The 10 best online banks and credit unions for February 2023

These days, most of your banking can be done online. From opening an account, to making deposits, transferring funds between accounts, paying bills, investing, and more. With so many banks catering to the online customer, finding the right account can be overwhelming. 

To help make your decision a little easier, the Fortune Recommends^TM editorial team ranked more than 30 different online banks and credit unions that offered checking and savings accounts. We weighed account annual percentage yields (APYs) for interest-earning accounts, monthly service fees, overdraft fees, mobile application ratings, free ATM access, account offerings and services, and customer service options. (Read our full methodology here.)

1. SoFi 
2. Connexus Credit Union 
3. Bank5Connect 
4. Ally Bank
5. Capital One 
6. Citadel Credit Union 
7. Salem Five Direct 
8. Quontic Bank 
9. Quorum Federal Credit Union 
10. Axos Bank 

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The 10 best online banks of February 2023 

Here’s our rundown of the top 10 online banks and credit unions, including the key figures you should know before you open an account. (Note: minimum deposit requirements, fees, and other numbers in our list are up to date as of Feb. 13, 2023, and are subject to change.) 

1. SoFi 

About: SoFi is an online bank headquartered in San Francisco that offers checking, savings, investing products, and more. SoFi has three physical locations in the U.S., but customers have access to a network of over 55,000 ATMs nationwide. Customers can pay bills, find ATMs, send money, make mobile deposits, and more via SoFi’s website and mobile app.

Checking account APY: 2.50%

Savings account APY: 3.75%

Mobile app rating: 4.4

Overdraft fee: $0

Customer support: Customers can request assistance 24/7 by reaching out to SoFi via phone, chat, email, and even sending general questions to the Twitter account at @SoFiSupport.

Our verdict: Good for those who want to earn a high APY on their checking account balance. SoFi earned the top spot on our list for its stellar APYs on its checking and savings accounts. Additionally, the bank does not charge any monthly service fees, has no minimum balance requirements, and a vast fee-free ATM network. SoFi also offers a number of other financial services including private student loans, mortgage loans, auto loans, investment services, insurance, and more. 

2. Connexus Credit Union 

About: Connexus Credit Union serves over 441,000 members across all 50 states and offers high-yield checking accounts and deposit products, as well as personal, home, and auto loans. The credit union also offers money market accounts, individual retirement accounts (IRA), consumer credit cards, and more. Connexus members have fee-free access to more than 67,000 ATMs in the CO-OPSM and MoneyPass® ATM networks. Membership eligibility is depending on being involved with a qualifying association, living in an eligible county or community, or being married to, living with, or related to an existing member.

Checking account APY: 1.75%

Savings account APY: 0.25%

Mobile app rating: 4.6

Overdraft fee: $4

Customer support: Customer service representatives are available to assist account holders via live chat or telephone on weekdays between 7:00 a.m. and 7:00 p.m. CT, and Saturdays from 8:00 a.m. to 1:00 p.m. CT. Representatives can also be reached via email.  

Our verdict: Good for those who want to prefer a credit union and want to do all of their banking under one roof. Connexus Credit Union made our list for a few different reasons. Its checking and savings account APYs were not the highest on our list, but were still competitive compared to national averages. Its mobile app rating scored a 4.6 by our calculations and the bank charges a modest overdraft fee of just $4, which is significantly lower than many of the banks and credit unions on our list. This credit union also offers a long list of products and services, including checking and savings accounts, money market accounts, credit cards, retirement accounts, investment services, and even financial wellness resources. 

3. Bank5 Connect 

About: Bank5 Connect is an online division of BankFive, a Massacussets-based community that has been serving customers since 1855. The bank offers checking and savings accounts, and certificates of deposit (CDs). Bank5 Connect does not offer any branded ATMs, however it does offer customers free access to thousands of ATMs across the country via the SUM Network. 

Checking account APY: 2.00%

Savings account APY: 1.50%

Mobile app rating: 4.6

Overdraft fee: $15

Customer support: For assistance, customers can reach a support specialist via telephone and live chat Monday through Wednesday from 7:30 am to 5:00 pm ET, Thursday and Friday from 7:30 am to 7:00 pm ET, Saturday from 7:30 am to 3:00 pm ET, and Sunday from 11:00 am to 3:00 pm ET. 

