What is the most trusted online bank?
If they're FDIC-insured, online banks are as safe as traditional brick-and-mortar banks in many ways. You can also take steps as a consumer to ensure your account is as protected as possible when banking online, whether you bank with a brick-and-mortar or an online bank, also called a direct or digital bank.
- Top online bank: Quontic.
- Top online bank: LendingClub.
- Top online bank: CIBC USA.
- Top online bank: First Internet Bank of Indiana.
- Top online bank: Rising Bank.
- Top online bank: Varo Bank.
- Top online bank: Bank5 Connect.
- Top online bank: Discover.
| Policy Name | Forbes Advisor India Rating | Learn More |
|---|---|---|
| AU Royale Account | 4.5 | View More |
| IDFC FIRST Bank Future FIRST Savings Account | 4.5 | View More |
| Selfe Digital Savings Account | 4.5 | View More |
| Yes Bank Savings Account PRO | 3.5 | View More |
If they're FDIC-insured, online banks are as safe as traditional brick-and-mortar banks in many ways. You can also take steps as a consumer to ensure your account is as protected as possible when banking online, whether you bank with a brick-and-mortar or an online bank, also called a direct or digital bank.
- Best online banks at a glance.
- A closer look at the best online banks.
- Best for everyday accounts – Starling Bank.
- Best for multicurrency transfers – Wise.
- Best for international payments – Revolut.
- Best for effective budgeting – Monzo.
- Best for overseas students – Monese.
- Best all-round – Chase.
| Bank | Forbes Advisor Rating | Products |
|---|---|---|
| Chase Bank | 5.0 | Checking, Savings, CDs |
| Bank of America | 4.2 | Checking, Savings, CDs |
| Wells Fargo Bank | 4.0 | Savings, checking, money market accounts, CDs |
| Citi® | 4.0 | Checking, savings, CDs |
Ally is one of the most established online banks in the nation with over 43,000 no-fee ATMs and 24/7 live customer support. Its account names tell the story: Spending Account offers a 0.25% APY, while Savings Account yields 4.25%.
Online banks are safe and offer competitive interest rates with few fees. They're a great option for many people, but it ultimately depends on how you prefer to bank. Online bank features may especially benefit users who have low checking or high savings account balances.
First and foremost, the bank should be FDIC-insured (NCUA-insured for credit unions), so your deposits will be protected if the bank or credit union fails. You should also make sure the online bank has competitive rates, low fees and an expansive ATM network if accessing cash is important to you.
- Best Banks of 2024.
- Capital One Bank.
- Chase Bank.
- Axos Bank.
- Discover Bank.
- Synchrony Bank.
- TD Bank.
- Regions Bank.
What is the main disadvantage of an online bank?
Are there disadvantages of online banking? Online banking does have some potential disadvantages. These include a lack of face-to-face customer support, cash deposit services and a risk of technology failures or security breaches.
Other dangers of e-banking include credit risk, liquidity risk, interest rate risk, market risk, etc., much like with traditional banking. However, because e-banking uses electronic channels and has no physical borders, these risks are heightened.
Most online bank accounts are FDIC insured. In the unlikely event your bank goes out of business, the FDIC must recover up to $250,000 per account per bank. Joint accounts are insured up to $250,000 per co-owner per bank. So if a married couple has a joint checking account, it would be insured for up to $500,000.
| Bank | Best for | Time to apply |
|---|---|---|
| Capital One | Overall | About 5 minutes |
| Wells Fargo | College students | About 5 minutes |
| Axos | Rewards checking | About 5 minutes |
| Wise | Multi-currency usage | About 5 minutes |
It provides mortgages, auto loans and one of the broadest selections of credit cards in the industry. And its website experience can compete with that of online-only banks. Chase ranked well in the 2023 J.D. Power U.S. Retail Banking Satisfaction Study.
- Ally.
- Bank of America.
- Capital One.
- Charles Schwab Bank.
- Chase.
- Huntington Bank.
- Synchrony Bank.
| Bank NameBank | CityCity | Closing DateClosing |
|---|---|---|
| Heartland Tri-State Bank | Elkhart | July 28, 2023 |
| First Republic Bank | San Francisco | May 1, 2023 |
| Signature Bank | New York | March 12, 2023 |
| Silicon Valley Bank | Santa Clara | March 10, 2023 |
- First Republic Bank (FRC) . Above average liquidity risk and high capital risk.
- Huntington Bancshares (HBAN) . Above average capital risk.
- KeyCorp (KEY) . Above average capital risk.
- Comerica (CMA) . ...
- Truist Financial (TFC) . ...
- Cullen/Frost Bankers (CFR) . ...
- Zions Bancorporation (ZION) .
- Equifax Data Breach. ...
- Heartland Payment Systems Data Breach. ...
- Capital One Data Breach. Date: March 2019. ...
- JPMorgan Chase Data Breach. Date: October 2014. ...
- Experian. Date: August 2020. ...
- Block. Date: Apr 2022. ...
- Desjardins Group. Date: June 2019. ...
- Westpac Banking Corporation. Date: June 2013.
| Account | Forbes Advisor Rating | LEARN MORE |
|---|---|---|
| Bank of America Mobile Banking | 5.0 | Learn More |
| Chase Mobile | 5.0 | Learn More |
| Ally: Banking & Investing | 4.9 | Learn More |
| Discover® Mobile | 4.5 | Learn More |
What is the most secure bank in us?
Asset-heavy, diversified and regulated banks like JPMorgan Chase, Wells Fargo, PNC Bank and U.S. Bank are among the safest banks in the U.S. and should be considered if you are weighing your options.
Best in Customer Satisfaction: JP Morgan Chase
Our pick for best in customer satisfaction is Chase because it's the top-rated bank in several regions as ranked by the J.D. Power 2023 U.S. Retail Banking Satisfaction Study and the third- highest-rated mobile app in customer satisfaction.
- Customer service lacks personal touch.
- Not an option for those lacking access to the internet.
- ATM options may be limited.
- Greater due diligence required to vet the bank.
However, given the advances in browser safety, there's no longer a general consensus among experts as to whether apps or browsers are safer for online banking. Essentially, both are secure from the source, but it's up to users to avoid making mistakes that can give thieves easier access.
But if you're prioritizing great interest rates and low fees, an online bank is the way to go. Online banks don't have to funnel a bunch of money into maintaining a branch network. That means they can offer you better rates.
