The best online checking accounts offer competitive interest rates with low fees and easy access. Here’s our list of the best options for 2018.
Consumers have grown increasingly frustrated by the checking account options offered by traditional banks. Large banks are continuing to add fees and are not concerned with scaring the less profitable customers away. This is part of a larger plan to increase profitability.
Enter online banks. Banking customers are seeking out the best online checking accounts for better interest rates, service, and lower fees. The key is to is find the best checking account that meets your needs at that particular time.
Here are my picks for stable, convenient online checking accounts.
Ally Bank
Ally Bank (formerly GMAC Bank): Ally offers a checking account with no monthly fees and no minimum balance. The no-fee, no-minimum accounts are becoming increasingly rare. Very few banks offer interest on a checking account, as Ally Bank does.
While they offer free free checking, customers will suffer with a low APY. For accounts with less than $15,000, the APY is 0.10% and for balances greater than $15,000, the APY is 0.60%. Perhaps the biggest benefit is that Ally reimburses up to $10 in ATM fees each statement cycle. That can go a long way in saving money when you need to withdraw funds from non-Allpoint ATM’s.
- $10 per cycle ATM fee reimbursement
- NO monthly fees
EverBank
EverBank: EverBank comes with the unique promise that the account will always offer a rate within the top 5 percent of comparable accounts. Other perks include no monthly fees, unlimited ATM fee reimbursements as long as the minimum balance is met, and mobile check deposits. The minimum to open this account is $5,000 and be reimbursed for ALL ATM fees is the same $5,000.
EverBank also shines in the 1st year interest rate they offer consumers with large balances. Everyone earns a 1.21% APY (for the first $250,000) on the first year they’re on board with EverBank. Then it’s a tiered rate based on deposit size. 0.25% for balances under $10,000 all the way up to a 0.71% APY for balances of $100,000 – $10MM. In order to receive the promotional 1.21% APY for the first year, you must open a new account, not transfer old funds to a new account.
- Unlimited ATM fee reimbursement w/ $5,000 minimum balance
- NO monthly fees
BBVA Compass
BBVA Compass: BBVA Compas offers the Compass ClearChoice Free Checking Account. As the name suggests, there is no monthly maintenance fee. BBVA offers free online and mobile banking as well as unlimited free check writing (but not free checks). You also get free mobile and online bill pay. And there are no fees at any of BBVA’s ATMs.
But that doesn’t mean there are no ATM fees. If you use an ATM outside of the BBVA network, you are charged their fee; and while BBVA will not reimburse you for that fee, they do offer a unique ATM fee rebate program. If you agree to a $5 monthly charge, you can be reimbursed for up to 4 ATM fees per month. A typical ATM fee is about $3, but if you’ve ever withdrawn money from an airport or casino, you know that fee is bigger. The $5 monthly charge will save you money if you’re a habitual ATM user, but if not, you should pass.
The biggest drawback to the ClearChoice Free Checking Account is that it is not accompanied by an interest rate. The minimum to open an account is just $25.
- NO ATM fee reimbursement (unless you pay a $5 monthly charge)
- NO monthly fees
FNBO Direct
FNBO Direct: FNBO Direct offers an online savings account with a competitive interest rate, and the Online BillPay Account is a competitive offer as well. FNBO offers a competitive interest rate on their BillPay Account and integrates PopMoney, a system that allows you to easily transfer money to and from your friends (or anyone else who uses PopMoney).
Opening an FNBO Direct BillPay account requires only $1, and the current interest rate is a 0.65% APY across all account balances. As far as ATM fees go, FNBO touts that there are no foreign ATM fees, however that’s somewhat misleading. FNBO will not charge you a fee, however if you use a non FNBO ATM, you can be charged a fee by the other bank. There is currently no plan available to receive ATM fee reimbursements.
I’ve had an FNBO Direct savings account for quite a long time, and have always been a satisfied customer.
- NO ATM fee reimbursement
- NO monthly fees
Capital One 360
Cap One 360: Capital One 360 combines every good checking account feature into one package. This is a no fee account with a top rated mobile app platform that allows you to transfer money, deposit checks and manage your account free of charge. It also offers mobile check deposits and the security of SureSwipe to see all transaction details.
