The 2 best online banks are fee-free, easy to use, and help you earn way more on your money

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Ally has been ranked the best online bank by personal-finance magazine Kiplinger for the second year in a row.
Ally is known for its no-fee, no minimum balance high-yield savings accounts, money-market accounts, and CDs. You can also invest in mutual funds, ETFs, stocks, and bonds through Ally.
Runner-up Capital One 360 offers a competitive rate on its interest-bearing checking account and a 2% APY on money-market accounts with a balance of $10,000 or more, as well as the convenience of physical bank branches.
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There’s no better time to be banking online.

For the second year, Ally has been ranked the best online bank by personal-finance magazine Kiplinger. Capital One 360, Capital One’s online arm, was the runner-up. Ally was also named the top bank for a "no-fee, no-fuss" experience for customers in their 20s and 30s, following up its best bank for millennials trophy in 2018.

Both Ally and Capital One offer a suite of attractive savings and investment accounts that help customers earn more on their money with no monthly fees and, in Ally’s case, low minimum balance requirements. Plus, their websites and accompanying mobile apps are easy to use, giving customers access to their accounts anytime, anywhere.

A stand-out favorite among super savers and financial planners alike, Ally’s high-yield savings account earns a 2.10% annual percentage rate (APY) on as little as $1. Ally’s money-market account earns 0.9% on balances under $25,000, while its interest-bearing checking account earns 0.1% APY for balances below $15,000 and 0.6% for higher balances.

Ally’s high-yield CD earns even more — the 1-year term CD currently touts a 2.55% APY and the 5-year CD has a 2.85% APY on all balance tiers. A CD, or certificate of deposit, is a type of savings account with a fixed interest rate and term ranging from three months to five years. You typically can’t access the money without penalty until the term is up, but Ally also offers a no penalty CD and a "raise your rate" 2-year or 4-year CD, with a 2.50% starting APY and the opportunity to increase your rate during the term.

You can also invest in mutual funds, ETFs, stocks, and bonds through Ally’s self-directed trading option or a professionally managed portfolio with a minimum initial deposit of $100.

The online-only bank operates no brick-and-mortars, but that’s not a problem. Savings account customers can make withdrawals for free from 43,000 in-network ATMS around the US, and Ally reimburses up to $10 in ATM fees per statement cycle for an out-of-network ATMs. You can also link your Ally account to five digital payment apps, including Apple Pay and Google Pay. The only thing you can’t do is deposit cash.

Runner-up Capital One offers a solid checking account, earning 0.2% on balances below $50,000 and 0.75% on balances up to $100,000, and a savings account earning 1% on all balance tiers. The bank also has competitive offerings in the high-yield savings realm, but the best rates require higher balances. For Capital One’s money-market account, you need at least $10,000 to earn the 2% APY; any balance under $10,000 earns 0.85%.

Capital One offers the best of both worlds — virtual and otherwise. The bank has an easy-to-use website and mobile app and about 500 physical branches around the US, plus more than two dozen Capital One Cafés, where customers can deposit and withdraw cash, grab a cup of coffee, sit on a couch, and, if they want, get coached through their money problems by professionals for free.

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