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 (some of which are from our partners) 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

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 banking products, including IRA CDs and savings and a checking account with no overdraft fees. It also provides a slew of other products for your financial needs if you want to bank all in one place. For example, Ally provides mortgage loans in most states, and you can complete the entire application online. The bank also has personal loans for specific uses like medical treatment or home repairs and disburses the funds directly to the service provider. Other products include self-directed and robo-investing, plus tools to organize your accounts and analyze your spending to help you save more — something you won't find at most big brick-and-mortar banks. 

Pros:

  • Competitive rates on savings and CD
  • IRA savings options
  • No monthly checking fee
  • No overdraft fees

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 at 0.90% APY and one-year CD at 1.50% APY. 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 and credit cards. Accounts have no monthly service fees or insufficient funds or overdraft fees, and there's no minimum balance requirement. In addition to offering competitive rates on its savings account and CDs, Discover gives 1% cash back on up to $3,000 in debit card purchases per month.

Pros:

  • No monthly checking fee
  • Cash-back rewards
  • 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 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. Its savings account has an APY of 0.90%, while its one-year CD rate is 1.50%.

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. While many banks don't currently offer a money market account, TIAA bank's Yield Pledge Money Market offers an APY of 0.80% across all balance tiers. In addition, TIAA has a bump-up CD that allows a one-time rate increase. You'll also have access to over 80,000 fee-free ATMs through TIAA.

Pros:

  • Competitive rates on savings and CD
  • Bump-up CD available
  • No monthly checking fee

Cons:

  • Can find higher rates at a few other online banks
  • High opening deposits

What to look for: This bank offers solid rates on its products: Its savings account has an APY of 0.80% and its one-year CD has an APY of 1.30%. There's also no monthly checking account fee here, but you'll need a $100 minimum deposit to open a Yield Pledge checking account and a $25 opening deposit for Basic checking. The Yield Pledge money market savings account has a $500 minimum opening deposit.

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A Better Way to Bank

Axos Bank

Why it stands out: With a very competitive APY on its high-yield savings account and rewards checking account, Axos Bank could be a good place to put your money if you're looking to grow it. The rewards and CashBack checking accounts are true standouts, paying up to 1.25% APY for high balances or 1% cash back for frequent signature debit card purchases, respectively. What's more, Axos charges no lender fees on mortgage loans.

Pros:

  • No monthly checking fee
  • Strong APY on savings and rewards checking accounts
  • No lender fees on mortgage loans

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 has no monthly checking fee, so you don't lose any of your money that way. But the bank really stands out for its customer service. First Internet Bank gives you phone and email access to relationship bankers from 7 a.m. to 9 p.m. Monday through Friday and from 9 a.m. to 3 p.m. on Saturdays. 

Pros:

  • No monthly checking account fee
  • Strong APY on 1-year CD
  • Access to relationship bankers

Cons:

  • Lower APY on savings account

What to look for: First Internet Bank has a very strong APY on its one-year CD at 1.92% 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 for autos, houses and more.

READ OUR FULL REVIEW
A Better Way to Bank

Marcus by Goldman Sachs

Why it stands out: Online banks are relatively new in the grander scheme, but Marcus is the result of 150 years of financial experience from Goldman Sachs. That could settle the concerns of anyone who likes the competitive rates and other perks online banks offer but is hesitant to switch from traditional banking. In addition to offering a trusted name in finance, Marcus by Goldman Sachs has pretty competitive rates on its savings and 1-year CD accounts.

Pros:

  • Trusted brand in finance
  • 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 1.00% and its one-year CD has an APY of 1.60%. 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. However, it does offer investment options, including robo-advising.

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. In fact, the 1.10% APY on 15-month CDs is among the highest offered. Rates top out at 2.60% — and there's no minimum balance requirement. Synchrony's 0.55% money market rate is also competitive and has no minimum balance.

Pros:

  • Competitive savings and CD rates
  • No minimum balance requirements for money market account and CDs

Cons:

  • No checking account

What to look for: This online bank offers competitive rates on its products. Its savings account has an APY of 0.85% and its one-year CD has an APY of 1.50% — and rates soar with longer terms. 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 a competitive 2.01% APY on its 12-month CDs and an excellent 2.86% on 60-month CDs. Quontic also stands out for its no-fee checking account that pays 1.10% APY on balances of up to $150,000 with qualifying account activity.

