13 Best Online Banks of 2024

Varo offers checking and savings accounts, 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 $3.50 fee from Varo in addition to any fees that the ATM owner may charge.

Varo says: "Annual Percentage Yields (APY) are accurate as of September 1, 2022. All Varo Savings Accounts earn 2.00% APY beginning on that date. APY is variable and is subject to change. No minimum balance required to open an account. The minimum balance to earn interest varies based on the number of days in the calendar month. To earn 2.00% APY, the average of your close-of-business-day balances for the month must be at least $4.95 in a 31-day month and $5.12 for a 30-day month.

To earn 5.00% APY, the average of your close-of-business-day balances for the month must be at least $1.21 in a 31-day month and $1.25 in a 30-day month. To earn 5.00% APY, the Varo Savings Account must meet these requirements: Account Holder must (1) Get 1 or more direct deposit(s)* totaling $1,000 or more, (2) Have $0.00 or more in your Varo accounts at the end of the Qualifying Period;** and (3) Make sure your Savings Account balance isn’t higher than $5,000 at the end of each business day (6:00 pm MST/5:00 pm MDT). If these conditions are not met, you will earn 2.00% APY on the Savings Account balance for that period.

*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, government stimulus payments and Person-to-Person payments (such as Venmo) are not considered a direct deposit.

The Discover® Online Savings Account earns a 3.90% APY, and rates for its certificates of deposit are competitive.

The Discover® Cashback Debit account lets customers earn 1% cash back per month on up to $3,000 in debit card purchases (see Discover's website for details).

Discover® Bank 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. In fact, the bank offers a service where customers can overdraw their account up to $200 on debit card purchases without paying a fee. To qualify, an account must be in good standing and have a positive balance, and account holders must receive at least one qualifying direct deposit of at least $200 per month for the last two calendar months.

SoFi Checking and Savings offers a combination of checking and savings features under one umbrella account. Customers receive 0.50% APY — which is variable and subject to change — on the checking balance.

In addition, customers who set up direct deposit or who deposit at least $5,000 every 30 days into their account earn 4.00% APY on the savings portion of their account. Without direct deposit, that goes down to 1.20% APY.

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. Per SoFi: The ATM policies are subject to change at its discretion at any time.

EverBank (formerly TIAA Bank) offers checking, savings and certificates of deposit as well as investment accounts. Its checking account offers a 0.40% APY, its savings account has a 4.75% APY and its CD rates are competitive. EverBank’s requires you to open a CD with at least $1,000, which is somewhat high.

One has some pretty great features if you become a Plus customer by receiving at least $500 in direct deposits each month. One Plus customers have access to more than 55,000 free Allpoint ATMs, overdraft protection up to $200, mobile check deposit, and up to 5.00% APY on their Savings balances. Customers can also receive their paychecks up to two days early via direct deposit and get cash back at select retailers.

NBKC Bank’s Everything Account combines the features of checking and savings under one account. Customers earn 1.75% APY on all balances, which is a great rate for a checking account, but higher interest rates for savings can be found elsewhere.

Laurel Road’s Loyalty Checking has a very low APY, but new customers can earn a sign-up bonus and a monthly bonus with qualifying direct deposits. The sign-up bonus is $300, and you can earn it by depositing $2,500 in the first 60 days of account opening. The monthly bonus is $20 per month for the first year and $10 per month thereafter, and you can earn it by making direct deposits of at least $2,500 per month.