It's Time to Ditch Your Old Bank Account -- These Online Banks Offer High Rates and No Fees
KEY POINTS
- Online banks can earn you 10 times the national average APY on your savings.
- There's no reason to still be paying a monthly fee to your bank.
- Have 24/7 access to your money and mobile banking.
If you opened a bank account around the time you got your first job and haven't really thought about it again, you're not alone. But you're likely leaving hundreds or even thousands of dollars on the table.
Many big banks offer rock-bottom interest rates on savings accounts -- the national average savings account rate is only 0.41% -- while charging monthly maintenance fees and requiring high minimum balances.
The good news is that online banks are shaking things up with high-yield savings accounts that earn 10x the national average APY, have no hidden fees, and are easy-to-use digital platforms.
If you're ready to make your money work harder for you, here's why switching to an online bank is a smart move.
Why online banks are a better deal
Online banks don't have the overhead costs of brick-and-mortar locations, allowing them to pass those savings on to customers. That means higher interest rates, fewer fees, and better perks.
Here's what makes online banks stand out:
- High-yield savings accounts -- Many online banks offer APYs of 4.00% or higher, about 10x the national average of 0.41%.
- No monthly fees -- No more paying $10-$15 a month just to keep your money in the bank.
- No minimum balance requirements -- Traditional banks often require you to maintain a high balance to avoid fees. Online banks don't.
- 24/7 access and mobile banking -- With robust apps and online tools, you can manage your money anytime, anywhere.
If you're thinking about making the switch, here are some of the best online banks currently offering top-tier rates and no fees:
Our Picks for the Best High-Yield Savings Accounts of 2025
| Product | APY | Min. to Earn | |
 American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of February 15, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. | 3.80% Rate info 3.80% annual percentage yield as of February 15, 2025. Terms apply. | $0 | Open Account for American Express® High Yield Savings On American Express's Secure Website. |
 Capital One 360 Performance Savings Member FDIC. APY 3.70% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. | 3.70% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening. | $0 | Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. |
 Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.30% Rate info The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. | 4.30% Rate info The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. | $500 to open, $0.01 for max APY | Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. |
How to make the switch
Switching banks is easier than you think. Follow these simple steps:
- Open your new online account. Pick the online bank that best suits your needs and apply online. Approval usually takes just minutes.
- Transfer your money. Move your funds to your new account, but keep your old account open until all transactions clear.
- Update direct deposits and bills. Make sure your paycheck, subscriptions, and bill payments are linked to your new account.
- Close your old account. Once everything is switched over, contact your old bank and officially close your account to avoid lingering fees.
Make the switch today
Sticking with a traditional bank is likely costing you money in low interest and unnecessary fees. Online banks offer better rates, fewer fees, and more convenience -- all without sacrificing security.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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