Your guide to online banking

What is online banking?

Online banking lets you manage your finances and transact your business through a bank’s website or mobile app. Instead of visiting your nearest branch, you can sign in to your online account to pay your bills, make a deposit or transfer, check your balance and more.

5 things to look for in an online banking platform

Consider these factors when choosing an online banking platform.

1. Easy account management. Check your balance, access your transaction history, transfer money, set up account alerts, freeze your debit card, e-deposit paper checks, pay bills and more — all from your mobile phone or computer.
2. ATM locator. Most apps and websites have an ATM locator so you can withdraw cash at the location nearest you.
3. Useful tools. Depending on which bank you choose, you may get access to currency converters, home loan repayment calculators, stock trading calculators and other tools.
4. Peer-to-peer payments. Many online banks partner with platforms like Zelle let you receive and send money to friends and family for free.
5. Live chat. It’s common for online banks to offer live chat support in addition to phone and email support.

How do I set up online banking?

Opening a bank account online is becoming the new norm — and it usually takes less than 10 minutes. Here’s how you do it:

1. Find the right online bank for you.
2. Visit the bank’s website and follow the prompts to start the application process. You’ll usually see buttons that say “Apply Now” or “Open Online.”
3. Create your account using your name, email address and password.
4. Enter your personal information, including your Social Security number and government-issued photo ID number.
5. Fund your account by making your initial deposit.

Once you’ve opened your account, you can then log in to monitor your balances, move money across accounts and set up features like autopay.

How do I register for mobile and tablet banking?

After you’ve set up online banking on your desktop, download your bank’s app and follow the directions. If your phone allows it, you might be able to connect your debit or credit card to Apple Pay, Google Pay or other digital wallets.

Should I choose an account based on its online banking system?

If you live your life through your smartphone, mobile banking could be the deal breaker between competing bank accounts. Some banks offer more advanced online banking capabilities than others, like mobile check deposits and statements that integrate with your existing accounting software.

Remember to compare fees and features on mobile banking apps. You may find that more expensive bank accounts offer more helpful online banking services.

How do I access money in an online bank account?

While most online bank accounts don’t accept cash deposits, there are still several ways to access your money:

• ATMs. Most online banks have nationwide ATM networks and offer ATM reimbursements when withdraw cash from an out-of-network ATM.
• Direct deposits. Receive your paycheck or government benefits directly into your online bank account.
• Mobile check deposits. Most mobile apps let you e-deposit checks with a few clicks of a button.
• Cash back at retailers. If your account comes with a debit card, you can request cash back when you check out at a grocery store or major retailer.
• Transfers. Send and receive money to another bank account or initiate a wire transfer or peer-to-peer transfer.

What are the pros and cons of online banking?

Online banks have several pros and cons compared to traditional banks:

What is the best online bank?

One of the best online banks is Ally Bank because it offers a variety of banking products, including checking, savings and money market accounts, with competitive interest rates. And even though it’s a digital bank, you’ll still get easy access to your cash with its large ATM network all over the country. Plus, it’ll even reimburse you for non-network ATM fees — up to $10 a month.

Popular banks that offer online banking

These popular banks offer robust online and mobile banking options to customers.

How safe is online banking?

Online banking isn’t 100% risk-free, but most banks use industry-standard security measures to keep your information safe. Before you bank online, make sure the financial institution you choose is FDIC or NCUA-insured. That way you get your money back if the bank fails. Next, read through the bank’s security policy to see which measures it has in place to protect your account.

How to protect your online bank account

With the rise of the internet, banks have kept up with comprehensive security and encryption to protect your personal and financial information. Still, you can take measures to keep your online banking safe from financial predators.

• Find a secure network. Avoid public Wi-Fi or hot spots when accessing your account. Hackers are known to intercept account info and passwords on these unsecured networks.
• Choose a strong password. Use a unique mix of lower- and uppercase letters, symbols and numbers that you’ll remember. And don’t share your log in details with anybody else.
• Review your statements. By regularly reviewing your transactions, you’ll more easily spot unauthorized charges or unnecessary fees.

What’s the difference between digital and online banks?

Many people use the terms “digital bank” and “online bank” interchangeably, but they’re not the same thing. Online banks closely mimic traditional banks and are often built with the same infrastructure. But digital banks use new technology to create out-of-the-box banking solutions to help you better manage your money.

Compare accounts with online banking

Use the table to compare and sort online bank accounts by APY, minimum balance, features and more.

Sort by:

Name	Product	APY	Minimum deposit to open	ATMs	Out-of-network ATM fee
Aspiration Spend & Save Account Finder Rating: 4.2 / 5: ★★★★★		5.00% on balances of $0 to $10,000	$10	55,000 free in-network ATMs	$0	Deposits are fossil fuel-free and insured by the FDIC. Enjoy a spend and save combo account with unlimited cash back rewards and a $100 bonus when you spend $1,000 in your first 60 days.	Go to site View details	Compare	loading Fetching your data...
OnJuno Finder Rating: 4.8 / 5: ★★★★★		1.20% on balances of $0 to $50,000 0.25% on balances of $50,000.01+	$0	More than 85,000 ATMs nationwide	$0	A free account for crypto and cash that earns a 1.2% bonus rate plus 5% cashback on purchases from participating retailers.	Go to site View details	Compare	loading Fetching your data...
Chase Total Checking® Finder Rating: 3 / 5: ★★★★★		N/A	$0	Access to 16,000 ATMs and more than 4,700 branches nationwide	$2.50	Chase Total Checking is easy to use and gives you access to 16,000 ATMs and more than 4,700 branches. It offers a $225 signup bonus to new Chase customers	Go to site View details	Compare	loading Fetching your data...
Axos Bank Essential Checking Finder Rating: 5 / 5: ★★★★★		N/A	$0	ATM fees reimbursed at any ATM nationwide		No fees. Unlimited domestic ATM fee reimbursements.	Go to site View details	Compare	loading Fetching your data...
Axos Bank Rewards Checking Finder Rating: 4.2 / 5: ★★★★★		1.00% on balances of $0 to $50,000	$50	ATM fees reimbursed at any ATM nationwide	$0	Earn up to 1.00% APY while enjoying a suite of digital tools for smarter money management.	Go to site View details	Compare	loading Fetching your data...
LendingClub Rewards Checking Finder Rating: 4.4 / 5: ★★★★★		0.15% on balances of $100,000+ 0.10% on balances of $2,500 to $99,999.99	$100	Over 37,000 free ATMs	$0	The LendingClub Rewards Checking account gives you the opportunity to earn 1% cash back on everyday purchases and up to 0.15% interest.	Go to site View details	Compare	loading Fetching your data...

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Bottom line

Online banking can streamline your ability to manage your finances without stepping foot in a bank. But the features and benefits you’ll find online depend on the bank or other financial institution you choose to do business with. As always, compare accounts from top online banks to find one that has the online banking features you need.

Frequently asked questions

• How can I learn more about the online banking service offered by my bank?

  Go to your bank’s website or talk with a representative.

• Can I transfer money to someone else through my online account?

  Yes. Most banks allow you to send money to bank accounts in the US and around the world, though sometimes for a fee.

• Is online banking free?

  Yes. Online banking is a perk of doing business with your bank. Of course, select transactions may come with a fee.

Picture: Shutterstock