Overview
Learn how to choose the right online bank. Our guide covers APY, fees, FDIC insurance, ATM access, and mobile banking features. Finding the right option depends on your specific needs, spending habits, and financial goals. Below we break down the key factors to consider and the top choices available.
Step 1 — Decide What Products You Need
Some online banks (Marcus) only offer savings/CDs, while others (Ally, SoFi, Discover) offer full banking including checking. Start by confirming the bank offers everything you actually need.
Step 2 — Check FDIC Insurance
Confirm any online bank is FDIC-insured before depositing — this is non-negotiable and protects your deposit up to $250,000 per depositor, identical to a traditional bank.
Step 3 — Evaluate Customer Service Options
Without physical branches, phone and chat support quality matters more. Check reviews specifically about support responsiveness before committing, since this is where online banks vary most.
Step 4 — Confirm ATM/Cash Access Works for You
Online banks rely on partner ATM networks and typically have limited or no cash deposit options. If you regularly handle cash, factor this limitation in before switching entirely.
Step 5 — Test the Mobile App Before Committing
Since you'll manage everything digitally, read recent app store reviews for reliability issues — a bank with a strong rate but a buggy app can be more frustrating than it's worth.
Frequently Asked Questions
Yes, for most people — full-service online banks like Ally or Discover offer checking, savings, and often loans, covering everyday banking needs entirely digitally. The main tradeoff is limited cash deposit options.
Not necessarily — several online banks (Ally, Discover) are consistently praised for strong phone/chat support, sometimes rated higher than traditional banks. It varies by institution, so check recent reviews for the specific bank you're considering.