8 Best Online Banks of June 2022

Years ago, finding a bank meant heading downtown and choosing from whichever options were available there. The Internet dramatically lessened the importance of physical branches and made it possible to bank from anywhere at any time.

Virtually all banks with physical locations have online portals, but a growing number now do the bulk of their business online. Some have ties to community banks and may have physical branches in select regions. Others exist only in the digital realm and have no physical branches.

What follows is a list of the best online banks on the market today.

Best Online Banks of June 2022

These are the best online banks on the market right now.

Each does at least one thing really well, whether it’s offering a potent lineup of budgeting and money management tools or delivering savings and CD rates well above the national average. Our top pick offers the most value for the greatest number of potential customers, in our opinion.

Unless otherwise noted, all the accounts on this list come with FDIC insurance up to $250,000 per account.

Best Overall: American Express® National Bank

Ask any random person on the street what they know about American Express and chances are pretty good they’ll mention Amex’s premium credit cards right off the bat.

What most don’t know is that Amex runs a savings bank (American Express National Bank, member FDIC) with fantastic savings account and CD options.

The American Express High Yield Savings Account has a solid yield on all balances with no maintenance fees, minimum opening deposits, or minimum balances. The current savings yield is 0.75% Annual percentage Yield (APY). This rate is current as of June 9, 2022.

Want to tie up your money for a while at a higher interest rate? Choose from seven CD options ranging from six months to five years.

CD yields are very good across the board, up to 2.40% Annual Percentage Yield (APY) on the longest-term product (60 months or 5 years). Early withdrawal penalties are:

• 90 days’ interest for terms under 12 months
• 270 days’ interest for terms between 12 and 48 months (four years)
• 365 days’ interest for terms between 48 and 60 months (five years)
• 540 days’ interest for terms of 60 months or longer

Additional features:

• Extensive lineup of personal credit products, including premium credit cards like The Platinum Card® from American Express
• Move money between up to three external bank accounts in short order
• 24/7 customer service

Best for Investors: Wealthfront

Wealthfront is a next-generation banking service that’s ideal for day-to-day money management. Its Cash Account features high-interest checking, no account fees, and a host of value-added features — and you can open an account with just $1.

But this bank has made its name in the investment business, and there’s where it continues to shine. Key features include:

• Build semi-customized, automatically rebalanced, globally diversified portfolios of low-cost index funds optimized with daily tax-loss harvesting
• Just $500 minimum to invest
• Pay an annualized management fee of 0.25% assets under management (AUM) on all balances
• Choose from individual and joint taxable accounts, IRAs, and 529 college savings plan accounts
• Portfolio line of credit that lets you tap up to 30% of your account value once you have $25,000 or more under management
• Consolidated view of all your accounts through Wealthfront’s free DIY financial planning tool

Additional features of the Wealthfront Cash Account include:

• 0.85% APY (variable) on all balances
• $1 minimum opening deposit
• No account fees
• No overdraft fees
• FDIC insurance on balances up to $1 million
• Get paid up to two days early with direct deposit
• Put your money to work in the market within minutes when you use your Cash Account to invest in a Wealthfront Investment Account
• Mobile check deposit
• Free bill pay and peer-to-peer (P2P) transfers
• Complimentary debit card and free in-network ATM access

Best for No Account Fees Ever: Rewards Checking via Upgrade

Rewards Checking via Upgrade⁴ has a slew of user benefits, but its defining feature couldn’t be simpler: no account fees, ever.

That’s right. As a user, you pay no account fees — no annual fees, overdraft fees, transfer fees, or ATM fees charged by Rewards Checking by Upgrade¹.

There’s more, of course. Additional features of Rewards Checking via Upgrade include:

• 2% cash back on purchases at convenience stores, drugstores, restaurants, and bars, and on utility bills and certain monthly subscriptions²
• Earn up to $500 cash back per year at the 2% rate
• Earn 1% cash back on all other eligible purchases

• Get up to five third-party ATM fee rebates each month¹
• You may receive discounts on loans and cards through Upgrade³
• FDIC Insured up to $250,000 through Cross River Bank, Member FDIC

Best for Automated Budgeting: Douugh

Douugh is a money management app that makes it easy to stay on top of your day-to-day financial obligations while saving for a rainy day — and happier days too.

A single mobile-friendly dashboard makes it all possible.

How? That’s down to Salary Sweeper, an AI-enabled feature that automatically allocates income to two protected “jars”:

• Your Bill Jar, complete with a virtual card of its own
• Your Savings Jar, which is actually a customizable array of single-purpose savings buckets

The rest is yours to spend as you please using a debit card accepted by millions of merchants worldwide. Best of all, you never have to give manual budgeting a second thought.

Additional features:

• Enjoy a free checking account with a Mastercard debit card
• Use Apple Pay, PayPal, and other payment apps to make purchases online and IRL
• Lock and unlock your card and change your PIN within the app — without calling customer service or visiting a branch.

Best for Teens and Young People: Copper Banking

Copper is a banking solution for teens age 13 and older — and their parents too.

It’s built around the Copper Card, a personalized debit card that leverages Apple Pay technology to facilitate seamless online and in-person transactions.

The Copper App allows parents to monitor spending and instantly send money in seconds. For teens, its Automatic Saving feature encourages saving — a lifelong financial habit — by automatically setting aside a portion of each paycheck or inflow.

Additional features:

• Copper has a wealth of financial literacy content for parents and kids alike — it’s one of the best financial education tools around
• Withdraw cash for free at over 55,000 ATMs
• All Copper Accounts are FDIC-insured up to $250,000 through Evolve Bank & Trust

Best for Potential Returns on Savings & Spending: PrizePool

PrizePool is a truly unique financial app — the only FDIC-insured deposit account provider that offers users the chance to earn serious money based on your saving and spending habits.

This bank offers two ways to win:

• Savings Balances: Get 1 ticket for PrizePool’s prize drawings for every $1 on deposit in your savings account, every day. So if you have $1,000 in your account, you get 1,000 tickets every day.
• Debit Card Purchases: Earn 30 tickets for every $1 spent, plus get the chance to have your purchases reimbursed.

They hold a weekly drawing every Friday. There are almost 6,000 cash prizes every week, including a $10,000 grand prize drawing at least once every six weeks.

Additional features:

• Earn 0.30% APY on eligible savings balances
• Deposits are FDIC-insured up to $250,000
• Refer new users to PrizePool and get 10% of their prize winnings forever

Best for Freelancers and Self-Employed People: Lili

Lili offers a totally free checking solution with a slew of value-added features designed to simplify your financial life.

Its core product is built with freelancers in mind, but it’s appropriate for a range of use cases, from solopreneurs to folks who supplement 9-to-5 income with side hustle revenue.

With powerful, automated tax savings and expense categorization tools, Lili eliminates the need to juggle separate bank accounts for business and personal needs — it’s just one deposit account for your entire financial life.

Additional features:

• No minimum opening deposits or ongoing balance requirements and no account fees
• Pay virtually anywhere with a Visa debit card that’s accepted worldwide

• Lili’s Tax Bucket tool automatically sets aside funds earmarked for income tax payments
• Utilize expense management and categorization tools that simplify business budgeting, cash flow management, and year-end accounting
• Get real-time alerts for every transaction (and other account activities too)
• Make mobile check deposits through the Lili mobile app
• Make cash deposits at more than 90,000 retail locations across the U.S., including CVS, Walgreens, and Rite Aid
• Get paid up to two days early with early direct deposit
• Enjoy fee-free withdrawals at about 38,000 ATMs nationwide

For $4.99 per month, Lili Pro adds even more valuable features:

• A premium Visa Business Debit Card that delivers cash-back rewards
• BalanceUp, a fee-free overdraft solution that covers up to $200 in would-be overdrafts
• Advanced expense tracking that helps business owners maximize their tax deductions
• A savings account that pays 1% interest

Best for Savers: Quontic Bank

Quontic Bank got its start as a New York City community bank that catered to thrifty types.

Today, Quontic’s branch-based banking options represent just a small fraction of its offerings. With a nationwide digital footprint, Quontic delivers category-leading checking and savings yields for consumers and small-business owners from all walks of life — all with no monthly service fees:

• Cash Rewards Checking: Earn unlimited 1.5% cash back on qualifying debit card transactions after meeting the $100 minimum opening deposit.
• Bitcoin Rewards Checking: Earn 1.5% Bitcoin on qualifying debit card transactions. The minimum opening deposit is $500. This account may not be available in all states.
• High Interest Checking: Make 10 or more qualifying debit card point-of-sale transactions of $10 or more per statement cycle to earn interest at competitive rates based on account balance. The minimum opening deposit is $100.
• High Yield Savings: Earn interest at category-leading rates after meeting the $100 minimum opening deposit.
• Money Market: Earn solid yields, depending on your balance tier, after meeting the $100 minimum.
• CDs: Quontic CDs have terms ranging from six months to three years and competitive yields that generally increase in proportion to term. The minimum opening deposit is $500. Early withdrawal penalties may apply.

Additional features:

• Tap to pay with the Quontic Pay Ring — the first wearable debit card
• Choose from an array of home loans, including community development loans that go beyond your traditional credit profile
• Take advantage of special loans for foreign nationals and recent immigrants

Methodology: How We Select the Best Online Banks

We use several key factors to evaluate online banks and surface the very best ones for our readers. Each relates in some way to the overall user experience, and you’ll see many represented in our “Best For” categories above.

Available Account Types

The best online banks offer a range of different deposit account types: free checking, savings, CD, and money market accounts, among many others.

Truly comprehensive online banks go even further, with less-common account offerings like savings IRAs, jumbo CDs, and more. More accounts doesn’t necessarily mean a better banking experience, but it’s helpful if you’re looking for a one-stop financial shop.

Interest Rates

Online banks tend to have higher yields — interest rates paid to the account holder — as well as lower interest rates on certain types of loans, if offered.

You shouldn’t count on that though. It’s important to shop around and choose an online bank that consistently offers significantly better rates. Not all do.

Account Minimums

The best online banks have low or no minimum balances and low or no minimum opening deposit requirements on checking, savings, and money market accounts.

CDs generally do have minimum deposit requirements, even at the best online banks, but there’s lots of variation. Look for deposits at or below the $1,000 mark, if possible.

Monthly Maintenance Fees

Free is always better than not free, right?

Not necessarily. Some of the best online banks around charge modest monthly fees. In exchange, they offer a wealth of value-added features and services that can earn or save you money (and sometimes both at the same time).

That said, we do give preference to banks that don’t charge monthly fees at all. Because everyone could use a break.

Other Account Fees

The trusty monthly maintenance fee is just the most visible bank fee. Others include:

• ATM fees (in-network and out-of-network)
• Wire transfer fees
• Excess transaction fees
• Early withdrawal penalties
• Minimum balance fees

Traditional banks are notorious for nickel-and-diming their customers. By contrast, most online banks do charge at least some fees, but they’re predictable and clearly disclosed on their websites and applications.

For example, many online bank CDs come with early withdrawal penalties. These can be equivalent to as little as one month’s interest on shorter-term CDs but may range up to 24 months of interest on very long-term CDs.

All else being equal, we prefer online banks that charge few if any fees — and hidden fees are a deal breaker.

Investment and Tax-Advantaged Options

Many online banks stick to core banking services, like checking and savings. But a growing number of online banks offer a wider array of options for people who’d like to be able to do all their banking in the same place.

We’re particularly fond of online banks that offer tax-advantaged account options, such as savings IRAs and CD IRAs. We also like online banks that have in-house investment platforms — whether they’re self-directed brokerages like Ally Invest or low-cost robo-advisors like Wealthfront.

Credit Options

All online banks have at least one deposit account product. That’s what makes them online banks.

A smaller but growing number make loans or issue lines of credit — including credit cards — as well. Common online bank credit products include:

• Mortgage loans, including purchase loans and refinance loans
• Home equity products, including home equity loans and lines of credit
• Auto loans
• Student loans and student loan refinancing products
• Personal loans
• Credit cards and other types of credit lines

We don’t hold it against online banks that don’t make loans — it’s a big step for many a lean bank. But we do look out for banks that have taken the leap.

Budgeting and Money Management Features

Budgeting is hard to do right. That’s why we’re big fans of online banks with built-in budgeting and money management tools.

The more automated these tools are, the better. In fact, some make our list of the top budgeting apps on the market. Truly “set it and forget it” money management saves the typical consumer hundreds if not thousands of dollars per year.

Online Banking FAQs

Still have questions about online banks and managing money online? We have answers.

How Much Does Online Banking Cost?

Online bank rates, yields, and fees are subject to change at banks’ sole discretion. For up-to-date information about specific accounts and bank policies, check their websites or call customer service.

That said, online banks are generally more affordable than traditional banks. They’re less likely to charge monthly maintenance fees on checking and savings accounts, and many have fewer hidden fees too.

What’s the Interest Rate on an Online Bank Account?

That also depends on the individual bank. But many online accounts feature higher yields relative to those of traditional banks.

That’s because online banks have less overhead than traditional banks. They don’t need to pay to keep big, centrally located branches open or pay people to work at them. Their operations are more efficient, which allows them to pass the savings on to customers via higher rates and lower fees.

How Do You Enroll in Online Banking?

It depends on the bank and how its website or app is structured, but it’s usually straightforward. In fact, with an online-only bank, enrollment is usually automatic. You don’t have to complete a separate application or even click a button to activate your account.

However, you will need to create a unique username and password to get started. You may be asked to do this as part of the initial application process or once your account is approved. You’ll also need to link at least one external funding source to transfer money into your account.

Can You Get a Mortgage From an Online Bank?

Some online banks offer home loans (mortgages) and other credit products. These banks tend to be larger online banks with high name recognition, like Ally Bank and Capital One Bank. Look for a “Mortgages” or “Home Loans” tab on the homepage or in your account dashboard.

Be aware that some online banks outsource mortgage origination to other companies. In other words, if you apply for a mortgage through your bank, your loan officer might actually work for someone else. This isn’t necessarily a bad thing, but it could mean a different level or style of service than you’re used to.

And don’t expect your online bank to offer better mortgage rates than other lenders. The mortgage loan business is highly competitive, and direct lenders with even lower overhead may be able to undercut online banks.

How to Choose the Best Online Bank — Or Several

The institutions on this list offer a great combination of FDIC-insured banking products, solid yields, open access, and helpful customer service.

Before choosing one, take a closer look at the features that set it apart from the competition: rewards checking, flexible withdrawal terms for CDs, particularly high account yields, a socially responsible corporate philosophy, and so on.

And remember that, unlike in the old days, your banking choices aren’t bound by geography or other restrictions. If you can’t settle on a single online bank, why not open accounts at multiple banks and compare your experiences?