Best Digital Banks

Digital banks are financial institutions that operate entirely online, without physical branches. As the name suggests, with digital banking, all of your financial services are handled, well, digitally. From deposits to account monitoring to customer service, you rely on tools that exist entirely online.

So, what’s the benefit to you as a banking consumer? – Digital banks are nearly always better for your wallet.

Traditional banks charge lots of fees and offer bottom-of-the-barrel interest rates on your savings. On the other hand, digital banks don’t have the same overhead.

12 Best Digital Banks for 2024

Here are the top digital banks you can open an account with today:

  1. Varo Bank
  2. Discover® Bank
  3. Revolut
  4. Current
  5. Axos Bank
  6. Chime
  7. Bluevine
  8. UFB Direct
  9. Monzo
  10. Ally
  11. Sofi
  12. NBKC

1. Discover® Bank

Discover might be best known for its credit cards, but its digital banking services are on par with almost any other online bank. Like Axos and Varo, it has its own banking license, so it operates as an independent, chartered bank.

From a deposit account standpoint, Discover is about as fee-free as it gets. Both its checking and savings accounts options are entirely fee-free, aside from a $30 charge for outgoing wire transfers.

The Discover® Cashback Debit Checking account earns 1% cashback on your first $3,000 in purchases each month, for a maximum of $360 per year. This makes it a great alternative to a rewards credit card.

For savings, you have two solid options with Discover® Online Savings and Discover® Money Market. Discover® Online Savings comes with a 4.30% APY on all balances. If you want an account that’s a bit more flexible, you can opt for the Money Market Account. The APY is slightly lower at up to 4.20%, but it comes with the benefit of an included debit card.

Discover® Bank also has an outstanding reputation when it comes to overall customer experience, but its mobile banking experience is among the highest-rated of any bank. Its mobile app has an incredible 4.9-star rating (out of 5) in the App Store and a comparable 4.7-star rating (out of 5) in the Google Play Store.

Products

  • Discover® Cashback Debit Checking
  • Discover® Online Savings Account
  • Discover® Money Market Account

Features

  • 1% cashback rewards
  • No monthly fees
  • 60,000+ fee-free ATMs
  • 0%
  • Top-rated mobile banking app
  • Zelle

Discover Bank Logo

up to $200

Discover : Online Savings
Available nationwide

Details

2. Varo Bank

Varo is a digital bank that’s managed to acquire its very own bank charter. It was founded in 2015 and currently serves more than 6 million customers.

At first glance, Varo appears to be a run-of-the-mill digital bank. It has extremely few fees, a highly competitive APY on its savings account, and a solid network of free ATMs. Those features in themselves would be enough, but Varo manages to take it a little further with some unique additions.

First, when you shop with your Varo card at certain retailers, like Walmart, CVS, and the Home Depot, you get cashback. Just visit the Perks tab in the Varo app, add your deal, and watch your cashback balance grow. When your balance reaches $5, Varo automatically transfers it to your bank account.

​Varo also goes against the grain with its savings account. Its standard savings rate of 3.00% is impressive, but it also gives the opportunity for balances up to $5,000 to earn up to 5.00%. Here’s how it works:

First, receive direct deposits of $1,000 or more in your checking. Then, end the month with a positive balance in your Varo Bank Account and Savings Account, and you get the maximum rate.

Varo also operates as a small-time lender with Varo Advance. There’s no interest and Varo is transparent about the fees they charge. You can borrow up to $100 at a time.

Products

  • Varo Bank Account
  • Varo Savings Account
  • Varo Advance
  • Varo Believe

Features

  • No monthly fees
  • 55,000+ fee-free ATMs
  • ​up to 5.00% APY
  • Interest-free cash advances
  • Up to 6% cashback
  • Early direct deposit

3. Revolut

What started in 2015 as a digital travel card has now evolved into a mobile-first bank used worldwide. Like Monzo, Revolut is known as a challenger bank, or a start-up digital bank that “challenges” traditional, branch-based banking.

Revolut is ideal for those who frequently travel internationally, as it allows you to transfer and receive money in over 30 currencies. Every account comes with a linked debit card that, when used abroad, will immediately convert your money (using the real-time exchange rate) into the correct currency.

Customers have the choice of three accounts with Revolut—-Standard (free), Premium ($9.99/month), and Metal ($16.99/month)—-each with its own perks, a physical or virtual card, savings interest rates, and monthly ATM withdrawal limits.

