The Best Online Banks for Your Money

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Do you hate dealing with long lines and angry customers when you go to the bank? Do you often feel frustrated because you can’t find a branch open late or on the weekends? If so, it might be time to switch to an online bank. Online banks have grown in popularity in recent years, and for a good reason. They offer several benefits that traditional banks cannot match. In this guide, we will discuss some of the best online banks and how to decide which one is right for you.

What Are The Best Online Banks?

There are a few factors to consider when choosing an online bank. The most important factor is probably fees. Many online banks have no fees, but some have monthly maintenance or transaction fees. You’ll want to compare these charges before deciding on a bank.

Another factor to consider is interest rates. Online banks typically offer higher interest rates than traditional ones, so this is something to keep in mind if you want to grow your money.

Finally, you’ll want to consider the customer service of each bank. Some online banks have excellent customer service, while others can be difficult to contact. Finding a bank, you feel comfortable doing business with is essential.

How to Choose the Best Online Bank

Choosing the best online bank can be overwhelming as many options are available. However, here are some key factors to consider when choosing the best online bank:

  • Fees: Look for an online bank that has low or no fees, including maintenance fees, ATM fees, and transaction fees. Some online banks offer fee-free checking accounts, saving you money in the long run.
  • Interest rates: Consider the interest rates the online bank offers on savings and checking accounts. Higher interest rates can help you earn more money on your deposits.
  • Accessibility: Make sure the online bank you choose has a mobile app and a user-friendly website that allows you to manage your account easily from your phone or computer. Additionally, ensure the bank has an extensive network of ATMs or offer fee reimbursements for out-of-network ATMs, so you can easily access your money when needed.
  • Customer service: Look for an online bank that offers excellent customer service, including 24/7 support through chat, phone, or email. Additionally, read reviews to see what other customers say about their experiences with the bank’s customer service.
  • Security: Security is essential when it comes to online banking. Ensure your online bank uses strong encryption and multi-factor authentication to protect your account information.
  • FDIC insurance: Make sure the online bank is FDIC-insured, which means that your deposits are insured up to $250,000 per depositor, per account.

By considering these factors, you can choose the best online bank for your needs and have peace of mind knowing that your money is secure and easily accessible.

Online Banks Of January

What Makes A Good Online Bank?

There are a few things that make an excellent online bank. First, as mentioned before, finding an online bank with low or no fees is essential. You don’t want to be charged just for using your own money!

Second, you’ll want to find an online bank with high-interest rates. This will help you grow your money faster.

Third, finding an online bank with excellent customer service is crucial. You should be able to contact someone quickly if you have any questions or problems.

Now that you know what to look for, let’s look at some of the best online banks!

  • Capital One 360 is an excellent option for online banking. They have no fees, and they offer high-interest rates. Their customer service is also excellent.
  • Ally Bank is another excellent choice for online banking. They have no fees, high-interest rates, and excellent customer service.
  • Discover Bank®️ is a good option if you’re looking for an online bank with no fees. They also offer high-interest rates and great customer service.

Our Favorite Rates To Grow Your Money

TermSavings AccountInstitutionAPY
N/AMoney Market AccountUNCLE Credit Union5.26%
N/ASavings AccountCloudbank 2475.26%
12 MonthsCDBread Savings5.25%
5 YearsFixed AnnuityWichita National6.30%

Disclaimer: This is a comparison review. The Annuity Expert is not associated with a bank or credit union. We aim to help you find the highest interest rates for your savings. We may receive a small referral fee if you purchase something using a link in this guide.

What Makes An Unreliable Online Bank?

There are a few things that can make an online bank unreliable. First, if the bank has high fees, you may want to avoid them. You don’t want to be charged just for using your own money!

Second, you may not want to use that bank if the interest rates are low. Instead, you’ll want to find an online bank offering high-interest rates to grow your money faster.

Finally, if the customer service is poor, you may want to avoid that bank. You should be able to contact someone quickly if you have any questions or problems.

How Does Online Banking Work?

Online banking allows you to manage your bank accounts using the Internet from your computer, tablet, or smartphone. Here’s how online banking typically works:

  • Enrolling in online banking: First, you must enroll by visiting your bank’s website and completing the enrollment process. This typically involves providing personal information, such as your name, address, and account details, and setting up a username and password.
  • Logging in: Once you’ve enrolled in online banking, you can log in to your account using your username and password. You may also need to provide additional security information, such as a one-time password or a security question, to ensure the security of your account.
  • Viewing account information: Once logged in, you can view information about your bank accounts, such as your account balance, transaction history, and interest rates. You can also view and download statements and other account documents.
  • Transferring money: Online banking allows you to transfer money between accounts, pay bills, and send money to others using their bank account details. You can also set up recurring payments and transfers.
  • Depositing checks: Some online banks allow you to deposit checks using your smartphone camera through a mobile check deposit feature.
  • Managing settings: Online banking also allows you to manage your account settings, such as changing your password, updating your contact information, and setting up alerts for certain account activities.