Our verdict: Good for those who want to keep it simple with one, no-frills account. Bank5Connect is a smaller online bank, but does offer competitive APYs on the products it does carry. This bank also has a large fee-free ATM network and its mobile app scored a 4.6 rating based on our calculations, although customer service hours vary widely throughout the week, which can make it difficult to know when you might be able to get a representative on the phone. 

4. Ally Bank

About: Ally is an online-only bank that offers a wide range of financial products and services including checking and savings accounts, credit cards, auto loans, personal loans, robo-advisors, and more. Despite the lack of physical branches, Ally offers customers free access to a network of more than 43,000 ATMs. 

Checking account APY: 0.25%

Savings account APY: 3.40%

Mobile app rating: 4.3

Overdraft fee: $0

Customer support: For assistance with any of Ally’s bank accounts, credit cards, investment products, or services, customers can reach a representative via live chat, email, or phone 24/7. For auto loan help, representatives are available Monday through Friday, 8 a.m. to 11 p.m. ET, and Saturday from 9 a.m. to 7 p.m. ET. For assistance with new home loans, representatives are available Monday through Friday, 8 a.m. to 10 p.m. ET, Saturday, 10 a.m. to 4 p.m. ET. For existing home loans, phone service hours are  8:30 a.m. to 8 p.m. ET, Monday through Friday and 8:30 a.m. to 1 p.m. ET on Saturday. For questions related to Ally’s lending products, customers can call Monday through Friday, 8 a.m. to 10 p.m. ET and Saturday, from 8 a.m. to  9 p.m. ET.

Our verdict: Good for those who want all of the customer service options. Ally made our list for its customer service options. Account holders can reach a representative day or night via phone, chat, and email. For users who are on the fence about an online bank, the security of knowing a representative is always available might be a selling point for this online-only bank. Ally also offers a number of financial products and services, including checking and savings accounts, credit cards, investment accounts and services, auto loans, personal loans, and more. 

5. Capital One  

About: Capital One is one of the largest banks in the country, headquartered in Virginia with a strong online presence, as well as some physical branches across the country. Customers have access to a network of more than 70,000 ATMs nationwide. 

Checking account APY: 0.10%

Savings account APY: 3.40%

Mobile app rating: 4.7

Overdraft fee: $0

Customer support: Capital One offers chat and phone support from 8:00 a.m. to 8:00 p.m. ET, 7 days a week. Customers can also send secure messages within the mobile app. 

Our verdict: Good for those who want a strong mobile app. Capital One took the fourth spot on our list for its high mobile app rating and higher than average savings account APY. Capital One’s app gives users the power to manage their Capital One credit cards and deposit accounts, receive purchase notifications, pay bills, send money from their accounts, check their VantageScore, and more. In addition to its highly-rated mobile app, Capital One offers a number of financial products and services including checking accounts, credit cards, auto financing, business cards and banking solutions, commercial banking products, and more. 

6. Citadel Credit Union 

About: Citadel Credit Union is headquartered in Pennsylvania and has over 20 physical branches for East Coast customers. Online customers can bank through Citadel’s website or mobile banking platform which has over four stars on the App Store and Google Play. Citadel also has ATMs across the greater Philadelphia area. 

Checking account APY: 0%

Savings account APY: 0.05%

Mobile app rating: 4.5

Overdraft fee: $33

Customer support: Customer service representatives are available via live chat, email, video connect, and phone Monday through Thursday between 8:30 a.m. and 5:00 p.m., Friday 8:30 a.m. to 6:00 p.m., and Saturday from 9:00 a.m. to 1:00 p.m. ET. 

Our verdict: Good for those who want a wide range of products and services. Citadel took a spot on our list for its long list of products and services. While its basic checking and savings accounts do not earn a high APY, it does offer rewards checking and high-yield savings account options with more lucrative APYs. Citadel offers both personal and business banking products, including checking and savings accounts, accounts for kids, CDs, retirement accounts, credit cards, lending services, insurance, and more. 

