Start with what you actually use your account for
The best online checking account for you depends on how you bank, not on which bank advertises most. Before comparing features, write down what you do with a checking account: Do you deposit checks by phone? Do you need to withdraw cash regularly? Do you send wire transfers? Do you keep a low balance or a high one? Do you get paid by direct deposit? The answers narrow your choices fast.
Most online banks excel at one or two things and are mediocre at the rest. A bank with excellent mobile check deposit and no ATM fees might charge for wire transfers. A bank with the highest interest rate might have a clunky app. A bank with the lowest monthly fee might not let you overdraft. Knowing what matters to you means you stop comparing banks on features you will never use.
Key Takeaways
- Monthly fees, ATM access, and check deposit speed vary widely—compare only the features you will actually use.
- Most online banks have no monthly fee, but some charge for overdrafts, wire transfers, or paper statements.
- ATM networks differ: some banks reimburse out-of-network fees, others partner with specific ATM chains, and some have no physical ATMs at all.
- Check deposit by phone is standard at most online banks, but the time it takes to clear ranges from same-day to five business days.
- Your minimum balance requirement, if any, determines whether the account costs you money to keep open.
Understand the fee structure before you open the account
Online banks advertise "no monthly fee," but that phrase hides the real costs. Read what the bank actually charges for: overdrafts (usually $25 to $35 per incident), wire transfers (often $15 to $25 outgoing), paper statements, expedited check clearing, and account closure. Some banks charge nothing for any of these. Others charge for most of them.
Check whether the bank requires a minimum balance to avoid a monthly fee. Many online banks have no minimum at all. Some require $500 or $1,000 to keep the account free. If you cannot maintain that balance, the monthly fee will cost you more than you save on interest. A bank that charges $10 a month for falling below $1,000 is not cheaper than a bank with a $5 monthly fee and no minimum.
Ask whether the bank charges to close the account or to transfer money out. Most do not, but a few do. If you think you might leave, this matters.
Compare ATM access based on how often you need cash
Online banks have no physical branches, so ATM access is how you get cash. Three models exist: some banks reimburse all out-of-network ATM fees (you pay the fee, then the bank refunds it), some partner with a specific ATM network like Allpoint or MoneyPass, and some have no ATM access at all except through their parent company if they have one.
If you withdraw cash once a month, reimbursement works fine—you pay $3, the bank refunds it. If you withdraw cash three times a week, you want a bank that partners with a large ATM network so you never pay a fee. If you almost never withdraw cash, ATM access does not matter.
Check the ATM network map on the bank's website and search for ATMs near your home, work, and places you shop. A bank that reimburses fees everywhere is useless if there are no ATMs near you and you have to drive across town to find one.
Check how fast checks clear and whether mobile deposit works for you
Most online banks let you deposit checks by taking a photo with your phone. The speed varies: some banks make the money available the same day, others take one to two business days, and some take up to five business days. If you deposit a check on Friday, a same-day bank makes it available Friday. A five-day bank makes it available the following Friday.
Ask whether the bank has a limit on how many checks you can deposit per month or per day, and whether there is a dollar limit per check. Some banks limit you to 50 checks per month or $10,000 per check. If you receive many checks or large checks, this matters.
If you rarely deposit checks and get paid by direct deposit, check clearing speed does not matter. If you receive rent payments or client checks regularly, it does.
Look at interest rates if you keep a balance
Online banks typically pay higher interest on checking accounts than brick-and-mortar banks do, because they have lower overhead. The rate varies from 0.01% to 4.5% depending on the bank and the balance tier. The difference between 0.01% and 2% is significant if you keep $10,000 in the account, but irrelevant if you keep $500.
Interest rates change frequently—sometimes weekly. Do not choose a bank based on today's rate. Instead, choose a bank with a good rate now and a history of paying competitive rates. Check what the bank paid six months ago and a year ago. If it has consistently paid in the top tier, it probably will again.
Also check whether the rate applies to all balances or only balances above a certain amount. Some banks pay 4% on the first $25,000 and 0.5% on anything above that. Others pay the same rate on all balances. The terms matter.
Test the app and customer service before you commit
Download the app and try the features you will use most: sending money, checking your balance, depositing a check, and paying bills. If the app is slow or confusing, you will hate using it. Some banks have excellent apps. Others have apps that crash or take 10 seconds to load a screen.
Call customer service with a question before you open the account. See how long you wait and whether the person who answers can help. Some online banks have 24/7 phone support. Others have chat only, or phone support during business hours. If you need to talk to a human at 2 a.m., a bank with chat-only support will frustrate you.
Read recent reviews on the bank's website and on independent sites, but focus on reviews about the specific features you care about. A review that says "the app is slow" matters if you use the app daily. A review that says "no physical branches" does not matter if you never wanted a physical branch.
Decide whether you need a second account for savings or spending
Some people use one checking account for everything. Others use a checking account for spending and a separate savings account to keep money out of reach. Most online banks let you open both and link them together, so you can transfer money between them instantly.
If you struggle to save money, a separate savings account at the same bank can help—the money is still yours, but it takes 30 seconds to transfer it, which is enough friction to make you think twice. If you are disciplined about saving, one account is simpler.
Check whether the bank charges to open a second account or to link accounts together. Most do not, but some do. Also check whether the savings account pays interest and at what rate.
Frequently Asked Questions
Can I switch to a different online bank if I change my mind?
Yes. Most online banks have no penalty for closing the account. You can open a new account at a different bank, transfer your money, and close the old account. The process usually takes a few days. Keep the old account open for at least a week after the transfer clears, in case a payment bounces or a deposit reverses.
What if I need to deposit cash?
Most online banks cannot accept cash deposits because they have no physical locations. Some partner with retailers like Walmart or CVS to let you deposit cash for a fee. Others let you deposit cash at a partner bank's branch. Ask the bank before you open the account if you need to deposit cash regularly.
Do online banks have FDIC insurance?
Most online banks are FDIC-insured, which means your money is protected up to $250,000 per account type. Check the bank's website to confirm it is FDIC-insured. If it is not, your money is at risk if the bank fails.
Can I get a debit card with an online checking account?
Yes. All major online banks issue debit cards. Most send the card within 5 to 10 business days. Some offer instant virtual card numbers you can use online while you wait for the physical card to arrive.
What happens if I overdraft my account?
It depends on the bank. Some banks decline the transaction and charge a fee. Others allow the overdraft and charge a fee. Some banks have no overdraft protection at all. Read the bank's overdraft policy before you open the account if this is a concern for you.