Best Online Banks for February 2025

Many of us grew up making the journey to a local branch to handle banking business. But now, with online banking, you can bank primarily online. While many online banks don't have physical locations, they offer perks that in-person banks don't. Most notably, the best banks with an online-only experience have high savings account interest rates and no monthly fees.

Best Online Banks for February 2025

• Ally
• Capital One
• Discover®
• Axos Bank
• SoFi®
• Popular Direct
• Newtek Bank

With online banks, you'll primarily manage bank accounts through online and mobile banking. If you need to speak to a banker, you can reach out to customer support by phone or live chat generally.

Compare the Top Online Banks

Below, we've provided information comparing top-rated online banks. We know "best" means something different for everyone, so we've listed each bank's strengths, as well as its limitations. These online banks have stayed as our top picks for the last few months because they continue to stand out for minimal fees, variety of bank account options, and unique features. If you'd like to learn more about brick-and-mortar options, the best banks might be worth exploring.

Ally Bank

Ally is one of the best online-only banks, and it'll surely stand out to you if you are primarily interested in getting strong bank accounts and investing. 

Ally is one of the few banks that doesn't have minimum opening deposits for any of its accounts, so you can start online banking with any amount.

The Ally Savings Account makes it especially easy for you to save. You can set up separate savings buckets for different goals, such as Emergency Savings or Travel Fund. The Surprise Savings feature assesses your checking account balance three times per week to determine how much you can afford to save, then transfers money into your savings account.

You can contact Ally customer support 24/7, either over the phone or via live online chat.

The Ally Spending Account is a solid account, and similar to the bank's high-yield savings account, it has spending buckets to help you manage expenses. Ally is one of the best banks for overdrafts since it doesn't charge overdraft fees, and has multiple overdraft protection options so your transactions aren't simply denied if you accidentally overdraw.

Ally also has one of the best investment apps for beginners. If you're looking for a robo-advisor to get started with investing, it's also a solid choice. 

Ally Bank Review

Capital One 360

Capital One ranks as No. 1 on the J.D. Power U.S. National Banking Satisfaction Survey. This study evaluates customers' experiences with banks and measures factors such as trust, handling problems and complaints, and saving time and money.

Its bank accounts are also well-rounded. Capital One savings account and CD rates are significantly higher than the national average. You can also open these accounts with a low initial deposit. Other banks typically require $1,000 or more for CDs and $25 or more for savings accounts. 

Capital One checking is also ranked as one of our best checking accounts because it has no monthly service fees and multiple overdraft protection services.

It also has branches and Capital One cafes sprinkled around the U.S., so it's a good option if you like online banking but want the option to speak with a banker face-to-face.

You can use your debit card at over 70,000 ATMs nationwide for free, but unlike many online banks, Capital One doesn't reimburse any fees charged by out-of-network ATM providers.

Capital One 360 Bank Review

Discover Bank

Discover is the best digital bank for people who want to do all their banking, investing, and borrowing with one institution.

Discover has a strong cash-back checking account that lets you earn 1% back on up to $3,000 of purchases each month (see website for details). It's also one of the best free checking accounts, meaning that it doesn't charge any monthly service fees. 

Discover credit cards are strong options overall, particularly if you're looking to still earn rewards on a 0% intro APR credit card. 

You don't need to place an initial deposit for a checking, CD, money market or savings account. These accounts also pay more than average bank account interest rates, although they may not be the absolute highest out there.

Discover Bank Review

Axos Bank

Axos Bank has savings, checking, CD, and money market accounts, so it's a great option if you want to open all of your accounts with one bank. It's one of the best banks for avoiding ATM fees.

Its high-yield checking account doesn't charge overdraft or non-sufficient funds fees, and it offers free overdraft protection that links your checking account to a savings account.

You also may be eligible for a bank account cash bonus. Earn

Axos pays higher rates on its accounts than most brick-and-mortar banks, especially on its high-yield checking account. However, you can still earn higher rates at other online banks.

Axos Bank Review

SoFi®

SoFi® has a great online banking option if you'd like to manage your money in one account. It's a hybrid bank account that combines checking and savings features.

You can earn a competitive interest rate that's higher than what many traditional and high-yield savings accounts pay if you set up direct deposits. It also offers up to $300 with qualifying direct deposit for eligible customers (offer expires 01/31/26, terms apply).