7. Salem Five Direct 

About: Salem Five Direct is a subsidiary of Salem Five Bank, based in Salem, Mass. and has local branches across Boston. For online customers hoping to access their funds, Salem Five offers fee-free ATM access at 55,000 Allpoint ATMs worldwide. It offers checking accounts, savings accounts, money market accounts, and more. 

Checking account APY: 0.01%

Savings account APY: 4.10%

Mobile app rating: 4.4

Overdraft fee: $35

Customer support: Salem Five Direct customers can get in touch with a customer service representative by filling out a help request online, automated chat online, or via telephone 24/7. 

Our verdict: Good for those who want to earn a high APY on their savings account. Salem Five Direct made our list for its high savings account APY, despite having a short list of products available and its checking account APY being a modest 0.01%. This online bank doesn’t charge monthly service fees for its savings or checking account, although it did have a higher overdraft fee than some of the other banks on our list. 

8. Quontic Bank 

About: Quontic Bank is a digital bank that first started as a community bank in New York City in 2009. It is an FDIC-insured bank offering online and mobile banking platforms and a fee-free ATM network made up of 90,000 ATMs across the country. It offers a number of checking accounts, savings accounts, and mortgage products. 

Checking account APY: 1.10%

Savings account APY: 3.70%

Mobile app rating: 3.8

Overdraft fee: $0

Customer support: Customers can contact a customer service representative via live chat, email, and telephone Monday through Friday between 9:00 a.m. and 6:00 p.m. ET. 

Our verdict: Good for those who hate overdraft fees. Quontic Bank made our list for its competitive APYs, low fees, and massive ATM network. A major selling point: Quontic doesn’t charge overdraft fees. For the online banker who isn’t diligent about checking their account balance, this could be a life-saver. What’s more, Quontic offers multiple customer support options and mortgage products in addition to its checking and savings accounts. 

9. Quorum Federal Credit Union 

About: Quorum Federal Credit Union is headquartered in Purchase, N.Y., but serves members across the U.S. with a nationwide network of over 90,000 ATMs and 5,000 shared service centers. Consumers who are interested in joining this credit union can do so by applying online and joining one of the two associations that Quorum has partnered with: the American Consumer Council (ACC) or the Select Savers Club (SCC). Both organizations charge a fee for lifetime membership between $5 and $15.

Checking account APY: 0%

Savings account APY: 3.00%

Mobile app rating: 4.7

Overdraft fee: $37

Customer support: For any questions related to their account, customers can reach out to a Quorum representative at (800) 874-5544, Monday through Friday, 8:30 a.m. to 7:00 p.m. ET. Representatives are also available 24/7 via chat and secure messaging. 

Our verdict: Good for those who keep a strict budget. Quorum’s savings account APY and high mobile app rating landed this credit union a spot on our list. However, this credit union does charge one of the highest overdraft fees on our list. The good news: if you’re looking for a variety of banking products and financial education resources, Quorum offers banking, credit card, and lending products, as well as a learning hub to help members manage their accounts more efficiently and protect their financial health. 

10. Axos Bank 

About: Founded in 2000, Axos Bank is an entirely online bank offering numerous account options for individual and business customers, including multiple types of checking accounts, money market, high-yield savings, lending, and investment account services. Axos’ ATM network gives customers access to more than 91,000 ATMs and a tech-driven platform that analyzes users’ spending patterns, and lets them sync all financial accounts—even those outside of Axos. 

Checking account APY: 0%

Savings account APY: 0.61%

Mobile app rating: 4.5

Overdraft fee: $0

Customer support: Customers can chat with Evo, a virtual financial assistant and send secure messages to the bank through the mobile app 24/7. 

Bank representatives can also be reached by phone. Personal banking customers can call Axos 24/7. For questions about personal loans, customers can call the bank between 8 a.m. PST and 5 p.m. PST Monday through Friday, and those with questions about home loans can reach customer service Monday through Friday between 7 a.m. PST and 8 p.m. PST and between 8 a.m. PST and 2 p.m. PST on Saturday. Representatives are also available to discuss auto refinancing questions via phone from 8 a.m. PST until 5 p.m. PST Monday through Friday. 

