Money Analysed

Finding Your Perfect Fit: The Best Online Banks of 2021

Best Online Banks

As technology advances, more and more people are turning to online banking as their preferred banking method. The convenience of being able to manage your money from the comfort of your home or on-the-go is unmatched.

In this article, we will explore the best online banks for both savings-only accounts and those with checking accounts, as well as the pros and cons of online banking.

Best Savings-Only Online Banks

When it comes to savings-only online banks, there are a few things you should consider, such as Annual Percentage Yield (APY), fees, and minimum balance requirements. Here are our top picks:

1.

Synchrony Bank

With an APY of 0.55%, Synchrony Bank offers one of the highest rates in the market. They also don’t charge any monthly fees or require minimum balances, making it easy for anyone to save money without any added costs.

2. Marcus by Goldman Sachs

This online bank offers an APY of 0.50% and allows unlimited withdrawals, making it a great choice for people who need to access their savings frequently.

They also don’t charge any fees or require a minimum balance.

Best Online Banks with Checking Accounts

When it comes to online banks with checking accounts, there are several factors to consider, such as fees, ATM networks, and rewards programs. Here are our top picks:

1.

SoFi

SoFi offers a high APY of 0.25% on its checking account, along with no monthly fees and a rewards program that includes local discounts and cashback offers. It’s a great option for people who want to earn interest on their checking balance and save money on everyday purchases.

2. Axos

With no fees, high checking APY, and unlimited ATM fee reimbursements, Axos is a great choice for anyone looking for a no-frills checking account.

They also offer overdraft protection, so you don’t have to worry about accidentally overdrawing your account. 3.

Charles Schwab

This online bank offers ATM fee rebates, no fees, and unlimited ATM reimbursements, making it a popular choice for frequent travelers. They also offer a variety of investment options, including stocks, bonds, and mutual funds.

4. Ally

Ally is a great choice for people who want a checking account that offers overdraft protection and the ability to get paid early.

They also have an automatic savings program that can help you reach your financial goals faster. 5.

American Express

If you’re an Amex cardholder, you can earn Membership Rewards points by using American Express’s online checking account. They also offer a rewards program that includes cashback on purchases.

6. Quontic

Quontic offers a High Interest Checking account that is perfect for crypto users.

They also offer no fees and the unique Quontic Pay Ring, which allows you to make contactless payments without your phone or wallet. 7.

Capital One

Capital One is known for its mobile banking app, which allows you to manage your checking account from your phone. They also offer a Performance Savings account that offers no fees and a competitive APY of 0.40%.

8. Discover

Discover offers a high savings APY of 0.50%, as well as no monthly fees and 1% cashback on purchases.

They also offer an instant-issue debit card, so you can start using your account right away. 9.

CIT

CIT is a great choice for frequent ATM users because they offer unlimited ATM reimbursements. They also have an eChecking account that offers no fees and a competitive APY of 0.10%.

10. Varo

Varo offers a cashback program that can help you earn money on your purchases, as well as no fees and the ability to make cash deposits at participating retailers.

They also offer overdraft protection, so you don’t have to worry about accidentally overdrawing your account.

Pros and Cons of Online Banking

Now that we’ve covered the best online banks, let’s take a look at the pros and cons of online banking. Pros:

1.

Convenience – You can manage your money from anywhere, anytime. 2.

Lower Fees – Online banks often have lower fees than traditional banks. 3.

Higher APY – Online banks often offer higher interest rates on savings and checking accounts. Cons:

1.

Lack of Customer Service – Online banks may not have in-person customer service options, which can be frustrating if you need help with a problem. 2.

High Fees for Certain Activities – Online banks may charge fees for certain activities that traditional banks don’t, such as wire transfers or using an out-of-network ATM. 3.

Difficulty with Cash Deposits – Online banks may require you to deposit cash through a third-party service, which can be inconvenient.

In

Conclusion

Online banking is becoming increasingly popular, and for good reason. It’s convenient, often has lower fees, and can offer higher interest rates on your accounts.

However, it’s important to consider the pros and cons of online banking before choosing an online bank. Hopefully, our list of the best online banks and the pros and cons of online banking will help you make an informed decision.

How to Choose the Best Online Bank Account

If you’re thinking about opening a bank account with an online bank, there are several factors to consider to ensure you make the best decision for your financial needs. In this article, we will explore the criteria you should look at when choosing the best online bank account and the methodology behind ranking these criteria.

Criteria

1. Fees

One of the main benefits of online banking is lower fees compared to traditional brick-and-mortar banks.

However, you should still check for any fees that may be charged by the online bank, such as monthly maintenance fees or overdraft fees. 2.

Minimum Balance

Some online banks require a minimum balance in your account to avoid fees, so it’s important to check for any minimum balance requirements before opening an account. 3.

Types of Products

Check the online bank’s website for the types of products they offer, such as savings accounts, checking accounts, CDs, and loans. It’s important to choose an online bank that offers the types of products you need for your financial situation.

4. Interest Rates

Although interest rates for online banks are generally higher than traditional banks, they can vary between online banks and different types of accounts.

Check the interest rates for the specific accounts that you are interested in before opening an account. 5.

ATM Access

Some online banks have partnerships with ATM networks to provide their customers with fee-free ATM access. It’s important to check if the online bank you’re interested in has any partnerships with ATM networks, as well as if they offer fee-free ATM access at their own ATMs.

6.

Mobile Check Deposits

If you plan on depositing checks through your mobile device, make sure the online bank you choose offers this option and if there are any restrictions or fees associated with mobile check deposits.

