Do you know that on average, interest-bearing accounts have a monthly fee of $15.33? This info is from Bankrate’s 2023 checking account and ATM fee study. However, non-interest checking accounts only charge about $5.31 a month.1 Moving to an online bank account could lower your costs and make banking easier.
The best online bank accounts make it quick to open a bank account online, sometimes just minutes. Plus, you can get better interest rates, avoid or lower fees, and use handy options like mobile check deposit and getting paid early. For instance, Bank5 Connect’s High-Interest Checking gives 2.70 percent APY, and Quontic Bank’s High Yield Savings offers 4.5 percent APY.1
If you check out Huntington Bank, TD Bank, and T-Mobile MONEY online, you’ll find they’re top choices. They have easy-to-use online bank account applications for when you want to open an online checking account or online savings account. Getting approved is fast, and you can soon enjoy online banking benefits.
Key Takeaways
- Online banks often have lower fees compared to traditional banks, with some offering no monthly maintenance fees or minimum balance requirements.
- Opening an online bank account is quick and easy, with applications typically approved within minutes.
- Online banks offer competitive interest rates on checking and savings accounts, allowing you to earn more on your money.
- With convenient features like mobile deposit, online bill pay, and 24/7 customer support, online banking provides unparalleled accessibility and flexibility.
- Top online banks for checking accounts include Huntington Bank, TD Bank, and T-Mobile MONEY, each offering unique features and benefits.
Discover the Benefits of Online Banking
Online banking has changed how people handle their money, offering advantages that old-school banks don’t. Now, over 60% of folks do some banking tasks online2. The ease, reach, and competitive features of online banks have drawn many customers.
Convenience and Accessibility
Online banking stands out for its ease and access. It lets you do everything from managing your accounts to depositing checks using your computer or phone. Plus, most online banks have easy-to-use apps for doing your money business on the move. They also give 24/7 support to assist you at any time3.
Competitive Interest Rates
Online banks shine in the interest rates they offer for savings and checking accounts. They might have 1% to 2% higher rates for savings than traditional banks2. Because online banks have fewer costs, they can give better rates. For instance, they could offer 1% to 2% higher APYs on savings than traditional banks do2. Sometimes, online banks pay up to 5% on deposits, more than brick-and-mortar banks3.
Low or No Fees
Online banks usually charge fewer fees than regular banks, making them a good pick for those watching their wallet. Many online checking accounts don’t have monthly fees, balance minimums, or overdraft charges2. These banks might offer services like 24-Hour Grace and $50 Safety Zone to keep you from overdraft fees, like Huntington Bank does. Meanwhile, traditional banks will often charge a $15.33 monthly service fee for interest checking and require an $8,684 balance to avoid it3. Online banks might also have special deals when you open a new account, adding more value.
| Feature | Online Banks | Traditional Banks |
|---|---|---|
| Interest Rates on Savings | 1% to 2% higher2 | Lower |
| Minimum Balance Requirements | Often no minimum balance2 | Average $8,684 to avoid fees3 |
| Overdraft Fees | Some offer no overdraft fees | Average $26.613 |
| Account Opening | Quick and easy online process3 | May require visiting a branch |
Online banking comes with many tools and benefits to help you handle your money well and save more. With features like mobile apps, great interest rates, and low fees, online banks offer a lot. Using these services can simplify your finances and help you make better use of your money.
Top Online Banks for Checking Accounts
Choosing the right online bank for your checking account is crucial. Several top online banks stand out. They offer features that make banking easier, safer, and more rewarding. Here, we will focus on three: Huntington Bank, TD Bank, and T-Mobile MONEY.
Huntington Bank
Huntington Bank has varied online checking accounts. These include no monthly fees, overdraft protection, and help with identity theft. If you need cash fast, they have Standby Cash, which is an emergency line of credit up to $1,000.
Customers with special accounts enjoy higher interest rates. They can use a Relationship Money Market Account to earn more from their savings.
TD Bank
TD Bank’s online checking accounts are full of handy features, like mobile deposit and online bill pay. They also offer Zelle for easy person-to-person payments. The TD Complete Checking account is great for young adults or those with steady deposits. It removes the monthly fee for ages 17-23 or if you meet other criteria.
