Why Choose an Online Bank?
Online banks do not have physical branch locations. That means lower overhead — which they pass on to you through higher savings rates, no monthly fees, and more generous ATM reimbursements. Most online banks also have better mobile apps than traditional banks.
The tradeoff is no in-person service. If you regularly deposit cash or need branch support, an online bank may not be a great fit as your only account. Many people use an online bank for savings and a local bank or credit union for everyday banking.
Best Online Banks in 2026
1. Ally Bank — Best Overall Online Bank
Ally Bank consistently earns top marks for savings rates, checking accounts, CDs, and customer service. It offers a high-yield savings account, interest-bearing checking, multiple CD terms, and a money market account — all with no monthly fees.
Savings APY: Among the highest in the industry
Checking: No minimum balance, ATM fee reimbursements up to $10/month
Best for: People who want all their accounts in one reliable online bank
2. SoFi Bank — Best for Members Who Want Perks
SoFi Bank offers a high-yield savings and checking combo with one of the best APYs available when you set up direct deposit. Members also get access to SoFi’s financial planning tools, career coaching, and loan products.
Savings APY: Very high with direct deposit
Checking: No monthly fees, early paycheck access up to 2 days
Best for: People who want banking plus financial products under one roof
3. Marcus by Goldman Sachs — Best for Savers Who Want Simplicity
Marcus is a savings-only online bank with a high-yield savings account and CDs. There is no checking account. What it lacks in breadth it makes up for in savings rates and a clean, simple experience.
Savings APY: Consistently competitive
Best for: People who want a dedicated high-yield savings account with Goldman Sachs backing
4. Discover Bank — Best for Credit Card + Banking Combo
Discover Bank offers a high-yield savings account, checking account, CDs, and money market accounts. If you already have a Discover credit card, having your banking with Discover simplifies your financial life significantly.
Savings APY: Competitive
Checking: 1% cash back on debit purchases, no monthly fees
Best for: Discover credit card holders who want integrated banking
5. American Express High Yield Savings — Best for Amex Cardholders
The American Express High Yield Savings Account offers a strong APY with no minimum balance and no fees. It is a savings-only product, so you will need a separate checking account. But for parking cash, it is one of the best options available.
Savings APY: Consistently among the highest available
Best for: Amex cardholders who want to keep savings in a familiar ecosystem
6. Chime — Best for People Who Are New to Banking
Chime is a financial technology company (not a traditional bank) that offers a fee-free checking account and savings account. It is especially good for people who want to avoid overdraft fees, build savings automatically, and get their paycheck up to 2 days early.
Checking: No monthly fees, no minimum balance, SpotMe overdraft protection
Best for: People who want a simple, fee-free spending account
Note: Chime’s savings rate is lower than competitors. It is better for checking than savings.
What to Look for in an Online Bank
Compare these features when choosing an online bank:
- APY on savings: Rates vary widely. Even a 0.5% difference on a $10,000 balance is $50 per year.
- Monthly fees: Most top online banks charge none. Avoid any bank with unavoidable fees.
- ATM access: Look for a large ATM network or ATM fee reimbursements.
- Mobile app quality: Read reviews. A poor app is a deal-breaker for a bank with no branches.
- FDIC insurance: Deposits should be insured up to $250,000 per depositor. Confirm this before opening an account.
- Customer service: Phone, chat, and email support hours matter when you cannot walk into a branch.
Are Online Banks Safe?
Yes. Online banks that are FDIC-insured protect your deposits up to $250,000 per depositor, per account type — the same as any traditional bank. Ally, SoFi, Marcus, Discover, and American Express are all FDIC-insured.
Financial technology companies like Chime are not banks themselves — they partner with FDIC-insured banks to hold your deposits. Your money is still protected, but verify the custodian bank before opening an account.
Bottom Line
Ally Bank is the best overall online bank for most people — it offers savings, checking, CDs, and money market accounts in one place with consistently high rates and no fees. SoFi is a strong alternative if you want perks and the highest possible savings rate with direct deposit. Marcus and American Express are best if you just want somewhere to park cash at a high rate.
Switching to an online bank for your savings is one of the easiest ways to earn more interest without changing your spending habits.