Methodology

When ranking online banks, we looked at several factors to determine the best online bank accounts, including:

1. Minimum to Open an Account

We focused on online banks that have a low minimum to open an account, making it easier for everyone to access their services.

2. Minimum Balance Requirement

We looked for accounts with low or no minimum balance requirements to avoid fees and make banking more accessible.

3. Fees

We looked at accounts with little to no fees, to ensure customers are not charged unnecessarily.

4. APY

APY (Annual Percentage Yield) is the amount of interest earned on deposited funds.

We looked for accounts with high APYs to ensure customers are getting the most out of their savings. 5.

Number of Fee-Free ATMs

We looked for online banks that have a large network of fee-free ATMs to ensure customers are not paying unnecessary fees when withdrawing or depositing money. 6.

Types of Bank Accounts Offered

We looked for online banks that offer a variety of bank accounts to meet different financial needs, such as savings accounts, checking accounts, CDs, and loans. 7.

Customer Service Options

We looked for online banks that offer a variety of customer service options, such as phone, email, chat, and in-person support, to ensure customers have access to the help they need when they need it. Based on these factors, here are our top picks for the best online bank accounts:

1.

Ally Bank

Ally Bank offers no monthly fees, no minimum balance requirements, and a range of products, such as savings accounts, checking accounts, and CDs. They also offer a high APY on their savings account and have a large network of fee-free ATMs.

2. Chime

Chime offers a fee-free checking account with no minimum balance requirement, no monthly fees, and a high APY on their savings account.

They also offer early direct deposits, budgeting tools, and a helpful customer service team. 3.

Capital One 360

Capital One 360 offers no monthly fees, no minimum balance requirements, and a range of products, such as savings accounts, checking accounts, CDs, and loans. They also have a large network of fee-free ATMs and a mobile app for easy banking on-the-go.

4. Discover Bank

Discover Bank offers a high APY on their savings account, fee-free checking account, and no monthly fees or minimum balance requirements.

They also offer cashback rewards on purchases and a range of customer service options. 5.

Simple

Simple offers a fee-free checking account with no minimum balance requirement, no monthly fees, and a high APY on their savings account. They also offer goal setting tools, budgeting tools, and a mobile app for easy banking management.

Conclusion

Choosing the best online bank account ultimately depends on your specific financial needs. It’s important to consider the criteria mentioned above, such as fees, minimum balance requirements, types of products, interest rates, ATM access, and mobile check deposits, before making a decision.

By using our methodology and top picks, you can make an informed decision and find the online bank account that’s right for you.

FAQs

Choosing an online bank can be a daunting task, especially if you’re new to online banking. Here are answers to some frequently asked questions to help you make an informed decision.

Easiest Online Bank to Open

If you are looking for an online bank with the easiest account opening process, there are a few options to consider. 1.

Chime

Chime is one of the easiest online banks to open an account, as it requires no minimum deposit and no monthly fees. It also offers a user-friendly interface with a mobile app for easy banking access.

2. Capital One 360

Capital One 360 is another popular choice for those looking for an easy online banking account opening process.

It does require a minimum deposit, but there are no monthly fees. They also have a helpful customer support team to walk you through the process if needed.

3. Ally Bank

Ally Bank is a popular option for those looking for an online bank with an easy account opening process.

They also offer a wide range of financial products with no minimum deposit or monthly fees.

Safest Online Bank

One of the biggest concerns with any online bank is safety. Here’s what you need to look for to ensure that your online bank is safe.

1. FDIC Insured

Make sure that the online bank you choose is a member of the Federal Deposit Insurance Corporation (FDIC).

This means that your deposits are protected up to $250,000 in the event that the bank fails. 2.

Strong Online Security Measures

Choose an online bank that has strong online security measures in place, such as multi-factor authentication, encryption, and alerts for suspicious activity. 3.

Positive Reputation

Research the online bank you are considering to ensure that it has a positive reputation in the industry. Look for reviews from other customers, as well as any news articles or scandals involving the bank.

4. Transparent Policies

Choose an online bank that has transparent policies regarding their fees, interest rates, and account terms.

This shows that they are honest and trustworthy. Based on these factors, here are our top picks for the safest online banks:

1.

Ally Bank

Ally Bank is a popular online bank with a strong reputation for safety and security. It is FDIC insured and offers multi-factor authentication and encryption to protect customer accounts.

2. Capital One 360

Capital One 360 is another online bank with a strong reputation for safety and security.

It is FDIC insured and offers multiple security measures, such as strong passwords and a mobile app with biometric authentication. 3.

Discover Bank

Discover Bank is FDIC insured and offers a range of security measures, such as multi-factor authentication and encryption. They also have a strong reputation in the industry for their customer service and transparency.

4. Chime

Chime is another online bank that is FDIC insured and offers strong online security measures, such as biometric authentication and alerts for suspicious activity.

They also have a helpful customer service team available to answer any questions or concerns.

Conclusion

Choosing the best online bank for your needs requires careful consideration and research. Keep in mind factors such as ease of opening, safety, and reputation when making your decision.

By using our top picks for the easiest online banks to open and safest online banks, you can make an informed decision and find the online bank that’s right for you. In conclusion, online banking is becoming increasingly popular due to its convenience and lower fees.

When choosing an online bank, consider criteria such as fees, minimum balance, types of products, interest rates, ATM access, and mobile check deposits. Using our methodology, we have identified the best online banks for savings-only and checking accounts.

Additionally, when researching online banks, look for those that are FDIC insured, have strong online security measures, a positive reputation, and transparent policies. With this information, you can make an informed decision when choosing an online bank that fits your financial needs and provides you with the best banking experience.

Remember, your decision can significantly impact your financial future, so choose wisely.

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