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Online banks and banking apps

Often fewer fees and higher rates; check who holds your money.

5 min read

Online-only banks save on branches and often pass that on through fewer fees and higher savings rates. Many money apps aren't banks at all, but partner with one.

Before you open an account

  • Find out which bank actually holds your deposits, and confirm it's FDIC insured
  • Check how you can deposit cash, if you need to
  • Check customer service hours and how to reach a person
  • Read the fee schedule, like any bank

Good to know

Some apps hold your money with partner banks through arrangements that can make it harder to access your money if the app runs into trouble. Keeping your main savings directly at an insured bank or credit union is the simplest protection.

General educational information, not financial advice. Rates and fees change; check with your bank or credit union. Nickel Savings isn't paid by any bank or financial company.