Best online checking accounts for August 2024: our top 10 picks

The 10 best online checking accounts of August 2024

Below are our picks for the 10 best online checking accounts, each with its own features and benefits. 

Minimum deposit requirements, fees, and other numbers in our list are up to date as of August 2, 2024, and are subject to change.

1. Bank5 Connect: Best online checking for ATM reimbursement

BankFive, chartered in 1855, is headquartered in Fall River, Massachusetts. Bank5 Connect is the institution’s online banking division. It offers a variety of banking, borrowing, and planning products, including checking and savings accounts, certificates of deposits (CDs), credit cards, and more.

Why we picked it

Bank5 Connect’s high-interest checking account combines several helpful features to make it our top pick. In addition to earning 2.70% interest, the account also offers cash back rewards on qualifying debit card purchases. 

As part of the SUM network, customers have access to thousands of ATMs nationwide—but if you need to use an out-of-network option, Bank5 Connect will refund you up to $15 per statement cycle.

Bank5 Connect’s customer service team is available by phone, live chat, email, and even video chat, so if you have an issue with an account, there are several ways to get in touch.

What to consider before opening

You must maintain a minimum daily balance of at least $100 to earn the 2.70% APY on this checking account. Additionally, cash back purchase rewards must be activated online (or through the mobile app) before making purchases, and there may be further requirements.

Learn more: Read our Bank5 Connect review

2. Upgrade: Best online checking account for earning cash back

Upgrade provides loans, rewards checking accounts, and credit cards. Its headquarters are in San Francisco, although it has offices in Montreal, Phoenix, Atlanta, and Orange County, California. Since its founding in 2017, its customers have been granted $31 billion of credit.

Why we picked it

Setting up an Upgrade Rewards Plus Checking Account takes just a few minutes. Your debit card earns you up to 2% cash back on many purchases and 1% cash back on everything else. When using its app, you can get up to 10% cash back at specific stores with your debit card.

This card uses the Allpoint ATM network, so you can access more than 55,000 fee-free ATMs and get cash from places such as CVS Pharmacy and Walgreens. When you set up your checking account with a Performance Savings Account, you benefit from a higher APY—1.5%—or 5.21% if you also have $1,000 in direct deposits. 

What to consider before opening

While you get 2% cash back on debit card purchases, this is for everyday expenses. You can only earn up to $500 in 2% yearly rewards. However, all other purchases qualify for 1% cash back, and this is not limited.

Learn more: Read our Upgrade review

3. Current: Best online checking account for early access to direct deposit

Founded in 2015, Current offers products for spending, saving, investing, and getting paid early. It has a team of over 200 global employees, with its headquarters in New York City. 

Why we picked it

With Current, you can get paid up to two days faster with Early Direct Deposit. In addition to early direct deposit, you won’t pay any minimum balance fees, in-network ATM fees, bank transfer fees, or annual fees.

You can also set up Teen Banking, where you can block specific merchants, make instant transfers, and assign chores to your teens and reward them for it.

What to consider before opening

Current is not a Federal Deposit Insurance Corp. (FDIC)-insured bank. Instead, it’s a financial technology (fintech) company. Your money is insured through its partner banks, known as pass-through insurance. Additionally, some rewards are contingent on minimum direct deposits or purchases made through specific merchants.

Learn more: Read our Current review

4. American Express: Best online checking account for earning rewards

Perhaps best known for its credit cards, American Express also offers checking accounts, savings accounts, and personal loans. It started as a freight forwarding company in 1850 and is now one of the largest banks in the United States.

Why we picked it

In addition to 1% APY on your balance, earn Membership Rewards on your debit card purchases with American Express. You’ll earn one Membership Rewards point for every $2 in debit card purchases. You can then use these points to pay with points at checkout, receive gift cards, book travel, receive statement credit, or you can transfer these points to other traveler programs.

With its app, make mobile check deposits on the go, transfer money, and set up your debit card in your digital wallet. American Express uses both the Allpoint and MoneyPass ATMs, so you can access your money fee-free at more than 70,000 locations.

What to consider before opening

If making cash deposits is important to you, know you won’t be able to do this at an ATM. Additionally, you must have been an American Express cardholder for at least three months to have a Rewards Checking account.

Learn more: Read our American Express review

5. Varo: Best online checking account with no monthly fees

Varo Bank has more than three million customers and was founded in 2015. Its products include checking, high yield savings, cash advances, lines of credit, and credit building cards.

Why we picked it

With Varo Bank, you won’t pay any monthly fees. You also won’t pay any overdraft fees, so you can keep more of your money. Get access to your paycheck early, earn cash back on purchases, track your spending, send money with Zelle, and access your money at more than 40,000 fee-free ATMs. Plus, this is an actual bank, so your money is FDIC-insured up to $250,000 per depositor.

Getting started is easy and can be done in less than two minutes. Download the Varo app, apply for the account, add the card to your mobile wallet, and then you’re done. 

