AllCards.com

A good checking account is the lifeblood of a personal finance system. It’s where paychecks get deposited and serves as our spending account. In this article we’ll look at some of the best checking accounts available today.

To find the best checking account for your specific needs, consider the following factors:

• Fees
• Mobile check deposit
• Mobile app and website that are easy to use
• Overdraft protection
• Free ATMs

Based on these and other factors, here are my top picks for the best checking accounts.

Online Checking Accounts

I prefer traditional banking for my checking account. But there are several online only options that offer excellent checking accounts. These accounts usually charge no fees, many offer excellent interest rates, and they offer useful mobile apps and tools.

Chime

Chime is one of several Fintech companies that offers an excellent mobile app, Visa debit card, and FDIC-insured checking and savings accounts. It also pays an excellent APY on savings.

Chime Summary

Learn More

• Get paid up to 2 days early with direct deposit
• Track your account balances and daily transactions with the Chime mobile app
• Get daily balance notifications and instant transaction alerts
• Send money instantly to friends
• Chime Visa® Debit Card
• 1.00% APY
• No monthly fees.
• No minimum balance requirements.
• 38,000+ fee-free MoneyPass® and Visa® Plus Alliance ATMs.

Aspiration

Aspiration offers two levels of accounts, one free and one for a small monthly fee. It also pays one of the highest rates on savings and supports our planet with various green initiatives.

Aspiration Summary

Learn More

• Unlimited fee-free ATM withdrawals at Allpoint ATMs
• Up to 10% cash back on debit card purchases
• Deposits are fossil fuel-free
• Plant a tree with every roundup
• Up to 1.00% APY

Simple

Another Fintech banking app, Simple recently increased its interest rate on its savings account. Its checking account is free and comes with a rich set of features.

• Online checking account with Visa debit card
• Mobile check deposit
• Budgeting app
• Transfer money with friends
• Send paper checks
• High-yield savings account

Capital One

Capital One is a hybrid. It’s a traditional brink- and mortar bank that purchased an online bank (ING Direct) many years ago. It rebranded ING Direct to Capital One360. Today, the bank operates as a single entity, so you get the benefits of physical branches and the features of an online bank.

Here are the details of Capital One 360 Checking:

• No monthly fee
• Mobile app
• 40,000 fee-free ATMs
• No minimums
• Online bill pay
• Mobile check deposit

Axos

Axos is an online bank with a wide range of products and features. It offers both personal and business accounts. Here are the details on its personal checking account:

• 4 types of checking accounts:
  • Essential Checking: Basic checking with unlimited ATM fee reimbursements.
  • Rewards Checking: 1.25% APY and no maintenance fees.
  • CashBack Checking: 1.00% cash back on all signature transactions
  • Golden Checking (Age 55+): 0.20% APY on all balances, free personal checks, mo maintenances fees.
• Refer-a-friend bonus

Varo

Our final Fintech option, Varo offers checking and savings accounts with no fees and excellent features. Here are the details:

• Free Visa debit card
• No monthly fees
• Open account online
• Manage money on your smartphone
• Get paid up to two days early with direct deposit
• Lock your card with the mobile app

Traditional Checking Accounts

I prefer to have my checking account at a bank with branches near my home or work (preferably both). They won’t pay much in interest, but you can find checking accounts with minimal fees. And some pay out a nice bonus to new customers.

Here are my top picks:

Citibank

I’ve banked at Citi for three decades. They have branches everywhere, and free ATMs in every 7-Eleven. I’m also a big fan of the Citi Double Cash card.

In terms of checking accounts, here are details:

• Up to $700 signup bonus. Details can be found here.
• No fees for using Citi ATMs and no Citi fees for using non-Citi ATMs
• Earn Citi ThankYou Points
• There is a monthly service fee, but it can be waived with certain banking activity or minimum balances.
• Earn cash by referring friends

Chase

While Chase doesn’t have as many locations as Citi, it’s a great option if branches are available where you live. And its credit cards are some of the best.

• Earn hundreds of dollars in signup bonuses. Get details here.
• Free ATMs at Chase branches.
• A monthly service fee can we waived fairly easily.
• Use the Chase Mobile app to manage accounts, deposit checks and transfer money.

