15 Best Online Banks of 2023
NerdWallet's picks include banks, nonbank financial institutions and one credit union with strong overall ratings and mobile features.
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Online banks and banking service providers offer desktop and mobile banking services without physical branches. Because online institutions don’t have to pay for the cost of maintaining branches, they're often able to pass the savings on to their customers in the form of higher interest rates. Online banks require customers to be comfortable with technology, but they also tend to provide robust customer service options to help users resolve any issues.
NerdWallet’s picks include online banks, nonbank financial institutions and credit unions. Some of these financial institutions are not chartered banks, as noted in their descriptions.
Why trust NerdWallet: Our writers and editors follow strict editorial guidelines to make sure our coverage is fair and accurate, so you can choose the financial accounts that work best for you. Learn more about our criteria for evaluating banks and credit unions.
Online banks and banking service providers offer desktop and mobile banking services without physical branches. Because online institutions don’t have to pay for the cost of maintaining branches, they're often able to pass the savings on to their customers in the form of higher interest rates. Online banks require customers to be comfortable with technology, but they also tend to provide robust customer service options to help users resolve any issues.
NerdWallet’s picks include online banks, nonbank financial institutions and credit unions. Some of these financial institutions are not chartered banks, as noted in their descriptions.
Why trust NerdWallet: Our writers and editors follow strict editorial guidelines to make sure our coverage is fair and accurate, so you can choose the financial accounts that work best for you. Learn more about our criteria for evaluating banks and credit unions.
Best Online Banks
| Bank/institution | NerdWallet rating | Learn more |
|---|---|---|
 Axos Bank® | Best for Online banks with checking and savings accounts | Read review |
 Alliant Credit Union | Best for Online banks with checking and savings accounts | Read review |
 Varo Bank Learn more at Varo Bank, Member FDIC | Best for Online banks with checking and savings accounts | Learn more at Varo Bank, Member FDIC |
 Ally Bank | Best for Online banks with checking and savings accounts | Read review |
 Discover Bank | Best for Online banks with checking and savings accounts | Read review |
 SoFi | Best for Online banks with checking and savings accounts | Read review |
 Marcus by Goldman Sachs Learn more at Marcus by Goldman Sachs, Member FDIC | Best for Online banks with savings accounts only | Learn more at Marcus by Goldman Sachs, Member FDIC |
 Synchrony Bank Learn more at Synchrony Bank, Member FDIC | Best for Online banks with savings accounts only | Learn more at Synchrony Bank, Member FDIC |
 Capital One | Best for Online banks with checking and savings accounts | Read review |
 GO2bank | Best for Online banks with checking and savings accounts | Read review |
 LendingClub Bank | Best for Online banks with checking and savings accounts | Read review |
 nbkc bank | Best for Online banks with checking and savings accounts | Read review |
 American Express National Bank | Best for Online banks with savings accounts only | Read review |
 UFB Direct | Best for Online banks with savings accounts only | Read review |
 TIAA Bank | Best for Online banks with checking and savings accounts | Read review |
Our pick for
Online banks with checking and savings accounts
Why We Like It
Axos Bank has solid, no-fee offerings for checking, savings and certificates of deposit, with a notable interest rate of up to 1.25% annual percentage yield on its checking account and unlimited domestic ATM fee reimbursements. The bank has high ratings on its mobile apps for both Apple and Android and 24/7 customer service via phone as well as email and a chatbot for basic questions.
Why We Like It
Alliant offers a 2.95% APY on its The Ultimate Opportunity Savings account, a rate much higher than the average 0.35% APY offered on savings accounts at traditional banks. Alliant also offers a High-Rate Checking account with a 0.25% APY, and share certificates (the credit union equivalent of certificates of deposit) with above-average rates.
If you don’t qualify for Alliant membership based on Alliant’s general requirements, you can do so by becoming a member of the charity Foster Care to Success; Alliant will pay the $5 membership fee on your behalf.
Why We Like It
Varo offers a checking and savings account, but it doesn’t offer certificates of deposit. Its savings account comes with a baseline 3.00% APY, but that rate becomes 5.00% for the first $5,000 if customers meet some monthly requirements: Receive $1,000 or more in direct deposits and maintain a positive checking and savings balance at the end of the month. Meeting the requirements in the current month qualifies customers to earn the higher interest rate the following month.
There are limits and fees for cash deposits, and the only way a Varo customer can deposit cash is by going to a third-party retailer that participates in the Green Dot network, such as 7-Eleven, CVS or Walgreens.
To withdraw cash, customers can use an ATM in the Allpoint network for free; use of non-Allpoint ATMs carries a $2.50 fee from Varo in addition to any fees that the ATM owner may charge.
