These are the best online banks in January 2024

Various banks have been forced to close some of their locations in large part because of the popularity of online banking. Their clients have been choosing to transact business on the internet or on the apps of banks rather than over the counter.

Online banks are becoming more popular not only because of the convenience they offer but also because they can often provide better rates to clients due to having less operating costs than brick-and-mortar institutions.

Online banks, also known as internet or digital banks, are financial institutions that operate primarily or exclusively through digital platforms, such as websites and mobile apps, rather than traditional physical branches. These banks provide a range of financial services and products similar to their traditional counterparts, but their operations are conducted electronically.

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If you looking to move to an online bank, here are some of the best companies you can consider.

Ally Bank

One big advantage of Ally Bank is that it does not require minimum opening deposits for any account, which means you can make use of their services with any amount. Their deposit accounts do not charge monthly maintenance fees, nor minimum balance requirements.

Clients can choose from a wide range of products such as credit cards, investment, and retirement accounts.

Capital One

Capital One is a good option for those who prefer online banking with the option of talking to a banker in person. According to Business Insider, the bank is ranked number one by the J.D. Power US National Banking Satisfaction Survey.

Its banking products also do not require a minimum deposit or balance, making it easy to open and maintain an account.

Discover Bank

Discover Online Banking offers many services, including checking and savings accounts, money market and retirement accounts, and certificates of deposit.

It’s a good choice for clients who wish to have only one bank for their banking, borrowing, and investing needs. Its checking account does not earn interest, but customers can get cash back on up to $3,000 in monthly purchases.

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Sofi

Sofi offers a high-yield hybrid bank account that is a combination of checking and savings accounts. It offers a competitive APY on the account with no fees.

It does not charge monthly service or overdraft fees, or out-of-network ATM charges. The bank also has a high Trustpilot rating.