SoFi® Checking and Savings (Member FDIC) is also a strong online banking choice if you don't want to deal with monthly service fees, overdraft fees, or out-of-network ATM fees. It also comes with a debit card.

The account is a hybrid savings/checking account, so you'll need to keep that in mind to get the most out of the account. If you deposit cash, you also might need to pay a fee.

SoFi Banking Review

Popular Direct

Popular Direct may be a good choice if you're searching for the best CD rates. It's featured in several of our guides for having among the highest interest rates offered for 3-month, 1-year, 2-year, 3-year, and 5-year CD terms.

Popular Direct also offers a high-yield savings account with a high interest rate, too.

Keep in mind, Popular Direct accounts have high minimum opening deposit requirements. Popular Direct CDs need at least $10,000 to be opened. The Popular Direct Savings requires a minimum opening deposit of $100, which is more than banks typically require, too.

Popular Direct also doesn't have any other products, so it also not the best choice if you'd like to primarily bank with one financial institution. If you want to open other bank accounts — like checking accounts or money market accounts — or get other banking products — like loans or credit cards — consider one of our other top picks.

Popular Direct Review

Newtek Bank

Newtek Bank offers one of the best high-yield savings accounts right now. The Newtek Bank Personal High Yield Savings Account offers one of the highest interest rates on the market, no monthly service fee, and a $0 minimum opening deposit.

Newteak Bank also offers some of the best 18-month and 2-year CD rates.

Newtek Bank doesn't have a personal checking account, and you can't get a debit card or ATM card with a high-yield savings account. If you need to withdraw money, you'll have to transfer it to an external bank account.

Newtek Bank Review

Online Banking Trustworthiness and BBB Ratings

We review the ethics of each company so you can see if a specific financial institution aligns with your values.

We also include the settlement history of the last three years so you're aware of any recent public controversies involving the bank.

None of our top picks have any recent public scandals.

Here are the Better Business Bureau scores for all the banks on our list:

The Better Business Bureau measures businesses by examining responses to customer complaints, honesty in advertising, and transparency about business practices.

Something to keep in mind is that a good BBB rating won't guarantee that your interactions with the bank will be great. Consider speaking to current customers or reading online customer reviews to see if one of these banks may be suitable for you.

Capital One, Discover, and Popular Direct have been involved in a recent public controversies.

In January 2025, the Consumer Financial Protection Bureau sued Capital One. The CFPB says that Capital One unlawfully misled customers about what the best interest rate was on Capital One savings accounts, leading to consumers missing out on more than $2 billion in interest payments.

Capital One used to have an account called 360 Savings. In 2019, Capital One launched the new 360 Performance Savings Account, which paid a much higher interest rate. Many customers thought their old savings accounts would transition into this new one, but in reality, they had to open a new 360 Performance Savings Account to earn the higher rate.

In 2024, Discover was required to pay $1 million in a settlement that claimed Discover denied Deferred Action for Childhood Arrivals, or DACA, recipients loans because of their immigration status. In the settlement, Discover has also agreed to rewrite its lending rules so DACA recipients are equally eligible for loans as U.S. citizens.

In 2023, the Federal Reserve Board fined Popular Direct's parent bank, Popular Bank, $2.3 million. The Federal Reserve Board said the fine was because Popular Bank processed six Paycheck Protection Program loans that had significant signs of potential fraud.

Best Online Banks Offer Comparison

Criteria for Evaluating Online Banks

Security Measures and Digital Safety at Online Banks

Security is important for any bank, but this is especially true for online banks. When considering an online bank, you'll want to make sure it follows certain safety procedures. Like all banks, it should be FDIC-insured. It should also have secure online banking features, like encrypting your banking information in case of hacks and requiring multi-factor authentication to log in.

Range of Services and Account Types at Online Banks

The best banks offer many different banking services and accounts for users to choose from. For example, a bank might offer checking accounts, savings accounts, money market accounts, CDs with many different term lengths, personal loan options, mortgages, credit cards, and more.

This means you can keep all your banking services with one bank, even as you grow financially and start needing access to new types of accounts.

Fee Structures and Interest Rates at Online Banks

One of the major reasons to switch to an online bank is because of their low fees and strong interest rates for savings accounts. You can expect to find online banks with no monthly fees and high annual percentage yields on savings accounts, money market accounts, and CDs.