The bank’s mobile app is easy to use for managing your accounts. Plus, they offer 24/7 customer support to assist you at any time.
T-Mobile MONEY
T-Mobile MONEY takes banking to the next level with their unique checking account. It provides great interest rates and requires no monthly or minimum balances. All customers earn 2.50% APY, and T-Mobile or Metro by T-Mobile clients can earn 4.00% APY on up to $3,0001. Features include early direct deposit, mobile check deposit, and access to over 55,000 ATMs with no fees1.
| Online Bank | Key Features | Interest Rates |
|---|---|---|
| Huntington Bank | No monthly maintenance fees Overdraft protection services Identity theft resolution services Standby Cash feature | Higher interest rates with Relationship Money Market Account |
| TD Bank | Mobile deposit Online bill pay Zelle for person-to-person payments Monthly maintenance fee waived for customers aged 17-23 or those who maintain a minimum balance or have direct deposits | Competitive interest rates |
| T-Mobile MONEY | No monthly fees or minimum balance requirements Early direct deposit Mobile check deposit Access to over 55,000 fee-free ATMs nationwide | 2.50% APY on all balances 4.00% APY on balances up to $3,000 for qualifying T-Mobile or Metro by T-Mobile customers |
When choosing an online bank, look at their account features, security, service, and app. Also consider how easy it is to open an account, the interest rates, and customer reviews4. By comparing these factors, you can pick the online bank that meets your needs best.
Conclusion
Online banking is a great way to handle your money. It comes with many benefits like good interest rates, few or no fees, and easy use. Thanks to these, lots of Americans choose online options over local banks5. Remember to look at what features each bank offers, their rates, the fees, and how well they help customers.
Discover Bank, for example, doesn’t charge common bank fees at all, like overdraft or using the wrong ATM5. They also skip the monthly fees that other banks often have5. And opening an account with them doesn’t need much up-front money5. Many online banks offer the best savings rates you’ll find, with CIT Bank marking up to 4.65%6. This is a huge leap from the 0.02% interest many traditional banks offer6.
Choosing online banking means you can manage your money anywhere. You get cool features like depositing checks with your phone, getting paid early, and help at any time of day. So, whether you want a checking or savings account, think about how online banking can help you save more and avoid high fees.
FAQ
What are the benefits of opening an online bank account?
Online bank accounts bring a lot of perks. They let you do most banking tasks from anywhere. This includes managing accounts, paying bills, and depositing checks. They also usually have lower fees.
How quickly can I open an online bank account?
It’s usually quick to get an online bank account. Many banks approve your application fast. You can start a checking or savings account in just a few minutes on your computer or phone.
Do online banks offer competitive interest rates?
Yes, online banks often have better interest rates. Because they have fewer costs, they can give customers better deals. This includes more money for your checking or savings account.
What fees do online banks typically charge?
Online banks are known for having lower fees. For example, many have no monthly fees. They might also skip requiring a minimum balance or charge you for overdrafting. Still, make sure to check what fees your chosen bank might have.
What features should I look for when choosing an online bank?
Many factors are important for picking an online bank. Think about what they offer, like apps or mobile check deposit. Also look out for good interest rates, low fees, and the support they provide to customers.
Are online bank accounts secure?
Online banks take your safety seriously. They use the latest tech to protect your information. This includes things like encryption and checking for any fraud. But remember, always act smart online. Use strong passwords and avoid risky Wi-Fi.
Can I deposit checks with an online bank account?
Most online banks have a cool feature called mobile check deposit. It lets you deposit checks from your phone. Just snap photos of the check’s front and back, and send them through your bank’s app.
What customer support options are available with online banks?
Online banks offer several ways to get in touch with them. You can call, email, or use live chat for help. Many online banks are open to helping you 24/7.
Source Links
- https://www.bankrate.com/banking/checking/best-online-checking-accounts/
- https://www.investopedia.com/articles/pf/11/benefits-and-drawbacks-of-internet-banks.asp
- https://www.bankrate.com/banking/savings/online-vs-brick-and-mortar-banks/
- https://www.marketwatch.com/guides/banking/best-online-banks/
- https://www.forbes.com/advisor/banking/online-banks-vs-traditional-banks/
- https://www.howtomoney.com/heres-why-i-just-opened-a-new-online-bank-account/