Each Revolut account comes with savings “vaults” where you can deposit money every month or add round-ups from your purchases. Each account tier has an increasing interest rate going up to 1.95% annually with a Metal account. You can withdraw your funds anytime, set savings goals, and save in 30+ currencies (including crypto).

Products:

  • Revolut Standard
  • Revolut Premium
  • Revolut Metal

Features:

  • Instant currency exchange for 30+ currencies
  • Early paycheck access
  • Linked debit card (Visa or MC)
  • Savings “vaults” (earns interest and bonus money)
  • Travel perks
  • Invest in crypto

4. Current

Current is a financial technology company that offers an all-in-one digital bank account. Current is centered around the idea that premium banking should be accessible and affordable and aims to help anyone improve their financial outcomes.

Products:

  • Current Account
  • Teen Account

Current Account Features

  • No Monthly or Annual Fees
  • Exclusive Card with Tap to Pay
  • Up to 2 Days Early access to direct deposit (depending on employer or provider)
  • Budgets for each category of spending
  • Spending Insights
  • 3 Savings Pods that can earn 4.00% APY each with Current Interest
  • Gas station authorization holds immediately released
  • Overdrive overdraft protection and no hidden fees

Teen Account Features

  • No monthly or annual fee
  • White or Black Card
  • A budget for a single category of spending
  • Standard direct deposits
  • 1 Giving Pod for donations
  • Gas station authorization holds immediately released
  • Instant notifications for purchases
  • No access to Overdrive overdraft protection
  • No hidden fees

5. Axos Bank

Axos Bank is a fully-chartered banking solution. This means that it does not need to rely on a third party to provide its accounts and FDIC coverage. Essentially, it’s a traditional bank that happens to limit its operations to the digital space.

Much like Chime, there isn’t a lot to criticize about Axos. There are no monthly fees or minimum balance requirements, though most of its accounts do require a certain initial deposit to open.

That said, Axos is not entirely fee-free and does charge for certain actions like wire transfers. This might seem like a downside, but the reality is that most banks charge for these. Those that don’t (like Chime) only avoid doing so by not letting you send wires.

Furthermore, Axos stands out among digital banks with its wide variety of banking products, including multiple checking and savings accounts, money market accounts (MMAs) and certificates of deposit (CDs). It offers five different checking account options, two for savings and certificates of deposit (CDs).

Of its checking accounts, the two strongest are Essential Checking and Rewards Checking.

  • Axos Essential Checking is a standard digital checking account with no fees, unlimited ATM fee reimbursements, and express direct deposit.
  • Axos Rewards Checking pays a up to 3.30% APY, but you need to utilize a bunch of Axos’ financial products to max it out. To get the full rate, you must enroll in direct deposit, use your debit card, invest in both managed and self-directed trading, and take out a loan. It’s a lot, but even if you don’t get the full rate, you’ll still get credit for the pieces you do use. (Learn why it tops our list of Best Rewards Checking accounts)

On the savings end, your best bet is Axos High Yield Savings, which earns a up to 0.61% APY on balances up to $25,000. The account is completely fee-free, but you need at least $250 to open an account.

Products

  • Axos Essential Checking
  • Axos Rewards Checking
  • Axos High Yield Savings
  • Axos Cashback Checking
  • Axos Golden Checking (for 55+)
  • Axos First Checking (joint account for teens ages 13-17)
  • Axos High Yield Money Market

Features

  • No monthly fees
  • Regular sign-up bonuses for new customers
  • up to 3.30% APY
  • Unlimited ATM fee reimbursements
  • Early direct deposit
  • Top-rated mobile banking app

Axos Bank Logo

up to $300

Axos : Rewards Checking
Available nationwide

Details

6. Chime

With Chime, there’s a lot to like. If you think about all of the benefits of digital banking in general, Chime checks virtually all of the boxes.

To start, Chime simply does not charge fees. This means no monthly fees, no minimum balance fees, no overdraft fees, and so on. The only fee you could see is one for an out-of-network ATM withdrawal. Fortunately, with a free ATM network of over 60,000 cash machines, this isn’t likely to be a problem.

From there, Chime continues to impress. Its checking account comes with a Visa debit card, and there’s no replacement fee if you lose it. You can also use its SpotMe feature for fee-free overdrafts, and you can expect your direct deposits to arrive up to two days early. Chime Checking also makes automatic transfers to your linked savings account a breeze.

With Chime High Yield Savings, you can round off your debit purchases and drop the remainder into your savings account. Plus, you can use Save When I Get Paid to automatically contribute a percentage of each paycheck toward the long term.

