With a Tangerine Savings Account, you’ll enjoy no minimums, no service charges and no unfair† fees. You’ll also earn high interest on every dollar, every day.
No unfair† fees or service charges
We simply don’t believe in unfair fees. So you won’t have to pay to save with us.
No minimum balances
Earn the same great rate on every dollar in your Account.
Reach your savings goals faster
Create a personalized savings goal and use our Automatic Savings Program (ASP) to move money directly to your Tangerine Account.
See when you can reach your savings goal.
Reach your savings goals
No matter what you’re saving for, you can set up a savings Goal with your Savings Account and customize it to visualize your targets. Whether you’re saving up for a new home, a big purchase or a online savings account high interest no fees vacation, we’ll help you stay on track to get there faster.
Getting started is easy. Start by signing up as a Tangerine Client—just click ‘Sign Me Up’ below to get started.Sign Me Up
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†footnote dagger Fair fees mean they are disclosed and agreed to in advance, and the amount makes sense relative to the benefit received. View the complete list of Account fees.
Savings Account, Chequing Account, and GIC interest rates expressed on this website are annual interest rates and are current as of today's date. Interest rates are subject to change without notice. Interest is calculated daily and paid monthly online savings account high interest no fees our Savings and Chequing Accounts. GIC terms of one year or longer have interest calculated on the basis of 365/366 days and compounded and/or paid annually. GIC terms of less than one year have interest calculated on the basis of 365/366 and paid at maturity.
Higher interest. Lower fees. What’s not to like about an online savings account?
Online-only banks, just like the name implies, do not have any brick-and-mortar locations and only exist online.
They’ve also truly created great competition for regular banks.
In fact, with the upsurge in new technologies, traditional brick-and-mortar banks may eventually go by the wayside. If you consider the popularity of peer to peer lending programs such as Lending Club, Prosper or Upstart, which attract investors looking for 21st century lending models, it makes sense that traditional banks have started to become obsolete.
Bitcoin and cryptocurrencies could replace traditional banks altogether. Once bitcoin is able to process and settle hundreds of transactions per second, it could offer a more efficient, secure and cost-effective banking structure.
Given all these reasons, it might be worth your while to look into an online savings account, pronto.
What’s an Online Savings Account?
Again, an online savings account is a savings account that only exists online. Typically high-yield, online savings accounts make a savings account APY more appealing. The difference can be vast (think 0.5% APY for a traditional brick-and-mortar best high yield savings rates account vs. 1.5% APY for an online savings account).
In a nutshell, online banks can charge fewer fees, require no minimum balance and offer excellent rates because they don’t have the overhead related to wages, maintenance and real estate costs like the traditional brick-and-mortar bank variety.
Why do I Need a Savings Account?
Building up a savings account is a great way to develop a healthy mentality about money. There’s something very satisfying about watching small deposits in a savings account grow over time, and some banks even encourage goal-setting through mobile apps and online banking.
Here are a few down-the-road options for your savings:
- Save for your child’s college education.
- Save for a down payment on a house.
- Save for an item you’ve always wanted.
- Emergency fund savings (between three to six months of savings is recommended).
Pros and Cons of an Online Savings Account
The online savings account pros and cons may seem sort of obvious, but it’s always best to read the fine print in any situation. (For example, traditionally, the fees are lower or nonexistent for online savings accounts, but it’s definitely a good idea to be 100% sure.)
- They offer higher rates
- They charge lower fees
- New technology allows for some great banking options on your device
- ATM networks are extensive
- You have to pay a fee for ATM access in some cases with affiliated brick-and-mortar banks
- Depositing funds may actually be more cumbersome than depositing at a traditional bank.
- Customer service is not readily available.
- Sometimes account APY is an introductory rate (again, read the fine print).
- It’s possible for online banks to fail or not be FDIC-insured. Do your homework.
How to Find an Online Savings Account
Once you’ve outlined your goals, you’ll want to decide which account makes the most sense for you. You’ll need to consider APY, your customer service needs, fees and service charges and whether the online bank has FDIC insurance.
For more information about APY, check out What is APY?
How Online Savings Accounts Work
Once you’ve officially decided on a bank, you’ll be required to fill online savings account high interest no fees an application. The application will ask you to give your address, personal and work phone numbers, date of birth and Social Security number or Tax Identification Number. You’ll also need to create a security question and password.
You’ll be able to link your online savings account with your online or traditional checking account. In fact, to start the account, an opening deposit must come from your checking account. If you’re applying the old-fashioned way (on paper) you can include a check with your paper application.