PNC Bank

PNC offers excellent digital tools with its Virtual Wallet. The app brings together accounts for spending, savings and growth.

• Signup bonuses for new customers. Get details here.
• Excellent app–Virtual Wallet
• Track and pay your bills
• Create a budget
• Automate your savings
• Create savings goal

U.S. Bank

U.S. Bank offers several checking packages with signup bonuses.

• Easy Checking account costs just $6.95 a month, and the fee can be waived easily
• U.S. Bank Visa debit card
• Student checking available
• Branches in more than 25 states

The best rates for saving an emergency fund or other short term goals are through online banks. They pay the highest interest with the lowest fees. Here is a regularly updated list of the best online savings account rates offered today.

What follows is an extensive list of the online savings accounts that pay the best rates. I’ve included information on monthly fees and any signup bonuses these banks offer.

December 2020 Online Savings Rates Update

The bad news is that rates continue to fall at many banks. The good news, if you can call it that, is some online banks maintained their rates. True, their rates are in the cellar, but it’s better than watching them go through the floor.

The best online savings rates today come from Fintech banks. Aspiration and Chime both currently pay 1.00% APY, which is one of the highest rates available anywhere.

Best Online Savings Accounts

Chime–Editor’s Pick

Chime combines the best of online banks with the technology of a startup. It pairs an award-winning app and debit card with an FDIC-insured bank. It pays one of the highest APYs available on a savings account. And it does this with virtually no fees and free ATMs.

Chime Summary

Learn More

• Get paid up to 2 days early with direct deposit
• Track your account balances and daily transactions with the Chime mobile app
• Get daily balance notifications and instant transaction alerts
• Send money instantly to friends
• Chime Visa® Debit Card
• 1.00% APY
• No monthly fees.
• No minimum balance requirements.
• 38,000+ fee-free MoneyPass® and Visa® Plus Alliance ATMs.

Aspiration–Best for the Environment

Aspiration is best know for its efforts to save the planet. Among other things, you can plant a tree each time you round-up a purchase. In addition, it offers virtually no-fee banking and a very competitively APY on savings.

Aspiration Summary

Learn More

• Unlimited fee-free ATM withdrawals at Allpoint ATMs
• Up to 10% cash back on debit card purchases
• Deposits are fossil fuel-free
• Plant a tree with every roundup
• Up to 1.00% APY

Vio Bank

• APY: 0.66
• Minimum Deposit: $100
• Compounded: Daily
• Monthly Fee: $0
• Credit Check: Soft pull
• Website: https://www.viobank.com/online-savings-account
• FDIC #: 4063
• About: Vio Bank is the online division of MidFirst Bank, established on February 28, 1911.

HSBC Direct

• APY: 0.30
• Minimum Deposit: $1
• Compounded: Daily
• Monthly Fee: $0
• Website: https://www.hsbcdirect.com/savings/
• FDIC #: 57890
• About: HSBC Direct was established in 2004.

Marcus by Goldman Sachs

• APY: 0.50
• Minimum Deposit: $0
• Compounded: Daily
• Monthly Fee: $0
• Website: https://www.marcus.com/us/en/savings/high-yield-savings
• FDIC #: 33124
• About: Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA, which was established in 1990.

CIT Bank

• APY: 0.45 (Savings Builder Account)
• Requirements: To earn this rate, you must maintain a minimum balance of $25,000 OR make monthly deposits of $100.
• Note: CIT Bank also offers a high-yield savings account currently paying APY.
• Minimum Deposit: $100
• Compounded: Daily
• Monthly Fee: $0
• Website: https://cit.com/cit-bank/bank/savings/savings-builder-account/
• FDIC #: 58978
• About: CIT Bank was established in 2009.

American Express National Bank

• APY: 0.60
• Minimum Deposit: $0
• Compounded: Daily
• Monthly Fee: $0
• Website: https://www.americanexpress.com/personalsavings/home.html
• FDIC #: 27471
• About: American Express National Bank was established in 1989.

Barclays Bank

• APY: 0.45
• Minimum Deposit: $0
• Compounded: Daily
• Monthly Fee: $0
• Website: https://www.banking.barclaysus.com/online-savings.html
• FDIC #: 57203
• About: While Barclays traces its roots back to 1690, the U.S. bank was established in 2001.

