Best Digital Banks in the U.S.
Confused about which digital bank to go with? We've compiled a list of the top online banking providers and their best features - read on to find out what will suit you best!
by Danilo Pereira
Here are our picks for the best online banks in the United States!
When looking for the best digital banks, you need to consider a few important factors. Some of them include a healthy mix of high APYs, reasonable minimum requirements, and low fees.
Online banks tend to provide a wide range of mobile banking services because of their branchless nature.
So considering which services they offer can also be a game changer when choosing a digital bank.
Also, since we are talking about the branchless nature of these banks, it is vital that they are able to offer the best customer support either by phone or on their apps.
We all know what a buzzkill it is when you try to reach out to a bank.
The very nature of the problem is a pain in the butt, and if customer service is slow, inefficient, or even rude, the smallest issue turns into a monster.
So, without further ado, let’s have a look at our picks for the 6 best digital banks in the US, in no particular order.
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Current Digital Bank
This is a financial technology company (also known as a “fintech”) that aims at offering premium but affordable banking.
With this all-in-one digital bank account, you can have either a simple Current Account or a Teen Account. Both of these accounts have no monthly or annual fees.
The Current Account comes with an exclusive card with tap to pay and offers up to 2 days early access to direct deposit, depending on your employer.
This account also offers budgets for spending categories, spending insights and 3 savings Pods earning up to 4% APY each.
Some of the main features of their Teen Account are a budget for one spending category, instant notification for purchases, and a Giving Pod for donations.
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Axos is a traditional bank that limits its operations to the digital space. It charges no monthly fees and does not have any minimum balance requirements.
It does, however, have a minimum initial deposit requirement of $250 when you open the account.
Also, this account is not 100% free of fees since it charges for wire transfers, which most banks charge for.
One of the things that make Axos stand out among other digital banks is its wide variety of banking products.
They offer several checking and savings accounts, certificates of deposit (CDs), and money market accounts (MMA).
You can learn more about Axos High-Yield Savings Account in the article below.
Axos High Yield Savings Account review
The Axos High Yield Savings Account offers easy access to funds through a debit card for a $0 annual fee.
Chime Digital Bank
Chime is completely free of fees. That means no minimum balance fees, no overdraft fees, and no monthly fees. The account will not even charge a card replacement fee if you lose your Visa debit card.
The only exception is if you make withdrawals at out-of-network ATMs. That will hardly happen, though since Chime offers over 60,000 cash machines nationwide.
The account also contributes to your savings since you can set up automatic transfers to your linked savings account.
Speaking of which, the Chime High Yield Savings account allows you to round off your debit purchases.
You can then drop the remainder into your savings account. Plus, it’s “Save When I Get Paid” feature automatically saves a portion of your paycheck for the future.
The account earns a top-tier 2% APY (8 times the national average) on all of your savings, regardless of your balance.
Chime has an excellent credit card to help you build credit, and you can read the full review on the following.
Chime Credit Builder Visa Credit Card review
Start building your credit with the Chime Credit Builder Visa Credit Card with no credit checks and no annual fee.
Varo Bank offers excellent APY on its savings account and a wide network of free ATMs while charging a few fees. That sounds like your average online bank, but Varo goes further.
It offers cash back when you shop at retailers like Walmart, CVS, and Home Depot using your Varo card. You can earn that by visiting the Perks tab in your Varo app and adding your deal there.
When your balance reaches $5, the app automatically transfers the amount to your bank account.
As if that was not enough of a break from the traditional, Varo also offers an impressive 3% APY on its savings account.
Not only that. For balances up to $5,000, there is the opportunity to earn up to 5% APY. You must receive direct deposits of $1,000 or more in your checking account to earn that.
Then you must end the month with a positive balance in your Savings Account and Varo Bank Account. Do that, and you will get the 5% APY.
Quotic digital bank
This bank may not be as well known as the other banks mentioned in this list, but it is probably one of the most innovative digital banks out there.
Because this is a Community Development Financial Institution (CDFI), this bank provides inclusive lending services. This means it lends to borrowers that other banks are likely to reject.
This year the bank has eliminated a total of 12 bank fees, including domestic wires and overdraft fees.
That is a mild innovation if you consider the fact that, even before that, Quotic already offered a Bitcoin Rewards checking account.
The account earns APY back in Bitcoin on eligible purchases that you make with your Quotic debit card.
But if you are not a crypto person, do not worry. You can opt for their interest-bearing checking account which earns 1.10% APY.
Also, their high-yield savings account offers a 3.5% APY at no monthly fees, and with a low minimum initial deposit of $100.
This is a digital bank especially built for small business owners. It offers an all-in-one account that is completely free, and aims to facilitate your everyday business transactions.
The account has no minimum requirements and lets you make unlimited transactions. Plus, you have access to free ATM withdrawals at all MoneyPass locations.
Also, if you have less than $100,000 on your balance, the account earns a 2% APY. The bank also works as a lender, providing funds as high as $250,000 to help business owners run their businesses.
Recommendation: how to find the best savings account?
Having a savings account is essential for your finances. But do you know which account is the right one for you?
To help you find the best way to keep your money safe, we’ve written a full article about savings accounts. Just read the following content to find the best.
Choose the best savings account for you
Read on and find out about some interesting options. One of them might just be the best savings account for you.
About the author / Danilo Pereira
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