All of this is sure to add up with Chime’s top-tier 2.00% APY. The rate is 8 times the national average, and it applies to all of your savings, no matter what your balance is.

Combine all of this with a mobile app that has 4.8 stars (out of 5) in the App Store and 4.5 stars (out of 5) in the Google Play Store, and you’ve got a sure winner.

Products

  • Chime Checking Account
  • Chime Credit Builder
  • Chime High Yield Savings Account

Features

  • No monthly fees
  • 60,000+ fee-free ATMs
  • Fee-free overdrafts
  • 2.00% APY
  • Top-rated mobile banking app
  • Early direct deposit

7. Bluevine

Our top pick for small business digital banking is Bluevine. This option focuses entirely on its business checking account and consistently ranks as one of the top options for startups or entrepreneurs.

Bluevine is an all-in-one account built for small businesses. It’s completely fee-free and aims to make the day-to-day of running your business a little easier.

The Bluevine Business Checking account has no monthly fees or minimum requirements, and you can make unlimited transactions. You also get free ATM withdrawals at all MoneyPass locations, plus an awesome potential to earn up to 2.00% APY on balances up to $250,000.

You can also use it to borrow money to run your business. With Bluevine loans, you can apply for a line of credit, up to $250,000.

Products

  • Bluevine Business Checking
  • Bluevine Business Loans

Features

  • No monthly fee or minimum balance
  • International payments to 26 countries
  • ​Unlimited transactions
  • 37,000+ fee-free ATMs
  • up to 2.00% APY
  • Credit lines up to $250,000

8. UFB Direct

UFB Direct is a division of Axos Bank, and currently offers some of the most competitive interest rates in digital banking. It offers both a high-yield money market and high-yield savings account with standard digital banking features. While it does not currently offer a checking account, the money market account comes with checks and a debit card.

UFB’s online accounts are accessible from anywhere in the world at any time. You can deposit checks via its mobile app, and access your account with SMS messaging if you’re in an area without WiFi.

With UFB’s Priority Savings, you can earn high yield, with no service or maintenance fees and no minimum deposit requirement. Accountholders also receive a complimentary ATM card and free transfers between direct deposit accounts. The high-yield savings account is ideal for those who want to set money aside for the short term (i.e. vacation, emergency fund, new car, etc.).

Unlike the savings account, UFB’s Priority Money Market comes with $10 monthly fee, unless you maintain a monthly balance of $5,000. However, this FDIC-insured account also comes with high yield, at one of the best rates for a money market account. Like the savings account, it’s accessible via the mobile app 24/7.

The mobile app is highly rated across platforms, with a 4.8 rating (out of 5) in the App Store and 4.5 (out of 5) in the Google Play Store.

Products:

  • UFB High Yield Savings
  • UFB High Yield Money Market

Features:

  • 5.25% APY
  • 24/7 customer service
  • 24/7accessibility
  • Highly rated mobile app
  • No ATM fees
  • No minimum to open a savings account

9. Monzo

Monzo is a UK-based digital bank, where app-based financial institutions are known as challenger banks. Along with other banks like Revolut, Monzo is one of the original and most popular challenger banks in the industry.

Overall, Monzo US is an option that has a ton of potential, even if it’s a bit limited at the moment. The bank is still getting off the ground in the US but comes with enough functionality to merit a place on this list.

Some of what we love about Monzo is based on what it has accomplished in the UK, where it boasts more than four million customers. That said, even in its infancy, the US version still has a lot to like.

Monzo is an all-in-one bank account, so it can serve as both your checking and savings in one convenient spot. There are no fees to worry about, and the platform is designed exclusively for your mobile device.

Most impressively, Monzo puts budgeting and savings on autopilot. With its intuitive tools, you can easily track and adjust your spending. Plus, with Savings Pots, you can automatically roll over spare change and create various Pots for whatever you’re saving for.

Of course, one glaring weakness of Monzo US is its lack of an APY associated with the account. This might make it a tough sell, but Monzo assures that interest will be available stateside soon.

Products

  • Monzo Bank Account

Features

  • No monthly fees
  • Seamless mobile banking
  • Intuitive budgeting tools
  • Savings Pots

10. Ally

Founded in 2019, Ally Bank is a full-service digital bank with minimal fees and competitive interest rates on its deposit accounts. With Ally, you can choose various accounts, including checking, savings, money market, and CDs.

