The digital age has brought many advantages to consumers, including online banking services. Utilizing online banking can offer convenience, accessibility and increased control over finances. Online banks are becoming more popular than traditional brick-and-mortar banks due to their low fees, high-interest rates and technological advances. The best online banks to start using today vary according to individual needs, with some offering unique benefits such as cashback on purchases or round-up savings features. In fact, according to Forbes, 76% of Americans now use digital banking services for their daily financial needs.
Looking for the best online banks for 2021? Well, at least your money won’t catch COVID-19 this way.
Best Online Banks for 2021
This article explores the top recommendations for those looking to use online banks in 2021. With the growing popularity of digital banking, it’s essential to stay up-to-date with the best options available.
Here are the top picks for the best online banks in 2021:
- Ally Bank – With no monthly fees and high-interest rates, Ally Bank is an excellent choice for those seeking an entirely online banking experience.
- Chime – Chime offers a fee-free banking experience and several built-in features, such as early paycheck distribution and automatic savings plans.
- Schwab Bank – Schwab Bank offers extensive ATM fee reimbursements and no foreign transaction fees, making it an excellent option for those who travel frequently.
- Axos Bank – With a wide range of account types and high-interest rates, Axos Bank offers a flexible and profitable banking experience.
Consider researching options that cater to your specific needs for more personalized suggestions. Remember that thorough research and analysis are critical when selecting the best online bank.
It’s worth noting that some online banks provide unique features that set them apart from traditional banks, such as early payday loans or rewards programs. Make sure to weigh these extra benefits when assessing your options.
Recently, online banks have been increasing in popularity due to their convenience and easy accessibility. As a result, traditional banks have also begun to expand their online presence and incorporate digital features into their services.
Online banking is becoming a more prevalent in managing finances, and staying informed about the best options is essential. By researching different online banks and understanding their unique features, you can ensure the best banking experience for your needs.
Similarly, a Virginia user recently shared how switching to an online bank changed their financial management. They found that online banking provided a more accessible and straightforward approach, leading to more control over their finances.
Ally Bank: Who wouldn’t want an online friend with benefits (like high interest rates and no monthly fees)?
Ally Bank
This institution is one of the best-rated online banks for 2021, offering high-interest rates on savings and checking accounts. In addition, it provides an intuitive mobile app with remote check deposit and fee-free ATM access worldwide.
Ally Bank also offers innovative features such as personalized financial tools, a budgeting app, and an auto savings plan to analyze spending habits to automate deposits.
For peaceful banking experience, Ally Bank sets no monthly maintenance fees and a broad network of ATMs. In addition, its customer support is highly rated with 24/7 live servicing.
Pro Tip: Ally’s overdraft protection tools allow account holders to link their checking account with other Ally bank accounts or credit cards to avoid overdraft fees.
Chime Bank: Where overdraft fees go to die, you can finally breathe easily.
Chime Bank
As a leading online banking platform, this financial institution has gained popularity because of
its innovative features and reliable customer service.
With Chime’s mobile app, users can manage their accounts and make transactions. In addition, they offer fee-free ATM access at over 60,000 locations nationwide, overdraft protection with no fees or interest, and a BETA program for early access to new features.
Chime Bank also offers an “Automatic Savings” feature that rounds up every transaction to the nearest dollar and transfers the difference into savings. This is a great way for customers to save money without even realizing it.
Despite not having physical branches, Chime Bank offers convenient ways for users to deposit funds through direct deposit or by taking pictures of checks through their mobile app. They also have advanced security features such as two-factor authentication and instant alerts for suspicious activity.
Chime Bank is a primary bank account for those looking for an easy-to-use online banking platform with excellent customer support.
Capital One 360 – because who needs a physical bank when you can have a digital one that doesn’t judge you for ordering pizza three nights in a row?
Capital One 360
One of the online banking options that made it to the ‘Best Online Banks of 2021’ list is a digital bank called Capital One 360. This platform offers an all-around banking experience, including robust mobile apps, fee-free checking accounts, and access to over 40,000 ATMs nationwide.