Then, from there, you can deposit money into your account. The part that you don’t see is that the bank will then lend your money out in personal and walmart money card account login loans to other individuals. (The bank ultimately pays you interest when it lends out your money.)
Best Online Savings Accounts
Take a look at some of the best online savings account with high-yield.
Amex High Yield Savings Account
- .40% APY
- No minimums
- No monthly fees
- 24/7 access to your account
- FDIC insured
- Linking your external account can take up to 2 days
Credit Karma Online Savings Account
- High APY at 1.85%
- No fees
- No account minimums
- High daily maximum transaction amounts
- No debit card
- No ATM withdrawals
- High Yield Savings accounts at 0.55% annually
- Money Market accounts ranging from 0.30% to 0.40% annually
- Certificates of Deposit, earning up to 1.10% annually
- All-digital banking
- Penalties for bank of america online banking sign in id withdrawals on certain accounts may apply
- While Quontic has a network of partner ATMs, it does not manage physical banking locations
Albert pitches itself as a home for your money, and what a home it can be.Download the app, setup your account and start saving with advanced technology and profitable interest rates.
Albert allows you to save your money, set goals and earn bonuses. Set your goals so that you can save for a specific purchase. Look for bonuses that can total up to .25%. Because Albert starts savers at 1%, you have a leg up on traditional bank accounts/
Albert also sets aside money every week, automatically adding to your savings account. You can transfer money out of your account at any time, and you can also set up a traditional bank account and invest using the Albert app.
Plus, Albert’s current promotion gives you a $75 bonus when you get a qualifying paycheck deposit every month of at least $200. Check out Albert to learn more.
No minimum balance
Ally Bank Online Savings Account
- High APY at 1.45%
- No monthly maintenance fees
- Deposit checks remotely with Ally eCheck Deposit feature
- Six transactions limit per statement cycle
- Accessibility with ATM card, ATM reimbursements and good mobile app
- FDIC insurance up to $250,000
- Some fees (but are transparent and easy to understand)
Discover Online Savings Account
- 1.50% APY
- Minimum opening deposit is $0
- No monthly fee and no minimum balance required to waive monthly fee
- Annual interest you can earn on a $15,000 balance is $225.17
- FDIC insurance up to $250,000
- Excellent mobile banking app
- Auto-savers transfers allow you to create automatic transfers from personal checking into this account
- $200 cash bonus for applying (use code COW318) through 4/16/18
- Just six transfers to other accounts per statement cycle are allowed.
- If you exceed six transfers, you’ll be charged a fee.
- Cash bonus is not valid for existing Discover savings customers.
Dollar Savings Direct High Interest Savings Account
- 1.80% APY
- No hidden costs, fees or penalties
- No service charges
- FDIC insurance up to $250,000 in every account you own
- $1,000 minimum balance for the highest APY offer
- Website is difficult to navigate
Synchrony Bank High Yield Savings Account
- Up to 1.55% APY
- ATM card and ATM reimbursements
- Synchrony Bank Perks include access to webinar series, three free wire transfers per statement cycle, unlimited ATM reimbursements, travel and leisure discounts and more
- No monthly service fees
- FDIC insurance up to $250,000
- Not great customer support
- No mobile app
Marcus by Goldman Sachs High Yield Savings Account
- 1.5% APY
- No minimum deposit to open an account
- Dedicated saving specialists based in the U.S. deliver live, personalized support
- No transaction fees
- Excellent security
- FDIC insurance up to $250,000
- No mobile app is offered
- No ATM card is offered
Learn more about Bank Fees on Benzinga.
Ultimately, the question “Is an online savings account best for me?” is a personal decision.
One item to consider: While high APY can be tough to ignore, there may be some other serious factors when considering which online savings account will work best for you. Depending on the customer, it could also be important to consider online/mobile experiences, mobile and online alerts and other perks or rewards you can receive.
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Neo is a Canadian tech company that reimagines the way people spend, save, and earn rewards. We’re helping you make the most out of your time and money by building from the ground up using today’s technologies.
You can open an account within minutes, earn instant cashback at your favourite stores, and get real-time notifications when you spend and save, all without monthly or annual fees.
Neo offers access to better financial services through our easy-to-use app or website.
Our vast network of cashback partners have signed up to reward you when you shop using your Neo Card. The more you use your Neo Card, the better the rewards get and you are guaranteed a minimum cashback rate.
The Neo Savings account earns high interest while allowing you to pay bills, send/receive e-transfers, and deposit/withdraw funds. Enjoy unlimited free transactions for no monthly or annual fees. We bet that's better than what you're currently getting.
You need to live in Canada, have a Canadian photo ID, and be the age of majority in your province to apply for the Neo Card. A range of credit scores are accepted.
