6 Online Banks to Consider in 2023

Banking has evolved significantly in recent years, giving rise to a new dynamic in the financial world: the battle between online and in-person banks. With the advent of technology and changing customer preferences, how we handle our finances has dramatically shifted. 

When it comes to popular online-only banks, a few names stand out. These popular online-only banks have gained attention for their user-friendly interfaces, innovative features, and competitive offerings in the digital banking space.

Check out our list of noteworthy online-only banks; you just might find yourself wondering if it’s time for a change.

1. Ally Bank

Looking for a bank that puts you first? As a popular online bank, Ally offers a range of financial products that can make managing your money a breeze. From high-yield savings accounts (as of writing, Ally Bank offers an APY of 3.75%) to checking accounts and auto loans, they’ve got all the essentials covered. 

What sets Ally apart is its commitment to transparency and customer satisfaction. The user-friendly online and mobile platforms make banking-on-the-go a piece of cake. And with competitive interest rates on their savings accounts, your money can grow faster. 

Plus, Ally Bank has a reputation for top-notch customer service, so you know you’re in good hands. Whether saving for a rainy day or planning your dream car purchase, Ally Bank has the tools and support that can help you confidently reach your financial goals.

2. Chime

When it comes to hassle-free banking, Chime is one name to remember. As a mobile-first banking platform, Chime offers a refreshing take on managing your finances. Say goodbye to those annoying fees, because Chime believes in fee-free banking. 

With a Chime spending account, you can make purchases, deposit checks, and manage your money, all from the convenience of your smartphone. Need your paycheck early? Chime has early direct deposit. They even have an automatic savings feature that helps you grow your savings effortlessly. 

As an added bonus, its sleek and user-friendly app makes it easy to track your spending and stay on top of your financial goals. Banking can become a breeze with Chime, and you just might wonder how you ever lived without it.

3. Marcus by Goldman Sachs

If you’re looking for a banking experience that combines the best of both worlds, look no further than Marcus by Goldman Sachs. With Marcus, you get the reliability and expertise of Goldman Sachs delivered in a modern and user-friendly package. 

It offers a range of financial products, from high-yield savings accounts to personal loans, all designed to help you easily manage your money. Marcus stands out for its competitive interest rates, meaning your savings can grow faster. And if you need some extra cash, its personal loans come with transparent terms and no hidden fees. 

With a focus on simplicity and customer satisfaction, Marcus by Goldman Sachs can make banking straightforward and stress-free. So, whether you’re saving for a big goal or need some financial assistance, Marcus has your back.

4. Discover Bank 

Discover Bank is all about making banking a breeze. With their user-friendly online platform, you can access a wide range of financial products and services without breaking a sweat. From checking and savings accounts to credit cards and personal loans, Discover has you covered. 

What’s even better? They offer cashback rewards on their debit card purchases, so you can earn while you spend. With no monthly fees and a network of fee-free ATMs, you can keep more of your hard-earned money in your pocket. 

Additionally, the 24/7 customer service is always there to assist you with any questions or concerns. Discover Bank combines convenience, rewards, and excellent customer service, making it a hassle-free banking choice.

5. Capital One 360 

Capital One 360 has an online banking platform, so managing your money has never been simpler. From checking and savings accounts to CDs and home loans, they offer a range of products to meet your needs. 

What sets them apart is their commitment to customer satisfaction. Their user-friendly interface and handy mobile app make banking on the go a breeze. Need cash? No problem! Capital One 360 has a network of fee-free ATMs so that you can access your funds without worry. 

And if you’re a fan of earning rewards, their credit cards come with fantastic perks and cashback options. So, if you’re looking for a bank that combines convenience, excellent service, and great rewards, Capital One 360 is the way to go.

6. Varo Bank 

Looking for a bank that’s as mobile as you are? As a fully digital bank, Varo offers a convenient and modern banking experience right at your fingertips. With the mobile app, you can easily manage your money, deposit checks, and make payments on the go. 

What’s even better? Varo Bank has no-fee overdraft protection, so you can say goodbye to those pesky overdraft fees. They also offer handy financial management tools to help you stay on top of your spending and savings goals. 

Whether you’re saving up for a vacation or need an emergency fund, Varo Bank has the features and support to help you achieve your financial dreams. So, say hello to hassle-free banking with Varo Bank.

Differences Between Online & In-Person Banks

The main difference between online and in-person banks is how you access and interact with them. Online banks operate solely through digital platforms like websites and mobile apps, allowing you to manage your accounts and perform transactions online. 

On the other hand, in-person banks have physical branches where you can talk to bank representatives, deposit cash or checks, and seek personalized assistance. 

The Rise of Online Banking: Convenience at Your Fingertips

An online-only bank – often called a “digital” or “virtual” bank – is a financial institution that operates primarily or exclusively through online platforms and does not have physical branch locations. Online banks offer a range of banking services, including checking and savings accounts, loans, credit cards, and investment options, which can be accessed and managed entirely through their website or mobile apps.

The advantages of online and traditional banks can vary based on individual preferences, financial goals, and banking requirements. Some individuals may prefer the convenience and cost-effectiveness of online banks, while others value the in-person interactions and comprehensive services offered by traditional banks.

The choice between the two depends on your preference for convenience and technology or the desire for personal connections and in-branch assistance. Online banks prioritize convenience and 24/7 access, while in-person banks provide face-to-face customer service and a physical presence. 

So, with online banks, you can do everything digitally, while in-person banks offer the advantage of in-person interactions and branch services.