Best online checking accounts for January 2025
Consumers looking for a new checking account may find that online banks offer features that may not be available at the bank down the street.
While brick-and-mortar banks may offer these checking account features, too, they may come at a cost: high minimum balances, monthly fees and out-of-network ATM fees. In contrast, online checking accounts typically don’t have these requirements or charge these fees. To that end, if you’re looking for an account for your everyday purchases without strings attached, a digital bank may be right for you.
Here are Bankrate’s picks for the best online checking accounts.
Bankrate’s picks for best online checking accounts
- Ally Bank: Best online checking account overall
- LendingClub Bank: Best for cash back
- Presidential Bank: Best high-interest checking
- Charles Schwab: Best for travelers
- Alliant Credit Union: Best for teens
- Quontic Bank: Best checking/savings combo
A closer look at the best online checking accounts
Ally Bank
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Ally Bank’s Spending Account comes with all the bells and whistles you’d want from an online checking account, including no monthly fees, a robust mobile app, a very large ATM network and overdraft protection. What’s more, the account earns some interest, and even though it’s an online account, it offers free standard checks.
LendingClub Bank
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LendingClub Bank’s Rewards Checking account earns a robust unlimited one percent cash back on everyday purchases if you meet certain qualifications. To boot, the account even earns some interest, though you’ll need to deposit at least $2,500 to start earning a yield. Beyond these two excellent perks, customers also get unlimited rebates on ATM surcharges and early pay.
Presidential Bank
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Those looking for an incredibly high yield on a checking account need look no further than Presidential Bank’s Advantage Checking. The top yield can be earned on any amount up to $25,000. The yield drops beyond that amount, but is still robust for a checking account. However, you’ll need to watch out for a wide host of fees, which are very present at Presidential Bank.
Charles Schwab
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International travelers will find a solid choice in Charles Schwab’s Investor Checking account. The account offers unlimited worldwide ATM fee reimbursements and doesn’t charge a foreign transaction fee when making purchases overseas, making this account the perfect companion on your next trip. As an extra perk, you’ll earn a small amount of interest on any balance.
Alliant Credit Union
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Teens aged 13 through 17 are eligible for Alliant Credit Union’s Teen Checking account. The account is great for beginners as it doesn’t come with a minimum balance requirement nor charges a monthly fee. Parents can be joint account holders — which allows them full account access and transaction alerts — though they must also be an Alliant member. The account also places limits on spending, which can provide peace of mind for parents.
To boot, the account earns a solid interest rate on any balance for a checking account and receives $20 per month in ATM rebates.
Quontic Bank
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Quontic Bank is a great choice if you want to pair a high-yield savings account with a cash-back checking account from the same online bank. The Quontic Bank Cash Rewards Checking account earns one percent cash back on qualifying debit card purchases up to $50 per statement cycle. Cash back is deposited into your account at the start of each new statement cycle. On the savings side, Quontic’s High Yield Savings account offers a robust yield, though there are accounts with higher yields on the market right now.
Disclaimer: Please note that the details of these bank accounts may vary by region and may change. All details are accurate as of Jan. 8, 2025.
Pros and cons of online checking accounts
Pros
- Online checking accounts typically offer 24/7 account access.
- You are more likely to find interest-earning checking accounts or cash back debit cards with online banks.
- Almost all banks will let you mobile-deposit checks.
- Some banks provide transaction alerts, including a warning that you’re about to overdraw your account.
- Many online checking accounts let you view bank statements and search transactions online.
Cons
- An online bank without branches won’t be able to help you with in-person banking, including withdrawals.
- Online banks lack some features, such as safe deposit boxes, that are available at some branches.
- With no branches or onsite ATMs, online banks can be less convenient if you need cash immediately.
How to choose the best online bank
As with any purchase, researching and comparing online banks can help you make the best decision. Some things to consider are:
- Is the bank FDIC-insured?
- Does the account come with a debit or ATM card?
- Does the account come with free checks or is there a fee for checks?
- What other fees are charged to customers?
- Does the bank have branches or is it an online-only bank?
- Does the debit card earn rewards or cash back?
- What features does the account offer that would benefit your personal needs, such as ATM reimbursements, overdraft protection, getting paid early or no foreign transaction fees?
- Is the app or website easy to use, reliable and high-rated?
- How can you transfer money to other accounts or people?
In the digital age, I personally prioritize mobile banking features (including mobile apps) and low-cost access to ATM networks. Being able to monitor and manage your account using a smartphone, as well as getting mobile alerts regarding transactions, are all musts these days.
— Mark Hamrick
Look out for any fees, too. Bankrate’s 2024 Checking Account and ATM fee study found the average monthly service fee for interest-bearing accounts is $15.45. Fees can be costly, which is why finding an online bank that doesn’t have a monthly maintenance fee can be a good choice to save money. Brick-and-mortar banks may have direct deposit requirements on some accounts to avoid a monthly maintenance fee.
Online checking account FAQs
Research methodology
Bankrate’s editorial team receives no direct compensation from advertisers, and our content is fact-checked to ensure accuracy. Our editorial and research teams analyzed more than 100 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.
To find the best checking accounts, Bankrate’s editorial team analyzed various factors, such as fees, minimum balance requirements and annual percentage yield (APY) offered. All of the checking accounts listed are insured (sometimes through partner banks) by the Federal Deposit Insurance Corp. (FDIC) at banks or by the National Credit Union Share Insurance Fund (NCUSIF) at National Credit Union Administration (NCUA) credit unions.
Account minimums, monthly service fees and ATM charges are some important things to consider when choosing a checking account. It’s easy to find a checking account that doesn’t charge fees and has minimal balance requirements. Many online banks offer them, and they are a good fit for many consumers.
Choosing a bank or credit union that’s backed by the federal government will ensure your money is safe. Be sure to follow FDIC and NCUA limits and guidelines.
Bankrate’s editorial team chose the criteria, developed a scoring system to determine the best checking accounts, and used its knowledge of financial services and banking experience to choose the best ways to rate them.
