Article
Top 10 Best Online Banks in 2025 - Highest Rates & Low Fees
Discover the best online banks of 2025 with high APY rates, low fees, and excellent digital features. Our experts compared top online-only banks to find the best options for savings, checking, and customer service.
Choosing the right online bank can help you earn significantly more on your savings while avoiding the fees that traditional banks charge. With rates up to 10 times the national average and innovative digital features, online banks offer a compelling alternative to brick-and-mortar institutions.
Our team analyzed dozens of online banks, comparing APY rates, fees, ATM access, mobile app quality, and customer service. Here are the 10 best online banks for 2025.
Quick Comparison
| Bank | Best For | Savings APY | Rating |
|---|---|---|---|
| 1. SoFi Bank | Best Overall Online Bank | Up to 4.00% | ★4.9/5 |
| 2. Ally Bank | Best for Customer Service | 3.30% | ★4.8/5 |
| 3. Axos Bank | Best High-Yield Savings | 4.31% | ★4.7/5 |
| 4. Capital One 360 | Best for Branch Access | 3.80% | ★4.7/5 |
| 5. Marcus by Goldman Sachs | Best for High-Yield Savings Only | 4.10% | ★4.6/5 |
| 6. Discover Bank | Best Cash Back Rewards | 3.80% | ★4.6/5 |
| 7. Varo Bank | Best for Direct Deposit Users | Up to 5.00% | ★4.5/5 |
| 8. Chime | Best for Early Paycheck Access | 2.00% | ★4.4/5 |
| 9. Quontic Bank | Best Money Market Account | 3.75% | ★4.5/5 |
| 10. Newtek Bank | Best High-Yield Rate | 4.35% | ★4.4/5 |
Our Top Picks in Detail
SoFi Bank
SoFi Bank stands out as the best overall online bank with its combination of high savings rates, no-fee structure, and comprehensive financial tools. Named Best Online Bank of 2025, it offers up to 4% APY on savings when you set up direct deposit, plus valuable features like automated savings and free financial planning.
Pros
- ✓High savings APY up to 4% with direct deposit
- ✓No monthly fees or minimum balances
- ✓Robust mobile app with budgeting tools
- ✓Automatic savings features and round-ups
- ✓Free financial planning consultation
Cons
- ✗Must meet requirements for highest APY
- ✗Limited physical locations
- ✗Customer service can be slow during peak times
Ally Bank
Ally Bank has built its reputation on exceptional customer service and user-friendly banking tools. With 3.30% APY on savings, zero fees, and innovative features like savings buckets and spending analyzers, it's perfect for those who value strong support alongside solid rates.
Pros
- ✓Excellent 24/7 customer service
- ✓No monthly maintenance fees ever
- ✓Up to $10 monthly ATM fee reimbursements
- ✓High savings rate with no balance requirements
- ✓Innovative savings tools like buckets and boosters
Cons
- ✗APY lower than some competitors
- ✗No physical branch access
- ✗Check deposits can take longer to clear
Axos Bank
Axos Bank offers some of the highest APYs in online banking, with 4.31% on savings and up to 3.30% on checking accounts. Combined with the nation's largest fee-free ATM network and no monthly fees, it's ideal for rate-chasers who want maximum earning potential.
Pros
- ✓Top-tier 4.31% APY on high-yield savings
- ✓Rewards checking with up to 3.30% APY
- ✓Largest fee-free ATM network (91,000+)
- ✓Unlimited domestic ATM fee reimbursements
- ✓No monthly fees on most accounts
Cons
- ✗Checking APY requires meeting conditions
- ✗Website interface less modern than competitors
- ✗Some features require multiple accounts
Capital One 360
Capital One 360 bridges the gap between online and traditional banking with its Capital One Cafe locations while maintaining competitive 3.80% savings rates and zero fees. It's the best choice for those who want occasional in-person banking access without sacrificing online bank benefits.
Pros
- ✓Access to Capital One Cafes nationwide
- ✓Strong 3.80% savings APY
- ✓Excellent mobile app and online tools
- ✓No fees or minimums on 360 accounts
- ✓Free checks and money orders
Cons
- ✗Limited physical branch locations
- ✗Lower checking account interest rates
- ✗Some features require Capital One credit card
Marcus by Goldman Sachs
Marcus by Goldman Sachs focuses exclusively on high-yield savings and CDs, offering a straightforward 4.10% APY with no fees or minimums. While it doesn't offer checking accounts, it's an excellent companion savings account for those who want a separate high-rate savings option.
Pros
- ✓Highly competitive 4.10% savings APY
- ✓No fees whatsoever on savings accounts
- ✓Backed by Goldman Sachs reputation
- ✓No minimum deposit or balance requirements
- ✓Simple, straightforward account structure
Cons
- ✗No checking account option
- ✗No ATM access or debit card
- ✗Limited account types (savings and CDs only)
Discover Bank
Discover Bank uniquely offers 1% cash back on debit card purchases, making it the only online bank that rewards everyday checking account spending. Combined with 3.80% savings APY, free credit score tracking, and no fees, it's great for maximizing everyday banking rewards.
Pros
- ✓1% cash back on debit card purchases (up to $3,000/month)
- ✓Solid 3.80% savings APY
- ✓Free FICO credit score monitoring
- ✓24/7 U.S.-based customer service
- ✓No monthly fees on any accounts
Cons
- ✗Cash back debit rewards capped monthly
- ✗Fewer advanced banking features
- ✗ATM network smaller than some competitors
Varo Bank
Varo Bank offers the highest savings APY available at 5%, though it requires $1,000+ in monthly direct deposits and only applies to balances up to $5,000. Perfect for younger professionals with regular direct deposit who want to maximize interest on their emergency fund.
