Consumers looking for a new checking account may find that online banks offer features that aren’t available at their local bank.
Brick-and-mortar banks may offer these checking account features, but they can come at the cost of maintaining a high minimum balance, while online checking accounts typically have no (or low) minimum balance requirements.
Here are Bankrate’s picks for the best online checking accounts.
Bankrate’s Best Online Checking Accounts
Note: Currently August 20 Bankrate’s editorial team verifies this information regularly, usually every two weeks.Bankrate’s lists include only FDIC banks or NCUA credit unions.
A closer look at the best online checking accounts
Ally Bank: Best Overall Online Checking Account
Ally Bank’s Spending Account offers low interest, free standard checks, and free domestic and international wire transfers – features that some banks charge a fee for. Spending Account customers have access to over 43,000 Allpoint ATMs. However, if you are unable to use one of these ATMs, Ally Bank will reimburse you for out-of-network ATM fees, up to $10 per statement cycle. Ally Bank also offers the ability to chat with customer service online or access a toll-free number 24/7.
What to see: To get the highest level of annual percentage yield (APY), you’ll need at least $15,000. Savers looking for higher yields, especially those looking to put money towards their savings, should consider a high-yield savings or money market account.
Discover Bank: Best online checking account with cash back and no fees
Discover Bank’s Cashback Debit account earns 1 percent cash back on up to $3,000 in debit card purchases each month, making it a great option for people who don’t want to worry about monthly maintenance fees or low-balance fees.
Account holders have fee-free access to a network of 60,000 ATMs across the U.S. Customers who enroll in direct deposit can receive their paycheck up to two days early through the Early Pay feature.
What to see: Cashback debit accounts don’t earn interest, but other banks offer interest on rewards checking accounts.
Bank5 Connect: Best Online High Interest Checking Account
Typically, you can’t earn much interest on a checking account, but Bank5 Connect’s high-interest checking account earns you a 2.70% annual interest rate, a much higher rate than the norm and higher than the average savings account rate.
You only need a $100 balance to earn the yield, and it only costs $10 to open the account. There are no monthly maintenance fees, you get cash back on your debit card, and you can get up to $15 rebated on out-of-network ATM fees.
What to see: You only need $10 to open an account, but you’ll need at least $100 to earn a high APY.
Chime: The best online check-in for beginners
For those new to banking, Chime’s biggest attraction is that it has no overdraft fees. Based on transaction history, Chime checking account holders are allowed to overdraft up to $20 initially and up to $200 thereafter. The service requires qualifying direct deposits of at least $200 per month.
According to Bankrate’s 2023 Checking Account and ATM Fee Survey, the average overdraft fee is $26.61.
Chime customers can also receive direct deposits up to two days early, making it easier for beginners on a budget to cover monthly expenses. Chime also has a network of more than 60,000 surcharge-free ATMs.
What to seeChime is a challenger bank, a term used to describe technology companies that act as banks. Chime’s banking services are provided by The Bancorp Bank or Stride Bank, both of which are backed by the Federal Deposit Insurance Corporation (FDIC).
Charles Schwab: Best online checks for travelers
With Charles Schwab Bank’s Investor Checking account, you can get unlimited ATM fee rebates around the world. The account has no monthly fees and no minimum balance requirements. Schwab also doesn’t charge foreign transaction fees on international purchases. You’ll also earn a little interest on your balance.
What to see: The Schwab High Yield Investor Checking account requires new account holders to also open a Schwab One brokerage account, but they don’t need to deposit funds into the brokerage account.
Navy Federal Credit Union: Best Online Checks for Teens
Navy Federal Credit Union’s Free Campus Checking Account offers members who are full-time students an account to use throughout high school and college. With this account, members ages 14-24 pay no monthly service fees and have no minimum balance requirements. Up to $10 in ATM fees are reimbursed every statement cycle each month, allowing students to access any ATM for free (as long as it doesn’t exceed the reimbursement amount). The Free Campus Checking Account also earns a small amount of interest.