Neo Savings is not available to Quebec residents. Don't worry—we're coming soon.
The Neo Savings account is provided by Concentra Bank, a CDIC member institution, and is eligible for CDIC deposit protection. Deposits held in Neo Savings accounts are combined with eligible deposits held at Concentra Bank, for up to $100,000 of deposit protection, per category, per depositor.
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The best online banks charge you fewer fees and pay you more interest. If you don’t mind doing your banking digitally rather than in person, they’re an excellent option.
In this article, I’ll explain the factors that you should consider when comparing online banks. I’ll also list some of the online banks that I recommend and tell you why they made my list of “best online banks.”
Best Online Banks in 2021
The first step in choosing the best online bank is to honestly assess your finances.
Do you have significant assets? Do you live paycheck to paycheck? Are you young and just starting your career, or are you nearing retirement?
If you have substantial money, particularly investable assets, money expert Clark Howard strongly recommends that you use a discount brokerage like Fidelity Investments or Schwab rather than a bank or credit union. They offer accounts that are fee-free and pay you market-rate interest on the money you haven’t invested.
For everyone else, Clark says that finding the right checking account is the priority when selecting a bank. In fact, he says it’s probably a good idea to have your savings account at a different place than your checking account if you don’t have investible assets.
“If they’re living more paycheck to paycheck, then the only criteria I care about is no minimum balance, no-fee checking accounts. I don’t really care about what the savings account does,” Clark says.
“I want the checking account to be what meets your needs first, and that’s what you focus on, getting a checking account that’s appropriate for chase bank jobs monroe la — earning interest, avoiding fees or having features that are very important to you, or any combination of those things.”
I’ve researched dozens of online banks to provide you with the best options that fit Clark’s criteria.
Some of the other things I considered include whether the financial institution is insured, the quality of the app, how competitive the interest rates are and whether the bank offers any especially customer-friendly features.
Table of Contents
Best Online Banks
|Financial Institution||Why It Makes Our List|
|Ally Bank||No fees, a proven reputation for customer satisfaction, competitive interest rates and features to help you save more|
|Axos Bank||Array of options includes a fee-free account with unlimited ATM reimbursements|
|Capital One||The ultimate jack of all trades, including no fees, competitive interest, free transfers and helpful savings software|
|Chime||Deepest pool of features on our list, including early access to direct deposits|
|Discover Bank||The poster child for "no fees" also offers cash back on purchases and a competitive interest rate|
|Fidelity Investments||Brokerage account that allows you to bank for free and online savings account high interest no fees earns you interest on your uninvested cash|
|Schwab||Brokerage account that allows you to bank for free and offers unlimited ATM reimbursements worldwide and free foreign transactions|
The Details: Clark considers Ally Bank to be among the best free online banking options in the United States.
Ally gets Clark’s seal of approval because its accounts carry no monthly fees, no minimum balances, no minimum deposits and no overdraft fees. Its Interest Checking Account pays 0.1% APY or 0.25% if you keep an average daily balance of at least $15,000.
Ally Bank doesn’t let you deposit cash, but it does give you a mobile deposit option that’s compatible with Zelle and Amazon Alexa. Ally will reimburse out-of-network ATM fees up to $10 per month.
At 0.5% APY, open offshore bank account online panama Online Savings Account offers a competitive interest rate. It lets you allocate funds into “buckets” within one account for specific savings goals.
The checking and savings accounts work well together, allowing you to automate recurring transfers. Ally will even push you toward good habits with “surprise savings,” a program that analyzes your checking account and automatically moves “safe-to-save” money into your savings.
Checking: Up to 1%
Checking: $0 to $50
The Details: Axos Bank is terrific if you appreciate choice and customization.
Its Essential Checking Account charges no monthly fees and requires no minimum deposit nor a minimum balance. It also doesn’t charge overdraft or non-sufficient funds fees and offers unlimited ATM fee reimbursement within the United States.
Axos Bank has four other checking account options. Each targets a different consumer group:
Axos Bank’s High Yield Savings Account requires a $250 minimum deposit. But it offers a competitive 0.61% APY, a free ATM card upon request (not always a given for a savings account), a suite of money management tools and $20 for referring a new customer who opens an account.
The Details: Sometimes boring is good. Capital One is a prime example of that. It lacks a strong claim to fame or a singular marketing point. But I found it hard to find another bank that offers consistent, competitive quality in every aspect to the degree that Capital One does.
Capital One’s 360 Checking Account does not charge a monthly maintenance fee. Wire transfers are free. You can send and receive money for free through Popmoney. There’s no minimum balance or minimum deposit. You’ll earn interest on your balance.