Pros:

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

Cons:

  • Lower rates than some other banks

What to look for: Quontic Bank offers very strong rates on its savings account at 1.01% as well as on its one-year CD at 2.01%. 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 specializes in helping students and their families pay for college and meet their savings goals. In addition to offering private student loans, Sallie Mae provides a personalized scholarship search tool and lets students complete their FAFSA online in under 10 minutes. The bank also offers a high-yield savings account with a 0.60% APY that has no fees and no minimum balance requirements. Other products include credit cards to build credit and pay loans down faster.

Pros:

  • Very strong savings account APY
  • Specializes in banking products for students and their families

Cons:

  • No checking account

What to look for: The rates are very competitive at Sallie Mae Bank. Its SmartyPig savings account offers an APY of 0.70%, higher than some of the other banks on this list. Its one-year CD APY is 1.60%. However, Sallie Mae Bank does not offer a checking account despite having a pretty diverse line of products.

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A Better Way to Bank

Bread Savings logo

Bread Savings

Why it stands out: Bread Savings offers competitive rates on its high-yield savings account and CDs. CDs start earning interest immediately and pay up to 2.85% APY. The high-yield savings account has no fees.

Pros:

  • Competitive rates

Cons:

  • No checking account

What to look for: Bread Savings does not offer a checking account. Its rates are competitive for its savings account at 1.15% APY and its one-year CD at 2.00% APY.

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TAB Bank

Why it stands out: TAB Bank has a diverse product line that includes several checking and savings accounts with no monthly fees. TAB customers soon will be able to earn up to 1% fractional stock rewards on debit card purchases with the TAB Flow account being introduced in the near future. TAB Flow will include additional perks like spending insights and subscription tracking, with no minimum balance and no overdraft fees.

Pros:

  • No monthly checking fee
  • Diverse product line available
  • Stock rewards coming soon

Cons:

  • Better rates can be found elsewhere

What to look for: TAB Bank does have fairly strong rates on its savings account at 1.26% APY and one-year CD at 1.85% APY, 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, including Chrome Checking, a custom checking account for truckers.

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A Better Way to Bank

lendingclub bank logo

LendingClub Bank

Why it stands out: LendingClub is well known for its personal loans, and now it's a full-service bank, too. LendingClub offers products to fit many customer needs, which includes banking options for both personal and business needs. Personal banking options include a high-yield savings account, CDs and checking with a choice between CashBack and rewards debit cards.

Pros:

  • No monthly checking fee
  • Competitive rate on savings account

Cons:

  • Less competitive savings and 1-year CD rates

What to look for: LendingClub 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 checking rates are not as competitive as savings and CD APYs. Whereas its savings account APY is 1.05% and its one-year CD APY is 1.30%, checking accounts earn 0.10% or 0.15% APY.

READ OUR FULL REVIEW

CIT Bank

Why it stands out: CIT Bank, which is now a division of First Citizens Bank, offers customers checking and savings accounts, CDs and home loans, making it a more well-rounded option than many online banks. The Savings Builder account offers an initial 0.449% rate beginning on the first day the account is open. You can continue to earn 0.65% by maintaining a $25,000 balance or depositing at least $100 per month. There are no monthly fees on CIT accounts.

Pros:

  • Good APY on checking and savings accounts
  • Fee-free accounts
  • Diverse product offerings

Cons:

  • Less competitive APY on 1-year CD

What to look for: CIT Bank offers products for basic banking needs. The APY on its 13-month CD is lower than some of the other online banks at 0.30%. However, its APY on its savings account is more competitive at 1.20%.

READ OUR FULL REVIEW

American Express National Bank

Why it stands out: American Express National Bank, Member FDIC, limits its banking products to savings, checking, CDs, individual retirement accounts and personal loans, but what it does, it does well. Unlike most savings accounts, which limit customers to six withdrawals per statement period, the American Express high-yield savings account allows up to nine.

