Haven’t visited a physical bank in years and want a free checking account? If so, then digital banks are probably right up your alley. Online banks don’t pay to maintain physical branches, and they pass those savings on to their customers. With no monthly fees, top-of-the-line mobile apps and quick online applications, the best free online bank accounts can offer numerous benefits.
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Finder’s banking experts analyze over 150 online federally-insured banks and fintechs to narrow down the best options. We chose the best options based on multiple factors, including state availability, monthly fees, mobile apps and more. We also favor online banks that accept cash deposits, although it’s not a requirement.
$0 monthly fee
$0 minimum opening deposits
$0 overdraft fees
Must be an online bank, credit union or fintech company
Available in all 50 states
How to compare free online checking accounts
Online banks may not have all the same products as traditional banks, but they make up for it with fewer fees, higher insurance coverage and top-of-the-line tech.
Monthly fee. Online banks typically offer fee-free checking accounts. Traditional banks may nickel and dime you with monthly maintenance fees of $5 to $25 per month just to keep the account open.
Insurance coverage. Some online fintech companies offer banking services through an FDIC-insured partner bank or a network of banks. Those that partner with more than one bank provide insurance that exceeds the typical $250,000 coverage amount.
Site and mobile app. Look for speed, accuracy and ease of navigatation on the bank’s website and online platform. After all, you’ll need to manage your account primarily online.
Customer service. Some online banks are limited in terms of customer service, but many offer 24/7 chat support, phone support and automated chat support. Since you can’t visit a branch, make sure the customer service is accessible and offers extended support hours.
ATMs. Most online banks don’t have their own ATM network. Instead, they’re part of a shared network of ATMs like AllPoint. However, many online banks don’t offer cash deposits, and those that do often use Green Dot locations, which typically charge a $4.95 fee.
Savings APYs. Online banks consistently have some of the highest savings APYs in the market, including Varo, Upgrade and Marcus.
If you don’t need to make frequent cash deposits and are comfortable with online banking, the payout and convenience of digital banks can be worth the lack of branch access. Many of us have said goodbye to regular bank trips anyway, thanks to mobile and online banking.
But if you prefer branch access or frequently make cash deposits, a traditional bank or credit union may be more your speed.
Convenience. With bank apps and online portals, trips to the bank have nearly become obsolete. An app allows you to make mobile check deposits, access early paychecks, transfer funds between accounts, view bank statements, pay bills and much more.
No monthly fees. Since online banks don’t have to pay for physical branches, most offer checking and savings accounts without annoying monthly maintenance fees.
High APYs. For the same reason online banks often don’t charge monthly fees on deposit accounts, they can offer higher APYs and pass on more savings to their customers with high savings rates. Many online banks offer savings accounts with APYs around 5% — over 11 times higher than the national average of
0.39%.(1)
Souped-up mobile apps. Without physical branches, online banks are compelled to provide great mobile apps since that’s how their customers will manage their accounts. You’ll likely get mobile check deposit features, peer-to-peer payment options, budgeting tools, in-app chat features and much more.
Cons
No physical branches. Without branch locations, you’ll have to rely mainly on electronic communication to resolve issues, such as chat support or email. If possible, look for an online bank with a customer support phone line.
May not accept cash deposits. Unless the online bank has an ATM network that can accept cash, you’ll have to do electronic transfers or mobile check deposits.
Limited account options. Some online banks, like Ally or SoFi, only offer one or two account options. Traditional banks like Wells Fargo or Chase tend to offer various account options.
Digital banking is growing in popularity in the US, with roughly 37% of American adults saying they do at least some of their banking online, and 19% saying they exclusively bank online.
You may need to submit some documents to verify your identity, such as a driver’s license or government-issued identification, and provide a deposit via ACH transfer from an existing, external bank account.
Bottom line
Choosing the best online bank for your needs ensures you can manage your money with ease wherever life takes you. Learn more about how online banking works so you know what to expect when you open and set up your account.
Frequently asked questions
What is the best online bank?
A few of the best online banks include SoFi, Ally Bank, First Internet Bank and Axos Bank. These banks are FDIC-insured on their own and have accounts with low fees and high savings rates.
Can you trust an online bank?
The most important factor when choosing an online bank is making sure it has FDIC or NCUA insurance. Typically, banks offer up to $250,000 in coverage, meaning that if the bank were to fail, your deposit accounts are covered up to that amount.
Just keep in mind that deposit insurance is per depositor, not per deposit account. If you need more insurance, look to banks or fintechs like SoFi, Wealthfront or Bluevine for higher-than-average deposit insurance.
What’s the easiest bank account to open?
Most online banking options have fast and easy online applications that can be completed in minutes, and approval can be sent near-instantly. Online banks with quick applications that only take a few minutes to complete include SoFi, Axos and Ally Bank.
Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto.
Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt.
Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others.
Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine.
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Does bank of America have a fee free checking account if so where do I apply
nikkiangcoDecember 12, 2018
Hi Candy,
Thanks for reaching out! Upon checking, Bank of America doesn’t have a fee free checking account. Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Compare the top banks and fintechs that offer virtual card options and learn how to use them.
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Does bank of America have a fee free checking account if so where do I apply
Hi Candy,
Thanks for reaching out! Upon checking, Bank of America doesn’t have a fee free checking account. Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki