Online banking is incredibly accessible, simple to use, easy to set up and leaves you in full control of your money.
In this guide, we’ll be running through 9 of the best online bank accounts and weighing up the positives and the negatives of each.
Before kick off with online banks, let’s talk about an alternative.
While not a bank, more a Money Service Business (MNB), the Wise is every bit as useful and reliable as a bank account. It also brings some exclusive perks to the table.
With the Wise Account, you’ll get the following features:
- Account details in 10 currencies
- The option to hold, send, spend and convert 50+ currencies at once
- Send money overseas with low and transparent fees,
- Order a Wise card for a one time fee of just $9 - for use in 174 countries
- Mid-market exchange rates on all transactions.
It’s quick, easy and free to open a Wise account online.
The Wise debit card works in 174 countries with all the benefits included, and all features can be managed from the handy, easy-to-use Wise app.
Get a Wise Account today
Please see Terms of Use for your region or visit : Only Pay for What You Use for the most up-to-date pricing and fee information.
So here’s our list of the top 9 online banks in 2023
The big advantage of an online bank over a traditional option is the accessibility. Online banks can be accessed from anywhere with an internet connection. Plus, they usually come with mobile apps, so you have full control of your money from anywhere.
Even more temptingly, they usually come with much lower fees than the big, traditional banks.
Some people used to be skeptical about switching to an online only bank. But now that there are so many popping up over the past two decades, the formula has been pretty much perfected. What’s more, most online banks are just as safe as any bank you care to mention.
SoFi
We’re kicking off with SoFi, an online-only bank and financial services company based in San Francisco.
Offering everything from personal finance to student and mortgage loans, SoFi has the financial A-Z covered. The best part is that it’s all manageable from one handy mobile app.
With the addition of a smart money reward scheme, SoFi is the full package. It’s perfect for those with a lot of financial needs and none of the patience to jump through all the technical hoops.
And all of this for no monthly fees, no maintenance fees, and no overdraft fees.² The only tricky part of SoFi’s arrangement will be deciding how to pronounce it.
Quontic
The self-proclaimed “digital bank on a mission”, Quontic prides itself on raising the bar of digital banking with its competitive rates and easy-to-use service.
As well as the standard checking and savings accounts you’d expect from a digital offering, Quontic offers mortgage loans and mortgage refinance offers. Plus, a very unique Community Development Loan.
And for the cherry on top, they’ll even give you a free Quontic Pay Ring which you can use for spending.
The deal isn’t without flaw though, as there’s a minimum $100 opening deposit³ on the checking account. However, Quontic is still a great choice for anyone seeking an innovative online bank that’s actively trekking on into the future.
Varo
Another San Francisco based option, Varo Money offers both checking and savings accounts. Everything is easily accessible both online and through their app. It’s also a great option if you’re looking for online banks like Monzo or Chime.
The checking account is especially attractive. It offers a Visa debit card, cashback options when spending in certain retailers, instant access to your money, and early direct deposits.
All of this for no-fees and no fuss. Perfect for those looking for a nice, simple, easy-to-understand banking option.
Bank5 Connect
Named one of the best online banks of 2023, Bank5 Connect definitely values its reputation, and their customers by the quality of its service.
It offers the standard range of high-interest checking and savings accounts, with temptingly good rates and a lot of great features. For example, you’ll get free external transfers and no maintenance fees.⁴
However, the customer service is what stands out here.
The bank’s innovative ‘video banking’ feature allows for a personalized service. It’s also eliminated the use of chatbots, so you’ll always get through to a real, experienced support member.
This is an online banking service best suited for those who want that personal touch.
Ally
Ally Bank is dedicated to working with its customers to make the banking process as simple and understandable as possible.
It has a distinctly human touch, which you can tell from its website alone. So Ally is definitely one to consider if you’re tired of the cold, legal jargon found on most banking sites.
Ally Bank’s checking and savings accounts come with no maintenance fees and no minimum deposits. Plus, they have a good selection of credit card deals, mortgage options and personal loans.
A solid all-rounder here, designed to be your banking best friend.
TIAA Bank
This one is a little more complicated. TIAA Bank is a subsidiary of TIAA (Teachers Insurance and Annuity Association of America) which provides retirement and financial services for people who work in the academic, research, medical or cultural field.
If the above description applies to you, then this option might sound a bit more attractive. But if not, then TIAA Bank is still a good choice, particularly for its Yield-Pledge Checking Account.
This no-fee option comes with competitive rates. And as the name would suggest, high yields with TIAA Bank’s yield-pledge promise.⁵
It also comes with FDIC Insurance coverage of up to $8 million so the safety of your money is guaranteed.⁶
Current
The best way to describe this option would be ‘confident’. Current bank knows what it’s offering and it’s very assured in its approach. This is a bank that moves you forwards.
Current’s ethos, and one it wants to shout from the rooftops, is that it should not cost you money to use your money.
As such, Current’s accounts come with no minimum balance fees, no overdraft fees and no bank transfer fees. And they offer free withdrawals at over 40,000 ATMs.⁷
The bank itself has FDIC protection up to $250,000. What’s more, its easy-to-use app comes with industry-standard technology to give you peace of mind over your finances.
Revolut
Revolut is one of the popular online banks, with a global community and over 28 million users around the globe.⁸
Revolut uses a three-tier system for their accounts. The fee-free standard plan nets you a personalized debit card and 1 free international transfer per month. A perfectly good option.
But if you don’t mind spending a little more, then there’s also the Premium ($9.99 per month) and Metal ($16.99 per month) options. These offer the same basic concept, but with a host of additional perks such as travel insurance and unlimited fee-free currency exchange, among others.⁸
Interested in opening a business account? Revolut is also one of the online banks for business, offering a range of accounts, products and services for small and medium-sized companies.
Majority
New to the US? This one is for you.
Majority is an online banking solution tailored towards migrants to the US. Alongside its selection of current accounts are a host of features perfect for those trying to settle in their new American homes.
Here are just some of the perks:⁹
- International calling
- Personalized advisors with multi-lingual support
- Competitive money transfers
- No minimum deposit or balance required.
The bank is also FDIC insured so you have that peace of mind you need for successful financial control.
These features don’t come without a price tag. The monthly fee currently stands at $5.99 per month,⁹ which considering the number of perks and features involved, is very reasonable.
Bottom line
And there’s our list of the top online banks to consider if you’re thinking of jumping headfirst into the digital age.
But which online bank account is best? The only person who can answer that question is you.
Make sure that when deciding which one is best, you consider all the factors, from fees to rewards. You can even try out each app in advance, or look at reviews from current or previous customers. It’s all to help you make the most informed decision possible.
One thing we can tell you is that if you’re looking to send money overseas, the Wise Account could work out to be a cheap, convenient option.
Learn more about Wise
Sources used for this article:
Sources checked on 12-May-2023.
Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information. This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
