Best Online Banks of 2025

What To Know About Online Banking

Online banking makes it easy to manage your money virtually — without setting foot into a branch. Most online banks don’t have physical locations, but they offer full-service platforms through websites and mobile apps.

One of the biggest benefits? Competitive rates. Many online savings accounts offer APYs around 4% — far above the national average of 0.38% at traditional banks.

How Online Banks Work

With a few clicks or taps, you can handle everyday banking tasks, including:

• Opening new accounts
• Transferring money between accounts
• Depositing checks using your phone
• Paying bills online or through autopay
• Viewing and downloading account statements

Online Banking Fees

Online banks typically charge fewer fees than traditional brick-and-mortar banks. Many accounts waive monthly maintenance, minimum balance and overdraft fees altogether.

Some online banks even reimburse ATM fees — up to a monthly limit — which can save you money when using out-of-network machines. Compared to traditional banks that often charge $10 to $15 per month in maintenance fees, the savings can add up quickly.

Pros and Cons of Online Banking

Considering the pros and cons of online banking can be a helpful first step in deciding if it is right for you.

Pros

• Convenience: Manage your accounts, check balances, pay bills and view statements from anywhere with an internet connection.
• Automation: Set up automatic bill payments and recurring transfers to grow savings with less effort.
• Strong security: Lock or replace lost debit cards, monitor transactions in real time and detect fraud quickly.
• ATM access: Many online banks partner with large ATM networks for cash access.
• Helpful tools: Some online banks offer budgeting features and financial tracking tools to help manage your money.

Cons

• No branch access: Online banks typically don’t have physical locations, which means no in-person service.
• Limited cash deposits: Most online-only banks don’t accept direct cash deposits.
• Delayed check processing: Depositing checks via apps may take longer to clear than in-person deposits.

Best For

People who are comfortable managing money digitally and want higher interest rates, fewer fees and 24/7 access.

How To Choose an Online Bank

If you’re trying to figure out what the best online bank is, you can follow these steps:

• Check the fees: Look for hidden costs like ATM or transfer fees.
• Compare account options: Ensure the bank offers what you need, like cash deposits or specialized accounts.
• Read the fine print of the terms and conditions: Read the details, as some rates or fees might be promotional.
• Check the APYs: Look for the highest rates for your accounts.
• Check the user-friendliness of the website and app: Great rates and low fees are important, but if you don’t like an online bank’s user interface, you might not enjoy the experience over the long run.
• Make sure it’s FDIC-insured: Always confirm your funds are protected.

Alternatives To Online Banks

Online banking isn’t for everyone. If you prefer in-person service or need frequent access to cash, consider these alternatives:

How To Open an Online Bank Account

Opening an account with a top online bank is usually quick and easy. Here’s what to expect:

1. Choose your bank: Pick an online bank that fits your needs.
2. Visit the website: Select the type of account you’d like to open.
3. Apply online: Fill out the application with your personal details — name, address, birthdate and Social Security number.
4. Verify your identity: Most banks ask for one or two forms of government-issued ID — like a driver’s license or passport. Usually, no documents need to be mailed.
5. Fund the account: Once approved, you can make your first deposit — funding typically takes 1 to 3 business days.

Rudri Bhatt Patel contributed to the reporting for this article.

*_{SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.}

Earn up to 4.50% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.80% APY as of 8/5/25) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.

¹We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.

²Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduledpayment date, but may vary.

SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

All information about Discover® Cashback Debit & Discover® Money Market Account has been collected independently by GoBankingRates. Discover® Cashback Debit & Discover® Money Market is no longer available through GoBankingRates.

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