The Best Online Banks With High Yield Savings Accounts

What are the best online bank accounts? Online banks are leading banking options that offer services online only. This feature allows banks to offer affordable accounts that are more a

What are the best online bank accounts? Online banks are leading banking options that offer services online only. This feature allows banks to offer affordable accounts that are more accessible via mobile apps. So, if you choose this account, you'll earn more on your savings. Some charge minimum balance fees while others don't charge at all. 

Most online banks offer high rates on savings accounts, secure online banking, different products, and mobile apps. These mobile apps have extras like savings and budgeting tools.

Best Banks for Online Banking

Ø Axos Bank: Best for couples

Ø Ally Bank: Best Bank

Ø Charles Schwab: Best for Travelers

Ø Discover: Best for checking

Ø Capital: Best for students

Ally Banks

Ally Bank ranks as the best online bank for business accounts because of its low fees, friendly rates, and user-friendly budgeting feature.  In addition, it provides other products such as savings, checking, loans, and investing.

Pros &Cons

Pros

Ø No monthly maintenance fees

Ø No minimum balance requirements

Ø High APY on saving and checking

Ø Lending products, investing, and banking

Cons

Ø No physical branches

Ø No ATM card with a saving account

Ø No cash deposits

Synchrony Bank

Synchrony bank is one of the best online banks without fees. It’s also among the best online banks with high yield savings accounts.  Again, it’s an undisputed online bank account across the competitive market. Its mobile app allows easy mobile check deposits. However, it doesn’t provide a checking account but you can get an ATM card with your saving, which shouldn't be an issue.

Pros & and Cons    

 Pros

Ø No minimum balance requirements

Ø High APY

Ø ATM card

Ø $5 ATM reimbursement per statement

Ø No monthly maintenance fees

Cons  

Ø No physical branches

Ø No checking accounts

Ø Outgoing wire transfer fee 

Capital One

Capital One provides a wide variety of products without minimal fees balance, no balance requirements, and the ability to receive money from parents and that makes it the best bank account for students. Capital One is one of the best online banks with the highest interest rates which makes it suitable for both parents and kids.

Pros& Cons 

Ø No minimum balance for saving and checking

Ø $15 per transaction in ATM fee reimbursements

Ø Free savings and checking

Ø Allow parent-teen joint account

Cons

Ø Few Branches in the United States

Ø Little APY

Ø No checks with teen checking

Discover

Discover is the best online bank with no fees and the best checking account that earns rewards with no fees. It also has more than 60,000 ATMs in the United States, which makes it the best online bank with debit cards and the best online bank with ATM access.

Pros and Cons

Pros

Ø Cash back on debit card

Ø No Monthly maintenance fees

Ø No overdraft fees

Ø No minimum balance requirements

Cons  

Ø No physical branches

Ø No interest earns

Ø No cash deposits

Charles Schwab

Charles Schwab is the only bank that provides checking accounts with no monthly maintenance fees, no transaction fees, and unlimited ATM fee rebates globally. Its customer care is around the clock to solve any issue that might arise with its products.  The bank also provides a wide variety of retirement, brokerage, investment, and trading products. Further, it has qualified professionals to help you plan your investment plan. Again, it’s one of the online banks with the best interest rates. 

Pros & Cons  

Pros

Ø No foreign transaction fees

Ø No monthly maintenance fees

Ø  Unlimited ATM fee rebates globally

Ø No minimum balance requirements   

Cons

Ø No cash deposits

Axos  

Axos is one of the online banks with the best savings interest and that’s makes it suitable for people with high balances and frequent transactions.  It's the best bank for couples who want to combine funds in the same joint account. So, if you and your partner are looking for a bank to combine your funds, AXos Bank is the right choice.

You can also earn the highest APY on your checking account but you must meet its transaction and balance threshold.  Its customer support is 24/7 to help you solve any issue. Plus, it let you synch all your different accounts to a central bank. Besides, you can analyze your spending behavior as pair and that’s makes it the best online banks for joint accounts.  

Pros& Cons

Ø Unlimited domestic ATM fee reimbursement

Ø High APY

Ø Many savings and checking options

Ø No monthly maintenance fees

Ø No minimum balance requirements

Cons 

Ø No physical branches

Ø $50 minimum balance requirements

Ø Low CD rates

Ø $250 to open Hield Yield Savings

Ø Minimum transaction to earn APY on checking account

Factors to consider when choosing the best online banks with yield savings accounts

  Here are features you should consider when looking for online banking options:

Ø Types of accounts

Ø ATM fees

Ø Rates

Ø Minimum balance requirement

Ø Other fees

Online Banks vs. Traditional Banks  

Traditional banks are the financial institutions that work out like brick-and-mortar locations such as U.S Bank, Wells Fargo, Bank of America, and Chase Bank. Online banks chiefly operate online. Some have a physical branch while others don’t provide a physical branch at all.   And since online banks don’t have physical branches, they charge low fees. They also provide high rates on your savings.  Others don’t charge fees to their account holder. However, they don’t offer other financial products including retirement, mortgages, and personal loans like traditional banks.

Frequently Asked Questions  

Do you pay high fees with online banks?

Typically, people pay fewer fees with online banks. That means you can easily get savings in the form of no overdraft, no monthly maintenance fees, or no ATM fee

How safe are online banks?

Online banks safe as traditional banks. The majority of online banks are FDIC-insured close to $250,000. They also have advanced security features like other banks.

Does the FDIC insure online banks?   

Most online banks are FDIC-insured close to $250,000 which is the standard for all bank accounts worldwide.