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
| Account | APY | Bonus | Next Steps |
|---|---|---|---|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website. 
4.90/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
up to 4.30%
Rate info
Earn up to 4.30% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.60% APY as of 11/12/25) for up to 6 months. Open a new SoFi Checking & Savings account and enroll in SoFi Plus 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
|
Earn up to $300 and +0.70% Boost on Savings APY with direct deposit. Terms apply.
Earn up to 4.30% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.60% APY as of 11/12/25) for up to 6 months. Open a new SoFi Checking & Savings account and enroll in SoFi Plus by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
Open Account for CIT Platinum Savings
On CIT's Secure Website.
4.60/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
3.85%
Rate info
3.85% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $5,000
|
Earn a bonus of up to $300 after a one-time deposit of $25,000+
This limited-time offer to qualify for a $225 cash bonus with a minimum deposit of $25,000 or a $300 bonus with a minimum deposit of $50,000 is available to New and Existing Customers who meet the Platinum Savings promotion criteria. The Promotion begins on September 23, 2025, and can end at any time without notice. Customers will receive a $225 or a $300 bonus provided that the program requirements are met. Click here to see promotion details and terms: https://www.cit.com/cit-bank/platinum-savings/PS2025
|
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website.
4.40/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor |
4.05%
Rate info
The annual percentage yield (APY) is accurate as of November 6, 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
|
N/A
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Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of-day account balance. *APYs — Annual Percentage Yields are accurate as of September 23, 2025: 0.25% APY on balances of $0.01 to $4,999.99; 3.85% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100.
Based on comparison to the national average Annual Percentage Yield (APY) on savings accounts as published in the FDIC National Rates and Rate Caps, accurate as of September 15, 2025.
For complete list of account details and fees, see our Personal Account disclosures.
The annual percentage yield (APY) is accurate as of November 6, 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.
Accurate as of the time of publication. The national average rate referenced is from the FDIC's published National Rates and Rate Caps for Savings deposit products, accurate as of October 20, 2025. See the website for more information.
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.