Mobile banking is the future of banking as we continue to move more of our lives to a smartphone, tablet, or smart watch. A recent survey found that 27% of millennials & 20% of Gen Xers completely rely on mobile banking to manage their savings. Online banks have several advantages including higher interest rates and low fees. If you want to move your money online, these are the best mobile banks of 2018 for all of your savings and checking needs.
Many online banks have been increasing their interest rates in recent months. If you’re still only earning a basic interest rate of 0.10% at best, online savers are going to be earning even more than in years past. If you want to start earning real interest from your bank, consider switching to one of these online banks immediately!
Savings Interest Rate: 1.35%
Checking Interest Rate: 0.10% on balances less than $15,000 and 0.60% with at least $15,000.
Ally Bank always has one of the highest interest rates and also happens to be one of the best mobile banks. Their debit card gives you access to 43,000+ fee-free Allpoint ATMs. If you are charged an ATM fee, they will reimburse up to $10 each statement cycle.
Regarding Ally’s mobile app, you can transfer money to nearly any e-mail address or mobile number with their popMoney feature. Or, you can also do free online bill pay.
Finally, if you like digital wallets, Ally Bank is compatible with Apple Pay, Samsung Pay, Android Pay, and MasterCard’s masterpass.
Savings Interest Rate: 1.40%
Checking Interest Rate: Earn up to $30 per month on first $3,000 in monthly debit card purchases
Discover Bank also has a consistently high-interest rate (not just a teaser rate other mobile banks) for their savings accounts.
They have a unique twist regarding their checking account. For many people, they will probably earn more money this way than with a traditional interest-bearing account. Discover gives you 1% cashback on the first $3,000 in monthly debit card purchases. They used to offer $0.10 back per check you wrote, but since plastic is now the preferred payment method of most merchants, Discover readjusted their checking rewards in 2017 to keep up with the times.
You also have access to 60,000 fee-free ATMs across the nation.
Related Article: If you are focused on building your credit, Discover also offers one of the best secured credit cards!
Capital One 360
Savings Interest Rate: 1.00%
Checking Interest Rate: 0.20% on deposits $0-$49,999.99
Capital One 360 doesn’t have the highest interest rates, but, it’s one of the oldest online banks with an easy-to-use mobile app. You have access to 40,000 Allpoint & Capital One ATMs fee-free.
One advantage of going with Capital One 360 instead of the other recommended mobile banks is that they have physical branches. As you still might need to visit an actual bank branch periodically, the slightly lower interest rate can be well worth the tradeoff.
Savings Interest Rate: .01% + plus 10% spending roundups
Checking (Spending Account) Interest Rate: Spending roundup & rewards
Chime Bank has a unique rewards program that is similar that offered by Discover Bank. Each time you use your Chime Visa debit card, they will round up the spending amount to the nearest dollar and deposit the difference in your savings account. Each Friday, Chime will award you a 10% cash bonus on these spending rewards. You can earn up to $500 per year through the roundups and cash bonus rewards.
You can also earn cash rewards at select retailers when you use your Chime debit card. Once again, it’s possible to earn more from your spending habits than from traditional banking account interest rates.
Chime also lets you access your direct deposit paycheck two days early!
In all, you have access to 24,000 fee-free ATMs and can find them with the in-app ATM finder.
Is Mobile Banking a Good Idea?
Mobile banking helps you avoid surprise banking fees and earn a high-interest rate (or cash rewards). It still might be a good idea to keep a small amount of money at a local credit union (also fee-free), but keeping most of your cash at one of the best mobile banks will maximize your earning power.
Plus, it can be a great way to stash away the extra cash you earn from weekend side hustles.
Want to earn more money than a mobile bank?
Another advantage of using mobile banks is they allow you to setup free monthly withdrawals to invest your money to boost your savings even more.
Two actions you should consider taking today is switching to one of the mobile banks above and start investing now to boost your earnings power.