Pros:

  • Competitive rates
  • Nine savings withdrawals allowed per month
  • No minimum required to open a CD

Cons:

  • Less competitive APY for 1-year CD
  • Checking account only available for eligible members

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. It recently began offering a checking account for eligible members. The rates on its products are decent, although not the strongest. Its high-yield savings account has an APY of 0.75%, and its CDs offer up to 2.40% APY for a 60-month certificate.

READ OUR FULL REVIEW

iGObanking.com

Why it stands out: Beyond a decent APY on its 12-month CD, iGObanking.com offers a well-rounded selection of basic banking products. The checking account has no overdraft fees, and neither it nor the savings account charges a monthly fee. IGOBanking's GiftsforBanking program rewards you with a special gift when you fund your two-, three- or five-year CD with $25,000.

Pros:

  • No monthly checking account fee
  • Bonus rate available for savings account
  • GiftsforBanking rewards

Cons:

  • Less competitive rates compared to competing banks

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% once your balance exceeds $5,000. 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.

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Amboy Direct

Why it stands out: With a decent amount of savings products, Amboy Direct also offers good rates on different products to keep its options competitive. While some accounts are available only to New Jersey residents, others, like the Treasure Index CD with a rate that adjusts quarterly, are available nationwide.

Pros:

  • Good rates on its savings and 1-year CD accounts
  • High savings rates for New Jersey residents

Cons:

  • No checking account
  • Limited availability outside of New Jersey

What to look for: Amboy Direct's rates are somewhat competitive with others on this list. Its one-year CD has a pretty strong rate of 0.50% APY, while its eSavings account APY is 1.01% for New Jersey residents only. There is no checking account offered at Amboy Direct, which could be a problem for people who want their banking in one place.

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USAA Federal Savings Bank

Why it stands out: USAA Federal Savings Bank has one of the most comprehensive selections of products available through online banks. In addition to checking, savings, credit cards and CDs, USAA offers personal and vehicle loans, personal and mortgage loans plus insurance, investing and retirement accounts. The bank is unique among online financial institutions in that it provides teller's checks for expenses you can't pay with your debit card.

Pros:

  • No monthly checking fee
  • Teller checks available
  • 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 basic savings account has an APY of 0.01%. However, its checking account doesn't have a monthly fee. 

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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. With no fees, no minimum deposits to open even for CDs and tools to help you build savings, Barclays accounts are customer-friendly and easy to use. One standout tool is the CD Calculator. Enter your opening deposit and the duration, and the calculator shows how much you'll have when the CD matures. It's a good planning tool that can help you decide which accounts are best for your needs.

Pros:

  • Fairly good APY on savings account
  • Tools to help you plan and save

Cons:

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

What to look for: Barclays Bank Delaware has a strong APY on its savings account at 0.90%. Its one-year APY is also competitive at 1.50%. However, there is no checking account available here.

READ OUR FULL REVIEW

incredible bank logo

IncredibleBank

Why it stands out: IncredibleBank has one of the largest product selections of the online banks in this ranking. In addition to credit cards, individual retirement accounts and mortgage, personal and motorcoach loans, IncredibleBank offers three checking accounts, plus CDs and savings, money market and health savings accounts. Its basic checking account is an especially good option. Although it's a no-frills account, it has something many other online banks don't offer — unlimited check writing.

Pros:

  • No monthly checking fee
  • Unlimited check writing
  • Good selection of products

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 up to 0.10% 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 just one account that combines spending, savings and personal financial goals. There's no fee, and you get lots of tools to help you track spending and make your money grow. You decide how much of your balance to devote to spending and how much to devote to saving. If you'd like, you can set savings goals and fund each one separately, all within the app.

    Pros:

    • No monthly checking fee
    • High APY on its save portion of account balance

    Cons:

    • Just one account offered

    What to look for: Monifi offers a strong rate on the portion of your balance you've devoted to savings at 0.70% APY and no monthly fee. However, Monifi only offers one account.

    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.

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

    Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of April 20, 2022.

    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.

    Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been reviewed, approved, or otherwise endorsed by American Express.

    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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