A bank that avoids ATM fees by offering extensive free ATM networks is also important, so that you can safely get cash anywhere in the United States without having to pay extra.

Customer Service and User Experience at Online Banks

The best digital banking customer service will feature 24/7 customer support, with phone line, live chat, and email options. You'll also want a bank that has an easy-to-use online website and mobile banking app. Websites that provide all the information you need upfront and mobile apps with high ratings are both signs that a bank values user experience.

Benefits of Banking with Online Banks

Convenience and Accessibility at Online Banks

Online banks are typically both convenient and accessible. They can be accessed from any computer or mobile phone through a mobile banking app. Opening accounts online can take as little as five minutes, and you'll be able to access your banking information without having to go into a branch.

Although online banks are typically digital-first, some of the best digital banks also allow you to deposit cash through ATMs or participating retailers. However, there may be fees involved depending on the financial institution. Sometimes, it's up to $4.95 per transaction.

Typically Lower Fees and Higher Interest Rates at Online Banks

Because online banks aren't connected to brick-and-mortar branches, they can generally offer you higher interest rates on things like high-yield savings accounts without charging monthly service fees. You'll find many of our best high-yield savings accounts in online banks, for instance.

Many of our best free checking accounts are with online banks, as well.

Advanced Digital Tools and Features at Online Banks

Online banks frequently have better digital features than traditional brick-and-mortar banks. For instance, most online banks will help you learn how to make a mobile check deposit with their app. In comparison, not all brick-and-mortar banks offer mobile check deposit, making you go into a branch to deposit checks instead.

Online banks might also offer things like Zelle for easy money transfer, too.

Security Considerations of Online Banks

Keep in mind that banking online might offer unique security issues that in-person banking doesn't. Since you're primarily banking through a digital platform, you'll have to be extra mindful of password protection.

The best way to keep that from happening is to use a strong, unique password that you don't use for any other account and enable multi-factor authentication. That means that, even if someone does figure out your password, they won't be able to log in unless they also have access to your authentication account. The safest online banks will have features that help you easily set up multi-factor authentication. 

How to Choose the Right Online Bank

Matching Online Banking Features with Your Financial Goals

Ultimately, the best bank for you will depend on what you want from a financial institution. For example, if you're looking for a bank to use for all of your banking needs, you'll want to prioritize an online bank with a wide range of features. If you already have a bank you're comfortable with, but you want the best 1-year CD rate possible, you'll want to prioritize a bank that offers strong savings rates.

Since online banks are all equally accessible, make sure to shop around to find one that offers exactly what you're looking for. If you'd like to keep your money in a local bank, we also curate lists of women-owned banks, Black-owned banks, and Hispanic-American-owned banks, some of which are online.

Evaluating the Mobile App and Online Interface of an Online Bank

Even if a bank offers everything you want, you should still make sure that its website and app are easy to use. If you lose your debit or credit card, for instance, you don't want to have to spend hours struggling with an unclear website trying to figure out how to report the loss. And you don't want to accidentally transfer more money than you meant because of a buggy interface.

Spend some time on the bank's website and check out its app ratings before you commit.

Online Banking FAQs

Why You Should Trust Us: Our Expert Panel for the Best Online Banks

To learn more about what makes a good online banking experience and how to choose the best fit, four experts weighed in:

BI

We're focusing on what will make an online bank most useful, including customer service, fees, rates, and more. Here's what they had to say about banking online. (Some text may be lightly edited for clarity.)

How can someone determine whether a bank is the right fit for them?

Tania Brown, CFP® professional and vice president of coaching strategy at OfColor:

"Obviously, you want to make sure it's FDIC-insured. Also, your banking experience — do you like walking into a bank? Well, then you need someone local. Do you just not care if you ever see your bank? Then you're okay online. Do you write checks? Do you not write checks? So it's thinking through how your experience with it is going to be before you make that decision."

Sophia Acevedo, banking editor, Business Insider:

"I would create a list of what I prioritize most in a bank account. For example, some banks have accounts that charge monthly service fees. I would look to see what the requirements are for waiving the monthly service fee and whether I think I could feasibly meet those requirements each month. If I'm searching for an interest-earning bank account I'll pay attention to interest rates. I would make sure the account pays a higher interest rate than the average bank account."