Additional details from Varo: "Annual Percentage Yields (APY) are accurate as of December 1st, 2022. Rates may change at any time without prior notice, before or after the account is opened.
The requirements must be met within the Qualifying Period begins on the first calendar day of the month and ends at close of business (4:25 pm MST/ 3:25 pm MDT) on the last business day of the month. Meet the requirements in the current month to qualify to earn 5.00% APY for the following month.
Qualifying direct deposits are electronic deposits of your paycheck, pension or government benefits (such as Social Security or unemployment) from your employer or government agency. Tax refunds and government stimulus payments, Person-to-Person payments (such as Venmo), and funds deposited using a Varo routing number are not considered a direct deposit.
Be aware that interest is paid in whole cents only."
Why We Like It
Ally Bank’s savings account offers a 3.40% APY. Its checking account earns 0.10% APY for balances under $15,000 and 0.25% for balances of $15,000 or more. Its certificates of deposit have competitive rates as well. Ally doesn’t allow customers to deposit cash; accounts must be funded by transferring money from an external account, depositing a check via mobile or mail, or using a wire transfer.
Ally’s phone support is available 24/7, and its website has a chat feature for customers.
Why We Like It
Discover’s savings account earns a 3.50% APY, and rates for its certificates of deposit are competitive.
Discover’s Cashback Debit account is not currently available to new customers but those who already have the account earn 1% cash back per month on up to $3,000 in debit card purchases.
Discover also offers more than 60,000 fee-free ATMs and doesn't charge monthly fees on its savings account. Plus, while the largest U.S. banks charge an average overdraft fee of $35, Discover doesn't charge an overdraft fee. Discover’s mobile banking apps also earn high ratings from customers.
Why We Like It
SoFi Checking and Savings offers a combination of checking and savings features under one umbrella account. With checking, customers who have direct deposit receive a 2.50% APY — which is variable and subject to change — on the checking balance. In addition, the savings portion earns 3.75% APY (variable and subject to change).
Without direct deposit, SoFi Checking and Savings earns 1.20% APY (variable and subject to change) on all account balances.
Customers also have access to the more than 55,000 ATMs in the Allpoint network. There is a foreign exchange fee of 0.2% charged by Mastercard that is not waived.
For customers with multiple savings goals, there's an option to break down savings into subaccounts called Vaults. SoFi offers an automatic savings program called Roundups, which allows customers to round up their debit card purchases to the nearest dollar and save the difference into a savings Vault.
Why We Like It
Capital One was named the “Best for Online Banking Experience” in NerdWallet’s 2023 Best-Of Awards.
Capital One offers a strong 3.40% APY on its savings account and high rates on its certificates of deposit, along with 0.10% APY on all checking balances. All accounts are free, and customers have access to more than 70,000 free ATMs nationwide. Capital One’s mobile app also has high ratings for both Apple and Android.
Why We Like It
GO2bank is an online digital bank from Green Dot. Its savings “vaults” have an interest rate of 4.50% APY on balances of up to $5,000, and interest is paid on a quarterly basis. The primary deposit account has no interest for checking and there is a monthly fee of $5, but that fee can be easily avoided with a payroll or government direct deposit in the previous month. GO2bank has multiple customer service options including 24/7 phone support and online chat, and the bank has high mobile app ratings.
A major thing to keep in mind is that it isn’t possible to transfer money from your Go2bank account to an outside bank account, but you can transfer from another bank to your GO2bank account.
Why We Like It
LendingClub, formerly known as Radius Bank, offers high-interest and cash-back programs on its accounts. Customers can earn unlimited 1% cash back on purchases as well as unlimited ATM fee rebates with its Rewards Checking account, and customers can earn 4.00% APY on its High-Yield Savings account. LendingClub’s certificates of deposit also have high interest rates, although the minimum opening deposit is $2,500.
LendingClub has decent mobile app ratings, and customer service is available daily via phone and live chat.
Why We Like It
NBKC’s Everything Account combines checking and savings goal accounts under one free umbrella account. Customers earn 1.50% APY on all balances, and they have access to more than 37,000 fee-free ATMs. NBKC also offers certificates of deposit with good rates and minimum opening balances between $250-$1,000.
NBKC’s mobile app has high ratings for Apple and Android, and customers can receive phone and chat support on weekdays.
Why We Like It
TIAA Bank offers checking, savings and certificates of deposit. Its checking account offers a 0.25% APY, its savings account has a 3.60% APY and its CD rates are competitive. TIAA Bank’s Basic Checking and Basic Savings accounts both require a $25 minimum opening deposit, and its CDs have a minimum $1,000 to open.