Cap One currently provides a tiered APY structure. For balances less than $50,000, the APY is 0.20%, balances between $50,000 and $100,000 the APY is 0.75% and for balances greater than $100,000 the APY is 0.90%. Their ATM fee structure is very straightforward; charging nothing for using a Capital One ATM (on the AllPoint network) and reimbursing up to $15 in ATM fees per month from other banks. From their website:
For certain banking products we offer, fees assessed at any ATM within the United States and at some ATMs located outside the United States will be reimbursed within 5 business days, up to $15 per statement period.
- $15 per cycle ATM fee reimbursement
- NO monthly fees
USAA
USAA: USAA is taking advantage of banks charging $5 debit card fees, heavily advertising that their debit card is free to use. The USAA Classic Checking account is certainly a favorite among experts, earning its place as a finalist at the 2nd Annual Plutus Awards. USAA was also named one of CNN Money’s least evil banks and it’s a bank that my brother uses for all of his financial needs (member of the National Guard).
This is a no fee checking account that requires a $25 opening deposit and no ongoing minimum balance requirement. Similar to the Capital One policy above, USAA offers fee free ATM withdrawals at over 60,000 locations. They’ll kindly reimburse you for up to $15 in ATM fees each month, should you use an ATM not in their network. USAA has a terrific mobile app that allows for sending money, checking balances, paying bills and a handful of other necessary banking features.
Unfortunately, the negative is that it’s current interest rate on a balance of $1,000 or more is just 0.01% APY. Virtually nothing.
- $15 per cycle ATM fee reimbursement
- NO monthly fees
The bank serves primarily members of the military, but membership is open to the public. The checking account has no fees and does not charge for up to the first 10 AM withdrawals each month. USAA also reimburses customers for up to $15 in ATM transactions each month, making any convenient location an “in-network” ATM. USAA also offers remote deposit, a convenient way to deposit checks into the account by scanning or taking a photograph of both sides of the check.
Aspiration Bank
Aspiration Checking: Aspiration is not like the other names on our list. It’s a name you likely have not heard of; as they do little advertising and don’t have the presence that the other big name banks on this list have. That said, it’s the best online checking account you’ve never heard of.
Aspiration offers fee free checking. No monthly maintenance fees, no minimum balance required to maintain an account and opening an account can be done for as little as $10. Account balances of greater than $2,500 will receive a terrific interest rate of 1.00% APY and balances with less than $2,500 will receive an interest rate of 0.25%.
The best feature of the Aspiration checking account is that there are NEVER ATM fees. If you use an ATM inside of their network, it’s free and if you use an ATM outside of their network, they’re reimburse you the expense. Without exception, all ATM transactions are free with no caps. Truly a unique service in today’s checking market.
- Unlimited ATM fee reimbursement
- NO monthly fees
Discover Bank
Discover Bank Checking: Discover is best known for their credit card products, but they put together a strong checking offer as well. They have a Cashback Checking account that includes the unique feature of 1% cash back for the first $3,000 in debit card transactions per month. Those transactions do not include things like withdrawals and money transfers but do include things like purchases at the pump, retail outlets or at the grocery store.
The Discover Cashback Checking account charges no monthly fee and has no balance requirement to remain open. Some of the nicer features include free checks (including reordering checks) free online bill pay and free official bank checks, should you require them. Their ATM policy is straightforward; if you use one of their 60,000+ ATM’s there is no fee; however if you wander outside their network, they will not reimburse you for other banks ATM fees.
To assist in finding a fee free ATM, they have an ATM finder online and on their mobile app.
- NOATM fee reimbursement
- NO monthly fees
With the largest banks finding ways to eliminate the least profitable customers through the addition of fees, as of today, there are still plenty of options available for people who are interested in sticking with an institution that generates revenue in another manner. If the above options don’t work for you, there are credit unions that would be happy for an influx of customers. Every financial institution is a business, however, and if new customers end up being unprofitable in the future, free checking will become extinct.
Updated June 16, 2018 and originally published April 4, 2018.
{ 34 comments… read them below or add one }
But can you transfer money into these online accounts without having a local checking account to deposit the money into first? This has been the problem for me with some of the accounts I’ve looked at.
Having a local checking account makes everything a lot easier, but it’s not necessary. You can send in a check when opening any of these accounts, which slows down the opening process. If you have paper checks for deposit, you can send them to the bank or use an ATM that accepts deposits.
Most offer deposit through mail or online deposit with a scanner or sometimes your smartphone. I’ve had USAA for over a decade, and have depended on deposit through the mail (and now with my smartphone), and have never had an issue.
Do you have insurance through them to qualify for smartphone deposits? I was told I had to, in order to meet their requirements.
