The major online banks at a glance (early October 2026)
| Bank | Savings APY | Checking | ATM access | Cash deposits |
|---|---|---|---|---|
| Ally Bank | 3.10% | Spending Account, 0.10%–0.25% APY, no overdraft fee | Allpoint ATMs free; up to $10 per statement cycle in other ATM fees reimbursed | Walmart Money Centers via app |
| Capital One 360 | 3.10% (360 Performance Savings) | 360 Checking, 0.10% APY, no overdraft fees | Capital One, Allpoint and MoneyPass ATMs (70,000+) | CVS and Walgreens via app; branches and cafés in select states |
| Marcus by Goldman Sachs | 3.40%–3.50% | None offered | No ATM or debit card | No; also no mobile check deposit |
| SoFi | Up to 3.30% with qualifying deposits; 0.80% without | 0.50% APY, no overdraft fees | 55,000+ Allpoint ATMs | Green Dot locations, up to $4.95 per deposit |
| American Express | 3.10% | Rewards Checking, 1.00% APY | 37,000+ MoneyPass ATMs | Not stated |
| Discover Bank | Not accepting new deposit applications since late January 2026; savings accounts are moving to Capital One (see below) | |||
Source: Ally.com (rates as of Oct. 5, 2026); Bankrate reviews of Capital One and Marcus (Oct. 6–7, 2026); NerdWallet SoFi review; CNBC Select savings and checking comparisons (Sept. 23–Oct. 2, 2026); Doctor of Credit. Marcus was listed at 3.40% by CNBC on Oct. 2 and 3.50% by Bankrate on Oct. 6.
Smaller online banks often pay more. CNBC Select's early October list included Live Oak Bank at 4.00%, Vio Bank at 4.09% (with a $100 minimum and a $5 monthly fee unless you choose paperless statements) and EverBank at 3.90%. Many of these banks offer only savings and CDs, so you would keep checking elsewhere. Our high-yield savings guide has the full rate snapshot.
What each major online bank is best at
Ally Bank: an all-in-one online bank
Ally offers savings, money market, checking and CDs with no monthly maintenance fees and no minimum to open or earn the APY. Savings and money market both paid 3.10% as of October 5, 2026. Savings allows 10 withdrawals per statement cycle. Ally's CD rates were lower than some competitors' at the time: 2.80% on its 11-month No Penalty CD and 3.00% on its Raise Your Rate CDs. It is a good fit if you want one login for everything and rarely use cash.
Capital One 360: online pricing with a physical backup
Capital One is a hybrid. Its 360 accounts are priced like an online bank: no fees, no minimums and no overdraft fees on checking. But it also has branches and Capital One Cafés in some states, plus cash deposits at CVS and Walgreens through the app. That makes it one of the easier online-style options if you deal with cash. Its 360 Performance Savings paid 3.10% in early October 2026, less than some smaller online banks.
Marcus by Goldman Sachs: savings and CDs only
Marcus focuses on savings and CDs. Its online savings account has no minimum and no fees, and CDs need $500 with terms from six months to six years. There is no checking account, no ATM card and no mobile check deposit. You move money by transfer from a linked bank. Bankrate notes that Marcus ranked third in J.D. Power's 2025 Direct Banking Satisfaction Study among online-only banks offering savings. Read our full Marcus review for details.
SoFi: high rate with conditions
SoFi Bank combines checking and savings in one product. Savings pays up to 3.30% if you have direct deposit, deposit $5,000 a month, or subscribe to SoFi Plus for $10 a month. Without one of those, it pays 0.80%. SoFi spreads deposits across partner banks to offer FDIC coverage of up to $3 million. There are no branches, and cash deposits can cost up to $4.95 each.
The Capital One–Discover merger: what changed for Discover customers
Capital One completed its acquisition of Discover on May 18, 2025. At closing, both companies said customer accounts would stay unchanged until further notice. Here is what has happened since, based on customer notices reported by banking sites:
- New accounts: Discover stopped accepting new applications for deposit accounts in late January 2026.
- Savings: Discover savings accounts are being converted into Capital One 360 Performance Savings. Some converted on August 23, 2026. Account numbers stayed the same. Existing direct deposits keep working, but new transfers need Capital One's routing number.
- Checking: Discover checking accounts were reported as staying as they are for now.
If you still have Discover deposits, watch for notices from Capital One. One FDIC point is worth checking: FDIC coverage is $250,000 per depositor, per ownership category, per bank. If your Discover deposits become Capital One accounts, they count together with any Capital One deposits you already have, not separately. If you hold large balances at both, confirm your coverage with the bank or the FDIC.
Online banks vs. branch banks
| Online banks | Traditional branch banks | |
|---|---|---|
| Savings rates | Roughly 3%–4% APY at many online banks (Oct. 2026) | FDIC national average: 0.37% (Sept. 2026) |
| Fees | Usually no monthly or overdraft fees | Varies by bank; check for monthly fees and waiver rules |
| Cash deposits | Limited: retail partners, sometimes for a fee | At any branch or bank ATM |
| In-person help | Phone, chat and app only (Capital One is an exception) | In-person service at branches |
| ATMs | Shared networks such as Allpoint and MoneyPass, plus some fee rebates | Bank's own ATMs |
Source: FDIC national savings rate (Sept. 2026, via FRED); bank sites and reviews listed below.