What to consider before opening

While you won’t pay many fees with Varo Bank, there are fees for using out-of-network ATMs, as well as certain international transactions. Plus, there are no branches, so you won’t be able to make deposits in person. 

Learn more: Read our Varo Bank review

6. Betterment: Best online checking account for integrating checking and investing

Founded in 2008, Betterment offers high-yield accounts, IRAs, 401(k), investing, and checking accounts. With roughly 900,000 customers, it has $50 billion in assets under management (AUM).

Why we picked it

Betterment Checking is best suited for those who already use its investment services and want to integrate the two. There are no monthly fees, and its integration with Betterment’s other financial products makes transfers easy. You can also receive unlimited ATM reimbursements and cash back rewards when shopping with certain brands.

Betterment will reimburse any ATM fees, as well as foreign transaction fees. Plus, there are no overdraft fees or minimum balances. 

What to consider before opening

While Betterment checking is facilitated by Betterment Financial, LLC, it’s provided by nbkc bank, so if you have an nbkc bank already, know that you’re only FDIC-insured up to $250,000 between the two institutions. 

7. Axos Bank: Best online checking account for spending rewards

Axos Bank, formerly known as Bank of Internet USA, was founded in 2000. With almost $20.3 billion in assets, this San Diego-based bank offers a variety of checking accounts, savings accounts, CDs, mortgages, loans, investment accounts, and retirement accounts.

Why we picked it

Axos’s Rewards Checking is designed for high account balances and offers up to 3.30% APY. This account operates on a tiered system, where each qualifying activity earns you additional APY. Your first qualification tier is to have at least $1,500 in direct deposits each month. This earns you 0.40% APY. 

To earn the rest, you must also have at least 10 debit card transactions per month (this adds 0.30% APY), have a managed portfolio with a daily balance of at least $2,500 (+ 0.99% APY), have a self-directed trading account (this adds 0.99%), and use your Rewards checking to pay for your Axos Bank loan payment (this adds 0.60%).

If you can meet each of these tiers, you’ll earn a full 3.30% APY, which is far more than you’d get in a standard checking account. 

What to consider before opening

To earn up to 3.30% APY on its Rewards Checking account, you must complete qualifying activities every month. If you don’t meet any of these requirements, you won’t earn any interest on your checking account balance.

More checking accounts from Axos

Axos Bank offers a variety of checking accounts, including accounts for those 55 or older, teen checking accounts, rewards checking, cash back checking, and standard checking. 

Its Essential Checking account is designed for those who have direct deposit and reimburses an unlimited number of domestic ATM fees.

Its Cashback Checking is ideal for those who use their debit cards a lot—earn up to 1% cash back. Each of its checking accounts has no maintenance fees. 

Learn more: Read our Axos Bank review

8. Quontic: Best online account with wearable checking

Quontic launched in 2009 and is a Certified Community Development Financial Institution (CDFI)—the only digital bank in the U.S. to earn this distinction. Its products include checking, savings, money market accounts (MMAs), CDs, and mortgages.

Why we picked it

Setting up a Quontic Cash Rewards Checking takes just three minutes, and requires at least $100 to open the account. From there, you’ll gain access to up to 1% cash back on every purchase you make using your Quontic debit card. These rewards are then deposited to your account at the beginning of the next month. 

You can earn a total of up to $50 cashback each statement period. This means that if you’re spending $5,000 in debit card transactions at a point of sale (POS), you’re going to earn your full $50 back. You won’t pay any monthly fees, nor will you pay any overdraft fees. In addition to cash back, Quontic gives you tools to help with your finances, including credit monitoring. 

What to consider before opening

To be eligible for 1% cash back, your transactions must meet Quontic criteria. This means that ATM withdrawals, transfers, and other transactions won’t qualify.

Other checking accounts from Quontic

Quontic offers three different checking account options. These include High Interest Checking, where you can earn up to 1.10% APY; Cash Rewards Checking, which gives you 1.00% cash back on eligible debit card purchases; and Wearable Checking, which gives you access to tap-to-pay right from a wearable ring.

To get the ring to work, you must have your hand in a knocking position, so there’s no way for someone to swipe your data through hand contact. Plus, you get Mastercard Zero Liability and ID theft protection. 

Learn more: Read our Quontic review

9. Discover: Best online checking account for cash back on debit card purchases

While best known for its credit cards, Discover Bank (NYSE: DFS) offers checking, savings, CDs, MMAs, IRAs, mortgages, student loans, and personal loans. A Sears employee made the very first Discover card purchase in Chicago in 1985.

Why we picked it

With a Discover Cashback account, you can earn 1% cash back on up to $3,000 in debit card purchases every month. This means you can earn up to $360 annually for purchases you would already make.

You won’t pay any fees on your checking account, and you can get paid up to two days earlier when you have direct deposit set up on your account. Plus, access your money from more than 60,000 ATMs, all without fees. 

What to consider before opening

If you’re not a frequent debit card user, 1% cash back on purchases doesn’t mean a lot. Plus, not all transactions qualify. See Discover’s Deposit Account Agreement for specific terms to know if having a Discover account is worth it based on the types of transactions you make.