TIAA Bank also offers a strong ATM reimbursement program. For customers who hold a minimum monthly balance of $5,000 in their checking account, TIAA Bank will give unlimited ATM fee reimbursements. For customers who keep a balance under $5,000, TIAA Bank will reimburse up to $15 in ATM fees per month.
Our pick for
Online banks with savings accounts only
Why We Like It
Marcus by Goldman Sachs offers a 3.75% APY (annual percentage yield) with $0 minimum balance to earn stated APY. Accounts must have a positive balance to remain open. APY valid as of 02/14/2023. It also has strong rates for certificates of deposit. Marcus doesn’t yet offer a checking account, however, and there’s no ATM network for depositing or withdrawing cash; money can be moved in and out via direct deposit or transfer with another institution.
Marcus' same-day transfer limit is high, at up to $1 million. Marcus’ mobile app is highly rated in both Apple’s App Store and the Google Play store, though there is no mobile check deposit.
Why We Like It
Synchrony doesn’t offer a checking account, but it offers competitive rates on its savings account and certificates of deposit. Synchrony’s high-yield online savings account comes with a 3.75% APY, which is much higher than that offered by most brick-and-mortar banks. Customer service is available via Twitter, live chat and phone. Synchrony’s mobile app accepts check deposits, and the app gets high ratings in Apple’s App Store and the Google Play store.
Why We Like It
American Express’ High Yield Savings Account has a 3.50% APY with no monthly fee. The bank’s certificates of deposit also have strong rates, and there’s no minimum opening deposit. Customers have access to 24/7 phone support, and they can log in to use chat support. American Express’ mobile app is rated highly in the Apple and Android app stores.
Why We Like It
UFB Direct’s Best Savings account has a stellar 4.55% APY on all balances with no monthly fees. Customers can reach phone support 24/7, and can log into their accounts to chat with bankers on weekdays. The bank’s mobile app is highly rated in both the Apple and Android app stores. UFB Direct’s banking products and services are offered through Axos Bank.
Last updated on January 26, 2023
Methodology
We took a close look at over 90 financial institutions and financial service providers, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.
Financial institutions and providers surveyed are: Affirm, Alaska USA Federal Credit Union, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Bank7, Barclays, Bask Bank, BMO Harris, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Commerce Bank, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Delta Community Credit Union, Discover Bank, E*TRADE, Fifth Third Bank, First Foundation, First National Bank, First Republic Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, GO2bank, Golden 1 Credit Union, Hope Credit Union, Huntington Bank, Industrial Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Nationwide (by Axos), Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, Scarlet, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Self-Help Credit Union, Service Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo and Zynlo Bank.
To recap our selections...
NerdWallet's Best Online Banks of 2023
- Axos Bank®: Best for Online banks with checking and savings accounts
- Alliant Credit Union: Best for Online banks with checking and savings accounts
- Varo Bank: Best for Online banks with checking and savings accounts
- Ally Bank: Best for Online banks with checking and savings accounts
- Discover Bank: Best for Online banks with checking and savings accounts
- SoFi: Best for Online banks with checking and savings accounts
- Marcus by Goldman Sachs: Best for Online banks with savings accounts only
- Synchrony Bank: Best for Online banks with savings accounts only
- Capital One: Best for Online banks with checking and savings accounts
- GO2bank: Best for Online banks with checking and savings accounts
- LendingClub Bank: Best for Online banks with checking and savings accounts
- nbkc bank: Best for Online banks with checking and savings accounts
- American Express National Bank: Best for Online banks with savings accounts only
- UFB Direct: Best for Online banks with savings accounts only
- TIAA Bank: Best for Online banks with checking and savings accounts
Frequently asked questions
An online bank is a financial institution that operates without any physical branches. Such banks typically have strong mobile apps and customer service options, as well as higher interest rates than traditional brick-and-mortar banks.
It varies. If the bank is part of an ATM network, you can likely use an ATM to either deposit or withdraw cash; some online banks allow only online transfers in and out of the account. Online banks also usually allow mobile check deposits, direct deposit from employers and online transfers to and from external bank accounts.
Both traditional and online banks typically allow people to apply for accounts online these days. It can take just a few minutes and typically involves creating a username and password and entering some personal information. See NerdWallet’s guide to how to open an account online.
Online banks are typically safe. Most banks use data encryption, and some allow customers to opt in to two-factor authentication when logging in to their accounts. Customers should also take care to practice good security hygiene when it comes to banking online.
Chartered banks are FDIC insured — meaning if the bank goes out of business, then your money is federally protected, usually up to $250,000 — but some online financial institutions are not themselves chartered banks. In those cases, the financial institution typically partners with a chartered bank behind the scenes to provide FDIC insurance to customers.
