Online banks are increasingly popular because of their high annual percentage yields (APYs) and low fees. Because of their lower overhead costs, they’ll pass on the savings to customers, making them a fantastic option for those on the lookout for savings accounts or certificates of deposit (CDs) with higher APYs and free checking options.

Rates, deposit requirements, customer support options and costs can vary significantly by institution, so in the autumn of 2024, we researched leading banks and credit unions and identified one of the best online banks. In January 2025, we confirmed and updated our data to reflect current offerings. Listed below are the institutions we selected as one of the best online banks for 2025:

*Rates, APYs and special offers are subject to alter. All information provided was accurate as of Jan. 22, 2025.

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Besides its bank cards, Discover can be well-known for its banking products. It offers deposit accounts with much higher-than-usual APYs with no monthly fees and has some unusual perks like giving customers rewards for debit card purchases. Discover offers savings accounts, checking accounts, money market accounts and certificates of deposit. Unlike many online banks that only accept electronic transfers or deposits, Discover is one in every of the few that enables customers to make money deposits, making it a great option for individuals who often receive suggestions or work in cash-based businesses.

Although Discover has low fees and no minimum deposit requirement for its CDs, it limits what number of withdrawals you possibly can make per 30 days from a savings or money market account, and it charges a $30 outgoing wire transfer fee — the next fee than many other institutions charge.

Out of all of the banks and credit unions Money reviewed, Vio Bank has one in every of the best rates for money market accounts, and it doesn’t charge monthly fees on these accounts. You possibly can open an account with as little as $100 and earn greater than 10 times the national average APY through Vio. The bank has savings accounts, money market accounts and CDs, and it offers higher-than-average APYs on all of its deposit accounts. It boasts low account minimums and no monthly fees, making it a great selection when you’re seeking to grow your money in a protected place.

Nonetheless, Vio does have some limitations. It doesn’t offer checking accounts, so you will need one other checking account to get check writing privileges or access to a debit card, and Vio charges a $5 monthly fee when you prefer paper statements. Unlike many online banks, Vio has limited online tools and resources. Other financial institutions have robust apps, calculators, budgeting guides and videos to assist people manage their money; Vio is more barebones.

Checking accounts rarely pay interest, and once they do, rates are inclined to be low — the national average APY is around 0.07%. Redneck Bank is a robust alternative with a unusual name; you possibly can earn a substantially higher rate with its rewards checking accounts, and Redneck Bank doesn’t charge monthly fees. It offers the best APY available for its checking account, and you possibly can open a checking account with as little as $500 (no minimum balance or monthly fees required after that). Redneck Bank will even refund as much as $25 in ATM fees per 30 days, making it easier to access your money at an ATM.

There are some caveats to concentrate on, though. Its highest APY only applies to balances as much as $15,000; amounts over that quantity will earn a much lower rate of interest. Moreover, Redneck Bank doesn’t offer savings accounts or CDs, so you will probably need one other bank on your other financial needs.

Forbright Bank offers an unusually high APY on its growth savings account, so you possibly can earn an APY that’s greater than 10 times higher the national average with no monthly fee. Forbright offers each savings accounts and CDs with high APYs, and you possibly can easily open an account online. With its savings account, there aren’t any limits on the variety of withdrawals or transfers you possibly can make per 30 days. That feature is a major advantage over other banks that commonly limit customers to simply six withdrawals per 30 days (and charge high excess withdrawal fees).

Unfortunately, Forbright’s savings account doesn’t include debit card access, so you possibly can’t withdraw money at an ATM. And the bank only offers checking accounts and money market accounts through its branches. It only operates branches in two states: Maryland and Virginia.

For those on the lookout for a one-stop option for each banking and investing, Acorns offers progressive and unique options. For a flat membership fee, you possibly can get access to checking and savings accounts with higher-than-average APYs, and you possibly can benefit from advantages like round-up deposits to an investment account and shopping rewards. If you change into an Acorns member, you possibly can open a checking account and savings account along along with your investment account.

