Digital banks in the US are the latest trend these days. Their convenience, ease of use, and innovative features make them an appealing option. Compared to traditional financial institutions, online banks can’t be beaten.
Digital banking lets you perform several transactions, like transfer funds, pay bills online, keep track of account statements, and lots more. You don’t have to wait for the bank working hours or stand in long queues to carry out an online transaction.
These are the 20 best online banks in the USA that offer low minimum deposits, low monthly service fees, and a robust mobile banking architecture.
Digital Banks in US (Online Banks)
- Digital bank for checking accounts – Axos
- Digital bank for savings accounts – CIT Bank
- Digital bank for combined checking and savings – Aspiration
- Digital bank for credit cards – SoFi
- Digital bank for cashback rewards – Current
- Digital bank to get paid early – Chime
- Debit card for credit building – Extra
- Digital bank for metal cards – Juno
- Digital bank for cash advances – Empower
- Digital bank for investing – M1 Finance
- Digital bank for international money transfers – Wise
- Digital bank for bitcoin and crypto – Robinhood
- Digital bank for freelancers – Lili
Best Digital Bank For Checking Accounts
Axos Bank offers little to no fee charge and competitive interest rates, suitable for small businesses, commercial lending, and personal accounts.
This online bank gives you the opportunity of investing your money through the Axos Invest Managed Portfolios with an account minimum of $500.
The annual advisory fee is calculated monthly. Hence, there are no hidden fees for transactions, trading commissions, and rebalancing. In addition, they offer up to 1.25% APY.
Here are some features of Axos Bank:
- Offers Mortgages and loans
- Business accounts
- Current accounts
- Savings accounts
- Easy to sign up
- Commercial account
- Investing platform
Best Digital Bank For Savings Account
CIT as a parent company has spanned many generations. It was founded as a full-fledged Commercial Investment Trust in the year 2000.
CIT bank offers a full-service banking platform with a broad range of custodial accounts. Unlike other traditional banks, CIT allows you to structure your saving options depending on the account type you desire.
CIT accounts options are: checking accounts, savings accounts, CDs, and money market accounts.
CIT bank allows for a $100 minimum opening deposit but doesn’t charge monthly maintenance fees. CIT also offers active yields on its savings and CD accounts. The checking account earns variable interest and APY of up to 0.25%.
They also offer personal loans and credit products to customers with a wide range of options to choose from.
Best Digital Bank For Combined Checking and Savings
This financial company helps you neutralize your carbon footprint by planting a tree every time you swipe your card.
They offer a cash management account and savings account. Aspiration offers fee-free withdrawals at Allpoint ATMs. You can also earn 0.25% APY on the first $10,000 of your Spend and Save account and 0.10% APY on funds over $10,000.
You can receive up to 10% cashback on your debit card purchases when you spend at companies part of the ‘Conscience Coalition.’
Aspiration also gives you cell phone protection and offers an Identity fraud expense reimbursement of up to $1,000 in case of identity theft.
Want to get spotted a $150 for free? Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $150 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.
Best Digital Bank For Credit Cards
Members can earn 2% unlimited cash back, which can be redeemed to help pay a SoFi loan or converted into crypto to trade or invest.
In addition, members can get their APR lowered by 1% by making timely minimum monthly payments for 12 consecutive months.
There are also numerous benefit that comes with SoFi:
- Guaranteed cell phone insurance of about $1,000
- They help protect your MasterCard ID, especially from theft.
- Access to free spending and budgeting tools.
- No foreign transaction fees.
Best Digital Bank For Cashback Rewards
Current digital bank is a checking account and payment service that enables customers to buy products and receive payments through a safe digital system.
A major advantage of Current is the ability for parents to set up an account for their children to keep track of their spending.
However, it’s open to all age groups and encourages healthy saving habits. Members can earn up to 4% APY on their savings.
Current also offers various cashback offers—for example, it partners with global retailers to provide cashback for products bought.
Members can also earn up to 15 points for each dollar spent on a purchase from a partner company. It also offers free instant transfers to other accounts within the app.
Best Digital Bank to Get Paid Early
Chime seeks out the welfare of its members, and thus, provides a checking account for recurring bills for their day-to-day expenses.
Chime is decent for customers seeking a simple, mobile-friendly bank account with no monthly maintenance fees.