Many people use both. They keep a no-fee checking account at a bank with nearby branches or ATMs, and move savings to an online bank for the higher rate. Transfers between banks are not instant, so keep enough in checking to cover upcoming bills. Our checking accounts guide compares fee-free options.
Online bank vs. fintech app: the Synapse lesson
An online bank holds its own charter and FDIC insurance. A fintech app is a technology company that partners with a bank. That difference matters when something goes wrong.
In April 2024, Synapse, a middleman that connected fintech apps such as Yotta and Juno to partner banks including Evolve Bank, filed for bankruptcy. Accounts for more than 100,000 consumers were frozen, cutting off about $265 million in deposits. The CFPB later alleged that $60 million to $90 million was unaccounted for. According to the CFPB, Synapse had "failed to maintain adequate records of the location of consumers' funds."
FDIC insurance did not solve this. Deposit insurance pays out when an insured bank fails, and the banks here did not fail. Pass-through coverage to each customer depends on accurate records showing who owns what. As the CFPB has warned, "deposit insurance does not apply when a nonbank payment company fails." If the company fails, your money may be "lost or tied up in a long bankruptcy process."
In September 2024, the FDIC proposed a rule requiring banks that hold these pooled custodial accounts to keep records of each beneficial owner and balance and reconcile them daily. As of early October 2026, that rule had not been finalized.
How to check before you deposit
- Find out whether the provider is a bank or a fintech. The app's terms or website disclosures should name the partner bank that holds your money.
- Confirm the partner bank is FDIC insured, and understand that coverage protects you only if that bank fails.
- Keep large balances in an account held directly at an insured bank or credit union.
- Remember the limit: $250,000 per depositor, per ownership category, per bank. Multi-bank sweep programs like SoFi's can raise it, but only if records are kept properly.
How to choose an online bank
- Decide what you are moving. Savings only? A savings-focused bank such as Marcus or a smaller high-rate bank may pay more. Everyday banking too? Look at Ally, Capital One or SoFi.
- Compare the rate you will actually earn. Some top rates need direct deposit or are introductory offers that drop later.
- Map your cash and ATM needs. Check retail deposit options and in-network ATMs near you.
- Check withdrawal limits and transfer speed. Some savings accounts cap withdrawals per statement cycle, as Ally does at 10.
- Look beyond savings. If you want a fixed rate, compare CD rates. If you want checks on your savings, consider a money market account.
Frequently asked questions
Are online banks safe?
An online bank that holds an FDIC charter insures deposits the same way a branch bank does: up to $250,000 per depositor, per ownership category, per bank. Fintech apps that are not banks rely on partner banks, and insurance does not cover the failure of the app company itself.
Can I still open a Discover savings account?
No. Discover stopped accepting new deposit account applications in late January 2026, after Capital One completed its acquisition of Discover in May 2025. Existing Discover savings accounts are being converted to Capital One 360 Performance Savings.
How do I deposit cash at an online bank?
It depends on the bank. Capital One customers can deposit cash at CVS and Walgreens through the app, Ally customers at Walmart Money Centers, and SoFi customers at Green Dot locations for up to $4.95 per deposit. Marcus does not accept cash or mobile check deposits.
Why do online banks pay higher rates?
Each bank sets its own rates, and online-focused banks have been among the highest payers. In early October 2026, major online banks paid about 3.10%–3.50% on savings, compared with an FDIC national average of 0.37%.
What happened with Synapse?
Synapse, a company that linked fintech apps to partner banks, filed for bankruptcy in April 2024. More than 100,000 customers lost access to their funds, and the CFPB alleged $60 million to $90 million was unaccounted for because of poor records. FDIC insurance did not apply because no bank failed.
Is Marcus by Goldman Sachs a full online bank?
No. Marcus offers savings and CDs but no checking account, debit card, ATM access or mobile check deposit. You move money in and out by transfers from a linked bank account.
Sources
- Ally Bank – Bank accounts and rates
- Bankrate – Capital One bank review
- Bankrate – Marcus by Goldman Sachs review
- NerdWallet – SoFi Checking and Savings review
- CNBC Select – Best high-yield savings accounts (Oct. 2026)
- CNBC Select – Best free checking accounts (Oct. 2026)
- Nasdaq – Capital One completes acquisition of Discover (May 18, 2025)
- Doctor of Credit – Discover savings accounts to become Capital One savings accounts
- Frequent Miler – Some Discover savings accounts become Capital One 360 Performance Savings on 8/23/26
- Banking Dive – CFPB moves to hold Synapse accountable for missing customer funds
- FDIC – Proposed recordkeeping requirements for custodial deposit accounts (Sept. 2024)
- Switchwize – Synapse/Evolve collapse: what changed since 2024
- CFPB – Consumer advisory on money held in payment apps
- FDIC – Understanding deposit insurance
- FRED / FDIC – National Rate: Savings (SNDR)
Rates, fees and terms change often. Figures were checked in October 2026; confirm current details with the provider before you apply.