Pros
- ✓Industry-leading 5% APY on first $5,000
- ✓No monthly fees or minimum balance
- ✓Early direct deposit access (up to 2 days early)
- ✓Automatic savings features
- ✓Built-in budgeting and savings tools
Cons
- ✗High APY requires $1,000+ monthly direct deposit
- ✗5% rate only applies to first $5,000 in savings
- ✗Limited customer service hours
Chime
Chime focuses on helping users manage cash flow with early paycheck access, automatic savings, and fee-free overdraft protection. While its 2% savings APY is lower than top competitors, the combination of no fees, early pay, and user-friendly features makes it popular with younger consumers.
Pros
- ✓Get paid up to 2 days early with direct deposit
- ✓Automatic round-up savings feature
- ✓No monthly fees, overdraft fees, or minimums
- ✓Large fee-free ATM network
- ✓SpotMe overdraft protection up to $200
Cons
- ✗Lower savings APY than competitors
- ✗Limited account types (checking and savings only)
- ✗Customer service only via app chat
Quontic Bank
Quontic Bank specializes in innovative account types, including a leading 4.25% APY money market account with check-writing privileges and a unique Bitcoin rewards checking account. It's ideal for those seeking alternatives to traditional savings accounts with more flexibility.
Pros
- ✓Top-tier money market account at 4.25% APY
- ✓Money market includes checks and debit card
- ✓Massive 90,000+ ATM network
- ✓No overdraft fees
- ✓Bitcoin rewards checking option available
Cons
- ✗$100 minimum deposit to open
- ✗Some accounts have monthly requirements
- ✗Newer bank with shorter track record
Newtek Bank
Newtek Bank currently offers the absolute highest savings APY available at 4.35%, with no minimums or fees. While it's savings-only with limited features, it's an excellent choice as a dedicated high-yield savings account to pair with your primary checking account elsewhere.
Pros
- ✓Highest savings APY at 4.35%
- ✓No minimum deposit or balance requirements
- ✓No monthly maintenance fees
- ✓FDIC insured up to $250,000
- ✓Rate applies to entire balance
Cons
- ✗Savings account only - no checking
- ✗No ATM or debit card access
- ✗Basic mobile app with limited features
How We Evaluate Online Banks
Our expert team uses a comprehensive methodology to test and compare online banks. Here’s what we evaluate:
Interest Rates
We track and compare APY rates across account types:
- Savings APY: Competitive rates vs. national average (0.39%)
- Checking APY: Interest-bearing checking account rates
- Tiered rates: How rates change based on balance
- Rate history: How stable rates are over time
Fees and Minimums
We analyze the complete cost structure:
- Monthly maintenance fees (or lack thereof)
- Minimum deposit requirements to open
- Minimum balance requirements to avoid fees
- ATM fees and reimbursement policies
- Overdraft and NSF fees
ATM and Cash Access
We evaluate how easy it is to access your money:
- Size of fee-free ATM network
- ATM fee reimbursement programs
- Cash deposit capabilities
- Branch access (for hybrid banks)
Digital Banking Experience
We test the online and mobile banking platforms:
- Mobile app design and functionality
- Security features (2FA, biometric login)
- Bill pay and money transfer tools
- Budgeting and financial management features
- Customer dashboard and account management
Customer Service
We assess support quality and availability:
- Phone support hours and wait times
- Live chat availability
- Email and secure message response times
- Educational resources and FAQs
- Customer satisfaction ratings
Online Banks vs. Traditional Banks
Advantages of Online Banks
Higher Interest Rates: Online banks typically offer APYs 10x higher than traditional banks because they don’t have the overhead costs of maintaining physical branches.
Lower Fees: Most online banks charge no monthly maintenance fees and offer free ATM access through large networks.
Better Technology: Online banks invest heavily in mobile apps and digital features since that’s their primary customer interface.
24/7 Access: Manage your accounts anytime, anywhere without branch hour restrictions.
What You Give Up
No Physical Branches: You can’t walk into a branch for help, though some hybrid banks like Capital One offer limited locations.
Cash Deposits Can Be Difficult: Most online banks don’t accept cash deposits, though some partner with retailers like CVS or Walgreens.
Initial Setup: Opening accounts online requires more identity verification steps than walking into a branch.
Frequently Asked Questions
Are online banks safe?
Yes. Online banks that are FDIC-insured offer the same $250,000 deposit protection as traditional banks. Major online banks use bank-level encryption, multi-factor authentication, and other security measures that often exceed traditional banks.
How do I deposit cash into an online bank?
Options include: using ATMs that accept deposits (if your bank allows it), buying money orders to mobile deposit, using retail partners like Walmart or CVS (bank-dependent), or maintaining a local bank account for cash deposits and transferring funds electronically.
Can I have multiple online bank accounts?
Absolutely. Many people use multiple online banks to maximize benefits—one for highest savings APY, another for best checking features, and a third for money market accounts. Just ensure you can meet any minimum requirements at each.
How long does it take to transfer money between banks?
ACH transfers typically take 1-3 business days. Many online banks now offer same-day transfers for a small fee, and some provide instant transfers between accounts at the same bank.
Will I earn more with an online bank?
Almost certainly. With the national average savings rate at just 0.39%, online banks offering 3-4% APY will earn you 8-10x more. On a $10,000 balance, that’s $300-400/year instead of $39.
What happens if the online bank fails?
Your deposits are protected by FDIC insurance up to $250,000 per depositor, per institution, just like traditional banks. If the bank fails, the FDIC ensures you get your money back, typically within a few days.