The Best Online Bank Accounts
The Best Online Bank Accounts
I have been in the market to maximize and simply my banking needs. In the process I have discovered two of the best online bank accounts to date. Since there were a lot to choose from, I have narrowed the choices down to two. They are both very competitive but they also have their differences. If you are in the market to find a bank that rewards you for your money, look no further.
SoFi Bank
Social Finance also known as SoFi was founded in 2011. Their mission is to help people reach financial independence and their ambitions, which aligns with my purpose for my blog. This way, your money can work for you.
So what does SoFi have to offer?
The most redeeming quality of SoFi is that they offer a 4.60% APY to date. This is significantly higher than any brick-and-mortar bank. There are no minimum balances or fees associated with SoFi bank, including overdraft protection.
SoFi bank allows you to get paid up to 2 days early if you are enrolled in direct deposit. You can also get 0.50% APY on funds in your checking account.
SoFi has 55,000+ fee-free ATMs worldwide. If you still use checks, SoFi also offers personal checks at no additional cost.
SoFi offers FDIC insurance up to $250,000 but you can extend that to 2 million dollars by enrolling in their ensured deposit program at no additional cost.
At the time of this publishing, SoFi is offering a $300 bonus for new account holders.
Discover Bank
Discover was founded in 1985. Their mission is to help people spend smarter and save more.
What does Discover have to offer?
Discover bank offers a 4.25% APY to date for their savings account. With their checking account, you get 1% cash back on debit card purchases.
Similar to SoFi, there are no minimum balances or fees and you also get paid up to 2 days early with early pay. You can deposit cash into your account at any Walmart store. Discover is one of the few online banks that actually allows you to deposit cash.
You can also get personal checks and certified checks at no additional cost.
If you need to withdraw cash, Discover has 60,000+ fee-free ATMs.
Comparisons
So, both banks seem great, right? Well let’s consider the differences that can make or break your choice.
During the publishing of this post, SoFi does not have Zelle but it is being implemented soon. Zelle aside, another important thing to note is that you need to have direct deposit setup through your employer with a minimum of $1,000 every 30 days in order to qualify for their highest APY. The checking and savings account for SoFi are also connected. You cannot open one without automatically opening the other.
Discover has a lower APY than SoFi, but it is not a significant difference. Unlike many other online banks, Discover allows you to deposit cash into your account at any Walmart store. Discover also offers money markets and CDs, which SoFi does not. When it comes to needing support, Discover has a 100% U.S. based customer service department. Discover unfortunately does not have a new account holder bonus.
Gone are the days where banking needs to be one-sided. You can now have banking available at your fingertips, the modern way. Invest (pun not intended) in a bank that values your money and rewards you for it! As with anything do your own research and do what works best for you, your lifestyle, and your finances.
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