Online banks offer 10-20x higher interest rates than traditional banks, with no fees and better technology. This guide compares the best online banks for savings, checking, and full-service banking.
Best Online Banks 2025
- Best Overall: Ally Bank (4.00%+ APY, full banking)
- Highest Savings Rate: Bread Savings (5.00%+ APY)
- Best for Checking: SoFi (4.50% APY checking + savings)
- Best No-Fee: Discover Bank (no fees, cashback debit)
- Best CD Rates: Marcus by Goldman Sachs
Top Online Banks Compared
| Bank | Savings APY | Checking APY | Min Balance | Rating |
|---|---|---|---|---|
| Ally Bank | 4.00% | 0.10-0.25% | $0 | |
| SoFi | 4.50% | 4.50% | $0 | |
| Marcus | 4.00% | N/A | $0 | |
| Discover | 4.00% | 0% | $0 | |
| Bread Savings | 5.00% | N/A | $100 | |
| Capital One 360 | 4.00% | 0.10% | $0 |
Detailed Bank Reviews
BEST OVERALL
Ally Bank
- Savings APY: 4.00%
- Checking: Interest-earning, no minimums
- Products: Savings, checking, CDs, money market, investing
- Pros: Full-service banking, excellent app, 24/7 customer service
- Cons: No physical branches, no cash deposits
- Best for: Primary banking relationship
HIGHEST CHECKING
SoFi
- APY: 4.50% on checking AND savings (with direct deposit)
- Features: Early paycheck (2 days), no fees, free overdraft
- Products: Checking, savings, investing, loans, crypto
- Pros: Highest APY on checking, 55,000+ ATMs
- Cons: Requires direct deposit for best rate
- Best for: Maximizing interest on all money
BEST SAVINGS
Marcus by Goldman Sachs
- Savings APY: 4.00%
- CDs: Competitive rates, no minimums, no-penalty option
- Products: Savings, CDs only (no checking)
- Pros: Goldman Sachs backing, consistent rates
- Cons: No checking account, limited products
- Best for: Dedicated savings account
Feature Comparison
| Feature | Ally | SoFi | Marcus | Discover |
|---|---|---|---|---|
| Checking Account | Yes | Yes | No | Yes |
| Savings Account | Yes | Yes | Yes | Yes |
| CDs | Yes | No | Yes | Yes |
| Money Market | Yes | No | No | Yes |
| ATM Network | 43,000+ | 55,000+ | N/A | 60,000+ |
| Mobile Deposit | Yes | Yes | Yes | Yes |
| 24/7 Support | Yes | Yes | Yes | Yes |
Online vs Traditional Banks
Why Online Banks Pay More
- No branches: Lower overhead = higher rates for you
- No minimum balances: Most require $0 to open
- No monthly fees: No maintenance fees
- Better technology: 24/7 mobile banking
- FDIC insured: Same $250,000 protection as traditional banks
Best for Specific Needs
Best for Emergency Fund
- SoFi: 4.50% APY with easy access
- Ally: Buckets feature to organize savings
Best for Checking
- SoFi: 4.50% APY on checking
- Discover: 1% cashback on debit purchases
Best for CDs
- Marcus: Consistent competitive rates
- Ally: No-penalty CD option
How to Switch Banks
- Open new account: Usually takes 10-15 minutes online
- Set up direct deposit: Update with employer
- Move automatic payments: Update billing information
- Transfer funds: Link old and new accounts
- Keep old account open: For 1-2 months during transition
- Close old account: Once everything is transferred
Fees to Avoid
- Monthly maintenance: All listed banks have $0 fees
- Out-of-network ATMs: Use in-network or get reimbursed
- Overdraft: SoFi covers up to $50 free
- Wire transfers: Can be $20-30 (use ACH instead)
- Paper statements: Some charge, go paperless
Security Features
- FDIC insurance: $250,000 per depositor
- Two-factor authentication: Enable on all accounts
- Fraud monitoring: Real-time alerts
- Card lock: Instant lock/unlock via app
- Encryption: Bank-level security