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I get it, online banks can feel a little intimidating at first. How do you access your money when you need it fast? Where does your money actually go? And, the big one: is it safe?
When I opened my first online-only account back in 2022, I had the same questions. Turns out, I wasn't alone -- 91% of people in our Motley Fool Money Online Banking Trends survey said that digital banking was just as important as security, fraud protection, and quality customer service when choosing where to bank.
Here's the good news: online banks are just as safe as traditional ones. Plus, they often come with higher rates and lower fees. Intrigued? Allow me to explain.
At the core, online banks and traditional banks are pretty similar, but the big difference is that online banks operate entirely online. There are no physical branches or in-person customer service (you'll need to rely on phone, chat, or email support instead).
This lack of physical overhead -- no branches to maintain or tellers to pay -- lets online banks offer better savings rates and lower fees. For me, that's a huge win.
And here's something that might surprise you: both online and traditional banks are backed by major financial institutions or insured by the FDIC. This means your deposits are protected, just like they would be at a brick-and-mortar bank.
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
Account | APY | Bonus | Next Steps |
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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.
|
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
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Earn up to $300 and +0.70% Boost on Savings APY with direct deposit. Terms apply.
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.
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Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
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Open Account for Discover® Online Savings
On Discover Bank's Secure Website.
4.80/5
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.
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3.40%
Min. to earn: $0
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Earn up to $200 when you use offer code TMF925 on your first Discover Online Savings application.
Apply for your first Discover Online Savings Account with offer code TMF925. Deposit $15,000 to earn a $150 bonus or deposit a total of at least $25,000 to earn $200. Deposits must post within 45 days. Offer ends March 12, 2026. See Discover's website for full details.
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Open Account for Discover® Online Savings
On Discover Bank's Secure Website. |
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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.
|
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
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N/A
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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.
I was definitely nervous about keeping my money with an online bank at first, but I was relieved to learn that they take several steps to keep your money safe. Here's how:
Let's be real: fraud and scams are a concern for everyone these days. But the good news is, online banks take proactive steps to protect you. Here's how:
To protect yourself further:
When it comes to picking the right online bank, it's not just about finding the best interest rates or lowest fees -- it's about finding a bank that fits your unique needs. Here are some key factors to consider:
While online banks generally have lower fees than traditional banks, it's still important to review each bank's fee structure. Pay attention to things like monthly maintenance fees, ATM withdrawal fees, and charges for wire transfers. For example, I use the LendingClub LevelUp Savings account, which has no fees. Let me tell you, it's a game-changer.
If growing your savings is a priority, you'll want to look for a bank that offers competitive interest rates. Online banks typically offer higher savings rates than traditional banks. A few great examples of online savings accounts include:
Even though online banks don't have physical branches, you want to make sure they offer solid customer service. Look for banks that offer 24/7 support via phone, chat, or email. I've found that reading reviews helps me get a sense of how responsive and helpful their support teams are.
One of the biggest advantages of online banking is the access to cutting-edge digital tools. Look for a bank that offers a sleek mobile app, an easy-to-use online dashboard, budgeting tools, and any other features that will help you manage your finances. Some banks even offer free or low-cost financial planning tools that can help you meet your savings goals.
Once you've reviewed the fees, interest rates, customer support, and digital tools, you'll be ready to choose the online bank that fits your needs. Whether you're aiming to maximize your savings, cut down on fees, or access innovative financial tools, the right online bank can offer great value.
Ready to take the plunge? It's easier than you think. Check out our top high-yield savings accounts to discover online banks offering some of the best rates out there.
Yes, online banks are just as safe as traditional banks. They are often FDIC insured, meaning your deposits are protected up to $250,000 per depositor, just like at physical banks.
You can access your money at an online bank through mobile apps, websites, and ATMs in the bank's network. Many online banks also partner with ATM networks for easy access.
Yes, most online banks offer customer support via phone, chat, or email. They may not have physical branches, but their support teams are often available 24/7.
CIT Platinum Savings disclosure:
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.