It's Time to Ditch Your Old Bank Account -- These Online Banks Offer High Rates and No Fees
KEY POINTS
- Online banks can earn you 10 times the national average APY on your savings.
- There's no reason to still be paying a monthly fee to your bank.
- Have 24/7 access to your money and mobile banking.
If you opened a bank account around the time you got your first job and haven't really thought about it again, you're not alone. But you're likely leaving hundreds or even thousands of dollars on the table.
Many big banks offer rock-bottom interest rates on savings accounts -- the national average savings account rate is only 0.40% -- while charging monthly maintenance fees and requiring high minimum balances.
The good news is that online banks are shaking things up with high-yield savings accounts that earn 10x the national average APY, have no hidden fees, and are easy-to-use digital platforms.
If you're ready to make your money work harder for you, here's why switching to an online bank is a smart move.
Why online banks are a better deal
Online banks don't have the overhead costs of brick-and-mortar locations, allowing them to pass those savings on to customers. That means higher interest rates, fewer fees, and better perks.
Here's what makes online banks stand out:
- High-yield savings accounts -- Many online banks offer APYs of 4.00% or higher, about 10x the national average of 0.40%.
- No monthly fees -- No more paying $10-$15 a month just to keep your money in the bank.
- No minimum balance requirements -- Traditional banks often require you to maintain a high balance to avoid fees. Online banks don't.
- 24/7 access and mobile banking -- With robust apps and online tools, you can manage your money anytime, anywhere.
If you're thinking about making the switch, here are some of the best online banks currently offering top-tier rates and no fees:
Our Picks for the Best High-Yield Savings Accounts of 2025
| Product | APY | Min. to Earn | |
SoFi Checking and Savings
Member FDIC.
APY
up to 4.50%
Rate info
Earn up to 4.50% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.80% APY as of 8/5/25) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
Min. to earn
$0
Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
up to 4.50%
Rate info
Earn up to 4.50% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.80% APY as of 8/5/25) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
|
$0
|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
Discover® Online Savings
Member FDIC.
APY
3.40%
Min. to earn
$0
Open Account for Discover® Online Savings
On Discover Bank's Secure Website. |
3.40%
|
$0
|
Open Account for Discover® Online Savings
On Discover Bank's Secure Website. |
Western Alliance Bank High-Yield Savings Premier
Member FDIC.
APY
4.10%
Rate info
The annual percentage yield (APY) is accurate as of September 30, 2025 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Min. to earn
$500 to open, $0.01 for max APY
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
4.10%
Rate info
The annual percentage yield (APY) is accurate as of September 30, 2025 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
|
$500 to open, $0.01 for max APY
|
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code TMF925 at application, deposit into your Account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 03/12/2026, 11:59 PM ET. Offer may be modified or withdrawn without notice. Due to new customer funding limits, you may wish to initiate fund transfers at your other institution. For information on funding, see FAQs on Discover.com/Bank.
The annual percentage yield (APY) is accurate as of September 30, 2025 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
How to make the switch
Switching banks is easier than you think. Follow these simple steps:
- Open your new online account. Pick the online bank that best suits your needs and apply online. Approval usually takes just minutes.
- Transfer your money. Move your funds to your new account, but keep your old account open until all transactions clear.
- Update direct deposits and bills. Make sure your paycheck, subscriptions, and bill payments are linked to your new account.
- Close your old account. Once everything is switched over, contact your old bank and officially close your account to avoid lingering fees.
Make the switch today
Sticking with a traditional bank is likely costing you money in low interest and unnecessary fees. Online banks offer better rates, fewer fees, and more convenience -- all without sacrificing security.
Our Research Expert
Jake FitzGerald is a full-time Editorial Strategist and Personal Finance Writer at Motley Fool Money, leading content production and distribution while also writing about credit cards, bank accounts, and other financial products. He has more than a decade of experience editing and shaping financial content to give readers clear, trustworthy money advice. His work focuses on delivering practical insights that empower people to make smarter financial decisions. Off the clock, he’s a fan of college football tailgates and still loyal to his favorite putter -- despite what his short game suggests.