Best Online Bank Accounts: The Right Way to Choose One

Best Online Bank Accounts: The Right Way to Choose One

Are you looking to open a new bank account? Well, unlike in the past, when you had to walk into a bank for the process physically, things have entirely changed. The internet has opened up every business, and the banking industry is no exception.

Currently, you can easily open a checking or savings bank account from the comfort of your office or home. You will enjoy all the services of a bank and more, without having to belong to a physical bank branch.

And, with these changes comes, opportunities and benefits. From efficiently managing your finances to conducting your transactions on the go, an online bank account has numerous advantages.

But How Do You Choose the Best Online Bank Account?

Well, this is never easy, especially with the current number of banks offering the services. Also, there’s too much information bombarding your view, which may make the selection process quite tricky. But worry not. Here are some factors that will help guide you through:

Interest level. Various online accounts offer different rates.

• For this reason, you must do a comparison check to determine which one pays more. Combined with other essential factors, higher rates are always desirable. You should also know that online bank accounts usually pay higher rates than the standard savings account.
• Monthly fees. If possible, find an online account with the lowest monthly charges, if not zero. However, you must note that sometimes this will entirely depend on your transactional behavior such as minimum balance, or account linking to other accounts.
• Ensure Safety. This might be the most important thing. You should ensure, before anything else, that your money will be secure in that bank. This means that the bank must be FDIC insured. You don’t want to lose your hard-earned cash to some scams.
• Be keen on every detail. Apart from the monthly fees, you should note that banks usually have other multiple fees. Understating these fees will help you avoid incurring most of them. So, make sure that you read even the fine print.
• Usability of the website and the app. How easily can you use their website? Since this is the primary way of communicating with the bank, it should be smooth and effective. Their mobile app should also have the best usability features.

So, which are some of the best online accounts you should consider?

1. Best Overall: Ally Bank

In terms of overall performance, Ally Bank takes the lead in products and competitive rates. This bank also enjoys high scores in various banking surveys. For instance, the 2019 Direct Banking Satisfaction Study by J.D. Power.

If you are looking for higher interest rates, Ally online accounts have all you need. You can easily earn from a high-yield savings account, interest checking accounts, or money market accounts. Here, although the interest rates are not the highest, they are one of the most consistent and competitive ones. Keeping your money in an online saving account, and only moving it when spending will help to maximize your earnings.

Online accounts at Ally Bank attract zero monthly charges.

1. Capital One: Best Mobile App

When considering an online bank account, a mobile app is quite crucial as you’ll, in most instances, need to handle some transactions and service requests personally. And, this is one area that Capital One bank is excellent at. In fact, the 2019’s2019’s Direct Banking Satisfaction Study by J.D. Power showed that the bank scored the highest among all online-only banks in the US.

With their mobile app, you can seamlessly handle core tasks such as making payments and check deposits, as well as viewing free credit scores. Also, you can temporarily lock your debit card from the app.

Online banking products from Capital One include checking accounts, and high-yield savings accounts, among others. Here, there are no monthly charges for online checking and saving accounts. And, you don’t require any minimum balance to get an account.

Another benefit that comes with their online accounts is that parents can open and supervise accounts for their kids, as they learn how to operate the accounts.

Although Capital One bank is among the largest banks present in the US, its business is primarily done online. It has very few branches, making it capitalize on online banking.

1. Radius Bank: Combined Features

Despite the bank not being a household name, it managed to emerge No.1 among online banks for various reasons. Radius bank ranked high for its combined features, including the mobile banking app, payouts on savings and checking accounts, ATM fee rebates, and accessibility. The banks’banks’ minimum balance for opening an account is quite low ($100)

And, although you still can get higher yields from several other banks, Radius bank’s rates are incredibly competitive. This is especially so for accounts with high balances. For instance, if you stack $2,500 in your savings account, the bank pays you 1.25% APY. However, if you save from $25,000 and over, you get a 1.65% APY. This means that the more balance you have, the higher your yields will be.

The bank also pays a 1% cashback on specific debit purchases, a practice that is not common with other banks. And that’s not all. Radius pays 1% APY for deposits above $2,500 in the checking accounts.

1. Discover Bank

This is another excellent option when it comes to online bank accounts. Discover bank, just like the Ally bank, is known for various offerings, including savings, checking, CD, and money market accounts. The banks became quite popular in 2019 when it dropped all fees on deposit accounts.

Also, it allows savers to earn higher yields, which currently stands at 1.70% APY on the savings balance. The bank also requires no minimum balance for account opening.

If that’s not enough, Discover bank has a cashback debit account, which allows you to get cashback in your checking account, for specific purchases.

Conclusion

Although some people still prefer visiting their banks physically, online banking comes with a myriad of benefits. And with the ever-busy life we are experiencing nowadays, and it makes perfect sense to look for an easier way to manage your finances.

Therefore, if you want to experience flexibility, peace of mind, and accessibility in your financial transactions, try an online bank account.