The 10 Best Online Checking Accounts for Easy Money Management

The unexpected events in the past four years have transformed the financial behavior of people across the globe. The already increasing financial literacy rate has skyrocketed during the pandemic.

The overwhelming hospital bills, mass layoffs, and business shutdowns showed wealth could be depleted in the blink of an eye. This idea was exacerbated in 2022 when inflation accelerated and broke 9% for the first time in many years.

Given all this, it was unsurprising that banks and insurance companies emerged as the winners of the pandemic. As debt levels rose amid interest rate hikes, more people saw the importance of saving and protecting wealth.

Yet, people have started scrutinizing every bank and financial institution after the Silicon Valley Bank Collapse in early 2023.

Opening a bank account today must be done with careful observation to ensure easy money management. Online accounts are now prevalent as the fintech revolution peaks and persists.

So, you may wish to look at what’s offered by various banks, financial institutions, and credit unions. In this article, we will discuss the best online checking accounts for better money management.

Areas of Consideration in Choosing an Online Checking Account

It is essential to consider your financial situation before opening an online checking account. As such, you must compare multiple providers and choose the most cost-efficient account. Aside from payment differences, convenience should be non-negotiable for you. These are some key aspects to weigh.

Interest and incentives

Some online checking accounts do not earn interest, but others bear high interest income. It is more essential today, given the still elevated Fed rates.

Look for accounts that offer a competitive annual percentage yield (APY) for higher money returns. Also, you must ask for other incentives, such as checking account promotions and cashback programs for new and existing clients.

ATM availability

It is essential to have easy access to your checking account. Despite the prevalence of cashless payments, some merchants still stick with cash transactions. So, check the availability of ATMs of every bank on your list. For greater flexibility, choose online banks that can reimburse out-of-network ATM charges.

A survey by MarketWatch shows that over 50% of banking clients prioritize ATM availability when selecting an online bank. Access to bank branches is also considered by 32% of the respondents. In addition, 28% of them check if the bank requires an early direct deposit before accessing the account.

Online banking features

An account with a highly-rated banking app ensures seamless banking transactions. It allows clients to use mobile check deposits, move money, and access financial planning tools. An account or app with an instant transfer feature is more cost-efficient, especially for small businesses.

Banking fees and requirements

Many bank accounts charge maintenance fees every month. On top of those, other hidden charges, such as overdrafts and unspecified miscellaneous fees, may appear. So, you must always check the banking fees and requirements before opening an account in a specific bank. Also, check the required opening deposit and minimum account balance to avoid unnecessary fees in the future.

A recent survey shows that 74% of the respondents prefer a bank with low or no monthly fees.

Meanwhile, 45% see the importance of not having to pay overdraft fees. Lastly, 35% consider the required opening deposit their top consideration.

Security

Data breaches, frauds, and scams are rampant in business and individual banking transactions. It may only take a click on a link in emails and messages on social media to lose money in the wink of an eye.

To ensure security, check app features, especially if you’re a techie client or seek someone else’s expertise to ensure a smooth and secure transaction. Multistep account authentication, encryption, and personal data protection are the basic security measures an account should always have.

In addition, security may refer to the bank’s capacity to keep your savings safe from failures. You must check its liquidity by comparing loans and deposits from its financial information. Also, it must be insured by either the Federal Deposit Insurance Corp. or the National Credit Union Administration.

Typically, a bank or a credit union displays phrases like “FDIC insured,” “member FDIC,” or NCUA on its official website.

Advantages and Disadvantages of Online Checking Accounts

Before getting an online checking account, it is necessary to ask whether it fits your transaction needs and preferences. Your financial capacity must also be taken into consideration. It can be more convenient than traditional banking but has its fair share of inconveniences. These are the advantages and disadvantages of an online checking account.

Advantages	Disadvantages
Online checking accounts are secure and accessible 24/7.	Many online bank providers do not have physical branches, so in-person customer service is not possible. It may become a deal breaker for clients preferring face-to-face assistance or service.
Typically, online checking account providers have well-designed mobile apps and websites for seamless banking transactions, such as check deposits and bill payments.	Many online banks and nonbanks work with various ATM networks for cash deposits. Yet, others only allow direct deposits, mobile check deposits, and e-transfers from other banking accounts.
Online bank providers typically incur lower overhead costs, so they tend to charge lower and fewer fees than traditional banks.	Responses to account problems may take longer than traditional banks.

Ten Best Online Checking Accounts

The table below shows the top ten best online checking accounts.