What should someone look for in an online bank?

Tania Brown, CFP® professional:

"With an online bank, absolutely online customer service, because you do not have the advantage of walking inside and talking to a human being. How often are you able to get them? What are their hours?"

Roger Ma, CFP® professional and author of "Work Your Money, Not Your Life":

"How onerous the transfer process is, transferring money in and transferring money out. Is it same day, next day? Is it pretty easy to sync a brick-and-mortar checking account to this particular high-yield savings account?"

Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:

"When it comes to online banks, you want to be a little bit more strict about what type of interest rates they're providing. That's the biggest thing, because online banks are supposed to have the higher interest rate because they don't have the overhead of the brick-and-mortar. You want to make sure that it's well above the national average. What type of securities do they provide? Do they have two-factor identification? If it's an online bank, they should definitely have — at the bare minimum — two-factor authentication in how easy it is to change your passwords and things like that, because you want to be a little more hypersensitive about the cyber security for a strictly online bank."

Our Methodology: How We Chose the Best Online Banks

Business Insider's personal finance team reviewed two dozen online banks to identity the strongest options.

We are editorially independent, which means our business team does not decide how we cover products and what we write about. Our editorial standards provide more information about our editorial independence, and how we choose what we cover and write about.

To determine the best online banks, we considered the overall banking experience, such as what types of bank services and accounts are provided. We also take note of whether certain accounts stood out or are featured as our top picks for CDs, checking accounts, high-yield saivngs accounts or money market accounts.

While interest rates are an important aspect of any online banking account, several offer the same annual percentage yields (APYs). To differentiate between them, we considered how much you'll need to open an account, balance requirements, fees, ATM access, mobile apps, and other standout features.

We also took customer service into account, because with an online bank, you don't have the option of walking into a branch to speak with a representative.

See our bank account rating methodology to learn more about how we rate bank accounts. To provide a brief overview, we rate bank products on a scale from one to five stars.

If a bank account has a rating of one star, that's the lowest possible, and it means the bank account requires significant improvement. If it has five stars, that's the highest rating possible, and it's considered a superior option.

We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.

Kit Pulliam

Banking reporter

Kit Pulliam (they/them) is a banking expert who specializes in certificates of deposit, savings accounts, and checking accounts. They’ve been reporting, editing, and fact-checking personal finance stories for more than four years. ExperienceIn college, Kit worked as an undergraduate research assistant in a psychology lab. While there, they found that they were passionate about writing and helping others write about topics that matter.Before Business Insider, Kit was an editorial specialist for Tax Analysts, diving into the tax code to help readers get the best information about a confusing but necessary subject.They find banking similar to taxes in that way: There are some things everyone needs to know because just about everyone needs to work with a bank — and you don’t want to end up with an account that doesn’t serve your needs.As interest rates change, they enjoy the fast pace of reviewing rates for products like CDs and high-yield savings, which can change daily and have a direct impact on readers’ money.Their work has been featured in Business Insider and MSN. They were part of the My Financial Life series with Business Insider.ExpertiseTheir expertise includes:

• Certificates of deposit
• Savings accounts
• Checking accounts
• CD rates
• Bank reviews

EducationKit is an alumnus of Vanderbilt University, where they studied English and psychology and received the Jum C. Nunnally Honors Research Award for their senior thesis.Outside personal finance, Kit enjoys reading, film, video games, and cross stitching. They are based in the DC area.

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Evelyn He

Compliance and Operations Associate

Evelyn He is a compliance and operations associate for Business Insider’s Personal Finance team. Evelyn ensures content accuracy and editorial independence so readers get the most up-to-date and objective financial advice, enabling them to make informed financial decisions.ExperienceAs part of the compliance team, Evelyn helps fact check Personal Finance stories and works to make sure that the language is clear, precise, and compliant with government regulations and partner guidelines. Previously, Evelyn worked as a compliance specialist for Apellis Pharmaceuticals and a legal assistant at the law firm Morrison Mahoney.ExpertiseEvelyn is an expert in the following areas:

• Compliance
• Quality assurance
• Affiliate marketing
• Search engine optimization (SEO)
• Content strategy

EducationEvelyn earned a bachelor’s degree in business administration from UMass Amherst and a master’s in marketing from Boston University.Evelyn has two dogs, Money and Tibber.

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