If you take PerkStreet as an example, new accounts can fund via their current checking account, or up to $500 via credit card. Once you have a checking account, you can go to any UPS Store and deposit your checks via UPS Overnight for free. The cut off for Overnight is around 5pm for most UPS Stores.
I’ve been a loyal and satisfied USAA customer for over thirty years and plan on many more.
Apart from the above banks, is there any other online bank i can link my local bank account with??
Recently, I changed from Wells Fargo Bank to a local credit union; which I am delighted with. My credit union treats me like family. After banking with Wells Fargo for several years; their attitude changed. They became very unhelpful; when I needed to see a banker they would keep me waiting for no reason 45 minutes to an hour before they would acknowledge that I was there. I spoke to the manager several times and nothing changed. A few months ago I changed to my current credit union before the banks started charging all these fees; and I would not go back to any commercial bank again.
thanks for the reply, i dont mean local credit union, i mean other online financial institutions that could be opened online, like usaa, perkstreet, where u just pay and they send u an atm, no need to go into the bank…can i get any help??…
Thanks. Great timing. Between this article and the Plutus Awards it looks like i might be moving to ING Direct. I just hope they get the remote deposit setup soon.
Do your research first. I was a faithful member of ING Direct and am in the process of leaving them to bank with another company. Since their transition of ownership to Capitol One their services and customer service has seriously changed. Please research in depth before finalizing your decision to move to this bank. Also, their APY has went down significantly since 2010.
Agreed. ING Direct is now changing their name to “Capital One 360” by Feb. 2013. Capital One is an inept company, so I will be switching (which is why I’m on this website).
Am I just an old fogie because I want to see my money and access it when I want to???? I get the creepies when people talk about online banks.
St Martin Bank checking is the best of them all. 3.51% APR up to 10K.
I recently closed all my accounts at USAA after being with them for over 25 years; once they were personal and helpful – now they are the opposite. My credit rating is just over 700 but that did not stop them from raising my credit card rate after telling me their review did not let them lower it. Federal funds wires credited my account days after it was sent and they would charge me an overdraft fee for money that was sitting there but not credited to my account. I have sent money to even larger institutions and had it credit within hours of that transaction. Phone services became endless lines of automation – all these things disappeared when I moved to Navy Federal Credit Union.
Great roundup. I’m actually planning to switch to PerkStreet by the end of the week. I’ve been using ING for a few years, but the lack of cash back is enough to switch. I’ll probably keep my ING checking open, though, just in case they decide to bring it out.
Allen,
Did you have problems using the free Allpoint network of ATM’s with ING? They seem to be located in every CVS, Walgreens, Target and 7-11. Also any free ATMs like Wawa in PA/NJ are free for ING customers too.
My problem with INGdirect is just prior to their sale to Capitol One they changed their customer service, raised interest charges on overdrafts and dropped interest rates paid on savings accounts. I may switch to TIAAdirect.com (paying 1.25% APY on savings and 0.05% to 0.15% on checking). But remain on the fence for now.
I’ve been having problems over the past few months with USAA’s checking. I have to send paper checks via USAA’s pre-paid envelopes. Deposits are taking a over a week now to occur, as opposed to ~three days in the past. One deposit this month has been lost, I even tracked it. USAA is taking their sweet time getting back to me. I’d appreciate it if they’d simply tell me that they can’t find it. I’m looking to take my business elsewhere, after ten years with them. I like their product, but c’mon. I’m not sure I want to take out insurance to qualify for [email protected], etc.
How can you not list Charles Schwab Bank? Free checking with interest, free checks, reimbursement fro using any ATM anywhere.
ING is not the same – I would not recommend them. They are sneaky and non-communicative. I recently made a deposit, had a popup tell me that 200 of it would be available the following day, and the rest in 2 business days. I sent a $150 check out for the following day. They drew the check the night before and then showed me in arrears. When I asked if there were fees associated that, or whether my Overdraft protection had kicked in, they wrote back some drivel about how creative, fun people like myself would appreciate their thoughtfulness. When I wrote back again, asking for clarification on whether fees or penalties had been assessed, they wrote back and told me to call them. Very evasive, sneaky, and basically dishonest. Their website popups should match their actions, and they don’t. I would advise to approach with a LOT of caution.