Ten Best Online Checking Accounts
Provider	APY	Special Offers	Monthly Fees	Best For	Why We Like It
U.S. Bank Smartly Checking Account	N/A	Sign-up bonus of up to $800 (limited time)	$6.95 (can be waived in several ways)	AI Helpdesk	Opening a Smartly checking account with the U.S. Bank guarantees a sign-up bonus of up to $800 until March 12, 2024. It is an FDIC member, so deposits are secured. Additionally, it offers an overdraft fee forgiven program, so clients may avoid or lessen overdraft fees. Lastly, it does not charge ATM fees for transactions in the U.S. Bank ATMs and surcharge fees for transactions at MoneyPass ATMs. However, these perks may not be available for those living outside the U.S. Bank footprint or are not clients of the U.S. Bank or State Farm.
Chase Total Checking Account	N/A	Sign-up bonus up to $300 (limited time)	$12 (can be waived in several ways)	Mobile app access	Opening a total checking account with Chase can give a $300 bonus. This offer is valid until April 17, 2024.
Axos Rewards Checking	3.3%	Sign-up bonus up to $300 (limited time)	$0	High APY, Zero monthly and overdraft fees	Opening a checking account with Axos can give a $300 sign-up bonus using its promo code AXOS300. This offer is valid until June 30, 2024. Clients do not have to worry about maintaining a minimum balance in their accounts due to the absence of non-sufficient fund fees. Even better, it is an FDIC member, which guarantees security in deposits.
American Express Rewards Checking	1.0%	N/A	$0	Stable APY, Access to ATMs	American Express Checking clients can enjoy a 1.0% APY in their accounts. They can also do ATM transactions easily due to over 30,000 fee-free ATMs. Also, customer service is available 24/7. However, it is only available to AmEx credit card customers holding an AmEx U.S. Basic Consumer Credit Card for no less than three months.
Ally Bank Checking Account	0.25%	Overdraft protection, $10 reimbursements	$0	Cross- border transactions	Having an interest checking account in Ally Bank with a minimum balance of $15,000 can give an APY of 1%. Also, checking clients can easily make ATM transactions, given the 43,000 Allpoint ATMs. For times that clients cannot use any of those ATMs, there is a $10 reimbursement for charges on out-of-network ATM transactions every statement cycle. Even better, customer service is available 24/7.
Upgrade Rewards Checking Account	N/A	Cashback of 2% on debit purchases, $500 maximum annual cashback	$0	Cashback programs	Clients do not have to make an opening deposit to open a rewards checking account with Upgrade. They can keep it without worrying about monthly, overdraft, and insufficient balance fees. Most importantly, clients can enjoy a 2% cashback on debit purchases and a 20% discount on Upgrade on loans and credit cards as long they reach a minimum monthly direct deposit of $1,000.
SoFi Checking Account	0.50%	Maximum sign-up bonus of $300 with qualifying direct deposit	$0	Rewards	Opening an account with SoFi can earn a bonus from $50 to $300 depending on the balance in the first 30 days. It is also highly accessible, given the availability of over 50,000 no-fee Allpoint ATMs. But what makes it extra special is the 15% cashback on local retailers. Even better, clients can insure their deposits up to $2M, much higher than the typical FDIC insurance of $250,000 in other banks.
Quontic High Interest	1.1%	Cashback of 1% on qualifying debit card purchases	$0	High APY	A minimum initial deposit of $100 is required to open a high-interest checking account with Quontic. But it promises at least 1.1% APY without having to pay monthly fees. Also, there is a cashback of 1% or a maximum of $500 on qualifying debit card purchases, which is automatically credited into the account at the beginning of each statement cycle.
Alliant Checking Account	0.25%	Maximum reimbursements of $20 per month	$0	Low maintaining balance	Alliant checking account clients have access to 80,000 no-fee ATMs, with some accepting cash deposits. This credit union requires a small minimum balance of only $5. Additionally, $20 is reimbursed monthly for out-of-network ATM transaction fees.
Current Checking and Spending	4.0%	Reward points	$0	Families	Opening a checking account with Current does not require a minimum balance. It also allows teens to have their own accounts as long as they have their parents’ consent, making it a family-friendly account. There is nothing special with rewards as it only earns points for debit card transactions at select retailers. But do clients need rewards when their accounts have an APY of 4.0%? However, cash deposits can be tricky since they will cost clients $3.50 per transaction. Also, making deposits requires clients to go to the cashier of participating retail stores like Walmart and CVS.

Key Takeaway

Opening an online checking account can be exciting today, given the perks and APY. It is also easier and more convenient as online transactions can be done anytime and anywhere.

Yet, it is essential to understand your needs and preferences before getting one. Some checking accounts will either work for you or not, so checking their features and requirements must be done.

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