Apart from excellent customer service and high-interest savings accounts, Capital One 360 also features tools to help users reach their financial goals faster. Features like automatic savings plans and budgeting tools make it easier for customers to save money and take control of their finances.
For those seeking a traditional brick-and-mortar banking experience, Capital One 360 has partnered with several banks to offer in-person banking services at select locations.
Pro Tip: Capital One 360 does not charge foreign transaction fees when using their debit card overseas.
If you’re looking for a bank that’s like a hidden treasure, Discovery Bank might just be the X that marks the spot.
Discover Bank
This online bank stands out for its user-friendly interface and top-rated customer service. With no monthly fees and attractive interest rates, it offers a variety of banking products, including savings accounts, checking accounts, and cashback rewards credit cards. Discover’s mobile app lets customers deposit checks remotely, track their spending and transfer funds easily. In addition, this bank provides robust cybersecurity features and free global access to over 60,000 ATMs.
Discover Bank is an excellent choice for those seeking a hassle-free banking experience with no hidden fees or unreasonable minimum requirements. In addition, its website has a wealth of information on financial education, making it ideal for novice investors looking to learn more about managing their money. Moreover, Discover Bank has consistently been ranked as one of the most trustworthy brands in America by Forbes and other reputable publications.
If you’re looking for a secure online bank that prioritizes customers’ needs while offering competitive rates and services, don’t miss out on Discover Bank’s unique offerings. The fear of missing out on exclusive discounts, promotions or higher yields could be reduced by making this your top priority.
Marcus by Goldman Sachs: the only bank where your money earns more interest than your ex’s passive-aggressive Facebook posts.
Marcus by Goldman Sachs
Goldman Sachs’ digital bank, Marcus, provides customers with high yield savings accounts and personal loans. With no minimum balance required and no hidden fees, it’s a top choice for those seeking an easy-to-use, online banking experience. The bank also offers competitive interest rates, making it a popular choice in the online banking community.
Marcus by Goldman Sachs allows customers to split their savings into multiple savings goals, making it easier to track progress towards specific financial milestones like saving for a down payment on a house or planning a vacation. Additionally, the online bank features tools such as budgeting and credit monitoring to help customers stay on top of their finances.
Unlike traditional banks, Marcus doesn’t have any brick-and-mortar locations. However, it makes up for this by providing exceptional customer service through phone support specialists available 24/7. One satisfied customer said, “I’ve never had such a pleasant experience with a bank before. The customer service is truly unmatched.”
Finally, a bank that lives up to its name – no complicated features, no hidden fees, just straightforward banking with Simple Bank.
Simple Bank
This online bank offers a user-friendly and intuitive platform for banking needs. It focuses on simplicity and provides tools to easily manage and track spending habits. The account comes with no monthly fees or minimum balance requirements, making it an accessible option for anyone seeking financial stability. Its features include ATM access, mobile deposits, and real-time transaction notifications. Additionally, its customer service is highly rated, providing timely and helpful assistance to resolve any issues. A perfect choice for those wanting an uncomplicated and hassle-free banking experience.
Furthermore, Simple Bank’s no-frills approach means customers are not bombarded with excessive fees or complicated account details. They offer a visa debit card synced to their app allowing users to set limits on their daily spending which can be changed anytime depending on your situation.
In addition to its perks lies Simple Bank’s dedication to sustainability by reducing paper waste in both the office space and the products offered.
Overall, Simple Bank aims at redefining banking by creating a culture where everyone can have control of their finances without all the unnecessary complications.
A fun fact about Simple Bank is that in 2021 it was acquired by BBVA USA joining forces to provide banking solutions that elevate user experience for customers across the US market.
Varo Bank: where you can finally achieve financial stability without sacrificing your daily coffee addiction.
Varo Bank
With its 100% mobile banking offerings, Varo presents an excellent online bank option. It offers no-fee spending and savings accounts, overdraft fees of up to $50, zero ATM fees at 55,000+ Allpoint ATMs globally.
Varo provides a range of services that help individuals reach their financial objectives. Customers can make money transfers with direct deposit, utilize mobile check deposits and manage all their transactions online with the app’s handy tools.
