If you’re looking to open a new checking account or switch banks, an online checking account may be a good alternative to visiting your local bank.
Online checking accounts work just like traditional checking accounts. You’ll be able to make direct deposits, purchases, mobile check deposits and transfers. But we like these accounts for convenience. You can open and manage your account entirely online. Plus some banks offer additional incentives, like an annual percentage yield on your balance and early direct deposit. The main drawback is, most online banks don’t have physical branch locations -- so if in-person service is important to you, a traditional checking account may be a better fit.
Here are our top recommendations for the best online checking accounts and expert advice on how to pick the best one for you.
CNET’s picks for the top online checking accounts
| Bank | APY | Min deposit required | Monthly fees | Top feature |
|---|---|---|---|---|
| SoFi | 1.20% | $0 | $0 | High APY |
| Axos Bank | 0.40% | $0 | $0 | Unlimited ATM fee reimbursements |
| Quontic Bank | 1.10% | $100 | $0 | Innovative products |
| Alliant Credit Union | 0.25% | $25 | $0 | No overdraft fees |
| Ally | 0.25% | $0 | $0 | Innovative digital tools |
| iGOBanking | 0.25% | $100 | $0 | Easy access |
| LendingClub | 0.10% | $25 | $0 | 1% cash back |
| CIT Bank | 0.10-0.25% | $100 | $0 | Another interest-bearing option |
| Discover | 0% | $0 | $0 | 1% cash back |
| Chime | 0% | $0 | $0 | 24/7 live human support |
More details on the top online checking accounts
SoFi Bank
Read SoFi Bank Review- APY
- 1.20%
- Min. deposit to open
- $0
SoFi is a neobank that has a few perks. When you sign up for an online checking account, you’ll automatically get a high-yield savings account, too. We also like that you’ll have early direct deposit, cash back rewards from select merchants when you use your SoFi debit card and overdraft protection.
And while you can deposit cash for free into your SoFi checking account through Allpoint ATMs, it will cost you $4.95 to do so at GreenDot locations. And you’ll only get overdraft protection for up to $50 -- but you’ll need monthly direct deposits of at least $1,000 to qualify. Other banks on this list offer free overdraft protection.
- ATM fees: 55,000+ fee-free ATMs through the Allpoint network
- Monthly fees: $0
- Foreign transaction fees: 2%
- Overdraft fees: $0
Axos Bank
Read Axos Bank Review- APY
- 0.40%
- Min. deposit to open
- $0
Axos Bank has a few online checking account options. You can choose from Essential, Rewards, Cashback, Golden Checking and First Checking. None of the accounts charge monthly or overdraft fees. Plus you’ll get unlimited ATM fee reimbursements -- depending on the checking account you choose.
However, in order to earn interest on these accounts, you must meet a few requirements -- including an account balance.
- ATM fees: Unlimited ATM fee reimbursements
- Monthly fees: $0
- Foreign transaction fees: 1%
- Overdraft fees: $0
Quontic Bank
Read Quontic Bank Review- APY
- 1.10%
- Min. deposit to open
- $100
Quontic Bank offers three checking accounts that let you earn either bitcoin, cash back or interest. We also like that the Quontic ring lets you make contactless purchases with a tap of your ring finger.
You won’t have to worry about monthly maintenance or overdraft fees. However, the account requires a $100 minimum deposit. And there are a few requirements you’ll need to meet to earn rewards for each account. For example, you must make 10 debit card purchases per month of $10 or more to earn the highest APY. Otherwise, the interest rate drops to 0.01%.
- ATM fees: No fees when using the 90,000+ Allpoint ATM network.
- Monthly fees: $0
- Foreign transaction fees: $0
- Overdraft fees: $0
Alliant Credit Union
Read Alliant Credit Union Review- APY
- 0.25%
- Min. deposit to open
- $25
Alliant has a high-yield and teen checking account. Both accounts offer a 0.25% APY and don’t charge a few common fees -- like monthly maintenance and overdraft. You can be reimbursed up to $20 in ATM surcharges and over 80,000 fee-free ATMs are available. The downside is that you can’t open a Teen Checking account online -- you’ll need to submit a PDF application, which can take up to 14 days to process.
