Gone are the days when you have to leave your home and drive to a local branch to deposit a check or pay a bill. Thanks to digital banking, you can perform just about any banking task from anywhere with an internet connection, and avoid the hassle that’s typically associated with traditional banking.
There is no shortage of online banks on the market. While this is a plus, it can also make it very difficult to find a digital bank that checks off all your boxes.
To make the process easier, we’ve compiled this list of the best digital banks for 2025.
15 Best Online Banks
Whether you’re looking for robust investment options, minimal fees, or strong interest rates, you’re sure to find a bank in our list that meets your needs.
1. Upgrade
Upgrade is a leading fintech company that partners with Cross River Bank to offer innovative banking solutions without the typical fees associated with traditional banks.
2. SoFi
SoFi is a financial services company and brokerage that operates online. Its flagship banking product is the Checking and Savings account.
3. Current
Current is a financial technology or fintech company with no hidden fees or monthly fees on its standard account and teen account. In addition to no minimum balance requirements, Current doesn’t charge overdraft fees or money transfer fees.
4. Chime
Chime® is a neobank and fintech company that doesn’t charge any fees, including monthly fees, overdraft fees and minimum balance fees. The only fee you might have to pay is an out-of-network ATM fee.
5. GO2bank
GO2bank is a cutting-edge online bank, designed to cater to the diverse needs of its customers. Launched by Green Dot, it aims to provide a seamless banking experience with a wide array of features that make managing finances convenient and hassle-free.
6. Ally
Ally Bank is a full-service online bank that’s been around since 2019. Compared to other digital banks, it offers an impressive selection of accounts.
7. Discover Bank
When most people think of Discover, credit cards usually come to mind first. While Discover is known for its credit card products, its checking account earns impressive cash back rewards and offers access to a large ATM network.
8. Bluevine
For digital business banking, Bluevine is a solid choice. Even though the online bank only offers one checking account option for its business customers, the Bluevine Business Checking account, its APY is impressive.
9. Barclays
Barclays is a financial service company that serves U.S. customers with a few online deposit products. With a Barclays online savings account, you can expect a high annual percentage yield.
10. Synchrony Bank
Synchrony Bank is a subsidiary of Synchrony Financial, which was formerly GE Capital Retail Bank. This established online bank offers a high yield savings account with no minimum balance requirement.
11. Vio Bank
Vio Bank is the online division of MidFirst Bank. With the Vio Bank High Yield Online Savings, which requires a minimum deposit of $100, you can enjoy a competitive APY across balances.
12. Bread Savings
Formerly Comenity Direct, Bread Savings is an online-only bank with a high-yield savings account and certificates of deposit with terms ranging from one to five years.
13. Varo Bank
Varo Bank is an online bank with its one bank charter. With Varo, you can opt for a fee-free checking account that comes with a Visa debit card.
14. NBKC Bank
While NBKC Bank is a full-service community bank with a few physical branch locations in Kansas and Missouri, its primary business is performed online.
15. iGObanking
The online division of New York-based Flushing Bank, iGObanking provides several banking products to accommodate various needs.
What is a digital bank?
Also known as an online bank, a digital bank is one that operates mostly or entirely online. Unlike traditional financial institutions with brick-and-mortar locations, digital banks let you handle all of your financial services virtually.
Whether your goal is to transfer funds from your savings account to your checking, check your account balance, or anything in between, there’s a good chance you can accomplish it through digital banking. Compared to a traditional bank, an online bank has less overhead expenses and can therefore pass the savings on to you through minimal to no fees.
Pros and Cons of Online Banks
Just like all financial solutions, digital banks come with benefits and drawbacks that you should consider before you ditch your accounts at a traditional bank.
Pros
- Fewer fees: Online banks typically don’t have to maintain physical branches. This enables them to offer banking products with low or even no fees. Many online banks advertise no monthly fees, no overdraft fees, and no ATM fees, for example. Their lower fee structure can save you a significant amount of cash over time.
- Higher rates: If you open an online savings account and do your banking online, you can expect higher annual percentage yields or APYs than you’d get at a traditional bank. You may also enjoy higher rates on checking account balance and other types of accounts, like money market accounts and certificates of deposits (CDs).
- Easy access: Chances are you lead a busy life and don’t have to schedule an appointment with a teller and drive to a local bank. The good news is you can access your online bank account at any time. It’s available for you round-the-clock.
- Extras: Many online banks offer extra conveniences you may find useful. Some examples include mobile apps, early payday deposit, budgeting tools, automated savings features, and easy fund transfers.
Cons
- No physical locations: If in-person support is important to you, you might consider the lack of branches a downside. While most digital banks offer customer service via online chat, phone, and social media, face-to-face meetings are uncommon.
- Can be difficult to deposit cash: To deposit cash in a traditional bank account, you can drive to a nearby branch and hand it over to a teller. With a digital bank, however, cash deposits are a greater challenge. Some online banks make depositing cash impossible, while other banks let you do so through an ATM or third-party service, such as Green Dot.
- Fewer options: Some online banks offer a limited selection of products. For example, you might find checking accounts and savings accounts but no certificates of deposit (CDs), loans, insurance, and brokerage accounts. This can be an issue if you prefer a one-stop-shop experience.
- Technical glitches: The reality is that technology doesn’t always work flawlessly. While technical problems are rare with digital banks, they do exist. For this reason, it’s wise to open a backup account at a traditional bank and always keep some emergency cash on hand.
Are online banks safe?
If you’re new to the world of online banking, you might wonder if digital banks are safe. In short, any online bank that’s insured by the Federal Deposit Insurance Corporation or FDIC is safe. FDIC insurance means that if your bank fails or shuts down for any reason, the FDIC will give you the money in your accounts.
In most cases, you’ll get up to $250,000 for an individual account and $500,000 for a joint account. To determine if a digital bank is insured by the FDIC, check their website or look for them on the FDIC website.
If you choose a credit union with digital banking services, you can receive the same type of protection from the National Credit Union Administration or NCUA. It’s a good idea to choose from online banks FDIC insured.
Bottom Line
If you’d like to manage your banking needs online, a digital bank can be a solid choice. While you won’t be able to visit a branch for in-person service, you can lock in competitive interest rates and enjoy the convenience of banking from anywhere at any time.
Additionally, you may be able to avoid some or all of the fees most brick-and-mortar banks charge. Before you decide on an online bank, be sure to explore all your options and weigh the pros and cons of each.
Frequently Asked Questions
What are the best online banks?
When searching for the best online banks, you need to consider what features are important to you. Are you looking for ATMs that are easily accessible from your home or work? Are you seeking a high-interest savings account with the best APY? Or maybe you’d like to get your paycheck two days earlier.
You can find online banks that provide all of these features on our list above.
What does digital banking mean?
Digital banking is when you handle all your financial services digitally. You depend on online tools to make deposits, monitor your deposit accounts, and more.
What is the most popular digital bank?
Ally Bank is known as the oldest and most popular bank in the U.S. It offers a wide array of checking accounts, saving accounts, money market accounts, CDs, and more.
How do I choose a digital bank?
Our list of the best online banks is a great place to start. Consider your goals and preferences to determine the right online banking solution for your situation.