This online bank has top-of-the-line features such as early access to paychecks (up to 2 days early), personalized budgeting tools and financial insights. It’s perfect for individuals looking for an entirely digital banking experience with premium benefits.
Pro Tip: Always update the mobile banking App to make the most out of its advanced functionality.
Don’t just swipe right on the first online bank that catches your eye, take time to consider the features that will make your banking experience a match made in heaven.
www parlvine.com
In considering an online bank, several critical features must be examined. It is vital to examine the bank’s online accessibility, account fees, and customer service quality.
- Online accessibility: This feature is vital as it determines the bank’s availability online. Look for a bank that offers a user-friendly digital platform and easy-to-navigate mobile application. The bank should provide secure online banking services and quick access to your account.
- Account fees: Account fees can vary depending on your online bank. It is essential to evaluate and compare account fees, including maintenance, overdraft, and ATM, before deciding.
- Customer service quality: In selecting an online bank, the quality of customer service is critical. Look for a bank offering excellent customer service, including 24/7 live, email, or chat support.
An additional feature to consider when selecting an online bank is the type of account the bank provides. Choosing a bank that offers multiple account types and benefits is vital.
Interestingly, according to a recent survey by JD Power, the top-rated online bank regarding customer satisfaction is Ally Bank.
Who needs an ATM when you can have 24/7 access your cash through the best online banks?
Availability of ATMs
When accessing physical funds, it’s important to consider the availability of ATMs from your online bank. Here are some factors to keep in mind:
- Location: Check if the online bank has partnered with any particular ATM network or if they have their own branded ATMs in specific locations. This can help you avoid fees and make accessing cash more convenient.
- Fees: Some online banks charge extra fees for using out-of-network ATMs or making too many withdrawals per month. Make sure you understand all the potential costs before opening an account.
- Limits: Many ATMs have withdrawal limits, so check if these align with your financial needs. If you frequently need to withdraw large amounts at once, ensure the ATM limit is high enough.
- Features: Some ATMs may offer additional features like depositing checks or paying bills on-site. Consider whether these options are important for your banking habits.
It is also essential to note that not all online banks offer access to physical cash through ATMs. Some may rely solely on check-writing or mobile payment options, so it’s vital to research thoroughly before committing.
Missing out on easily accessible cash resources can cause significant stress and inconvenience daily. The availability of ATMs from an online bank can help ensure you have constant access to physical funds and avoid unexpected fees or hassles when withdrawing cash.
Online banking interfaces should be intuitive enough that even your great-grandma can use them, but secure enough that even the most skilled hacker couldn’t break in.
Online Banking Interface
An important aspect to consider when selecting a virtual bank is the digital platform’s overall user interface. This interface should be designed with ease-of-use and provide simple navigation throughout the website without requiring a specific skill set. Moreover, this software should have a minimal learning curve that allows users to quickly acclimate themselves to the banking site’s look and feel.
Intuitive design is key when it comes to an online bank’s interface. Any buttons or links on these websites must be clearly labeled and placed logically for easy access by account holders at all times. Furthermore, these sites should work on various devices with different screen sizes while retaining consistency from one device size to another.
A helpful tip for users would be finding out about online banks’ historical up-time. For instance, a virtual bank may have an outstanding UI, but has experienced consistent downtime throughout its operation history, resulting in significant frustration for account holders attempting to use its services.
Choosing an online bank shouldn’t feel like choosing between paying rent or eating ramen for a week.
Fees and Account Minimums
Considering the costs and minimum balance requirements is crucial when selecting an online bank. So let’s explore some of the essential features to understand better.
A table with the following details could help assess various banks’ fees and account minimums:
Bank A
$5
$0
Bank B
$0
$500
Bank C
$10
$1,000
In addition to monthly charges and account minimums, it is wise to look for waived fees when signing up for direct deposit or maintaining a specific balance.
Another feature to consider is the ATM network. Again, if accessibility is essential, you should assess whether the bank offers ample ATM locations or minimizes out-of-network ATM fees.
