Best Internet Banks 2024
Internet banks forgo branches in favor of operating fully online. They tend to offer higher yields and lower fees than brick-and-mortar banks, thanks to lower overhead costs.
Best Internet Banks
These banks provide services online. The best internet banks don’t contend with the costs that come with operating branches, so their accounts generally have lower fees and higher yields than those from brick-and-mortar banks.
This is part of Kiplinger Personal Finance Magazine's 2024 best bank for you rankings. See lower down on this page for more categories.
Ally Bank
Why it won: Accounts from Ally Bank have solid yields and no monthly maintenance or overdraft fees.
Standout accounts: Ally’s money market and savings accounts offer a competitive 4.2% yield.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Overview:
Ally Bank’s checking account, which it calls the Spending Account, lets customers earn interest on their cash while avoiding many fees commonly associated with checking accounts, including monthly maintenance fees and overdraft fees. How much interest your account earns depends on your balance. Balances of less than $15,000 yield 0.1%, while balances of $15,000 or more yield 0.25%. Plus, standard checks and incoming wire transfers are fee-free.
Both the Money Market Account (which comes with a debit card and checks) and Savings Account offer a competitive 4.2% yield on all balances. They have no monthly maintenance fees or minimum balance requirements, and they don’t charge fees for overdrafts or incoming wire transfers. An extra benefit that comes with the savings account is the savings buckets tool, which lets account holders organize their savings goals into customizable categories (say, one bucket for a rainy-day fund and another for a vacation). With a separate feature, you can have Ally monitor your checking account for transactions to round up to the nearest dollar; when you accrue at least $5 in round-ups, Ally transfers the money to your savings account.
Ally’s High Yield CDs have no minimum deposit requirement, and rates include 4.5% for a one-year CD, 4% for a three-year CD and 3.9% for a five-year CD.
Axos Bank
Why it won: Axos offers a wide range of specialized checking accounts with great benefits and no monthly fees, including accounts for teenagers and seniors, a cash-back account, and a high-yield option.
Standout accounts: Earn up to 1% back on debit card purchases with CashBack Checking. With Rewards Checking, account holders who meet certain criteria can earn up to 3.3% interest.
Overview:
Axos offers several checking accounts that charge no monthly fee, including the basic Essential Checking, which is completely fee-free. CashBack Checking provides 1% back (earnings are capped at $2,000 per month) on debit card purchases that you verify with your signature rather than entering your PIN, as long as you maintain a $1,500 minimum average daily balance. If your balance is less than $1,500, you earn just 0.5%.
With Rewards Checking, account holders can earn up to 3.3% on deposits, depending on which of five requirements they meet: Receiving monthly direct deposits of at least $1,500 (0.4%); using your Axos debit card 10 times per month or activating Axos’s online Personal Finance Manager tool (0.3%); maintaining an average daily balance of $2,500 per month in an Axos Invest Managed Portfolios Account (0.99%) as well as an Axos Invest Self Directed Trading Account (0.99%); and using your account to make your monthly Axos Bank consumer loan payment (0.6%).
All three of the above-mentioned accounts provide unlimited reimbursement of out-of-network ATM fees.
Golden Checking — available to adults 55 and older — has no fees, provides free personal checks and offers a 0.1% yield on all balances. The free First Checking and First Savings accounts are designed to introduce teenagers to personal finance, allowing parents to manage their teen’s account from their phone.
Earn up to 0.61% with a High Yield Savings account and up to 0.25% with a High Yield Money Market account from Axos. Both accounts have no minimum balance requirements or monthly fees.
EverBank
Why it won: EverBank received high scores for its checking, money market and savings accounts, all of which offer decent yields.
Standout accounts: EverBank Performance℠ Savings offers a competitive yield of 5.05%, with no minimum balance required. The EverBank Performance℠ Money Market account yields 4.05%.
Overview:
In 2023, TIAA Bank transitioned to new ownership and rebranded as EverBank, the name the bank used before TIAA’s acquisition in 2017. EverBank Performance℠ Checking recently had a 0.40% yield, and it has no monthly fee or minimum balance requirement (but the opening deposit must be at least $100). The free EverBank Performance℠ Money Market account offers a 4.05% rate. Both accounts reimburse up to $15 in out-of-network ATM fees each month — or, with a balance of at least $5,000, you get unlimited ATM fee rebates.
Other accounts include EverBank Checking, which has a low minimum opening requirement of just $25, plus zero monthly account fees. EverBank Performance℠ Savings offers a competitive, 5.05% yield on all balances, and it charges no monthly service fees. You can open an EverBank Performance℠ CD with a minimum deposit of $1,000.
Kiplinger's Best Banks
- Best National Banks
- Best Credit Unions
- Best Banks for High-Net-Worth Clients
- Best Banks for Retirees
- Best Banks for Travelers
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.
-
New Apple iPhone Update Helps Protect Your Security
The new Apple iPhone update that hit phones recently helps protect yourself with security fixes.
By Alexandra Svokos Published
-
Stock Market Today: The S&P 500 Reclaims the 6K Level
Investors see Scott Bessent as a safe shepherd of the economy as the president-elect burnishes his "Tariff Man" reputation.
By David Dittman Published
-
Which Stores Offer Price-Matching During the Holidays?
If you’re searching for the best Black Friday deals, price-matching can help you identify the best of the lot. Here are the stores that do price adjustments.
By Sean Jackson Published
-
Earthquake Insurance: Do You Need It? What Does It Cover?
Some homeowners are shocked to find out that their homeowners insurance doesn’t cover earthquake damage. Here's the lowdown on how earthquake insurance works.
By H. Dennis Beaver, Esq. Published
-
Why Your Life Insurance Should Cover More Than Just Death
If you became ill or an injury left you unable to work, how would you cover your expenses? Life insurance with living benefits could be the answer.
By Stefan Greenberg, CFP®, CFS, CLTC Published
-
9 Year-End Money Moves to Make Now
Boost your retirement savings, lower your taxes and get the most out of your health insurance.
By Sandra Block Published
-
Why Does One Claim Jack Up My Insurance After Years of No Claims?
Even loyal customers can be hit with an insurance premium hike after a claim, despite going many years without any claims. There's a reason for that.
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS Published
-
5 FAQs About 529 College Savings Plans
Thanks to recent policy changes, families have more options for what to do with money sitting in tax-advantaged 529 accounts.
By Mallika Mitra Published
-
7 Best Places in the US for Wellness Tourism
California doesn't have a monopoly on wellness tourism. These U.S. retreats offer exercise, relaxation and good food in stunning scenery that might be closer to home.
By Becca van Sambeck Published
-
Here's Why We All Win When Charitable Dollars Go to Women
Giving to charities for women and girls not only has a lasting impact on their lives — it also benefits society as a whole. Here’s how to start investing.
By Elizabeth Droggitis Published