As you utilize your bank accounts, you possibly can activate the “Round-Up” feature — a micro-savings strategy Acorns uses to round up debit card or banking transactions to the subsequent full dollar amount and deposit the difference in cost to your investment account. Once your investment account has accrued $5 in spare change, Acorns will invest the cash within the stock market in your behalf. Acorns also has a paycheck split option, which permits you to mechanically invest a portion of your paycheck because it is available in.

Nonetheless, Acorns doesn’t offer CDs or money market accounts, and it does require a monthly membership fee.

Bank5Connect has stellar customer reviews in comparison with other banks. On TrustPilot, its rating is within the “excellent” range, which is unusual for a bank, and it offers multiple customer support options. Other banks often have limited customer support options. With Bank5Connect, you possibly can reach customer support by phone, email, live chat or by organising a video meeting — an unusual feature. It also has a highly-rated mobile app you need to use to administer your accounts, pay bills and send money to friends or family through Zelle.

Unlike other banks which have CD terms so long as 10 years, Bank5Connect is more limited. It only offers CDs with terms of 36 months or less with a $500 minimum deposit. Moreover, to earn the best rate on its money market account, you will need to deposit at the least $5,000 — a much higher-than-usual requirement.

American Express is greater than charge cards or bank cards; it is also a wonderful banking option. It offers substantially higher-than-average APYs on deposit accounts, and it even has an interest-bearing checking account. Through American Express, you possibly can open a checking account, savings account or CD. These accounts don’t have any monthly fees or minimum balance requirements, and you possibly can even earn Amex Membership Rewards points along with your checking account if you use your debit card.

Unfortunately, American Express doesn’t offer money market accounts, and it has limited CD term options. Although Amex does offer CDs with high APYs, remember that it has high early withdrawal penalties; depending in your CD’s term, the penalty will be as much as 540 days value of interest.

SoFi offers powerful bank accounts without fees, meaning it doesn’t charge monthly fees or ATM fees. And when you meet direct deposit requirements, SoFi won’t charge overdraft fees either. Through SoFi, you possibly can open a mix checking account and savings account; they can’t be opened individually. Each accounts earn higher-than-average APYs, and you possibly can even qualify for a recent customer bonus based in your deposit amounts.

There are some drawbacks to be mindful of. SoFi doesn’t offer CDs or money market accounts, so you will need to look elsewhere for those products. And with a view to earn the complete SoFi recent customer banking bonus, you will need to receive at the least $5,000 in direct deposits inside 25 days. For a lot of, that requirement could also be difficult to satisfy.

Most banks that provide recent customer bonuses charge monthly fees or require hefty deposit requirements. Alliant Credit Union is different; it would reward you with $100 when you save at the least $100 per 30 days for 12 consecutive months (and maintain a balance of at the least $1,200). That is a major reward for a no-fee account. Alliant has checking accounts, savings accounts and share certificates — the credit union equivalent of a CD — with higher-than-average APYs and no monthly fees. With many credit unions, membership is proscribed to pick groups, but Alliant’s membership is open to residents nationwide.

Nonetheless, Alliant doesn’t have money market accounts, and it has more limited share certificate terms than other banks; the utmost term is just 60 months. Moreover, Alliant charges customers a paper statement fee, which may add to your overall cost.

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How we selected the Best Banks of 2025

To find out our list of Best Banks for 2025, Money staff evaluated a whole bunch of the biggest retail banks, credit unions, regional and state banks, ranked by assets, and 20 of the most well-liked online banks. We then compared opening balance requirements, interest paid, fees, and features to find out our top picks.

We researched the highest 25 digital and online financial institutions to discover one of the best online banks and credit unions of 2024–2025 after which compared the institutions’ account options, deposit minimums, APYs, fees and customer support. Priority was given to banks and credit unions without monthly fees and higher-than-average APYs, and we also emphasized the tools available through mobile apps and online portals.

You possibly can read our full methodology here.

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