12 Best Online Banks of 2025
NerdWallet's picks include banks, nonbank financial institutions and one credit union with strong overall ratings and mobile features.
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Why trust NerdWallet
Strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.
More than 100 financial institutions surveyed by our team of experts.
More than 50 data points considered for each bank, credit union and banking technology firm (or neobank). For this specific page, more than 28 data points were considered per institution.
Online banks and banking service providers offer desktop and mobile banking services without physical branches. Online institutions don’t have to pay for the cost of maintaining branches, so 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.
Nerdy Tip
If your federally insured bank fails, Federal Deposit Insurance Corp. insurance keeps your money safe up to $250,000 per depositor, per institution and per ownership category.
Best Online Banks
| Bank/institution | NerdWallet rating | Learn more |
|---|---|---|
4.9/5 | LEARN MOREon partner's site at Synchrony Bank, Member FDIC | |
4.8/5 | LEARN MOREon partner's site at Alliant Credit Union, Federally insured by NCUA | |
4.8/5 | LEARN MOREon partner's site at Varo Bank, Member FDIC | |
4.8/5 | ||
4.9/5 | ||
4.6/5 | ||
4.7/5 | ||
5.0/5 | ||
4.8/5 | ||
5.0/5 | ||
4.9/5 | ||
4.9/5 |
Our pick for
Linked savings, CD and money market accounts
Our Take
Synchrony doesn’t offer a checking account, but it offers competitive rates on its savings account, money market account and certificates of deposit. Synchrony’s high-yield online savings account comes with a 3.80% APY, which is much higher than the average offered by most brick-and-mortar banks.
Customer service is available via live chat and phone. Synchrony’s mobile app accepts check deposits, and the app has standard ratings in Apple’s App Store and Google Play store.
Our pick for
Overall credit union
Our Take
Alliant offers a 3.10% APY on its high-yield savings account, much higher than the average 0.38% 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 an Alliant Credit Union Foundation advocate; Alliant will pay the $5 membership fee on your behalf.
Our pick for
Higher APY with direct deposit
Our Take
Varo offers checking and savings accounts, but it doesn’t offer certificates of deposit. Its savings account comes with a baseline 2.50% 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 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. Fee-free deposits are available at most CVS retail locations, but retailers at other stores may charge to deposit cash.
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.
Our pick for
Savings and CD accounts
Our Take
Bread Savings® has a free high-yield savings account that earns a 4.30% APY, and interest rates for its certificates of deposit are competitive as well. The savings account has a minimum opening deposit requirement of $100, and Bread Savings’ CDs require an opening deposit of $1,500.
Bread Savings disclosure: Bread adds: "All Bread Savings APYs are accurate as of 05/08/2025. APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For high-yield savings accounts, a minimum of $100 is required and must be deposited in a single transaction. For high-yield savings accounts, the rate may change after the account is opened. Rates are compared against competitor rates published by NerdWallet.com and the institutions themselves as of 05/08/2025. NerdWallet.com obtains the data from the various banks that it tracks and its accuracy cannot be guaranteed." "For terms shorter than 1 year, the penalty is 90 days simple interest. For terms 12 months to 3 years, the penalty is 180 days simple interest. For terms 4 years and up, the penalty is 365 days simple interest." "FDIC insurance up to $250,000 per depositor for each ownership category."
Our Take
Marcus by Goldman Sachs has strong rates for savings and 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’ mobile app is well-rated in both Apple’s App Store and the Google Play store, though there is no mobile check deposit.
Our pick for
Cash-back checking
Our Take
The Discover® Online Savings Account earns a 3.50% 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 overdraft fees of around $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.
Discover’s mobile banking apps also earn high ratings from customers.
Our pick for
ATM access
Our Take
Capital One offers an above average 3.50% APY on its savings account and strong 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. Capital One’s mobile app also has high ratings for both Apple and Android.
Our pick for
Monthly bonuses
Our Take
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 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.
Laurel Road’s High Yield Savings rate is a competitive 3.80% APY. Neither the checking account nor the savings account has a monthly fee or minimum balance requirement.
Our pick for
Best all around
Our Take
Ally Bank’s savings account offers a 3.60% APY (annual percentage yield), and its checking account earns 0.10% APY for balances under $15,000 and 0.25% APY 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, direct deposit, 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.
Our pick for
Linked credit card accounts
Our Take
American Express, Member FDIC, has a High Yield Savings Account with a 3.60% APY (annual percentage yield) as of 05/08/2025 and 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 has decent ratings in the Apple and Android app stores.
Our pick for
Savings-only accounts
Our Take
UFB Direct’s savings account has a stellar 4.01% 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.
Our pick for
High savings APY
Our Take
Jenius Bank offers a savings account that has a strong rate and doesn’t charge monthly fees. Deposits and withdrawals will need to be made via another linked bank account. But the competitive yield makes this account worth a look. Note: Jenius Savings is not available to customers in Hawaii or New Mexico.
Our Nerds say:
"Online banks do their best to give customers access to all the standard banking products and features they’re used to from brick-and-mortar banks. Many have convenient remote customer service through phone and online chat services, and for those that don’t have their own ATM networks, customers can typically access a broad, free ATM network like Allpoint or get ATM fee reimbursements.
"With some online banks, certain services might be difficult or impossible to do. For example, depositing cash might not be as straightforward as with a traditional bank. If you want to keep the convenience of in-person customer service but want the high rates of an online bank, you could always mix and match accounts at different institutions so that you cover all of your banking needs.”
Last updated on December 10, 2024
Methodology
We took a close look at over 100 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, 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, Bank5 Connect, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings®, BrioDirect, Capital One, Carver Federal Savings Bank, CFG Bank, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Climate First Bank, Commerce Bank, Community First Credit Union of Florida, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Customers Bank, Delta Community Credit Union, Discover® Bank, E*TRADE, EverBank, Fifth Third Bank, First Foundation, First Internet Bank, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, Flagstar Bank, Forbright BankGlobal Credit Union, GO2bank, Golden 1 Credit Union, Greenwood, Hope Credit Union, Huntington Bank, Industrial Bank, Ivy Bank, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road Bank, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, My Banking Direct, NASA Federal Credit Union, Navy Federal Credit Union, NBKC, Newtek Bank, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Poppy Bank, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Securityplus 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, Truist Bank, U.S. Bank, UFB Direct, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo, Western Alliance Bank and Zynlo Bank.
NerdWallet's Best Online Banks of 2025
- Alliant Credit Union: Best for Overall credit union
- Varo Bank: Best for Higher APY with direct deposit
- Synchrony Bank: Best for Linked savings, CD and money market accounts
- Bread Savings®: Best for Savings and CD accounts
- Discover® Bank: Best for Cash-back checking
- Capital One: Best for ATM access
- Laurel Road: Best for Monthly bonuses
- Ally Bank: Best for Best all around
- American Express National Bank: Best for Linked credit card accounts
- Goldman Sachs Bank USA: Best for Savings and CD accounts
- UFB Direct: Best for Savings-only accounts
- Jenius Bank: Best for High savings APY
Frequently asked questions
What is an online bank?
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.
How do I deposit and withdraw money with my online bank account?
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.
How do I open a bank account online?
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.
Are online banks safe?
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.
Are online banks FDIC insured?
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. But note that for neobanks, FDIC insurance kicks in if the partner bank fails, not if the neobank fails.