Discover Bank

• APY: 0.50
• Minimum Deposit: $0
• Compounded: Daily
• Monthly Fee: $0
• Website: https://www.discover.com/online-banking/savings-account/
• FDIC #: 5649
• About: Discover Bank traces its roots to 1911, then the Greenwood Trust Company. Discover acquired Greenwood in 1985 and changed the name to Discover Bank in 2000.

Ally Bank

• APY: 0.60
• Minimum Deposit: $0
• Compounded: Daily
• Monthly Fee: $0
• Support: 24/7 support via call, chat or email.
• Website: https://www.ally.com/bank/online-savings-account/

Capital One Bank

• APY: 0.40
• Minimum Deposit: $0
• Compounded: Daily
• Monthly Fee: $0
• Website: https://www.capitalone.com/bank/savings-accounts/online-performance-savings-account/
• FDIC #: 33954
• About: Capital One Bank was established in 1994.

Online Savings Account Rate Comparison

FAQs

Internet-only banks have grown in popularity. By offering the best interest rates and no fees, savers have poured billions of dollars into financial institutions with no branches. To help you navigate this new world, we’ve assembled this list of the best online banks for your money.

December 2020 Online Banking Update

The past month saw interests continue to decline. Virtually every online bank in my list reduced rates on savings accounts, certificates of deposit or both. Live Oak Bank, which makes our list of the best CD rates, did increase the APY on its 5-year CD to 1.00%. Small comfort, however, for those of us who have no interest (pun intended) of locking up their money in a CD for 5 years at these rates.

On the bright side, inflation remains at historic lows. According to the latest data from the BLS, prices rose just 1.2% over the past 12 months. Of course, that means we are all losing money on an after-inflation basis in deposit accounts. Nevertheless, online banks still do pay the highest interest rates available.

Best Full-Service Online Banks

These full-service online banks could serve as your only financial institution. In addition to savings and CD accounts, they offer checking accounts and other services that can accommodate most banking needs.

Ally Bank

Ally Bank is arguably the best all-around online bank. It offers every bank account type, auto and home loans, and investing services. It could serve as a place to park your cash for higher rates, which is how we use it, or as your primary bank. Its website and mobile app are very easy to use.

• Account Types: Savings, Checking, Money Market, High-Yield CD, Raise Your Rate CD, No Penalty CD, IRA Savings, IRA CDs
• Savings APY: 0.60
• CD Terms: 3 to 60 months
• Bank Branches: No
• Free ATMs: Yes–Allpoint Network and Ally reimburses up to $10 a month in fees charged by other ATMs.
• Other Financial Services: Home loans, auto loans, investing
• FDIC Certificate No.: 57803
• Free Credit Score: Free FICO score access with auto loan
• Credit Inquiry: Soft pull
• Year Established: 2004
• Other Features: Zelle, bill pay, mobile deposit

CIT Bank

Having opened a savings account at CIT Bank several years ago, I can tell you two things about this financial institution. First, it tends to pay some of the highest rates available on deposit accounts. Second, its website could be better. It was easy to use but not as polished as I would have liked. Still, I go to banks for their rates, not a fancy website.

• Account Types: Savings, Checking, Money Market, Savings Builder, CDs, No Penalty CDs, Jumbo CDS, Rampup CDs
• Savings APY: 0.45
• CD Terms: 12 to 60 months
• Bank Branches: Limited
• Free ATMs: Yes–CIT Bank doesn’t charge ATM fees and reimburses up to $15/month in other bank’s ATM fees.
• Other Financial Services: Home loans
• FDIC Certificate No.: 58978
• Free Credit Score: No
• Credit Inquiry: Soft pull
• Year Established: 2009 as OneWest Bank, FSB, and changed its name to CIT Bank on August 3, 2015.
• Other Features: Zelle, bill pay, mobile deposit

Discover Bank

Best known for its credit cards, Discover Bank also offers a full range of deposit accounts. Its rates are competitive and its fees are low. I’ve also found its website to be easy to navigate.