You can find competitors that take “no fees” to an even bigger extreme or that pay a little more interest. But do they have an app with an average rating of 4.7 on Android and iOS? Are their customer service offerings as expansive? How about their savings accounts?
Capital One’s 360 Performance Savings currently pays 0.4% Online savings account high interest no fees. Again, you can find some banks that pay more though usually not much more. Capital One also offers an automatic savings plan and the ability to allocate money toward specific purposes with “My Savings Goals.” You can also review your credit score for free, get tips on how to improve it and receive alerts when it changes.
The Details: Chime is a relatively new online-only bank that does not charge fees. It’s an especially good option for the unbanked and those with a negative banking history, as Chime doesn’t hold that against you when you apply for an account.
Chime’s Spending Account does not pay interest but offers plenty of features. You can get access to your direct deposits up to two days early. Foreign transactions and person-to-person transfers are free. The account is compatible with Apple Pay, Google Pay and Samsung Pay. And its app’s combined average Android and iOS rating is the highest I found among more than 60 banks that I reviewed.
This bank wings financial one time payment offer overdraft protection. In most cases, if you try to make a purchase that would drop your balance below zero, Chime will automatically decline the attempt. That matches Clark’s overdraft protection philosophy but also means you have to be careful not to overdraw your account.
Chime’s Savings Account pays a competitive 0.5% APY. In addition to early access to direct deposits, the “Save When I Get Paid” program automatically puts 10% of any direct deposit of at least $500 into savings. Another program automatically rounds up your debit card purchases to the nearest dollar and puts the change into savings.
Chime debit cards are also protected by the Visa Zero Liability policy, which ensures that “cardholders will not be responsible for unauthorized charges.” You can instantly block all transactions on your Chime debit card straight from the app without having to wait for a customer service agent.
You must have a Chime Spending Account to open a Chime Savings Account.
Note: Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC. Chime FAQs.
The Details: Discover Bank is the king of no fees. We’re talking $0 for monthly maintenance, debit card replacements, checks, insufficient funds, stop payment orders, deposited item returns and account closures.
Discover also pays 1% cash back on up to $3,000 in debit card purchases per month. (Again, Clark discourages debit card purchases.)
You won’t be able to deposit cash, and the ATM withdrawal limits are lower than some competitors’. But Discover does offer a competitive 0.40% APY through its Online Savings Account.
Its mobile apps (iOS/Android) also get high marks.
The Details: Fidelity’s Cash Management Account is one of Clark’s favorite banking options for anyone with enough assets to invest.
In addition to providing inexpensive access to investing (and robust research tools), Fidelity acts like a free bank. Its cash management account offers check-writing, ATM access and even pays a little interest without levying any “gotcha” fees.
Fidelity automatically “sweeps” your uninvested cash into interest-yielding accounts, so you don’t have to worry about shifting funds between checking and savings. Clark loves the automated interest feature.
To put it another way, Fidelity offers you what equates to a free checking account that automatically earns interest on your balance, while also giving you convenient access to investing in things like get realtor commercial girl and mutual funds.
Checking: online savings account high interest no fees Savings: $0
The Details: Schwab is also a broker that offers all the normal functionality of a bank.
If you have a significant amount of money, consider opening a Schwab One brokerage account. It will give you access to free checking and savings accounts.
Schwab offers unlimited ATM rebates worldwide and does not charge a foreign transaction fee, so it’s a strong option for frequent international travelers.
You can find digital-only cash management accounts that offer better interest rates than Schwab, but the investment capabilities of most other online options are not as strong.
How to Choose an Online Bank
Above all else, you should avoid banks that charge you exorbitant fees. It’s one of the reasons that Clark consistently advises people not to do business with “The Big Four,” otherwise known as JPMorgan Chase, Bank of America, Wells Fargo and Citigroup.
There are other things you should look for when choosing a bank, as we mentioned earlier. Here are a few more details to consider.
- Zero fees. You should find a bank or financial institution that offers free checking accounts. In other words, your bank should not charge monthly maintenance fees, overdraft fees, ATM fees or paper statement fees.
- Low balance and deposit requirements. Ideally, your bank will not require you to deposit anything to open an account and will not require you to maintain a certain monthly balance. In some cases, it can be OK if a bank requires a small initial deposit but does not require an average minimum balance. You also don’t want your bank to require a minimum-level direct deposit to unlock perks or avoid fees.
- FDIC insurance. Any worthwhile bank should have Federal Deposit Insurance Corporation (FDIC) insurance. The FDIC typically protects the money in your account up to $250,000. The National Credit Union Administration (NCUA) is the credit union equivalent of the FDIC.