In addition, it allows customers to make additional purchases using the Chime Visa Debit card. And there are no overdraft fees for purchases and withdrawals of up to $200*.
Customers can choose to save for a specified reason or hold funds in their savings accounts. Their high yield savings account lets you earn 1.50%¹ Annual Percentage Yield (APY) with no minimum deposit.
¹The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of August 25th, 2022. No minimum balance required. Must have $0.01 in savings to earn interest.
*Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each month. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Condition.
^Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
Debit Card For Credit Building
Extra is the first debit card that builds credit and earns rewards points just like a credit card.
Extra is compatible with over 10,000+ banks across the United States, it works by connecting to your bank account and giving you a spending limit (spend power) based on your bank balance. The good thing is, there’s no credit check to determine your ‘spend power’.
When making a transaction, Extra pays for the purchase and automatically deducts the amount from your account the next business day.
At the end of the month, Extra adds up all your purchases and reports them to two credit bureaus (Experian and Equifax) as credit-worthy payments. This helps you build a credible credit history and work towards long-term goals.
Members can earn up to 1% in reward points to spend in Extra’s in-app reward store. The lowest plan starts at $7 a month.
Best Digital Bank for Metal Cards
Juno is a fintech company that is an excellent neo banking platform that offers its products and services through its partner bank, Evolve Bank and Trust. They offer one of the best metal cards with no annual fees. There are no monthly service charges or a minimum opening deposit fee.
More so, they offer an instant virtual card to members. A direct deposit of $250 gets you upgraded to a metal card. Accounts are FDIC insured up to $250,000, and members can earn 1.20% APY with Juno Metal checking account.
Members can get 5% cashback on five brands of their choice, courtesy of the premium metal card. Partner brands include Amazon, Walmart, Spotify, Netflix, Uber, Taco Bell, Airbnb, and many more.
- Intro Offer: Enjoy a $100 bonus and a sleek Metal card when you set up your first direct deposit.
- Earn a 1.2% savings bonus on balances up to $50,000 5% cash back on five brands you love, up to $3,000 in purchases a year.
- Three non-network ATM reimbursements each month.
- Store, buy and sell crypto directly starting from as low as $1.
- Set up a direct deposit and receive part of your paycheck in crypto.
- Crypto exchanges charge up to 4% in fees to buy and sell crypto. OnJuno charges 0%.
- No Annual Fee
- Terms and conditions apply.
Best Digital bank for cash advances
Empower is a digital bank that allows you to make purchases and access your money from the convenience of your home. They offer banking services and structured budgeting tools to help you manage your money to suit your lifestyle.
During emergencies, they provide members with cash advances with no interest, late fees, or credit history checks.
They also help customers earn up to 10% of their cash back when purchasing products. Their main products and services include a debit card, cashback rewards, budgeting tools (Expense tracking & AutoSave), and cash advances.
Their AutoSave funds are FDIC insured through the NBKC bank, and there are no overdraft fees or account minimums to get started.
However, Empower charges an $8 monthly fee and a foreign transaction fee of 1%. Members also earn a 0.01% APY.
You can count on them to have your back and get a cash advance up to $250 directly to your account. No applications, no interest or late fees, no credit checks or credit risk. You just pay them back automatically when you receive your next direct deposit. There’s no catch. It’s that simple.
Best Digital Bank for investing
M1 Finance is an online investing platform that offers members self-directed trading and automated investing instruments. There are no trading fees, and all you need is $100 to secure an investment account.
Although M1 doesn’t offer a money market account, it has over 80 professionally designed portfolios.
This digital platform also offers members fractional shares, margin lending, custodial accounts, and digital banking.
It uses a pie-based model; therefore, you can easily choose stocks, portfolios, and ETFs to invest in. It also helps you determine what percentage of your money to allocate for every investment.
Best Digital Bank For International Money Transfers
Formerly known as Transferwise, Wise allows users to send and receive money from 80 countries at a low fee. Members can open an electronic money account and hold money in over 50 currencies.
Additionally, members from select countries can opt for a Wise debit card they can use to spend in online stores around the world. What makes Wise a standout money transfer platform is that it has really low transfer fees, good exchange rates, and a short transfer period.
