Best Online Banks For High-Yield Accounts
Online banks offer a different kind of convenience than brick-and-mortar banks. You may not have access to branches, but you can manage your money from anywhere using any device.
Online banks pass the money they save on operating a physical location to their customers in the form of high-yield bank accounts and far fewer fees. And in the age of physical distancing, online banks offer a safer option to bank.
If you’re looking for a new financial institution or just somewhere to open a new account, consider choosing an online bank.
To help make it easier, Bankrate ranked the best online banks in the US.
Radius Bank isn’t the most well-known institution, but it claimed Bankrate’s top spot for the best online banks thanks to its user-friendly banking app, excellent ATM fee returns, high bank account yields, ease of access, and minimum deposit amounts.
Although you can find bank accounts with better interest rates from other banks, Radius Bank still has generous yields — particularly if you have more funds in your account. For savings accounts with a balance of at least $2,500, Radius offers 1.25% AP, while High-Yield Savings Accounts with $25,000 or more get 1.65%. You must deposit at least $100 when you open a new account.
Radius also offers a rewards program for checking account customers — something few banks have. When you use your debit card on qualifying purchases, you’ll earn 1% cashback. Plus, if you have $2,500 or more in your account, you’ll receive 1% APY (more if your account has at least $10,000).
Not only that, but if you use an ATM outside of Radius’s network, you can receive an ATM fee rebate — with no limit to what you can get. Their mobile app also lets you connect other bank accounts to the app so you can easily manage your money from one place.
Like most online banks, Bank5 Connect has excellent rates and low fees. Right now, Bank 5 Connect Savings Accounts have 1.85% APY, though you need to maintain a balance of $100 or more to earn interest. However, there’s only a $10 minimum deposit to open a new account.
Bank5 Connect Checking Accounts come with competitive rates, including 0.76% APY on accounts with $100 or more. Also, when you use your debit card at qualifying retailers and restaurants, you can get rewards. It will also offers rebates (up to $15 per statement) if you use an ATM outside of the Bank5 Connect network.
There are no monthly fees for customers that switch to online notifications and statements. The Bank5 Connect mobile app is intuitive and easy to use. Although it isn’t necessarily innovative, it still offers convenient features like check deposits.
Ally Bank consistently scores high marks on many tier lists for many reasons. It offers all of the financial products and services you want in a bank, including great interest rates, user-friendly mobile banking, and reputable customer service.
While other banks may offer more competitive yields, Ally still provides some of the best APYs of any financial institution. Right now, Ally Saving Accounts have an APY of 1.60%, as well as no maintenance fees or minimum balance restrictions.
Ally Bank offers tiered interest rates on checking accounts, so your returns will vary based on your minimum daily balance. Although the lowest APY is 0.10% — hardly something to write home about — you don’t have to pay any fees to use the account.
Lately, Ally has been updating its mobile app to provide its customers with more tools and better features to help them save.
CIBC Bank USA
What makes CIBC Bank USA a strong contender on Bankrate’s list of the best online banks is its high-yield savings accounts — though it does require a minimum $1,000 deposit when opening a new account.
However, if you open a CIBC Bank USA myChoice Plus checking account, you still get an average return while only needing to initially put down $50.
CIBC Bank USA’s mobile banking app isn’t the most innovative or intuitive, but it offers basic features such as online bill pay and check deposits.
- “The Best Online Banks Of 2020.” Bankrate, www.bankrate.com/banking/best-online-banks/.