Overall, online banking is a convenient way to manage your bank accounts and allows you to do many of the same things you would do in a physical bank branch without leaving your home or office.

How Do You Enroll in Online Banking?

Enrolling in online banking typically involves the following steps:

  • Go to your bank’s website: First, you need to go to your bank’s website and look for the online banking login page.
  • Choose “Enroll” or “Sign Up”: Once you find the online banking login page, look for a button or link that says “Enroll” or “Sign Up.” Click on that link.
  • Enter your personal information: You will then be asked to enter personal information, such as your name, address, date of birth, and account number. You may also need to create a username and password.
  • Please verify your identity: To ensure that you are enrolling in online banking, your bank may ask you to verify your identity. This can be done by answering security questions, entering a verification code sent to your phone or email, or providing other personal information.
  • Review and accept the terms and conditions: Before you can complete your enrollment in online banking, you will likely be asked to review and accept the bank’s terms and conditions.
  • Set up additional security features: Finally, you may be given the option to set up additional security features, such as two-factor authentication or a security token.

Once you have completed these steps, you should be enrolled in online banking and able to log in to your account using the username and password you created during enrollment.

Why Select Online Banks Over Traditional Banks?

For several reasons, someone might use an online bank instead of a traditional brick-and-mortar bank.

  • Convenience: Online banks offer the convenience of banking from anywhere at any time, as long as you have an internet connection. This means you don’t have to visit a physical branch during business hours, which can be a significant time-saver.
  • Lower Fees: Many online banks have lower fees than traditional banks because they don’t have the exact overhead costs. This can include things like ATM fees, monthly maintenance fees, and overdraft fees.
  • Higher Interest Rates: Online banks often offer higher interest rates on savings accounts and other deposit products because they don’t have the exact overhead costs of traditional banks. This means your money can earn more over time.
  • Better Technology: Online banks have more advanced technology than traditional banks. This includes mobile banking apps, online account management tools, and better fraud prevention systems.
  • More Flexibility: Online banks may offer more flexibility regarding account options and features. For example, some online banks offer more customizable account settings and the ability to open multiple accounts easily.

Whether you use an online or a traditional bank depends on your needs and preferences. Therefore, comparing both banks’ features, fees, and benefits is essential to determine which is right for you.

Are online banks FDIC-insured?

Yes, most online banks in the United States are FDIC-insured. If the bank fails or goes out of business, your deposits are protected up to $250,000 per depositor, per account ownership category. It’s always a good idea to check if an online bank is FDIC-insured before opening an account, as this ensures that your money is safe and protected.

Are Online Banks Safe to Use?

Online banks can be safe, but taking certain precautions to protect your personal and financial information is essential.

First, ensure the online bank you choose is legitimate and FDIC-insured. This means your deposits will be insured up to a certain amount, typically $250,000.

Second, use strong passwords and enable two-factor authentication whenever possible. This will help prevent unauthorized access to your account.

Third, be careful when accessing your account on public Wi-Fi networks. A secure connection, such as a VPN, is best when accessing your online bank account from a public network.

Finally, regularly monitor your account activity and immediately report suspicious transactions to your bank.

Can You Get a Mortgage From an Online Bank?

Yes, you can get a mortgage from an online bank. Many online banks offer mortgage products and services, and you can apply for a mortgage through their website or mobile app. In addition, some online banks may offer lower interest rates and fees than traditional brick-and-mortar banks because they have lower overhead costs.

However, it’s essential to research and compares different online banks and their mortgage offerings before choosing one. Read the fine print, including any fees or restrictions, and consider factors like customer service and online tools to help manage your mortgage.

What Are the Benefits of Online Banking?

Online banking, or Internet banking, is a service provided by banks and financial institutions that allows customers to perform various banking transactions over the Internet. The benefits of online banking include the following:

  • Convenience: With online banking, you can access your account and perform transactions from anywhere, anytime, as long as you have an internet connection. You no longer have to visit a bank branch during business hours or wait in line to speak with a teller.
  • 24/7 Access: Online banking services are available 24 hours a day, seven days a week, so you can perform transactions and check your account balance anytime.
  • Time-Saving: Online banking saves you time because you can perform transactions instantly without waiting in line or filling out paper forms.
  • Cost-effective: Many online banking services are free; even those charging fees are often cheaper than traditional banking services.
  • Enhanced Security: Online banking provides enhanced security measures such as encryption and two-factor authentication, which make it difficult for unauthorized users to access your account.
  • Easy to Manage: Online banking allows you to manage your accounts and finances easily. You can check your balance, view transaction history, pay bills, and transfer money between accounts.
  • Environmentally Friendly: Online banking reduces the need for paper statements and receipts, which helps to reduce waste and protect the environment.

