Online banks have many advantages because they don’t have the costs of maintaining physical branch locations.
The best online banks offer all of the services as traditional physical banks with better savings rates accounts and lower interest rates on credit cards and loans.
If you value convenience and simplicity, keeping both a checking and savings accounts at the same bank can be a good option. Here are the best combined monthly free checking and savings accounts:
1. BBVA Online Checking – Best Online Banking App
BBVA Bank features an award wining banking app honored 6 years in a row for its ease of use. BBVA's Online Checking Account requires a minimum of $25 deposit to open. BBVA Bank operates brick-and-mortar branches in 7 states (Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas) and is among the 25 largest banks based on commercial deposits.
Account Details
- No monthly Service Charge
- No ATM fees nationwide at more than 64,000 AllPoint, participating 7-Eleven and BBVA USA ATMs
- Online Banking and Mobile Banking, plus Mobile Deposit and Bill Pay
- Easily keep track of your purchases and get transaction alerts on the go with BBVA Mobile Banking App
- Earn cash back rewards for everyday debit card purchases with Simple Cash Back℠
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2. CIT Bank – Best Online Bank for a Checking and Savings Account Rates
CIT Bank offers an interest earning checking account along with a high-rate savings account. It's not uncommon for people to have a checking and savings account at different banks. Considering the national savings rate is 0.05% it can be an advantage to have separate banks for daily transactions and savings account.
CIT eChecking Account Details – Earn up to 0.25% APY
- Pays 0.10% APY on balances under $25,000
- Pays 0.25% APY on balances of $25,000 or more
- No monthly maintenance charges
- $100 minimum to open
- Remote check deposit
- Debit card for spending and cash withdrawals
- CIT Bank does not charge fees for using ATMs
- Up to $15 per month in ATM fee rebates (up to $30 for statement cycles ending between April 15, 2020, and July 15, 2020)
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CIT Savings Builder Account Details – Earn 0.50% APY
- $100 minimum to open
- No monthly maintenance charges
- To earn the highest APY in this account, you must meet one of the following requirements: Deposit at least $100 per month
- Easily keep track of your purchases and get transaction alerts on the go with BBVA Mobile Banking App
- Earn cash back rewards for everyday debit card purchases with Simple Cash Back℠
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This bank is on the list because they consistently offer higher interest rates than the national average of 0.05% APY.
Benefits to having both a checking and savings account at the same bank
If you value convenience, simplicity, and maximizing interest rates online banks often offer benefits to combing checking and savings accounts that include:
Convenience and Simplicity:
- One-stop shop: Manage all your finances in one place, with a single login and app to track.
- Easy transfers: Quickly move money between your accounts, often instantly and without fees. This is helpful for saving leftover funds or covering unexpected expenses.
- Streamlined statements: Review your financial activity at a glance with combined statements.
Financial Benefits:
- Combined balance benefits: Some banks offer perks for maintaining a minimum combined balance across your accounts. This could mean lower fees or higher interest rates.
- Easier overdraft protection: Link your savings account to your checking account for automatic overdraft protection, avoiding costly fees.
- Relationship benefits: As a loyal customer with multiple accounts, you might qualify for special offers or preferential treatment.
Beyond the Basics:
- Goal-oriented savings: Many banks allow you to create sub-savings accounts, like saving vaults, within your main savings account to separate funds for different goals (e.g., vacation, down payment, emergency fund).
- Integrated budgeting tools: Some banks offer budgeting tools that link to both your checking and savings accounts, providing a comprehensive view of your finances.
The best online banks offer better interest rates
Some of the largest brick and mortar banks like Bank of America and Chase offer savings accounts that earn only 0.03% APY. That's not even the national average savings rate of 0.45%. Compare that to some of the best online banks that 4.00% APY or more.
A few percentage points difference might not sound like much, but the larger your balance, the more it matters. A balance of $10,000 deposited for a year at 0.03% will earn $3 compared to a 5.00 APY%, that earns $500.
What features to look for in online banks
When choosing an online bank there are certain banking features that will make banking much easier. Here are a few of those features:
Free ATM access. Online banks will be part of an ATM network, like Allpoint or MoneyPass, with thousands of fee-free machines nationwide. If you need to withdraw cash from a non-network machine, some online banks will also reimburse any fees the ATM owner charges.
Ability to Deposit Cash. Some online banks offer the ability to deposit cash at retail locations like Walmart, grocery stores or convenience stores. There will likely be a fee for that service but for individuals that need it, the service is available.
U.S.-based Customer Service. Online banking means you can access your bank accounts and 24 hours a day, seven days a week from your computer or mobile device. But you also want access to a live representative, U.S.-based customer service when needed.
Cutting edge website and app. With an online bank, your primary interactions will take place via the bank’s website and its mobile app. Online customers need to easily perform seamless money transfers and bill pay. If you're the type of banking customer that enjoys built-in financial advice and budgeting platforms, there are many online banks that offer those feature. Some of the best mobile apps allow you to track accounts from different financial institutions.
Skip the fees. Choose a bank account that will charge you no monthly fees. This might depend on your behavior — maintaining a minimum balance, for instance, or linking the account to another account — but you can often avoid fees with the right bank.
Earn higher interest. Online banks tend to pay higher rates, so do some comparison shopping to get the best rate you can. The top online savings accounts currently are paying 4.00% APY or higher, compared to a national average savings account rate of 0.45% as of November 2024.
Variety of financial products offered by full-service banks like:
- Money market accounts
- Certificate of Deposit
- Credit cards
- Personal, mortgage, car, and business loans
- Wealth management
- Investment products
Federal Insurance. Most online banks are insured up to $250,000 per depositor by the Federal Deposit Insurance Corporation (FDIC) and credit unions operating online are insured by the National Credit Union Administration (NCUA).
Ways to keep your money safe with online banking
what are the top 5 ways to keep your money safe with online banking
Online banking is generally very safe, but it's still crucial to be vigilant. Here are the top 5 ways to keep your money secure:
Strong & Unique Passwords:
Complexity: Use a mix of uppercase and lowercase letters, numbers, and symbols. Aim for at least 12 characters.
Uniqueness: Never reuse passwords across different accounts, especially your bank!
Password Manager: Consider a reputable password manager to generate and store complex passwords securely.
Enable Two-Factor Authentication (2FA):
Extra Layer: 2FA adds an extra step to verify your identity, usually by sending a code to your phone or another device.
Block Unauthorized Access: Even if someone gets your password, they'll need that second factor to access your account.
Most Banks Offer It: Check your bank's security settings to enable 2FA.
Beware of Phishing Scams:
Suspicious Emails/Texts: Be wary of messages claiming to be from your bank and asking for personal information or login details. Banks will never request this via email or text.
Verify Links: Always double-check website addresses before clicking on links in emails or texts, even if they look official.
Contact Your Bank Directly: If you're unsure about a message, call your bank directly using a known phone number (not the one in the suspicious message).
Secure Your Devices & Network:
Software Updates: Keep your operating system, browser, and antivirus software updated to patch security vulnerabilities.
Secure Wi-Fi: Use a strong password for your home Wi-Fi and avoid using public Wi-Fi for online banking.
Mobile Security: Use a strong passcode or biometric lock on your phone and be cautious about downloading apps from unknown sources.
Monitor Your Accounts Regularly:
Frequent Checks: Review your account activity often, at least weekly, to spot any unauthorized transactions.
Transaction Alerts: Set up alerts for account activity, such as large withdrawals or suspicious login attempts.
Report Suspicious Activity: If you notice anything unusual, contact your bank immediately.
