No one likes going to the bank, and it makes sense. In today’s world we are all about instant gratification, and if anything takes more than 15 minutes it’s usually a waste of our time. This has transcended into the banking industry, where online banking, using ATMs, and remotely depositing checks from your phone is becoming more commonplace. Convenience, however, is not the only reason why people are moving to online banking. Traditional banks typically have minimum account requirements, charge fees for accounts, and offer very low interest rates.
A lot of these additional fees are tied to overhead costs for running a branch, paying employees to come in everyday, and security for the location. Online banking, on the other hand, eliminates many of these overhead costs, so many of them can offer better perks and benefits than you would get at your traditional branch.
Here are 5 companies with the best online banking.
Coming in at number 5 is EverBank. EverBank offers competitive APY on it’s savings account at 1.1%, which is astounding considering the nation’s average on savings accounts is a paltry .6%. Other than that, there are no upfront fees, no monthly fees, and no ATM fees. EverBank even goes as far as to reimburse their customers if they incur ATM fees from other banking institutions if you can maintain a $5,000 balance.
The downside to EverBank is that their minimum deposit to start an account is $15,000 which is fairly high considering the average annual salary of most millennials is only $37,000.
Something that these online banks can offer that traditional branches often can’t is 24/7 customer service. Bank of Internet USA is no exception to this fact. Along with it’s good customer service, it also offers competitive APY on their savings accounts at .6%. There are no fees associated with having a checking account, and the minimum to start up one is $500, which is much more manageable than EverBank.
Bank of Internet USA also offers unlimited ATM reimbursements, and cash back reward perks.
Though many millennials don’t invest in CDs or stocks, it’s a good idea so that you can make your money work for you. Many times because of inflation, our money is actually losing value over time as it sits in the bank, especially if you have a low APY, or annual percentage yield.
Discover offers some of the highest rates for CDs at 1.15% which will yield you more money for the longer you have it in the account. It’s savings account interest is also very good at .95%.
Bank5 is number two on the list because they offer something that many other online banks don’t, which is a competitive interest rate on checking accounts. Typically checking account interest is very low because you can withdraw that money at any time, however with Bank5, the APY is .76%. This is especially amazing because many banks offer lower APY on their savings accounts, which means opening a checking account with Bank5 may be better than storing your money at a major branch.
Their customer service is also pretty good, and although they don’t provide 24/7 phone support, do have an online chat feature so you can contact customer support at any time. Lastly, they offer $15 per month in ATM reimbursements.
Ally Bank offers competitive interest rates on their savings and checking accounts as well as CDs at 1.0%, .10% and 1.05% respectively. But what Ally Bank specifically excels in is customer service.
For many people switching to online banking comes with its own anxieties. The thing about Ally Bank is that they alleviate fears of online banking because you can literally contact them 24/7 through phone, app, or live chat. Being able to connect to your bank at anytime, any place is not an experience most banking customers have felt.