February 17, 2026
Written by Catherine Hiles
Certified Financial Education Instructor®
Certified Financial Education Instructor®
Catherine Hiles, CFEI®, originally hails from the U.K. and currently resides in Ohio, where she writes about finance, parenting, pets, home improvement, and more. In her spare time, Catherine enjoys running, reading, and hanging out with her husband, two young children, and energetic dog.
Chime® Checking Account, NerdWallet's 2026 winner for Best Online Banking Experience. Source: NerdWallet, Best Bank Accounts of 2026. Affiliate Partner. © 2017-2026 and TM, NerdWallet Inc. All Rights Reserved.
The best online banks offer high-yield savings, low fees, and strong digital tools – with top options like Chime®, Ally Bank, and SoFi standing out in 2026.
Online banks typically skip monthly maintenance fees and minimum balance requirements because they don't maintain expensive physical branches.
Your best choice depends on what matters most to you: a fee-free overdraft, ATM access, cash deposit options, or a higher annual percentage yield (APY) on savings.
Switching to an online bank can save you hundreds of dollars a year in fees – and possibly earn you 10 times more interest on your savings. The tradeoff? You'll give up the option to walk into a branch and talk to someone face-to-face.
Below, we compare the best online banks of 2026, break down the pros and cons of online banking, and help you figure out which option fits your financial life.
An online bank operates through a website and mobile app instead of physical branch locations. Without the cost of maintaining buildings and in-person staff, online banks often pass those savings to customers through higher interest rates and fewer fees.
You'll handle everything digitally – depositing checks with your phone, transferring funds through an app, and reaching customer service via chat or phone. Many online banks also partner with ATM networks, so you can still grab cash when you need it.
One thing worth knowing: some "online banks" are actually fintech companies that partner with traditional banks to offer their services. Chime, for example, is a financial technology (fintech) company – not a bank itself. Banking services are provided through partner banks like The Bancorp Bank, N.A. and Stride Bank, N.A., both Members FDIC. This partnership model has become common in the industry.
The best bank for you depends on your needs and preferences. Below, we've listed some of the top online banks to help guide your search.
Chime is a financial technology company focused on helping everyday people make financial progress without the fees traditional banks often charge. Because Chime isn't a bank, it works with FDIC-insured** partner banks to keep your money safe and accessible.
What sets Chime apart is its fee-free approach. There are no monthly maintenance fees, no minimum balance requirements, and no foreign transaction fees.1 You can also get paid up to two days early2 when you set up direct deposit – a feature that can help if you're living paycheck to paycheck.
SpotMe® fee-free overdraft: Eligible members can overdraw their account up to $200 on debit card purchases and cash withdrawals without paying overdraft fees.3
Chime Card™ A secured credit card that helps you build credit history4 with no annual fee, no interest,5 and no minimum security deposit.6
47,000+ fee-free ATMs: Access cash at locations like Walgreens, CVS, and 7-Eleven without paying ATM fees.7
Ideal for: People who want to avoid hidden fees, access their paycheck faster, and build credit without taking on debt.
Ally Bank has earned a reputation as a solid all-around online bank. Its 24/7 customer service and clean mobile app make everyday banking feel simple, and Ally has been around long enough to earn customer trust.
One standout feature is the "savings buckets" tool. You can organize your savings into different goals within a single account – like setting aside money for certain bills, an emergency fund, a vacation, and car repairs. This visual approach helps you track progress without opening multiple accounts.
Ally doesn't charge monthly maintenance fees on checking or savings accounts, and there's no minimum deposit to open an account. It also offers overdraft protection by linking your accounts together.
Ideal for: People who want a full-service online banking experience with helpful savings tools.
Capital One 360 takes a hybrid approach. You get online banking convenience plus access to Capital One Cafés in select cities. If you occasionally want to sit down with someone face-to-face, this combination might appeal to you.
The 360 Checking and 360 Performance Savings accounts come with no monthly fees and no minimum balance requirements. You can also set up automatic transfers to build savings without having to think about it.
Ideal for: People who want the convenience of online banking but appreciate having physical locations available.
SoFi positions itself as a one-stop financial platform. You can handle banking, investing, and loans all in one place. Its checking and savings accounts offer competitive APYs when you set up direct deposit.
The Savings Vaults feature lets you separate savings into different goals, similar to Ally's buckets. SoFi also offers member benefits like career coaching and financial planning sessions.
Ideal for: People who want to manage banking, investing, and loans under one roof.
Varo Bank is actually a bank, not a fintech company partnering with one. This means Varo is directly regulated and FDIC-insured. Varo focuses on helping people save automatically and access money early.
Like several competitors, Varo offers early direct deposit up to two days before payday. It also offers tiered savings rates, meaning you can earn a higher APY if you meet certain requirements, such as maintaining a minimum balance or making regular deposits.
Ideal for: People who want straightforward mobile banking with automatic savings features.
Online banks have many advantages, but there are also a few downsides to consider. Here's what you need to know.
Online banks typically offer higher interest rates on savings accounts. Without paying for physical branches, they can afford to give you more. The difference can be significant – you might earn 10 to 20 times more interest compared to a traditional brick-and-mortar bank.
Fees tend to be lower across the board. Many online banks skip monthly maintenance fees, minimum balance requirements, and even overdraft fees entirely. This structure helps you keep more of what you earn.
Convenience is another major benefit. You can open an account in minutes, deposit checks from your couch, and manage everything from your phone. Most online banks offer 24/7 customer support through chat, phone, or both.
Depositing cash can be tricky. Some online banks partner with retail stores or ATM networks for cash deposits, but the process isn't as simple as walking into a local branch. If you regularly handle cash, check your bank's deposit options before signing up.