Ally Bank is great but unfortunately not much info is given on them here. In addition to having no minimum balance, no monthly fees, and giving interest regardless of balance, they also provide free checks, charge NO atm fees, and reimburse other bank’s atm fees. They also have AllyPerks, which is a program that gives you money for using your debit card at certain retailers, both in-store and online. For example, you get $5 back for spending $50 at Target or $3 for spending $25 at Walgreens (including prescriptions). You don’t even need to do anything, they automatically deposit the cash into your account.
You can also transfer money between Ally accounts, between your Ally account and an account you hold elsewhere (with cash going either to the Ally account or the other account), and via Popmoney (where you can transfer money to whoever you want). Again, at no charge.
Deposits can be made via transfer from another account, by scanning checks and uploading online, or via mail. I deposit checks online all the time and have never had a problem.
Ally Bank and Bank of Internet have minimum credit score requirements. If you have qustionable credit, they will deny you.
All that is true, but the part you did not mention was the long (above industry standards by far) time frame it takes for your funds to be available, ridiculous!!
You really want to do business with a bank that can’t pay back TARP money? Granted your funds are FDIC insured (paid into by the bank), but I wouldn’t do business with them because 1) they can’t pay back money they owe, 2) they are not financially stable internally to do business with.
http://en.wikipedia.org/wiki/Ally_Financial
As of January, 2012, TARP had about $12 billion invested in Ally.[16] The government stake represented a 74% ownership interest in Ally. In March, 2012, Ally failed the Federal Reserve’s so-called financial “stress test” for capital adequacy. The company said in a statement that the Fed’s “analysis dramatically overstates potential contingent mortgage risk”. A possible outcome would be a requirement to raise additional capital.[17]
My mistake, I thought we were discussing what different online banks offer, not having a political discussion. By the way, I would be hesitant in using Wikipedia for any citation.
ING now offers a feature that enables you to use your mobile app or your computer to deposit checks from anywhere with CheckMateSM. A very cool feature to save you time. No more trips to the bank to deposit checks. So cool.
How long til the funds are available, with Ally it is at least a week?
Hi Will, I want to say that it takes 5 business days if I remember correctly. It’s a ridiculously long time to wait. ING is now owned by Capital One 360.
No mention Fidelity Cash Management. Just curious to what you think!
WATCH OUT FOR USAA.
The online and cell phone deposits are not available to non-miitary members. You have to have a USAA credit card or a USAA auto insurance policy.
If you deposit your money using the Quick Deposit via UPS store USAA wlll hold on to all but $100.00 of your money for FIVE BUSINESS DAYS (that’a week).
(It’s faster to deposit the money in a local bank and wire transfer it to USAA).
If you depsiting money and don’t need it right away that’s fine, but if you live pay check to pay check and need your funds as soon as you deposit them THIS IS NOT THE BANK FOR YOU.!!!!
I’d encourage anyone looking for a new bank to check the Bankrate and Bauer Financial star ratings for all the institutions which interest you. If you’re willing to go up a step, you can pay a modest fee and get a complete analysis of the bank’s condition from either of these rating organizations. Make an exploratory phone call to the bank’s toll free customer service line, and pay close attention to wait times, electronic menus, and how professional and polite the representative is. All banks like to tout their supposed advantages, but nothing takes the place of a bit of digging, and gathering your own personal impressions. Be like a fox walking on new ice: Circumspect and cautious.
DISASTER – describes my experience switching to Ally. First of all adding my wife to the account so far has taken 7 days (and counting). Then I tried to wire money from an existing checking account that had been verified previously by Ally to my Ally checking, 6 days (and counting) all the while they have returned my ACH credit card payments making those payments late which as we all know adversely effects my credit!! I have finally seen where cash is no good………Ally Bank!
Does anyone have any info on the best checking accounts if you are doing business in Europe? I am getting another checking account because of problems I had with my local credit union, one of which was that my partner (in Denmark) had no way of sending me money. Apparently my credit union had a Swift number at one time, but now they no longer do & have no way of transferring money between my partner’s account & mine. I just called Capital One to ask about the 360 checking & they said they don’t allow for transferring money outside the US, but they do have a Swift number, so I take it that perhaps I could receive payment, but can’t send payment to Europe. USAA’s website states that it has no Swift number, so they are out. I called Ally & it seems they have a Swift number, but made no mention of transferring money between accounts and he said they don’t add any additional fees to ATM withdrawls, but do charge 1% conversion fee.
How does one get a checking account with USAA as a member of the general public? I just tried online and was told I was not eligible since I am not military or spouse. Color me confused.
Thanks,
Jody