Overall, online banking offers numerous benefits to customers, making it a popular choice for people who want to manage their finances conveniently, securely, and efficiently.

What is required to open a bank account online?

Opening a bank account online typically requires a few steps and pieces of information, including:

  • Personal information: You must provide personal details, such as your full name, date of birth, address, and contact information.
  • Government-issued identification: You must provide a copy of a valid government-issued ID, such as a passport or driver’s license, to confirm your identity.
  • Taxpayer identification number: You will need to provide your taxpayer identification number (TIN), such as a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
  • Employment information: You may need to provide information about your employment, such as your occupation and income.
  • Initial deposit: You will typically need to make an initial deposit to open the account by transferring funds from an existing account or depositing with a check or credit card.
  • Agreeing to terms and conditions: You must review and accept the terms and conditions of the bank and the account before it can be opened.

The specific requirements may vary depending on the bank and the type of account you are opening, so it is best to check with the bank’s website or customer service for the exact details.

Best Online Banking

How To Deposit Cash in an Online Bank

straightforward process. Here are the general steps you can follow:

  • Locate an ATM: Online banks don’t have physical branches, so you’ll need to find an ATM that accepts deposits. You can check the online bank’s website or mobile app to find a list of ATMs that accept deposits.
  • Prepare your cash: Count and organize it before heading to the ATM. Make sure it’s in good condition and that there are no tears or damage.
  • Insert your ATM card: Insert your ATM card into the machine and enter your PIN.
  • Choose “Deposit”: Select the option to make a deposit, then select the account you want to deposit the cash into.
  • Enter the amount: Enter the amount of cash you want to deposit. The machine will count the cash and display the total amount.
  • Confirm the deposit: Confirm that the amount is correct and that you want to make the deposit.
  • Please wait for the receipt: The machine will dispense a receipt with the details of your deposit, including the amount and account it was deposited.

Choosing The Right Online Bank For You

Now that you know what to look for, it’s time to choose the right online bank! First, consider your needs and compare different banks to find the best one for you.

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Next Steps

To conclude, online banks are becoming an increasingly popular option for consumers. If you’re tired of dealing with lines and customer service, switching to an online bank might be your best choice. They offer a range of benefits that cannot be found with traditional banking institutions, from higher interest rates and 24/7 customer service to free transfers and accounts tailored to your needs. Considering all these factors, it’s easy to see why the online bank is the only logical choice for anyone looking for easy, cost-effective banking services. So if you’re ready to make the switch, don’t forget to request a free quote on our website today! With this offer, you can get started on the road to a hassle-free banking experience.

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Frequently Asked Questions

How do online banks differ from traditional banks regarding money market accounts?

Online banks typically offer higher interest rates on money market accounts, have lower fees and minimum balance requirements, and may have different account opening and management procedures.

What are the benefits of opening a savings account with an online bank?

Benefits of opening a savings account with an online bank include higher interest rates, lower fees, and the ability to manage your account from anywhere with internet access.

What are the benefits of opening a checking account with an online bank?

The benefits of opening a checking account with an online bank include lower fees, better interest rates, convenient online and mobile access, and potentially fewer account requirements.

Are there any ways to avoid monthly fees when banking with an online bank?

Yes, some ways to avoid monthly fees when banking with an online bank include maintaining a minimum balance, enrolling in direct deposit, or meeting other account requirements.

What is a high-yield savings account, and how do online banks offer higher interest rates than traditional banks?

A high-yield savings account is a savings account that earns a higher interest rate than a traditional savings account. Online banks can offer higher rates due to lower overhead costs.

What are the requirements for opening and maintaining an online savings account, and are any fees involved?

The bank’s requirements for opening and maintaining an online savings account vary but typically include an online application and a minimum deposit. In addition, some banks may charge fees for specific account actions.

What are foreign transaction fees, and how do they impact international banking with online banks?

Foreign transaction fees are fees banks charge for transactions in a foreign currency. They can impact international banking with online banks by adding extra transaction costs.

What is direct deposit, and how does it work with online banks?

Direct deposit is a method of electronically depositing funds into a bank account. It works the same way with online banks as traditional banks.

What are the best online banks for checking accounts?

The best online banks for checking accounts offer convenient features such as low or no fees, high-interest rates, and easy mobile banking. Some top options include Ally Bank, Capital One 360, and Discover Bank®️. These institutions provide excellent customer service and have user-friendly online platforms for managing your finances.

What should the best online banking service offer?

The best online banking service offers a secure and user-friendly platform for customers to manage their finances. With features such as easy account access, mobile banking, and strong security protocols, customers can conveniently perform transactions and monitor their accounts anytime, anywhere. Additionally, the best online banking service provides excellent customer support to address any concerns or issues that may arise.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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