You won't have face-to-face interactions with bankers. If you prefer sitting down with someone to discuss your finances or work through a complicated issue, this limitation might feel frustrating.
Some online banks also offer fewer products than traditional banks. You might find checking and savings accounts, but limited options for mortgages, business accounts, or safe deposit boxes.
Start by identifying what matters most to you. Do you want the highest possible interest rate on savings? Fee-free overdraft protection? Easy cash deposits? Your priorities will guide your decision.
Feature | Questions to Ask |
|---|---|
Fees | Does the bank charge monthly maintenance fees, overdraft fees, or ATM fees? |
ATM access | How many fee-free ATMs are available near you? |
Cash deposits | Can you deposit cash at retail locations or ATMs? |
Interest rates | What APY does the savings account offer? Are there requirements to earn it? |
Mobile app | How do users rate the app? Is it easy to use? |
Customer support | Can you reach someone 24/7? What contact options exist? |
Next, check the ATM network. Even if you rarely use cash, knowing you can access it without fees provides peace of mind. Look for networks with locations near your home, work, or places you visit often.
Finally, read reviews of the mobile app. You'll use it constantly, so a clunky or unreliable app can turn everyday banking into a headache. Look for apps with high ratings and recent updates.
Tip: Many people keep accounts at multiple financial institutions. You might use one for everyday spending and another for savings goals. There's no rule saying you can only choose one.
Online banking helps you avoid fees, keeping more of your hard-earned money in your pocket. With features like automatic savings, early paychecks, and higher interest rates on savings, choosing an online bank for your financial needs can help you reach your goals faster.
Need a little extra guidance? Learn how to choose a bank that works for you.
Online banks use the same security measures as traditional banks – encryption, multi-factor authentication, and fraud monitoring. Your deposits are also protected by FDIC insurance up to $250,000 per depositor, per institution.
Chime, for example, works with FDIC-insured partner banks to keep your money protected.** When evaluating any financial institution, look for the FDIC logo to confirm your deposits are insured.
Yes, though the process varies. Chime members can deposit cash at over 100,000 retail locations, including Walgreens, CVS, and Dollar General.8 Other online banks offer ATM deposits or partnerships with different retail chains.
Check your bank's specific options before you need to make a deposit. Some methods involve small fees while others are completely free.
The main difference is physical presence. Traditional banks operate branches where you can walk in and speak with someone. Online banks handle everything digitally through apps and websites.
This distinction affects costs. Online banks save money on real estate and staff, which often translates to better savings rates and fewer fees for customers. However, traditional banks offer services that some online banks don't, such as safe deposit boxes, notary services, and in-person financial advice.
Chime® is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
Chime is not FDIC-insured. The Bancorp Bank, N.A. and Stride Bank, N.A. are the FDIC-insured members. Deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. FDIC deposit insurance limit is $250,000 per depositor, per insured bank, per ownership category.
Chime Checkbook: While Chime doesn’t issue personal checkbooks to write checks, Chime Checkbook gives you the freedom to send checks to anyone, anytime, from anywhere. See your issuing bank’s Deposit Account Agreement for full Chime Checkbook details.
By clicking on some of the links above, you will leave the Chime website and be directed to a third-party website. The privacy practices of those third parties may differ from those of Chime. We recommend you review the privacy statements of those third party websites, as Chime is not responsible for those third parties' privacy or security practices.
Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank, N.A. and Stride Bank, N.A. (“Banks”). Banks are not responsible for the accuracy of any content provided by author(s) or contributor(s).
APPLE and the Apple Logo are registered trademarks of Apple Inc. GOOGLE PLAY and the Google Play Logo are registered trademarks of Google LLC. Third-party trademarks referenced for informational purposes only; no endorsements implied.
This guide is for informational purposes only. Chime does not provide financial, legal, or tax advice. You should check with your legal, financial, or tax advisor for advice specific to your situation.
Third-party trademarks referenced for informational purposes only; no endorsements implied.
Qualifying members will be allowed to overdraw their Chime Checking Account and/or their Secured Deposit Account up to $20 in total, but may be later eligible for a higher combined limit of up to $200 or more based on member’s Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your SpotMe Limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your SpotMe Limit. SpotMe for Credit and SpotMe on Debit share a single SpotMe limit. Your SpotMe Limit may change at any time, at Chime or its banking partners’ discretion. Although there are no overdraft fees, there may be out-of-network or third-party fees associated with ATM transactions or OTC cash withdrawal fees at retailers. SpotMe won’t cover non-card transactions, including ACH, Pay Anyone, or Chime Checkbook transactions. SpotMe terms and conditions.
Out-of-network ATM withdrawal and over the counter advance fees may apply except at FCTI® ATMs in a 7-Eleven® or Speedway, or any Allpoint® or Visa® Plus Alliance ATM participating in the Allpoint network.
Once the retailer accepts your cash, the funds will be transferred to your Chime account. You may use your barcode, debit card, or Chime Card to deposit cash. Cash deposit fees may apply if using a retailer other than Walgreens and Duane Reade. Cash deposits using a barcode or debit card are deposited to your Checking Account. If you have the Chime Card, those funds will be automatically swept to your Chime Card Secured Deposit Account. Cash deposits using your Chime Card first go to your Chime Card Account, then transferred to your Chime Card Secured Deposit Account. Cash deposits are not payment for any Chime Card balance due.
Licenses
Chime Capital, LLC, Nationwide Multistate Licensing System ("NMLS") ID 2316451
Chime Payments, Inc., Nationwide Multistate Licensing System (“NMLS”) ID 2538752
Address: 101 California Street, Floor 5, San Francisco, CA 94111, United States.
No customer support available at HQ. Customer support details available on the website.
© 2013-2026 Chime Financial, Inc. All rights reserved.
Chime® is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.