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 0.41% -- 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 0.41%.
- 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 3.80%
Rate info
SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
Min. to earn
$0
Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
up to 3.80%
Rate info
SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
|
$0
|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
American Express® High Yield Savings Account
Member FDIC.
APY
3.60%
Rate info
3.60% annual percentage yield as of May 22, 2025. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings Account
On American Express's Secure Website. |
3.60%
Rate info
3.60% annual percentage yield as of May 22, 2025. Terms apply.
|
$0
|
Open Account for American Express® High Yield Savings Account
On American Express's Secure Website. |
CIT Platinum Savings
Member FDIC.
APY
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn
$100 to open account, $5,000+ for max APY
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
|
$100 to open account, $5,000+ for max APY
|
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
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 is a full-time Editorial Strategist for Motley Fool Money. He specializes in product ratings and all things credit cards, and wants to make sure each person has the best card for them.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.