- Competitive interest rates. This is especially important to differentiate between savings account options, assuming no fees or requirements. You want your bank to offer a competitive rate relative to the market. It’s also a nice bonus if your checking account offers interest.
Other Items to Consider
- Customer service availability. Does the online bank offer 24/7 phone support? When are the live chat hours? Can you email someone and expect to get a quick response? If you’ve ever called a customer service line, you also know that the quality of the customer support agents is important.
- Highly-rated app. Most online banks have no physical locations. Since you’re doing all your banking online, your bank’s app and website must be easy to use. Make sure the app lets you make mobile deposits. Then you can assess the app’s other features to see what meets your needs. Looking at the app ratings on Android and iOS is a good indication of whether your institution has this nailed.
- Features that fit your life. For example, Schwab offers unlimited ATM rebates worldwide and free international transactions. If you travel to other countries with any frequency, that could make Schwab attractive to you.
Online vs. Traditional Banks: Clark Howard’s Branch Test
The most obvious advantage of traditional bank accounts compared to online banks is the availability of physical locations.
You can walk into a branch, talk to a person, conduct simple transactions and even get access to things like notary services and safe deposit boxes. But for most people, the extra cost is not worth the benefits. It is not cheap to maintain a national network of physical branches, and the traditional banks reflect that in the fees they assess their customers.
If you find it more comfortable to go to a branch, consider what money expert Clark Howard said on one of his recent podcasts.
Clark answered an audience question about switching from one of the big banks by posing another question: “When was the last time you physically entered a bank branch?”
Clark said he’s found that some big bank customers are surprised when they realize they can’t even remember the last time they went inside a branch.
“For someone who is younger and doesn’t have a lot of money, I love the online banks,” Clark said. “People that are younger don’t understand why anybody would ever go to a branch. And there’s no reason for somebody younger to go anywhere other than a place that has no minimum required for an account, many of them no overdraft fees, no monthly fees, all that.”
Frequently Asked Questions About Online Banks
What Is an Online Bank and How Does It Work?
An online bank or credit union does business exclusively online and does not operate physical branches. As a result of that cost savings, online banks have a reputation for charging fewer fees and offering better interest rates.
As a customer of an online bank, you won’t be able to talk face-to-face with a person if you have a problem. You’ll rely on phone calls, live chats or emails to resolve any customer service issues.
Are Online Banks Safe?
Online banks are not inherently dangerous.
Still, you should check to make sure that the Federal Deposit Insurance Corporation (FDIC) insures accounts up to $250,000; the National Credit Union Administration (NCUA) provides the same service for credit unions. That way, no matter what happens to the bank, your money is insured up to a quarter of a million dollars.
Your online bank is vulnerable to hacking to some degree, just like other online businesses in 2021. So it’s important to follow best practices. That includes choosing a strong password, using biometrics like your voice and fingerprint for security when possible and monitoring your account for security alerts.
However, if your financial institution has robust internet security, it’s not something that should make you lose sleep.
Do Online Banks Let You Use ATMs for Free?
Online banks don’t have company-branded ATMs, but in most cases, they offer free access to a network of ATMs.
In our post about the best free checking accounts, the financial institutions I recommend give their customers free access to between 38,000 and more than 1 million ATMs. Most of them also offer some sort of monthly out-of-network ATM reimbursement.
So yes, online banks let you use ATMs. But it’s a good idea to look at the locations of the free ATMs available within each online bank’s network before you open an account. You’ll want to know how convenient they are for you.
How Do I Withdraw and Deposit Cash at an Online Bank?
The only thing you can’t do is walk into a physical branch and fill out a withdrawal or deposit slip.
Every online bank is different in terms of the features it offers. There are also many different ways to deposit money into your account: mobile deposit through an app, deposits via ATM, deposits via transfer from another financial institution and converting cash to money orders, which you can then deposit like a check.
Withdrawing from ATMs and getting cash back at retailers are your primary withdrawal options. For payments, you should be able to write a check, make an online payment or transfer or use your debit card like you would with a traditional bank account. Keep in mind that Clark discourages using your debit card for purchases.
For many people, it’s possible to forego using bank branches without that much pain.
If you don’t have investible assets or live paycheck to paycheck, your No. 1 goal should be to find an online bank with no fees and no balance requirements.
If you have considerable assets, consider banking with a discount broker.
Clark considers savings accounts to be a secondary concern: It’s nice to find a high-yield savings account with a competitive interest rate, but he says it doesn’t have to be with the same institution that handles your checking.
You’ll also want your bank to have an app or website that’s easy to use and options that are tailored to your needs.