Best Online Banks for 2025

An online bank should serve your financial needs like any brick-and-mortar alternative. Here are a few factors to keep in mind when considering online banks. 

• APY: The annual percentage yield offered by each account will allow you to determine how much interest your money will earn. When comparing options, consider an online bank that offers competitive rates across all of its deposit accounts. 

• Products and services: Some online banks offer a full suite of banking products including checking, savings, CDs and money market accounts. In addition, an online bank may offer loan products or credit cards. Depending on your needs, look at the full range of products and services to make the best decision. Combining an online bank with a traditional brick-and-mortar bank may allow you to focus on a bank offering a subset of products and services available to a competitor.

• Account access: Ideally, an online bank will offer 24/7 access to your account through its app or website. But you should also consider how the bank handles withdrawals and deposits. It’s important to understand the restrictions -- if any -- on transfers, limitations on withdrawals and whether the bank accepts free cash deposits if you’ll need that service frequently.

• Digital tools: The best online banks offer innovative digital tools to help you accomplish financial goals. For example, Ally will help you organize your savings goals with savings buckets and analyze your spending habits to safely transfer available funds from your checking to your savings account.

• ATM network: An ATM network is important if you frequently withdraw or deposit cash. A large ATM network will help you avoid transaction fees. If the bank is not associated with a large ATM network, you should look for one that will reimburse out-of-network ATM fees.  

• Fees: You should avoid any bank, online or otherwise, that charges monthly fees or has extensive requirements to avoid them. Many online banks offer no-fee deposit accounts, require a low or $0 initial deposit to open the account and don’t require a minimum balance to avoid maintenance fees. However, make sure you know whether the bank charges excessive withdrawal fees, paper statement fees or fees for other services that you may want to use regularly.

• Customer service support: Since you won't have access to in-person customer service with an online bank, determine how you can contact a customer service representative if needed. Most online banks offer telephone support, live chats or assistance via email. Some online banks also offer access to live support via extended hours or 24/7.

An online bank, credit union or financial services firm requires that you fully manage your money and accounts online via a website, mobile device or app. 

Online banks typically offer higher interest rates than traditional banks, said Bola Sokunbi, founder of Clever Girl Finance and CNET expert review board member. One major advantage is that some let you earn interest on your checking account -- a feature most big banks don’t offer.

Online accounts generally have fewer fees. You can save a lot of money by taking note of any additional fees, Sokunbi said. An online checking account, for example, might charge an ATM withdrawal fee. An online savings account might charge you an excessive withdrawal fee if you go beyond six transfers or withdrawals per statement cycle, said Shang Saavedra, founder and CEO of Save My Cents and CNET expert review board member. 

Although technology makes everything we do more accessible from a smartphone, there are some drawbacks to online banks. Online-only banks lack in-person assistance, and some might not accept cash deposits, making it tricky to bank there if you’re often paid in cash. On the other hand, if you’re comfortable managing your money online, digital banks are a convenient, low-cost option.

How you deposit and withdraw money and the transfer time will depend on the specific bank you choose. 

Bank transfer

A bank transfer is one of the most common and seamless ways to transfer money online from one bank account to another. You can transfer money to or from an existing account using the account and routing numbers through your online account or mobile app. Some banks also let you transfer money through banking platforms like Plaid or Zelle. Some banks may transfer your money instantly or within two business days, but some can take as long as seven -- which can make a big difference, Sokunbi said.

Mail or wire transfer

Even if the only bank you choose doesn’t have a physical branch you can visit, you may still be able to mail a paper check or wire transfer with the funds to deposit into your account. This route will likely take longer for your money to hit your account compared with other options.

ATM deposit and withdrawal

Many online banks offer an ATM network for fee-free deposits and withdrawals, and you may be reimbursed for out-of-network ATMs. Some online banks partner with brick-and-mortar financial institutions or offer ATM deposit access if you prefer to make transfers in person. Cash deposits are usually available instantly, but checks may take a few days. Not all online banks allow you to deposit cash at an ATM. Not all online accounts come with ATM access to withdraw your money.

Mobile check deposit

If your online bank offers mobile account access, you can deposit a paper check using the mobile app and your smartphone camera. Usually, there’s no fee, and the money is available in one to two business days, depending on the bank.

Like traditional banks, money stored at an online bank is safe as long as it is FDIC- or NCUA-insured to protect your deposits up to $250,000 per individual, per bank. 

Keeping your financial and personal data secure when banking online is also important. Choose an online bank with robust safety and security features to protect your account. Some essential features to look for include two-factor or biometric authentication, end-to-end encryption and no liability for unauthorized transactions. This can help keep your account more secure and protect it from data breaches and hackers. Before opening an account at an online bank, ask customer service about any safety features and be sure to enable them for your safety. 

Opening an account with an online bank is usually straightforward. Once you've compared different bank options and are ready to open an account, follow these steps:

1. Visit the bank’s official website.
2. Narrow down which account(s) you want to open and review any requirements and fees.
3. Complete the application with any required personal information and verification.
4. Fund your account using the bank’s approved deposit methods.

From there, you can download the bank's official mobile app and request a debit card (if available).

CNET reviews online banks based on the latest APY information, fees charged and services offered from issuer websites. We evaluated online banks from among more than 50 banks, credit unions and financial companies. We selected the banks with the highest APYs that were insured up to $250,000 by the FDIC or NCUA.

Banks surveyed include Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Barclays, BMO, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Citizens Access, Colorado Federal Savings Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Discover Bank, First Internet Bank of Indiana, First Tech Federal Credit Union, FNBO Direct, GO2bank, Golden 1 Credit Union, HSBC Bank, Huntington Bank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Nationwide (by Axos), Navy Federal Credit Union, NBKC, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, USAA Bank, Vio Bank and Wells Fargo.

This article includes some material that was previously published on NextAdvisor, which like CNET was previously owned by Red Ventures. It has been edited and updated by CNET Money editors.

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