What to see: To get this account, you must qualify for membership with Navy Federal Credit Union. Membership is available to all Department of Defense and Coast Guard active duty military, civilians, contract personnel, veterans, and their families. This account earns interest, but you can get a higher yield with a savings account. Checking accounts that offer competitive APYs and no minimum balance requirements may not be called student savings accounts, but they are easy to find elsewhere.
LendingClub Bank: Best Online Checking Bank for Cash Back
The LendingClub Bank Rewards Checking Account earns 1 percent cash back on everyday purchases with no monthly fees, a small amount of interest once your balance reaches $2,500, and free access to thousands of ATMs worldwide. It only takes $25 to open the account. This account also allows you to receive direct deposit up to two days early.
What to see: To qualify for the 1 percent cash back program, you need to maintain an average balance of at least $2,500 or make direct deposits of at least $2,500 each month.
This checking account does earn interest, but you’ll need at least $100,000 to get the highest APY, and you’ll need $2,500 to start earning interest.
Quontic Bank: Best Online Cashback Checking/Savings Combo
With Quontic Bank’s Cash Rewards Checking Account, you’ll earn 1 percent cash back on eligible debit card purchases, with rewards deposited into your account at the start of your new statement cycle.
On the savings side, Quontic’s High Yield Savings pays a competitive yield of 4.50 percent annual interest.
Neither account has monthly fees, but both require a minimum opening deposit of $100.
What to see: Earn up to $50 cash back every statement cycle.
Pros and Cons of Online Checking Accounts
Strong Points
- Typically provides 24/7 account access
- Nearly every bank offers mobile check deposit
- Some banks offer transaction alerts that warn you when your account balance is about to run out.
- Many online checking accounts allow you to view your bank statements and search for transactions online.
Cons
- Online banks without branches cannot support in-person banking activities such as withdrawals.
- Online banks lack features such as safe deposit boxes that are available in some branches.
- Without branches or ATMs, online banks aren’t very convenient if you need cash quickly.
How to Choose the Best Online Bank
As with any purchase, researching and comparing online banks will help you make the best decision. Here are some things to consider:
- Does the account come with a debit or ATM card?
- Does the account come with free checking or are there fees for checking?
- Does this bank have branches or is it an online-only bank?
- Do debit cards earn points or cash back?
- Is the app or website easy to use and trustworthy?
- How do I transfer money to another account or person?
Keep an eye on fees, too. According to Bankrate’s 2023 Checking Account and ATM Fees Study, the average monthly fee for an interest-bearing account is $15.33, while the average monthly fee for a non-interest-bearing checking account is $5.31. Fees can be costly, so finding an online bank with no minimum balance requirements or maintenance fees is a good choice to save money. Brick-and-mortar banks may require you to make direct deposits into some accounts to avoid monthly maintenance fees.
Online Checking Account FAQs
Research Methods
Bankrate’s editorial team does not receive direct compensation from advertisers, and content is fact-checked to ensure accuracy. Our editorial and research teams analyzed more than 100 widely available financial institutions, consisting of major banks and credit unions, as well as many popular online banks.
To find the best checking accounts, Bankrate’s editorial team analyzed a variety of factors, including fees, minimum balance requirements, and the Annual Percentage Yield (APY) offered. All checking accounts listed are insured (in some cases through affiliated banks) by the Federal Deposit Insurance Corporation (FDIC) for banks and the National Credit Union Share Insurance Fund (NCUSIF) for National Credit Union Administration (NCUA) credit unions.
Account minimums, monthly fees, and ATM fees are important factors to consider when choosing a checking account. Checking accounts with no fees and minimal balance requirements are easy to find; many online banks offer them and are a good choice for many consumers.
Choosing a federally backed bank or credit union will ensure your funds are safe. Be sure to follow FDIC and NCUA restrictions and guidelines.
Bankrate’s editorial team selected criteria and developed a scoring system to determine the best checking accounts, then used their knowledge of financial services and banking experience to choose the best way to evaluate checking accounts.