Its savings is a high-yield account, with a 2.75% APY and unlimited deposits. Within your savings account, you can create up to 10 buckets for various savings goals while still earning interest on the total amount you have saved.

Ally’s checking accounts come with a free debit card that you can use to withdraw money without fees from any AllPoint ATMs. An added perk is that it is an interest checking account, earning 0.10% APY on balances from $0–$15,000 and 0.25% APY on balances over $15,000.

Ally’s accounts have no minimum account balance requirements, overdraft fees, or monthly maintenance fees. Accountholders also have 24/7 customer support via online chat, phone, email, or snail mail.

While Ally’s mobile app only has a score of 3.9 in the Google Play store, it has a much higher rating of 4.7 in the App store.

Products:

  • Ally Checking
  • Ally Savings
  • Ally Money Market
  • High Yield CD
  • Raise Your Rate CD
  • No Penalty CD
  • IRA High Yield CD
  • IRA Raise Your Rate CD
  • IRA Online Savings

Features:

  • No monthly fees
  • No balance requirements
  • No overdraft fees
  • 24/7 customer support
  • 43,000+ fee-free AllPoint ATMs across the U.S.
  • FDIC insured
  • Remote check deposit

11. Sofi

Launched in early 2022, Sofi Bank has one digital banking product—Sofi’s Checking and Savings—which comes with popular features such as zero maintenance fees, a high-interest rate, and access to over 55,000+ fee-free AllPoint ATMs with your linked debit card.

When you open an account, you get both a checking and a savings account. With your savings, you can set up “Vaults” with specific savings goals, and save your spare change with Roundups.

You can earn 3.25% APY (13x the national average) on your savings account with direct deposit and your Vault balances. You can also earn bonus cash—between $50 and $250—when you initially set up direct deposit. SoFi offers account holders “early” direct deposit, where you can get your paycheck up to two days early.

If you want direct deposit through your checking account instead, you’ll earn 2.50% APY. Without direct deposit, each account will earn 1.20% APY. There is no minimum balance required to earn interest, and no minimum amount required for direct deposit.

You can access your accounts with SoFi’s user-friendly app, where you can set up bill pay, locate nearby in-network ATMs, send money, and make mobile deposits.

Products:

  • Sofi Checking and Savings

Features:

  • No overdraft fees
  • No minimum balance fees
  • No monthly fees
  • Earn up to 3.25% APY
  • 55,000+ fee-free Allpoint Network ATMs
  • Earn up to $250 when you set up direct deposit (no minimum amount required)

12. NBKC

Founded in Kansas City in 1999, NBKC offers one account called the Everything Account, which combines the features of a checking and savings account. The Everything Account earns 1.26% APY, and there is no minimum balance required to open an account. (There is a $0.01 minimum balance required to start earning interest).

NBKC’s Everything Account has no monthly maintenance fees, overdraft fees, or fees for stopped payments. Account holders can access their money with 37,000+ MoneyPass ATMs. A unique feature of NBKC is that you can be reimbursed up to $12 per month for out-of-network ATM fees.

With NBKC’s mobile app, you can check your balance, manage transfers, view statements, and make mobile deposits. The app seems easy to navigate, with a 4.2 rating on Google Play and a 4.5 rating on the App Store.

Products:

  • The NBKC Everything Account

Features:

  • 1.26% APY
  • No minimum balance to open an account
  • No overdraft fees
  • No monthly maintenance fees
  • Up to $12 monthly ATM fee reimbursement

Frequently Asked Questions

What is digital banking?

As the name suggests, with digital banking, all of your financial services are handled, well, digitally. From deposits to account monitoring to customer service, you rely on tools that exist entirely online.

How do digital banks work?

Mostly, they work in the same way as traditional banks. But, in many ways, they work better. The biggest difference is the lack of physical branches. You might miss it if you prefer in-person support, but otherwise, the adjustment is fairly seamless.

Which is the biggest digital bank?

Ally Bank is by far the biggest digital bank. In fact, it’s one of the biggest banks in the US, period. Though it’s not included it in this list, rest assured that it’s still an excellent option for digital banking.

Which Digital Bank is Best For You?

So, now that you know a little more about the top digital banks, you should be a little closer to finding the right one for you.

Fortunately, it’s almost always incredibly easy to sign up with any digital bank. You can handle the whole process online, and it rarely takes more than a few minutes (assuming you have all your information ready).

No matter which option you go with, make sure that the bank you chose is working for you and not the other way around.

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