Online Banks: Digital Banking Services

Digital banking is taking over traditional in-person banking. Discover a list of the best online banks today.

Online Banks: Digital Banking Services

banking
Digital banking is becoming more and more popular. Discover online banks offering personal banking services and manage your finances anywhere.
Axos Bank offers online personal and business banking solutions like checking and savings accounts and lending services like personal loans.
Review traditional banks and other financial institutions offering personal banking services like savings and deposit accounts.
Traditional banks aren't for everyone. Chime offers simple money management, no hidden fees, secure credit building and online banking.

What is Digital Banking?

Not too long ago, making a bank transfer involved going into a physical bank branch, talking to a teller, and providing them with the instructions to process the transaction.

Today, money transfers typically involve a few clicks on a mobile app to initiate. The same goes for checking your account balance, making a payment, and putting money in a savings account – all thanks to digital banking.

Digital banking is the digitization of traditional banking services previously only carried out in bank branches.

As much of what we do on a day-to-day basis is moving online, so has banking.

Online banking and mobile banking – both forms of digital banking – allow customers to manage their money on-the-go and 24/7.

Moreover, digital banking services are typically cheaper because they incur lower overheads for the bank. As a result, there are even several no-fee online bank accounts.

A drawback of online-only banking is the lack of in-person contact, which can become an issue when you need to resolve urgent matters. While all online banks provide digital customer support, it often takes longer than if you were to walk into a bank and speak to a teller in person.

Additionally, cash deposits can be difficult at times as not all digital banks work with ATM networks to provide this service.

For many upwardly-mobile, smartphone-savvy individuals, digital banks have become the go-to option. After all, why should banking still involve walking into a branch in 2020?

Online Banks

Below you will find ten of the most reputable and longest-standing online banks that you can use to bank digitally today. 

Chime Bank Logo
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Chime

Traditional banks aren’t for everyone. Chime offers simple money management, no hidden fees, secure credit building and online banking.
Aspiration Logo Tagline
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Aspiration

Aspiration offers socially-conscious and sustainable cash management services and investment products, so you can make money while making the world a better place.
Axos Bank logo
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Axos Bank

Axos Bank offers online personal and business banking solutions like checking and savings accounts and lending services like personal loans.
MoneyLion Logo
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MoneyLion

Learn more about the MoneyLion app to handle your online banking needs, from investing and direct deposits to rebuilding your credit score.

The Rise of Digital Banks

The first online banks appeared in the late nineties when the internet went mainstream. But it wasn’t until after the Global Financial Crisis in 2008 that digital banking really took its footing in the financial services landscape.

Online banks – also known as challenger banks, neo banks, or digital banks – emerged in numbers following the 2008 financial crisis when the broad population was disgruntled with large financial institutions, looking for alternatives.

Moreover, the digitization of “everything” continues at a faster pace than before, with smartphones and social media usage becoming the norm for most Americans. This has also helped to drive more people towards mobile banking.

Today, over a third of Americans use mobile banking, with 69.3% of millennials conducting their banking via their smartphones, according to data by Statista.

Top Digital Banks

Now, let’s look at each digital bank in more detail to highlight what they offer their customers. 

Axos Bank

Axos Bank logo

Axos Bank is an online-only bank that stands out for offering a wide range of financial products and services, from a zero-fee checking account and a high yield savings account to personal loans and home mortgages.

Products and services:

  • Checking Account
  • High-Yield Savings Account
  • CDs
  • Money Market Accounts

Aspiration

Aspiration Logo Tagline

Aspiration creates an ethical banking experience for its users by providing a range of socially-responsible features that banks typically don’t offer. For example, the green bank donates ten cents of every dollar it makes to social impact initiatives and does not fund fossil fuel projects.

Products and services:

  • Cash Management Account
  • Planet-Friendly Debit Card

Ally Bank

Ally Bank

Ally Bank is one of the longest-standing and most reputable online banks in the US. It offers a checking account and an array of savings products, ranging from certificates of deposits (CDs) to money market accounts.

Products and services:

  • Checking Account
  • Savings Account
  • Personal Loans
  • Mortgages
  • Cashback on Debit Card Purchases
  • Money Market Account
  • CDs

Bank5 Connect

Bank5 Connect Logo

Bank5 Connect is a digital bank that offers attractive yields to savers through its array of savings products, including high-interest savings accounts and certificates of deposit.

Products and services:

  • Checking Account
  • Savings Account
  • CDs

Capital One Bank

Capital One Bank is the digital banking arm of the financial conglomerate Capital One Financial. The online bank offers checking and savings accounts, business accounts, and bank accounts for children, plus an array of savings products.

Products and services:

  • Checking Account
  • Savings Account
  • Business Account
  • Custodial Account
  • Money Market Account
  • CDs
  • Auto Loans

Chime

Chime Bank Logo

Chime is a user-friendly, online-only bank that provides essential banking services in the form of a checking and savings account with no hidden fees.

Products and services:

  • Checking Account
  • Savings Account

Marcus

Marcus by Goldman Sachs

Marcus by Goldman Sachs is an online bank that currently only provides fixed-rate, no fee personal loans from $3,500 to $30,000 to its customers.

Products and services:

  • Personal Loans

Radius Bank

Radius Bank Logo

Radius Bank is a one-stop-shop for all your digital banking needs, from checking accounts and credit cards to business banking and student loans.

Products and services:

  • Checking Account
  • Savings Account
  • Business Accounts
  • Credit Cards
  • Student Loans
  • Personal Loans
  • Specialty Loans

Simple

Simple

BBVA-owned Simple is a leading digital bank that provides essential banking services plus digital money management and budgeting tools.

Products and services:

  • Checking Account
  • Savings Goals Account
  • In-App Budgeting Tools

Varo

Varo Bank Logo

Varo is a branchless bank that provides zero-fee checking and savings accounts, and automatic savings tools.

Products and services:

  • Checking Account
  • Savings Account

Should You Bank Digitally?

If you are looking for basic banking services, such as a checking account, debit card, and savings products, there is really no reason to walk into a physical bank branch. Any of the online banks listed above provide the essential financial services you require on a day-to-day basis.

What’s more, if you are already glued to your smartphone and manage much of your life digitally, switching to a digital bank just makes sense.

However, if you require very specific financial services, such as remortgaging your home or applying for a car loan, you may still need to go to a large bank that provides a broader range of services than a digital-only bank.

With the broad choice of available banking options, it’s important to weigh out the pros and cons of each bank before opening an account. Check what products and services they offer to ensure that they will meet your specific banking needs.

What's Next?

If you are still banking in person at your nearest high street branch but you want to start banking digitally, check out banks that offer digital banking services.

Start Banking Digitally

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