- ATM fees: $20/month in ATM fee rebates
- Monthly fees: $0
- Foreign transaction fees: 1%
- Overdraft fees: $0
Ally Bank
Read Ally Bank Review- APY
- 0.25%
- Min. deposit to open
- $0
Ally is a popular online checking account option with no minimum deposit requirements, monthly maintenance fees or overdraft fees. We like that you can get your paycheck up to two days sooner with early direct deposit. Its Round Ups saving feature rounds each transaction up to the nearest dollar, which auto-deposits into your Ally high-yield savings account. It also comes with 24/7 customer service options and a surcharge-free network of more than 43,000 ATMs with a $10-per-month ATM fee reimbursement.
On the downside, Ally doesn’t accept cash deposits, so if you’re paid regularly in cash, you might fare better with a SoFi or Lending Club online checking account. And the APY is paid according to tiered balance levels.
- ATM fees: $10/month in ATM fee reimbursement
- Monthly fees: $0
- Foreign transaction fees: 1%
- Overdraft fees: $0
iGOBanking
- APY
- 0.25%
- Min. deposit to open
- $100
iGoBanking offers a robust suite of banking services, but doesn’t offer check-writing privileges. In addition to mobile banking options such as mobile check deposits, customers have access to 55,000 surcharge-free ATMs through the Allpoint network. With this checking account option, you won’t be charged for insufficient funds or overdrafts.
However, you will need an initial deposit of $100 to open an account, unlike many other banks on this list.
- ATM fees: 55,000 fee-free ATMs with Mastercard iGOdebitcard
- Monthly fees: $0
- Foreign transaction fees: 1%
- Overdraft fees: $0
LendingClub
Read LendingClub Review- APY
- 0.15% on balances from $2,500 to $100,000
- Min. deposit to open
- $25
Unlike other online checking accounts, LendingClub’s Rewards Checking lets you deposit cash using MoneyPass and NYCE ATMs. And LendingClub offers early direct deposit. There aren’t any ATM fees, and unlimited out-of-network ATM surcharge reimbursements.
You can earn interest on this checking account, but it might be difficult to earn the best APYs available. You can earn 0.15% APY on balances over $2,500 to $100,000. Balances over $100,000 earn an additional 0.05% APY. You can also earn 1% cash back on qualified debit card purchases.
- ATM fees: Unlimited ATM rebates
- Monthly fees: $0
- Foreign transaction fees: 0.90%
- Overdraft fees: $0
CIT Bank
- APY
- 0.10-0.25%
- Min. deposit to open
- $100
CIT Bank, the online division of First Citizens Bank, has an eChecking account doesn’t charge a monthly maintenance fee, nor does it require a monthly balance. Balances on this account that are over $25,000 can earn a 0.25% APY but those under this threshold earn a lower APY of 0.10%. You also won’t have to worry about additional charges for services such as wire transfers or certified checks, though. And while CIT doesn’t offer its own ATMs, it doesn’t charge a fee when you use another bank’s ATM. If the ATM you use charges an out-of-network, CIT will reimburse you for up to $30 in fees per month.
However, CIT does require a minimum initial deposit of $100 when you open an account -- something most other banks on this list don’t require.
- ATM fees: $30 per month out-of-network ATM fee reimbursement
- Monthly fees: $0
- Foreign transaction fees: 1%
- Overdraft fees: $0
Discover
- APY
- 0%
- Min. deposit to open
- $0
The Discover Cashback Debit is a completely free checking account that pays 1% cash back on debit card purchases of up to $3,000 per month. The account also offers early direct deposit and more than 60,000 surcharge-free ATMs.
However, Discover doesn’t offer ATM reimbursements for out-of-network ATMs like other banks on this list do.
- ATM fees: 60,000 fee-free ATMs
- Monthly fees: $0
- Foreign transaction fees: 0%
- Overdraft fees: $0
Chime
- APY
- 0%
- Min. deposit to open
- $0
Chime’s checking account doesn’t charge monthly service or overdraft fees. And you can get your paycheck up to two days sooner. Other features we like include setting up daily balance updates and blocking transactions if you lose your card. Chime includes overdraft protection of up to $200 per month. Chime account holders can also receive their paychecks two days earlier than the scheduled payday with direct deposit. And you’ll have access over to 60,000 in-network ATMs.