Best Digital Bank For Bitcoin and Crypto
Robinhood offers commission-free investing on stocks, securities, and cryptocurrencies (one of the best cryptocurrency exchanges). For $5 a month, members can upgrade to a Robinhood Gold membership where they can participate in margin investing and pay 2.5% yearly interest on borrowed amounts above $1,000.
Robinhood Cash Management offers a Mastercard debit card, and the debit card is available as both a virtual and a physical card. Members also earn 0.30% APY.
Customers can fund their accounts through a direct deposit of their paycheck or a bank transfer from other savings or checking accounts. Robinhood also offers ‘IPO Access’ where members can be early investors in upcoming IPOs.
Best Digital Bank For Freelancers
Lili is purely designed for freelancers and business owners. It’s one of the best banks for freelancers that we’ve reviewed. Not only does it include an easy sign-up process, but they’re no hidden fees and it comes with excellent financial resources.
There are no minimum balance requirements or minimum opening deposits. It grants its customers unlimited free transactions. Lili also allows for fee-free ATM access through the Moneypass network. Additionally, there are no overdraft fees for expenses of up to $200.
It also offers you the opportunity to manage your expenses plus plan and save for tax payments through its application tools.
Most importantly, it provides quick and early payments allowing you to receive funds within 2days. Members can also earn 1% APY on their savings.
Other Digital Banks in The US
Unlike most online banks in the USA, this bank offers a wide range of free savings, money market accounts, and checking accounts to increase your deposit interest rate. Most importantly, Ally bank gives high-yield savings of 0.05% APY on all account balances.
There are no limits to your balance amount, no management fees, and minimum deposits. If you intend to invest or enter the world of trading, Ally online bank serves as a handy tool where you can easily merge all your income coming in or going out.
Here are some of its features:
- Offers Personal loans
- Offers Mortgage
- Unrestricted online sign-up
- Checking and Savings accounts
- Helps in Vehicle financing
- Stocks & ETFs investing
Mercury has set up a unified structure targeted at startups and tech-based businesses. This digital bank offers all-digital banking services for checking and savings accounts with no monthly fees.
Mercury also allows members to earn up to 0.08% APY by investing their cash in government securities and money market funds.
This mobile banking service comes with several financial tools and a full option of developer API access to help customize member accounts. There is no minimum deposit to open an account in Mercury bank, and members have access to virtual cards to enable them to perform several transactions.
Cogni solely serves the people’s interest; therefore, it offers three standard products, checking account, Cogni pay, and Cogni Visa Card.
It supports direct deposits of funds from person to person, and there are no transaction fees attached. The procedure for reporting a stolen card is easy; all you have to do is call a service team member to approve the freezing or unfreezing of your card.
Another advantage of Cogni bank is using 256-bit encryption to protect customers’ accounts. In addition, all accounts are FDIC insured. There are no overdrafts fees as it offers flexibility, efficiency, and convenient handling of transfers and payments for all customers.
One Finance is focused on helping members build good financial habits therefore, every account comes with four features, Spend, Save, Auto-Save, and Credit Line.
Members can earn 3% APY if they use their Auto-Save feature to set aside up to 10% of their paycheck with a limit of $1,000 per month.
In addition, members can transform their debit cards to credit cards with the Credit Line feature. Qualifying members can get up to a $10,000 limit at a low-interest rate of 1% per month (12% APR).
Quontic helps Individual customers and small business owners access loans, high-interest savings, and checking accounts.
There are no monthly service fees; however, with a 100$ minimum opening deposit, a checking account can earn a high-interest rate of up to 1.01% APY. A savings account can earn up to 0.55% APY, and a certificate of deposit can earn up to 1.20% APY.
Capital One 360
This digital bank offers a wide range of free saving options, checking, business credit products, and CD accounts. There’s no minimum balance or opening deposit requirement. Members also enjoy zero ATM fees on more than 70,000 Capital One, Moneypass and Allpoint ATMs.
Their checking account can earn up to 0.10% APY while their savings account earns up to 0.40% APY and their CD accounts earn 0.60% APY. Additionally, their teen checking account and kids saving accounts earn up to 0.10% APY and 0.30% APY respectively.
Oxygen is a digital banking platform whose banking services are provided by The Bancorp Bank. Oxygen caters to members wishing to open personal or business accounts. Personal banking options come in 4 tiers; Earth, Water, Air, and Fire.
