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Best Online Banks in America

Online banks in America, also known as digital banks or neobanks, are financial institutions that operate primarily over the internet, offering banking services without the need for physical branches. They provide a range of services such as checking and savings accounts, loans, and credit cards, all accessible through websites and mobile applications.

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These online banks have gained popularity due to their convenience, lower fees, and competitive interest rates. Unlike traditional brick-and-mortar banks, online banks save on overhead costs, allowing them to offer better rates and fewer fees to customers. Many online banks also provide user-friendly digital tools and features, such as budgeting apps, financial planning resources, and real-time transaction alerts, which enhance the banking experience. Security is a top priority for online banks

  • Chime
    Chime

    Chime - Chime is a mobile-focused online banking platform.

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  • Ally Bank
    Ally Bank

    Ally Bank - Online bank offering high-interest savings and no monthly fees.

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  • Varo Bank
    Varo Bank

    Varo Bank - Mobile-only bank offering no-fee banking services.

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  • Marcus by Goldman Sachs
    Marcus by Goldman Sachs

    Marcus by Goldman Sachs - Online consumer banking and lending platform by Goldman Sachs.

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  • Simple
    Simple

    Simple - Easy to understand or do.

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  • Discover Bank
    Discover Bank

    Discover Bank - Discover Bank: Financial services, credit cards, personal loans, banking.

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  • Axos Bank
    Axos Bank

    Axos Bank - Axos Bank: Digital-first, innovative online banking services provider.

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  • SoFi
    SoFi

    SoFi - SoFi: Financial services platform for loans, investments, banking.

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  • CIT Bank
    CIT Bank

    CIT Bank - CIT Bank: Online banking services and competitive interest rates.

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  • Current
    Current

    Current - Flow of electric charge through a conductor.

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Best Online Banks in America

1.

Chime

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Chime is a U.S.-based financial technology company that offers no-fee mobile banking services. Founded in 2013, Chime provides features such as a spending account, savings account, and a Visa debit card, all managed through a user-friendly mobile app. Designed to simplify banking, it offers benefits like early direct deposit, automatic savings, and built-in tools to help manage finances. Chime partners with FDIC-insured banks to ensure security and reliability for its members.

Pros

  • pros No monthly fees
  • pros Early direct deposit
  • pros High-yield savings
  • pros No overdraft fees
  • pros User-friendly app

Cons

  • consNo physical branches
  • cons Limited cash deposits
  • cons Out-of-network ATM fees
  • cons No joint accounts
  • cons Customer service issues
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2.

Ally Bank

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Ally Bank is a leading online-only financial institution in the United States, renowned for its competitive interest rates, minimal fees, and customer-centric approach. Founded in 2009, it offers a range of financial products including savings accounts, checking accounts, CDs, mortgage services, and auto loans. Its digital-first strategy provides users with robust online and mobile banking platforms, making it convenient to manage finances without the need for physical branches. Ally Bank is a subsidiary of Ally Financial Inc.

Pros

  • pros No monthly maintenance fees
  • pros High-interest rates
  • pros 24/7 customer service
  • pros Extensive ATM network
  • pros User-friendly mobile app.

Cons

  • consNo physical branches
  • cons Limited cash deposit options
  • cons Potential overdraft fees
  • cons No business accounts
  • cons Limited investment options.
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3.

Varo Bank

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Varo Bank is a fully digital, FDIC-insured online bank in the United States, designed to offer accessible and straightforward financial services without traditional banking fees. Established in 2015, Varo emphasizes user-friendly mobile banking experiences, providing features like high-yield savings accounts, early direct deposit access, and budgeting tools. It aims to promote financial inclusion by offering services that cater to a wide range of customers, especially those underserved by conventional banks.

Pros

  • pros No monthly fees
  • pros High-yield savings
  • pros Early direct deposit
  • pros No minimum balance
  • pros Extensive ATM network

Cons

  • consNo physical branches
  • cons Limited product offerings
  • cons Cash deposit fees
  • cons Potential overdraft fees
  • cons Limited customer service hours
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4.

Marcus by Goldman Sachs

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Marcus by Goldman Sachs is the consumer banking and lending arm of Goldman Sachs, launched in 2016. It offers a range of financial products including high-yield savings accounts, personal loans, and certificates of deposit. Aimed at providing straightforward, user-friendly financial solutions, Marcus focuses on leveraging technology to offer competitive rates and no-fee services. It embodies Goldman Sachs' commitment to expanding its reach to everyday consumers, providing them with transparent and accessible banking options.

