Best banks for online banking

• What's changed in 2020?

  For 2020, we added a list of the best online banks across various categories, including checking accounts, savings, small businesses, minimal fees and more.

6 best online banks

A closer look at the top online banks

How to choose the best online bank for you

When shopping around for the best online bank account, weigh factors like:

• The website. Is it easy to navigate the bank’s website? Look out for speed, accuracy and convenience. After all, you’ll spend a good bit of your time managing your account online.

• Range of products. Most people want to keep all their bank accounts under one roof so they’re easier to manage. If that’s you, explore the bank’s complete product line to see if there are multiple accounts that suit your needs.

• Security and protection. Your bank should publish its security measures online, letting you know how it protects your sensitive information from hackers and phishing. Review this information to make sure your funds are guaranteed against cybercrime.

• Range of features. The top banks allow you to check your balances, pay off bills and sign up for autopay, among other perks.

• Financial literacy tools. Many banks offer general information and tools that can help you manage your finances, maximize your savings and budget for the future.

• Customer service. A good online banking platform should offer phone support or live chat during business hours. Some even offer it 24/7.

Alternatives to online banks

If you’re thinking online banks aren’t for you, here are some alternatives to explore:

• Prepaid cards. Prepaid cards work like debit cards, allowing you to make purchases and withdraw cash at an ATM. But unlike debit cards, you can’t overdraft with prepaid cards, making them a good option if you need to build good spending habits.
• Digital banks. Unlike online banks, digital banks utilize new technology to create innovative banking solutions. A digital bank account can sync with your budget, analyze your spending habits and help you save automatically.
• Mobile banking. Want to do all your banking without ever having to log in to your computer? There are several banks that have feature-rich mobile apps that help you manage your finances from anywhere in the world.

How does online banking work?

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.

It usually takes less than 10 minutes to apply for online banking. The credentials you use to log in to your online banking account typically won’t be the same as your bank details for security purposes.

The Big Four brands its online banking according to platform:

The right online banking platform allows you to:

• Transfer money by email, social media, text message, mobile banking and more.
• Check your account balance and access your transaction history.
• Find the nearest ATM in your bank’s network.
• Research products and services to buy or upgrade.
• Use currency converters, home loan repayment calculators, stock trading calculators and other tools.
• Manage investments and trade stocks.
• Pay for goods and services with a mobile wallet.
• Deposit checks and pay bills.

How to open an online bank account

Opening a bank account online is becoming the new norm — and it’s easier than ever. Here’s how you do it:

1. Once you’ve chosen the best online bank for you, follow the prompts on the provider’s website to start the application process. You’ll usually see buttons that say “Apply Now” or “Open Online.”
2. Enter your personal information, including your Social Security number and government-issued photo ID number.
3. Fund your account by making your initial deposit.

Once you’ve opened your account, you can set up a username and password through the bank’s website. Then, you can log in to monitor your balances, move money across accounts and set up features like autopay.

How do I register for online banking?

To sign up for online banking, you’ll need to visit your bank’s website or a branch with:

• Your debit card or bank account number.
• Your Social Security or tax ID.
• Your phone number or email address.

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. Move 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:

Popular brands that offer online banking

Is online banking safe?

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 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 online banks

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

Sort by:

Name	Product	Minimum deposit to open	ATMs	Out-of-network ATM fee
Aspiration Spend & Save Account		$10	55,000 free in-network ATMs	$0	Deposits are fossil fuel-free. A spend and save combo account with unlimited cash back rewards and deposits insured by the FDIC.	Go to site More Info	Compare	loading Fetching your data...
Chase Total Checking		$0	Access to 16,000 ATMs and nearly 4,900 branches nationwide	$2.50	Get a $200 bonus when you open a new Chase Total Checking account and set up direct deposit within 60 days of opening your account. Chase's simplest checking account is easy to use and gives you access to 16,000 ATMs and nearly 4,900 branches. Available online nationwide except in Alaska, Hawaii and Puerto Rico.	Go to site More Info	Compare	loading Fetching your data...
BBVA Online Checking		$25	No ATM fees nationwide at more than 64,000 AllPoint, participating 7-Eleven and BBVA USA ATMs	$3	A full-service account with convenient, surcharge-free access to two massive ATM networks, plus a $200 signup bonus when you meet deposit requirements	Go to site More Info	Compare	loading Fetching your data...
Chime Spending account		$0	38,000 fee-free ATMs nationwide	$2.50	Get rid of fees with this mobile-first bank offering consumer-friendly accounts. Chime can also help you save easily and access your paycheck faster.	Go to site More Info	Compare	loading Fetching your data...
N26		$0	Fee-free ATM withdrawals at Allpoint ATMs	$0	A digital bank account with no hidden fees, no minimum account balance and no maintenance charges.	Go to site More Info	Compare	loading Fetching your data...
Axos Bank Rewards Checking		$50	ATM fees reimbursed at any ATM nationwide	$0	Earn up to 1.25% APY while enjoying a suite of digital tools for smarter money management.	Go to site More Info	Compare	loading Fetching your data...
Radius Bank Rewards Checking		$100	More than 20,000 ATMs + unlimited ATM surcharge rebates	$0	Earn cash back with this high-interest checking account, plus get free ATM access worldwide.	Go to site More Info	Compare	loading Fetching your data...
Axos Bank Essential Checking		$0	ATM fees reimbursed at any ATM nationwide		No fees. Unlimited domestic ATM fee reimbursements.	Go to site More Info	Compare	loading Fetching your data...
USAA Classic Checking		$25	Free at 60,000 ATMs nationwide (USAA, Allpoint, MoneyPass, PNC)	$2	An online checking account means no driving around town, no waiting in line and no bankers' hours.	Go to site More Info	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 several accounts at different 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.

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