However, you will be charged for out-of-network ATMs and may charge you for some cash deposits (depending on where you deposit your cash). It also offer digital checks, but not a physical checkbook.
- ATM fees: 60,000 fee-free ATMs
- Monthly fees: $0
- Foreign transaction fees: 0%
- Overdraft fees: $0 (overdraft up to $200 per month)
Choosing between an online checking and money market account
Both money market and online checking accounts usually bear interest, but experts say you’ll earn a bigger return with a money market account. However, the right one for you will depend on how often you need to access your funds.
An online checking account gives you the convenience to manage the account whenever you need to. Even though you won’t earn as much interest, you’ll have the flexibility to make transactions whenever you need without worrying about strict transaction limits. “Online checking accounts are better suited for everyday transactions, bill payments and direct deposits,” said Jenna Lofton, a certified financial planner at Stock Hitter. “They offer greater flexibility and access to your funds.”
But if you don’t plan on touching the money often, but would like the option to withdraw funds occasionally, a money market account may be better. “Money that is just sitting there can earn you more if you open a money market account,” says Bill Ryze, chartered financial consultant and a board advisor at Fiona. It’s also a better choice if you want to safeguard your short-term savings or emergency fund because the money will be separate from your usual account and there are limited transactions allowed.” That means you won’t be able to dip into the money for everyday transactions.
How to shop for an online checking account
There are a few factors Ryze notes to consider when finding the best online checking account:
- Fees: Ask how much the bank charges for transactions and if any monthly charges apply to the account. Also, ask about penalty and overdraft charges. “Always read the small print before agreeing to open an account,” he said.
- Customer service: “You need to choose a bank with 24/7 customer service availability,” Ryze said. Since you cannot get assistance with a physical customer service representative from the bank, an online bank with 24/7 customer service can assure you’ll have help whenever you need it.
- Security: Always check the bank’s security measures to protect your personal information and money. “Online banking faces fraud and scams as a main challenge,” said Ryze. “You need to open an online checking account with adequate security and protection measures in place.” Ask about features such as fraud alerts and encryption.
- Deposit: “Some banks have a specific minimum balance for new users, and the money could be subject to some service costs,” he said. “So see if the money you have meets the minimum balance requirements.”
Pros
Convenience and easy access from anywhere via online or mobile app.
Fewer fees since online banks that offer these accounts have lower operating costs.
Some offer interest earnings that can yield a small return on your balance.
More innovative features than traditional banks.
Cons
Lack of in-person services since most online banks don’t offer physical branches.
Potential delays in certain banking services like transfers and deposits.
Risk of scams, fraud and identity theft -- though this also exists at brick-and-mortar banks with online services.
FAQs
When you’re ready to open an online checking account, you’ll need your personal information -- such as your Social Security number, address, phone number and email. You’ll fill out the application and make deposits online.
Make sure your online checking account is insured by either the Federal Deposit Insurance Corporation or National Credit Union Administration. This protects your money for up to $250,000 per account holder and account category.
Online security is also a major concern for any banking institution. Make sure you learn about the bank’s security features -- such as two-factor authentication and biometric security features -- to keep your account safe.
Online banks allow you to access funds in one of three ways:
- Mobile check deposits
- Online transfers
- ATM withdrawals and deposits
This depends. If you’re juggling multiple financial goals or combining finances with a spouse or family member, it might make sense to have more than one checking account. Additionally, some accounts pay a competitive APY up to a certain balance, so it may be helpful to keep any funds over this amount in a separate checking or savings account.
Methodology
CNET reviewed online checking accounts based on the latest APY information, fees charged and services offered from issuer websites. We evaluated online checking accounts from among more than 50 banks, credit unions and financial companies. We selected the accounts with the highest APY and were insured up to $250,000 from among the organizations we surveyed.
Banks surveyed include: Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Barclays, BMO Harris, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Citizens Access, Colorado Federal Savings Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Discover Bank, First Internet Bank of Indiana, First Tech Federal Credit Union, FNBO Direct, GO2bank, Golden 1 Credit Union, HSBC Bank, Huntington Bank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Nationwide (by Axos), Navy Federal Credit Union, NBKC, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, USAA Bank, Vio Bank, and Wells Fargo.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