Learn more: Read our Discover Bank review

10. First Internet Bank: Free online account for fee-free checking

First Internet Bank was founded in 1999 and is headquartered in Fishers, Indiana. Its products include CDs, checking, savings, MMAs, health savings accounts (HSAs), and kids’ savings accounts.

Why we picked it

With a Free Checking account at First Internet Bank, you can open your account with as little as $25. While these don’t pay any interest, you also don’t have a monthly maintenance fee or minimum balance requirements. 

Your Free Checking from First Internet Bank includes a free order of checks. You won’t pay for incoming wires or eStatements, nor is there a charge for issuing a debit card. With your account, you can pay bills via your desktop or mobile phone, make Zelle payments, and receive incoming ACH transfers, like your paycheck.

What to consider before opening

To open the account, you must deposit at least $25. While the account doesn’t have any maintenance fees, you will pay a $20 fee if your check or ACH is returned. If you receive paper statements, you will pay $3 per statement. Additionally, there is a $30 fee to stop any payments. 

Other checking accounts from First Internet Bank

If you open an Interest Checking account, you must deposit at least $100, but then you earn 0.50% APY. The $10 monthly maintenance fee is waived when maintaining an average daily balance of $500, and that’s also required to earn interest on your account. If you can’t do that, an alternative account at a different institution may be a better fit.

Learn more: Read our First Internet Bank review

What to know about online checking accounts 

An online checking account is used for everyday transactions, such as depositing your paycheck, paying bills, transferring funds, and making purchases with your debit card. These accounts make it easy for you to access your money from anywhere at any time. Without branches, these accounts usually have lower fees as they don’t have to maintain overhead like a brick-and-mortar bank.

To get the most out of your online checking account, know what types of rewards you get and what qualifies for them. For example, your checking account might offer cash back, but only if you sign for your purchase or enter your PIN at checkout. Additionally, almost all online accounts can link your debit card to your digital wallet, such as Apple Pay or Google Pay, to make payments right from your smartphone.

Pros and cons of online checking accounts

How to choose the best online checking account for you

Picking the best online checking account for your needs is important, as switching to a different banking institution can be a pain if things don’t work out. Here are a few things to consider before opening an account:

• Consider what you want to get out of it: Do you want to earn interest? How about cash back? Some banks reimburse foreign transaction fees or ATM surcharge fees. 
• Don’t limit your options: This is especially important if you have more than $250,000 to deposit, as the FDIC only insures up to that amount per bank. You may need to spread your funds amongst multiple banks.
• Know the terms before you sign up: Check the fine print to make sure you’re not getting charged additional fees or will miss out on rewards because you don’t use your account the way it requires.

Frequently asked questions

Are online checking accounts safe?

Provided you’re banking with an actual bank and not a fintech company, then your money is FDIC-insured for up to $250,000 per depositor, per bank. Some fintech companies partner with banks to extend coverage to their users as well.

Do online checking accounts come with debit cards?

Yes, most online checking accounts come with debit cards. You can almost always add these to digital wallets, such as Google Pay or Apple Pay.

How do you make a cash deposit to an online checking account?

Many partner ATMs allow you to make a cash deposit to your online checking account right from the ATM. You can also place a money order and make a mobile deposit. Some banks let you make deposits via retailers, such as Walmart.

Our methodology 

• Minimum opening deposit (20%): You shouldn’t need a big wad of cash to open a checking account. Those with $0 or very low minimums did better.
• Monthly service fee (20%): Online-only accounts should come with no monthly fees, as the institution’s overhead to run the account is lower than a brick-and-mortar bank.
• Mobile app rating (10%): If you’re seeking out an online-only checking account, you’re likely going to utilize the app. We averaged the Apple App Store and Google Play Store ratings, and those with higher ratings did better on our list.
• Annual percentage yield (10%): Why not earn money on your money, even with a checking account? The higher the APY, the better the account ranked on our list.
• Minimum to receive APY (5%): You shouldn’t have to jump through a million hoops or have thousands in direct deposits to earn APY. Institutions with lower minimums scored better.
• Overdraft fee (5%): No one likes to pay extra fees, especially when their accounts are already low. Institutions with no or low overdraft fees ranked better on our list.
• ATM access (5%): Just because you want to do most of your banking online doesn’t mean you shouldn’t have access to cash when you need it. Larger ATM networks did better.
• Customer service (5%): If you have an issue with your account, it shouldn’t be difficult to get access to a real person. We checked institutions for phone, chat, and email access, with phone ranking as the most important.
• Cash back opportunities (5%): Many online checking accounts have extra perks, such as cash back on debit card purchases. Accounts with these benefits scored better on our list.
• Sign-on bonus (10%): Some online accounts will reward you for signing up—institutions offering bonuses scored better on our list. 
• Direct deposit amount required for bonus (5%): While sign-on bonuses are nice, they’re not helpful if an institution makes them impossible to actually get. Those with lower minimums to get the bonus did better in our ranking.