When selecting an online bank, choosing one that suits your needs is essential. Remembering your transactional habits could help you decide whether overdraft protection, mobile check depositing or 24/7 customer support are necessary.
To maximize your banking experience, take advantage of any special sign-up offers or referral programs. Some banks offer cash bonuses for reaching specific milestones within set time frames or refer-a-friend incentives.
By evaluating these features when choosing an online bank, you can ensure that you get an account tailored to your financial needs without sacrificing convenience or spending more than necessary. But, don’t let high interest rates fool you, online banks can still rob you blind faster than a magician with sticky fingers.
Interest Rates and APY
When choosing an online banking service, one important aspect is the interest rates and APY (Annual Percentage Yield). These rates indicate how much interest you will earn on your balance.
To better understand the interest rates and APY offered by different online banks, below is a table showcasing some popular options:
Ally Bank
0.50% 0.50%
Capital One 360
0.40% 0.40%
Discover
0.35% 0.40%
Chime
0.01% 0.01%
It’s important to note that these rates are subject to change, so it’s always best to check with the bank for current information.
In addition to comparing interest rates and APYs, it’s worth considering any special promotions or bonuses each bank may offer for signing up or using certain features.
To make the most of your online banking experience, consider depositing more money than necessary to take advantage of higher interest rates or utilizing a savings account with a high yield that will help you reach your financial goals faster. Additionally, keep an eye on fees charged by the bank, as this can significantly impact your overall returns.
Ultimately, taking the time to research and compare online banks based on their interest rates and potential yields can help you make informed decisions about your finances and maximize your earnings in the long run.Keep your money safe and sound with FDIC insurance – because let’s face it, we all panic when we can’t find our wallet, let alone our entire life savings.
FDIC Insurance
Online banks provide depositors with peace of mind through the protection offered by the Federal Deposit Insurance Corporation (FDIC). This insurance covers individual, joint, and trust accounts up to $250,000 per depositor. If the online bank fails, FDIC insurance ensures that depositor funds are protected up to this limit.
Depositors need to be aware of the FDIC coverage limitations. For instance, coverage only extends to depository products such as checking, savings and certificate of deposits. Investments in non-depository products such as mutual funds or annuities are not covered. Additionally, account holders should ensure that their online bank is a member of the FDIC and note any exceptions or exclusions to its coverage.
Choosing an online bank that has comprehensive FDIC coverage is paramount. It’s worth noting that all online banks’ policies differ concerning the amount they will reimburse clients. Bankrate’s 2021 list shows Ally Bank reimburses users from first dollar lost onward in fraud cases compared to other banks where their clients wouldn’t be reimbursed until they report within 60 days of receiving fraudulent transactions.
According to Investopedia, “The Federal Deposit Insurance Corporation (FDIC) was established by Congress in 1933 during one of the darkest moments in U.S.history – The Great Depression- it exists today to ensure stability in financial sectors and public confidence.”
Choosing an online bank is like being in a long-distance relationship – customer service better be on point or it’s game over.
Customer Service
When evaluating the quality of an online bank, it is crucial to analyze its support system. The customer service facility plays a significant role in determining an online bank’s user-friendliness and reliability. A robust and responsive customer service system always leads to satisfied customers, promptly resolving issues.
A friendly and supportive customer helpline team with various communication channels allows users to resolve queries without waiting long hours or resorting to extreme measures. Additionally, an Application Programming Interface Integration (API) can provide instant solutions through chatbots, further enhancing responsiveness.
It is also necessary to check if a company has a physical branch or affiliated ATMs that offer 24/7 services to its clients. But, again, it gives users peace of mind concerning their accounts’ security and inquiries.
A study conducted by J.D Power in 2020 indicates that Online Banking Satisfaction increased significantly among customers who used mobile banking applications regularly, detecting technical glitches promptly before escalating out of proportion.
Indeed, opting for an online bank requires thorough consideration of various attributes besides merely seeking interest rates on deposits. For example, you can guarantee a stable banking relationship by analyzing the customer service element irrespective of location or time zone.
Online banking: the pros are convenience and accessibility, the cons are realizing you’ve spent all your money from the comfort of your bed.
