Best Online Banks | Money

Online banks have become increasingly popular in recent years, offering high annual percentage yields (APYs) and low fees to customers. With lower overhead costs, online banks can provide better savings account options, certificates of deposit (CDs), and free checking accounts. In the fall of 2024, Money researched and identified the best online banks and credit unions, updating the data for May 2025 to reflect current offerings.

Discover is a well-known online bank that offers high APYs on savings accounts, checking accounts, money market accounts, and CDs. Customers can earn rewards for debit card purchases and make cash deposits, making it a versatile option. However, there are limitations such as withdrawal limits and high wire transfer fees.

Vio Bank stands out for its high rates on money market accounts with no monthly fees. Customers can open an account with as little as $100 and enjoy competitive APYs on all deposit accounts. The bank does not offer checking accounts and charges a fee for paper statements, but it provides a solid option for growing your money.

Redneck Bank offers the highest APY for checking accounts and refunds up to $25 in ATM fees per month. While it has no monthly fees, the high APY only applies to balances up to $15,000. Additionally, the bank does not offer savings accounts or CDs, so customers may need to look elsewhere for those services.

Forbright Bank offers a high APY on its growth savings account with no monthly fees. Customers can make unlimited withdrawals or transfers, but the bank does not provide debit card access for its savings account. Forbright operates branches in Maryland and Virginia, limiting its reach compared to other online banks.

Acorns provides a unique banking and investing experience, offering higher-than-average APYs on checking and savings accounts. Customers can use the “Round-Up” feature to invest spare change from transactions. However, Acorns does not offer CDs or money market accounts and requires a monthly membership fee.

Bank5 Connect receives excellent customer reviews and offers multiple customer support options. Customers can reach out via phone, email, live chat, or video meetings. The bank has a highly-rated mobile app for managing accounts, but it has limited CD terms and higher minimum deposit requirements for its high-yield money market account.

American Express is known for its high APYs on deposit accounts and interest-bearing checking account. Customers can earn rewards on debit card purchases but should be aware of high early withdrawal penalties on CDs. The bank does not offer money market accounts and has limited CD term options.

SoFi provides fee-free banking accounts with higher-than-average APYs and no ATM fees. Customers can qualify for a new customer bonus, but the bank does not offer CDs or money market accounts. Meeting the direct deposit requirements for the bonus may be challenging for some customers.

Alliant Credit Union offers a $100 cash reward for saving at least $100 per month for 12 consecutive months. The credit union provides checking accounts, savings accounts, and share certificates with no monthly fees and higher-than-average APYs. However, Alliant does not offer money market accounts and charges a fee for paper statements.

In conclusion, online banks offer a range of benefits such as high APYs, low fees, and convenient account management options. Each bank has its own strengths and limitations, so customers should carefully consider their financial needs and preferences when choosing a bank.