Their lowest tier account, Earth, is free, and members can earn a 0.25% APY on their savings. Their top-tier account, Fire, has an annual fee of $199.99, and members can earn 1.25% APY on their savings. All personal banking plans have cash back rewards and retail and travel benefits. In addition, all accounts are insured by the Federal Deposit Insurance Corporation (FDIC).
Future of Online Banking after the Pandemic
The coronavirus pandemic of has already changed the world irrevocably, and its impact will only continue to grow. There is no avoiding a global recession and this one would be unlike any other in human history. However, not all changes that will come out of this are bad. The rise of online banking triggered by worldwide lockdown policies is definitely one of the good changes.
The Rise of Online Banking: Before and After COVID-19
The rise of online banking has started several years prior. This type of service has won over people due to its convenience as well as lower fees and additional benefits. In the world that’s getting more digital by the day, a digital banking service is an essential element of the global change.
However, while the online banking revolution has been going strong, it lacked the driving force to truly challenge traditional banking. The COVID-19 pandemic has brought that final push that now gives online banks a real change to replace brick-and-mortar financial organizations of the past.
The number of people registering accounts with various digital banks has increased exponentially since the start of the pandemic. This trend is most prominent in Asia, but similar changes are happening all over the world.
That’s not a surprise because the banking industry is also affected by lockdowns. In many countries, switching to digital payments is a state-mandated requirement. Therefore, even people who didn’t want to use digital banking services before, have no choice but to change their ways now.
The COVID-19 pandemic has changed the way consumers behave in many ways. The switch to digital services is one of the most important among these changes. Moreover, it’s the one that is most likely to stay in place even after the world goes back to normal.
This means that the pandemic is that last push that the digital revolution needed to get to the next level. All things considered, this change might spell the upcoming end of brick-and-mortar banking as a whole.
Who Benefits from Lockdowns the Most?
Enforced state-wide lockdowns that confine billions of people to their homes are the main cause of the pandemic’s devastating economic repercussions. According to the IMF, these lockdowns are responsible for what’s sure to be the worst recession since the Great Depression.
However, even in these times of strife, some businesses are growing. Online banking and other fintech solutions are among the main benefactors.
Top service providers that got a sudden influx of customers include:
- Money transfer companies. Smaller money transfer companies are struggling at the moment because they are mostly reliant on small businesses for cash flow. However, major players in the industry, the ones that regularly get the best foreign exchange service awards, are doing quite good. These services are used by everyone who needs to make international transfers and also wants to avoid forex volatility. The current economic situation creates many great opportunities for forex traders and people who need to send payments abroad regularly. Top money transfer companies do not only offer lower fees and currency exchange margins compared to traditional banks. They also offer hedging tools that help their customers get some security in the currently volatile FX market. Also, they are fully digital, so you can use them easily without any risk to your health.
- Online brokers. The great coronavirus stock market crash was bad. But that particular market is recovering very fast now. In fact, many people are choosing to invest in stock nowadays. The crisis showed them how important it is to have assets and passive income to fall back on if you are literally cut off from your job. The stock market is volatile, as is everything else due to the recession. However, fintech solutions are a definite good investment in the current conditions.
- Online tax preparation services. A pandemic is no excuse from taxes. However, people are heavily restricted in their ability to actually handle all the necessary paperwork on their own. Digital tax preparation and payment solutions are on the rise similar to online banks.
These services are only the top few of the many fintech solutions that are rapidly gaining popularity now. There are apps for all types of payments either released already or in development. This new step in the fintech revolution is changing not only the ways in which consumers can make payments. It also pushes various organizations to evolve their payment methods. After all, in some places not being able to accept digital payments now means that you cannot accept any payments at all.
At the moment, the future of fintech looks brighter than ever. The rise in the use of apps is a trend that will definitely continue. The coronavirus pandemic has exposed the need for more efficient types of payments. Therefore, it’s only natural that those will continue to develop and steadily replace outdated methods.
As trends change, your ability to bank safely at your convenience is an excellent way to gain control over your finances.
Whether you’re already into digital banking or have not yet tried any of the mobile banking apps available, these digital banks above are some of the best reasons to bank digitally in 2022.
The best part is, you only need a computer or mobile device to get started.