Financial priorities for millennials — people born between 1982 to 2004 — might include saving for a first home, paying off student loan debt or simply fine-tuning a monthly budget. Millennials tend to avoid visiting bank branches and instead manage their money online — in fact, 94 percent of consumers under 35 years of age are active online banking users, according to First Data, a credit card processing company that provides payment solutions for merchants. Always compare banks to find a bank that offers a variety of services, including mobile banking and digital banking — all features that can help the typical millennial spender and earner manage his money.
To get you started, GOBankingRates compared products from several popular banks to find some of the best banks for millennials. From online-only banks to traditional brick-and-mortar institutions, this list includes some of the best savings accounts and checking options available for those reaching adulthood in the 21st century.
Best Banks for Millennials
Check out bank account details at a glance, using the following table. Here are the best banks for millennials:
|Best Banks for Millennials|
|Bank||Online and Mobile Banking||Checking Account Fee||Checking Account Rate (APY)||Savings Account Fee||Savings Account Rate (APY)|
|Ally Bank||Yes||$0||0.10%; 0.60% for balances of $15,000+||$0||1.00%|
|Bank of Internet USA||Yes||$0||1.25%||$0||0.61%|
|Capital One 360||Yes||0%||0.10%||$0||1.00%|
|Charles Schwab Bank||Yes||$0||0.15%||$0||0.35%|
|Discover Bank||Yes||$0||$0.10 cash back on up to 100 transactions per month||$0||0.95%|
|First Internet Bank||Yes||$10.00||0.55%||$2||0.60%|
|Rates accurate as of Aug. 2, 2017, except Ally, Capital One, Chase and Discover, which are accurate as of today.|
Top 10 Best Banks for Millennials
To better decide on the right bank for millennial needs, check out more details on each of these financial institutions. Here’s what you need to know about the best banks for young adults and millennials:
Ally Bank offers the highest interest rate — 0.60% APY — on checking accounts with a minimum daily balance of $15,000 and 0.10% APY for balances below $15,000, which makes it a contender for the best bank for millennials. You don’t have to worry about monthly fees and you’ll pay nothing to send money with standard or expedited ACH transfers.
Millennials interested in building credit can ensure they’re paying bills on time by setting up recurring payments from their checking accounts. It’s also easy to move money around and pay someone for goods and services by using Popmoney through Ally.
Take advantage of zero fees on both checking and savings accounts with digital banking services from Discover Bank. One of the unique features of the Discover Bank online checking account is your ability to earn rewards for every transaction instead of earning interest on your balance. Discover will reward you 10 cents for every transaction for up to 100 transactions per month, which means you could earn up to $120 in a year just for writing checks, paying bills online and making a debit card purchases.
Bank5 Connect is an online-only bank that offers attractive rates on checking and savings products. You can take advantage of free, online banking and mobile banking, use ATMs anywhere, get reimbursed for up to $15 in fees per month, and receive a free set of checks with a high-interest checking account. You need only $10 to open the account.
You can open a fee-free checking or savings account online with Capital One and take advantage of features like online and mobile banking to move and manage money when you’re on the go. You’ll pay no fees and there are no minimum balance requirements with a 360 Savings Account — and you can stash away extra cash in a 360 Money Market or 360 CD if you so choose.
You have several options for checking accounts with Bank of Internet USA, including CashBack Checking — which will earn you up to 1 percent cash back whenever you use your debit card — and Rewards Checking, which will earn you up to 1.25% APY on your balance as well as cash-back purchase rewards. Millennials in need of budgeting tips get access to FinanceWorks money management software, which comes at no cost with a High-Yield Savings account.
You’ll get your first order of checks for free and you’ll be covered with overdraft protection when you link your First Internet checking account to your savings. If you like the convenience of managing your accounts via a smartphone or tablet, you’ll also have access to free online and mobile banking features. You can open an interest-bearing checking account with $100 — and you’ll earn 0.55 percent interest as long as you maintain a balance of $500 or more.
Millennials who treat their checking accounts like savings accounts can earn a return on their investment with the Schwab Bank High Yield Investor Checking Account when they link it to a Schwab One brokerage account. Unlike standard checking accounts, this one pays a variable interest rate based on market conditions.
You don’t have to worry about minimum balance requirements or monthly service charges — you can keep earning money on any balance. You’ll also receive rebates on all ATM fees and have the ability to deposit checks right into your savings account using Schwab Mobile Deposit.
You have several options for checking accounts with U.S. Bank, ranging from basic accounts with standard features to top-tier accounts with higher rates and extra benefits if you have a U.S. bank credit card. The Platinum Checking account will pay you interest, and if you decide to open a U.S. Bank or FlexPerks credit card, you’ll earn a new account bonus.
Open a Silver Checking Package with a Package Money Market Savings Account and you can sign up for the U.S. Bank START Smart Savings Program. You’ll earn up to $100 in rewards and bonuses for reaching your savings goal and making gas and grocery purchases with your debit card.
Millennials who are new to Chase Bank can earn up to a $350 bonus for opening a Chase Total Checking and Chase Savings account. If you’re looking to earn interest, you can open a Chase Premier Plus or Platinum Checking account. Key features include access to 16,000 Chase ATMs and online and mobile banking — in addition, you can send money easily via Chase QuickPay with Zelle.
If you prefer to manage your money virtually, open a PNC Checking account with a Virtual Wallet to earn up to a $300 bonus. You can set savings goals, track your spending and even pay your bills on time with online tools.
You can also choose from several types of checking accounts to earn rewards on PNC credit card spending– and earn high interest rates on your balance. The Virtual Wallet also comes with a Growth account, which you can use to achieve your long-term savings goals.
Methodology: GOBankingRates.com identified the best banks for millennials by analyzing the availability of online and mobile banking, and checking and savings account fees and interest rates. All fees and rates are subject to change at the banks’ discretion. Some bonus offers might no longer be available on the banks’ websites, depending on how you access the web page.
GOBankingRates is a personal finance and consumer interest rate website owned by ConsumerTrack, Inc., an online marketing company serving top-tier banks, credit unions, and other financial services organizations. Some companies mentioned in this article might be clients of ConsumerTrack, Inc., which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. 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 the companies included in the article.
All rates are accurate as of Aug. 2, 2017, except for Ally Bank, Capital One 360, Chase Bank and Discover Bank, which are accurate as of today.
Editorial Note: This content is not provided or commissioned by the bank advertiser. Opinions expressed here are author’s alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.