Online Bank

Banking & Credit

An online bank operates exclusively through digital channels — websites, mobile apps, ATM networks — without physical branches. Lower overhead translates to higher savings yields (4-5% APY versus 0.01% at traditional banks), lower fees, and better rates on CDs and money market accounts. Top online banks: Ally, Marcus by Goldman Sachs, Discover Bank, Capital One 360, SoFi. Drawbacks: no branch access for cash deposits, notarization, or face-to-face problem-solving. Best strategy: pair an online bank (savings, CDs, HYSA) with a local credit union or community bank (checking, mortgage, in-person needs). Both should be FDIC/NCUA insured.