiszar and Ann Logue contributed to the reporting for this article.

    Methodology: To determine rankings, GOBankingRates looked at the following factors: (1) total assets as sourced from the FDIC; (2) checking account annual fee; (3) savings account APY rate; (4) 12-month CD APY rate; (5) customer service products offered (24/7 customer service and live chat with a human); (6) Bauer rating (out of 5 stars); (7) products/services offered (auto loans, mortgage loans, credit cards, investment services, and insurance); and (8) the average mobile app rating between the Android and Apple stores. All factors were then scored and combined, with the lowest score being best. Factor (1) was weighted 1.5 times, factor (2) was weighted 0.5 times, and factors (3), (4), and (7) were weighted 2 times. For all savings and checking account data, only the basic accounts/products offered at each institution were analyzed. All data is up to date as of Nov. 8, 2021. Rates and fees are subject to change.

    About the Author

    Gabrielle joined GOBankingRates in 2017 and brings with her a decade of experience in the journalism industry. Before joining the team, she was a staff writer-reporter for People Magazine and People.com. Her work has also appeared on E! Online, Us Weekly, Patch, Sweety High and Discover Los Angeles, and she has been featured on “Good Morning America” as a celebrity news expert. 

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