Pros

  • pros High-yield savings
  • pros No fees
  • pros User-friendly interface
  • pros FDIC insured
  • pros Competitive CD rates

Cons

  • consNo physical branches
  • cons Limited product offerings
  • cons No checking accounts
  • cons No ATM access
  • cons Average customer service
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5.

Simple

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Simple was a pioneering neobank that offered streamlined, branchless banking services primarily through a mobile app and website. Founded in 2009, it aimed to simplify personal finance with features like spending tracking, budgeting tools, and no account fees. Simple was acquired by BBVA in 2014 but struggled to maintain its unique identity within the larger bank framework. In 2021, BBVA decided to shut down Simple, directing customers to its other banking products.

Pros

  • pros Easy to understand
  • pros Minimalistic
  • pros Fast to implement
  • pros Low learning curve
  • pros Clear syntax

Cons

  • consLimited features
  • cons Less flexible
  • cons Not suitable for complex tasks
  • cons Lacks advanced tools
  • cons May oversimplify problems
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6.

Discover Bank

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Discover Bank is a U.S.-based financial institution and a subsidiary of Discover Financial Services. Established in 1985, it is renowned for its credit card services, offering a range of credit cards with rewards, cash back, and other benefits. In addition to credit cards, Discover Bank provides various banking products, including savings accounts, certificates of deposit (CDs), personal loans, and student loans. Known for its customer-centric approach, Discover Bank emphasizes digital banking and strong customer service.

Pros

  • pros Competitive interest rates
  • pros No monthly fees
  • pros Cashback rewards
  • pros 24/7 customer service
  • pros Comprehensive mobile app.

Cons

  • consLimited physical branches
  • cons No business accounts
  • cons No international ATMs
  • cons Strict credit requirements
  • cons Limited product variety.
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7.

Axos Bank

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Axos Bank is a digital bank headquartered in San Diego, California, offering a range of financial services including checking and savings accounts, personal and business loans, and investment products. Founded in 2000 as Bank of Internet USA, it rebranded to Axos Bank in 2018. The bank focuses on providing innovative, technology-driven banking solutions with no physical branches, emphasizing convenience, competitive rates, and customer service through online and mobile platforms.

Pros

  • pros High interest rates
  • pros No monthly maintenance fees
  • pros 24/7 customer support
  • pros Wide range of account options
  • pros User-friendly mobile app.

Cons

  • consLimited physical branches
  • cons Some accounts require high minimum balances
  • cons No cash deposits
  • cons Mixed customer service reviews
  • cons Limited ATM network.
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8.

SoFi

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SoFi, or Social Finance, Inc., is an American online personal finance company that offers a range of financial products and services, including student and personal loans, mortgages, investment management, and banking services. Founded in 2011, SoFi aims to help its members achieve financial independence by providing innovative solutions and tools for borrowing, saving, spending, and investing. The company is known for its user-friendly digital platform and a strong focus on customer experience and financial education.

Pros

  • pros Competitive interest rates
  • pros No fees for many services
  • pros User-friendly app
  • pros Comprehensive financial products
  • pros Quick loan approval process

Cons

  • consLimited physical branches
  • cons Strict eligibility criteria
  • cons High late fees
  • cons Variable customer service experiences
  • cons Potential hard credit pull
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9.

CIT Bank

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CIT Bank is a leading online bank based in the United States, offering a range of financial products and services, including savings accounts, CDs, and home loans. Known for its competitive interest rates and customer-centric approach, CIT Bank aims to provide innovative and accessible financial solutions. It is a subsidiary of CIT Group, a prominent financial services company with a focus on empowering small and midsize businesses through lending and leasing services.

Pros

  • pros Competitive interest rates
  • pros No monthly fees
  • pros Wide range of account options
  • pros Online and mobile banking
  • pros FDIC insured

Cons

  • consNo physical branches
  • cons Limited customer service hours
  • cons High minimum balance requirements
  • cons No ATM network
  • cons Potential fees for certain transactions
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10.

Current

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Current is a financial technology company that offers a mobile banking app designed to deliver modern financial services. It provides features such as fee-free overdrafts, early access to paychecks, and high-yield savings accounts. The app also includes tools for budgeting, spending insights, and financial wellness. Aimed at providing greater financial freedom and flexibility, Current’s offerings are tailored to meet the needs of a diverse user base, from teenagers to adults, promoting a more inclusive banking experience.

Pros

  • pros real-time notifications
  • pros no hidden fees
  • pros early direct deposit
  • pros budgeting tools
  • pros user-friendly app

Cons

  • conslimited physical branches
  • cons cash deposit challenges
  • cons no joint accounts
  • cons limited financial products
  • cons potential overdraft fees
View Detail

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