• Account Types: Checking, Savings, MMA, CDs, IRA CDs
• Savings APY: 0.50
• CD Terms: 3 to 120 months
• Bank Branches: No
• Free ATMs: Yes
• Other Financial Services: Student loans, personal loans, home loans, credit cards
• FDIC Certificate No.: 5649
• Free Credit Score: Yes
• Credit Inquiry: Soft pull
• Year Established: Founded in 1911 as the Greenwood Trust Company, it changed its name to Discover Bank in 2000.
• Other Features: Checking debit pays 1% cashback on up to $3,000 in debit card purchases each month, online bill pay

Capital One Bank

Capital One Bank can easily serve as your full-service bank. It offers all of the accounts most would need, and it even has bank branches in about ten states. Its rates are competitive and its fees are low.

• Account Types: Checking, Savings, Kids Savings, MONEY (Teen checking), CDs, IRA Savings, IRA CDs
• Savings APY: 0.40
• CD Terms: 6 to 60 months
• Bank Branches: Yes
• Free ATMs: Yes
• Other Financial Services: Auto loans, credit cards
• FDIC Certificate No.: 33954
• Free Credit Score: Yes
• Credit Inquiry: Soft pull
• Year Established: 1994
• Other Features: Accounts for children, mobile deposit, online bill pay, overdraft options
• More info: Capital One Bank review

HSBC Direct

While not the most popular bank on the list, it offers one of the highest savings account rates available today.

• Account Types: Checking, Savings, CDs
• Savings APY: 0.30
• CD Terms: 6 to 24 months
• Bank Branches: Yes
• Free ATMs: Yes
• Other Financial Services: N/A
• FDIC Certificate No.: 57890
• Free Credit Score: No
• Credit Inquiry: Soft pull
• Year Established: 2004
• Other Features: Bill pay, mobile check deposit

Best Limited-Service Online Banks

Marcus by Goldman Sachs

When it comes to deposit accounts, Marcus does one thing and does it well–savings accounts. It pays one of the highest APYs available, with no monthly fees.

• Account Types: Savings
• Savings APY: 0.50
• CD Terms: N/A
• Bank Branches: No
• Free ATMs: N/A
• Other Financial Services: Personal loans
• FDIC Certificate No.: 33124
• Free Credit Score: No
• Credit Inquiry: N/A
• Year Established: 1990
• Other Features: Mobile app

American Express Bank

American Express Bank offers limited deposit accounts–Savings and term CDs. As such, it’s not intended to replace your existing bank. It does, however, pay competitive rates.

• Account Types: Savings, CDs
• Savings APY: 0.60
• CD Terms: 6 to 60 months
• Bank Branches: No
• Free ATMs: N/A
• Other Financial Services: Personal loans, credit cards
• FDIC Certificate No.: 35328
• Free Credit Score: No, although available with Amex credit cards.
• Credit Inquiry: N/A
• Year Established: 2000
• Other Features: None

Barclays Bank

Barclays Bank is another alternative for those looking to get a higher rate on savings or CDs. Its rate is competitive among online banks.

• Account Types: Savings, CDs
• Savings APY: 0.45
• CD Terms: 3 to 60 months
• Bank Branches: No
• Free ATMs: N/A
• Other Financial Services: N/A
• FDIC Certificate No.: 57203
• Free Credit Score: No
• Credit Inquiry: N/A
• Year Established: Founded in 2001 as Juniper Bank. Change its name to Barclays Bank in 2006.
• Other Features: Mobile check deposit

Best Fintech Banking Services

Fintech companies have elbowed their way into the banking world over the last few years. These companies partner with an FDIC-insured bank, layering online and mobile apps on top of traditional banking.

Note that most Fintech banks do not pay the highest rates, although generally better than brick and mortar banks. What they do offer are unique tools and user experiences to help consumers manage their money.

Aspiration

Aspiration aims to combine banking and investing with social responsibility. It gives 10% of its profits to charity and offers socially-responsible investing through its Redwood Fund.

• Account Types: Spend & Save Cash Management account
• Savings APY: Up to 1.00
• CD Terms: N/A
• Bank Branches: No
• Free ATMs: Yes, at all Allpoint ATMs
• Other Financial Services: Investing, traditional IRA
• FDIC Insurance: Cash balances in the Aspiration Spend & Save cash management account are eligible for FDIC insurance* by being swept to FDIC Member institutions.
• Free Credit Score: No
• Credit Inquiry: Soft pull
• Year Established: Founded in 2013, opened for business in 2015.
• Other Features: Mobile check deposit, cell phone protection insurance, up to 10% cash back on purchases, bonus rewards for spending at socially-conscious businesses, digital debit card

Chime

Think of Chime as a cash management account. It’s designed to help you budget your money and save for a rainy day. It charges virtually no fees but pays little in the way of interest. For that reason, Chime could serve as a checking account alternative, but not where you want to stash a lot of cash.