Our verdict: Good for those who need personal and business banking products. Axos made our list for its full suite of personal and business banking products, in addition to its low fees. For online bankers who prefer to keep all of their accounts under one roof, Axos makes it easy to organize, monitor, and manage those accounts all in one place through its mobile app. 

The pros and cons of online banks 

Online banks have various own pros and cons that you should be mindful of before deciding to bank with a digital-first institution. 

Pros

Online banks may charge no fees or lower fees: Online banks without brick-and-mortar locations save on the overhead costs that traditional banks are responsible for. They may pass on these savings to customers in the form of reduced fees. 

Online banks may offer higher APYs: Fewer overhead costs can also translate to higher APYs on savings products. 

You could benefit from a wider range of digital tools: Online banks with a strong digital presence may invest more in online and mobile banking platforms to make up for the lack of a brick-and-mortar presence. As a result, you could have access to a wider range of digital budgeting and account management tools, customer service options, and more. 

Cons

For customers who like the option of walking into a physical branch, online-only banks may not be the best fit. Sometimes, resolving an issue related to your account is better handled by working with a teller face-to-face. Especially for customers who aren’t as digitally savvy. 

If you deposit cash frequently, an online-only bank could end up costing you more in fees. Because online-only banks don’t have physical branches, you’ll need to ensure that you find one that offers a fee-free ATM network. In the event that they don’t, it could be challenging to make cash deposits and you’ll likely be responsible for a fee each time you do deposit cash.

Frequently asked questions

How do you keep your online bank account safe?

Be sure to change your password regularly to keep your account secure and less susceptible to being hacked. You can also opt to use multi factor authentication on your phone or laptop which adds another layer of security each time you’re logging into your account by asking for a text, email, or phone call verification code. 

Do online banks charge higher fees? 

Fees vary from bank to bank, but generally, online-only banks tend to charge lower fees than banks with brick-and-mortar locations because these institutions don’t have to pay the same overhead costs that banks with physical locations do. 

Is my money safe in an online bank?

Your money is just as safe in an online bank or credit union as it is in a brick-and-mortar institution. What’s important to make note of is a bank’s deposit insurance. Be sure to verify that your financial institution is fully backed by the FDIC or NCUA. 

Our methodology 

The Fortune Recommends^TM team compared more than 30 online banks and credit unions to help you find the best institution to help you meet your needs. Our top picks are available to customers across the U.S. no matter where you’re located, subject to the terms of account, product, and service. Some of our picks have brick-and-mortar locations, however all of our picks offer online banking for customers nationwide. 

To come up with our final list, we we ranked the best online banks on the following categories and weighted each category as set forth in the percentages below:

• Annual percentage yield (APY) on your checking and savings account balance (40%): This percentage represents the real rate of return on your checking and savings account balance; the higher the APY, the better. For accounts with tiered APYs, we assumed a minimum balance of $5,000 based on the latest date from the Federal Reserve and weighed APYs based on the most basic checking or savings account offered. 
• Account and product offerings  (15%): We rewarded each online bank a point for each account type and service it offered. This included additional deposit accounts, investment accounts, lending services, credit cards, and more. 
• Overdraft fee (10%): Most banks will charge you a fee when you spend more than what you have in your account. We ranked online banks with lower or zero overdraft fees higher on our list. 
• Monthly service fees (20%): Some banks charge monthly maintenance fees. We ranked banks with lower (or zero) monthly fees higher on the list.  
• Mobile application rating (5%): We calculated the average mobile application rating for each bank or credit union using ratings from the App Store and Google Play. We rewarded online banks who had a higher average mobile application rating.  
• Free ATM access (10%): Accounts belonging to financial institutions that have a vast network of surcharge-free ATMs ranked higher on our list than alternatives that did not offer ATM access.  
• Customer service (5%): Top picks offer customers three ways to get in contact: chat support, by phone, or even email. Among the three options, we gave phone support the most weight. 

We think that the best online banks offer a wide range of product offerings, free ATM access, low or zero monthly service fee, minimum balance requirements, and earn interest on your balance, among other perks. The requirements, fees, and account perks offered by these online banks may be available for limited time periods, and APYs are subject to fluctuation, which could impact how much interest you earn. All the banks and credit unions on this list are insured by the FDIC and NCUA respectively.