5 Best Online Banks 5 Best Online Banks
Although there are many benefits to using online banks, one might still wonder which to turn to. Our list is going to answer exactly... 5 Best Online Banks

Although there are many benefits to using online banks, one might still wonder which to turn to. Our list is going to answer exactly that question and analyze some of the top online banks of 2016. For this article, here are our first 5 candidates, whom we distinguished by looking at their savings account yields, customer service features, fees, one-year certificate of deposit (CD) interest rates, and other features.

1. Ally Bank

best online banks ally bank

For two years in a row, Ally Bank has been the winner of online banking, all due to a great mix of high CD and savings yields, no maintenance fee checking, and great customer service.

In addition to offering a 1.00% APY on their savings accounts and 1.05% APY on a 1-year CD, they also provide a 0.10% APY on their interest checking account (it increases to 0.60% APY for accounts over $15,000). Also, they do not require a minimum to open an account and do not charge maintenance fees for savings or checking accounts.

In addition to their rates, they provide a great customer service with various features such as live online chat, phone support 24/7, and a mobile app. You also will be able to use the Allpoint ATM’s at no cost and get reimbursed for alternative ATM’s fees, up to $10 per statement.

Joining is easy – you simply go to their website and register. They require your date of birth, address, and social security number (age 18 or up).

2. Bank5 Connect

best online banks bank5 connect

Bank5 Connect has competitive rates and does not charge a monthly fee for having a checking account, along with other customer service features.

They offer one of the highest interest rates for checking accounts – 0.76% APY without a monthly fee. But their savings accounts offer a little lower rates at 0.90% APY and require a minimum deposit amount of $100 to earn interest. 1-year CD rates provide a decent 1.00% APY.

Bank5 Connect does not offer 24/7 phone support like others, but they do have other features such as a live chat, remote check deposit, and a mobile app. They do not charge ATM fees and will pay back up to $15 per statement when using other ATMs. You can even earn points with the UChoose Rewards program. Simply use your debit card and redeem points to get various things like vacation packages or gift cards.

It takes about ten minutes to create an account. They will request your address, a valid ID, and a social security number.

3. EverBank

best online banks everbank

When it comes to interest rates on savings accounts, EverBank offers 1.11% APY with their Yield Pledge Money Market account. Although 1-year CD offers a 1.30% APY and a checking account provides 0.95% APY for balances under $10,000, it will last only the first year to become 0.30% APY afterwards.

There is a 24/7 phone support, but no online chat. There are not ATM or monthly maintenance fees, and accounts with $5,000 or more get reimbursed for surcharges by other banks.

To register, simply go to their website and provide your tax ID or social security number and the address.

4. Discover Bank

best online banks discover bank

Discover Bank offers one of the highest 1-year CD rates – 1.15% APY. Savings account rate is 0.95% APY, with a $500 minimum deposit. Their checking accounts do not have maintenance fees and provide cash-back rewards with debit purchasing, online bill payments, and cleared checks.

There is a 24/7 support, a free mobile app, and a remote check deposit. They also offer free ATM withdrawals in 60,000+ locations.

To join, you will be asked to provide personal data such as your address and a social security number.

5. Bank of Internet USA

best online-banks bank of internet usa

With a 1-year CD rate of 0.55% APY and savings rate of 0.61% APY, Bank of Internet USA ranks lower than others on this list, but it still has a higher rate than many traditional banks. They also offer perks with the Rewards Checking option, such as earning up to 1.25% APY when meeting certain conditions.

Other features offered include unlimited ATM reimbursements, a 24/7 phone support, remote check deposit, a mobile app, and cash-back purchasing with rewards.

To sign up, you simply go to their website and enter your personal information, such as valid ID and social security number.

These are just some of the top online banks of 2016. To further help you with this choice, we will be coming back with a review of yet 5 more candidates. Meanwhile, hit up the comments section and tell us which one you think is the best among the best!

[Featured image credit: Rawpixel.com / Shutterstock, image cropped]

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