• Account Types: Checking, Savings
• Savings APY: 1.00
• CD Terms: N/A
• Bank Branches: No
• Free ATMs: Yes, at all MoneyPass ATMs
• Other Financial Services: None
• FDIC Insurance: Chime accounts are insured up to the standard maximum deposit insurance amount of $250,000 through its partner banks, Stride Bank, N.A. or The Bancorp Bank, Members FDIC.
• Free Credit Score: No
• Credit Inquiry: N/A
• Year Established: 2013
• Other Features: Chip-enabled Visa debit card, fee-free overdraft, mobile banking, get paid up to two days early with direct deposit

Simple

Of the Fintech banks, this is my favorite. It offers checking, savings, and CDs, and pays a competitive interest rate on its savings account. It also comes with excellent tools to budget your money and save for the future.

• Account Types: Checking, Savings, CDs
• Savings APY: Up to 0.60
• CD Terms: 12-month, no penalty for early termination
• Bank Branches: No
• Free ATMs: Yes, at all MoneyPass and Visa Plus Alliance ATMs
• Other Financial Services: None
• FDIC Insurance: Chime accounts are insured up to the standard maximum deposit insurance amount of $250,000 through its partner banks, Stride Bank, N.A. or The Bancorp Bank, Members FDIC.
• Free Credit Score: No
• Credit Inquiry: N/A
• Year Established: 2009
• Other Features: Mobile check deposit, Visa debit card,

Online Banks FAQs

Certificates of Deposits offer a safe way to save money. Whether for an emergency fund, to buy a home or liquidity during retirement, term CDs can also offer higher yields than savings accounts (although not always). Here we cover the best CD rates available nationwide.

December 2020 CD Rate Update

The big question surrounding certificates of deposit is this same this month as it was last month–why would anybody invest in one? The rates are so low, and they declined even more over the last month. Further, you can get comparable rates from online savings account. Perhaps the only argument in favor of a CD is that your rate is locked in should rates go lower. While anything’s possible, lower rates seem unlikely.

That being said, Live Oak Bank continues to top our list with the highest 1-year CD Rate (see below). And it raised the rate of its 5-year CD this past month to a whopping 1.00% APY. You may be able to find a slightly higher rate at small, local banks and credit unions.

Best 1 Year CD Rates

The 1-year CD terms is one of the most popular for savers. Here are some of the best rates available for 12-month terms.

Best CD Rates Overall

CFG Bank

Many have never heard of CFG Bank. Headquartered outside of Baltimore, MD, the bank was founded in 1997 as AmericasBank (FDIC # 34294). CFG is a community bank, meaning it’s locally owned and operated.

CIT Bank is one of our favorites. It tends to offer some of the best rates on deposit accounts, including CDs. In addition to the high-yield CDs below, it also offers Ramp Up CDs, Jumbo CDs, and a no-penalty CD.

BMO Harris Bank

BMO offers competitive yields on CDs. That said, its rates have come down sharply along with other banks over the last month. We’ve also seen a flattening of rates, with terms ranging from 6 to 18 months offering the same rates, and two to four years also offering the same rates.

Ally Bank

Ally offers several types of certificates of deposit: high-yield CDs, Raise Your Rate CDs, and a no-penalty CD. There are no monthly maintenance fees and no minimum deposit requirement. However, the amount of your deposit can affect the interest rate you’ll receive (see rates below)

Marcus by Goldman Sachs

Marcus by Goldman Sachs offers some of the highest yields on CDs available today. In addition to high-yield certificates of deposit, the bank offers a no-penalty CD.

Comenity Direct

Comenity Direct is one bank many have never heard of. A brand of Comenity Capital Bank headquartered in Draper, UT, it was established in 2003 as World Financial Capital Bank. It’s FDIC-insured (Certificate # 57570) and offers some of the best CD yields available in the country.

CD Interest Calculator