3 Reasons to Finally Ditch Your Bank and Open an Online Checking Account Right Now

A few days ago, I was having a conversation with my wife about her checking account. We have some combined accounts, but we each have our own checking accounts as well, and hers is the same one she's had since long before we got married.

In a nutshell, she discovered she is suddenly paying a $12 monthly fee to one of the big, brick-and-mortar banks, and doesn't maintain a high enough balance in her personal checking account to avoid it. It was previously avoidable by setting up direct deposit, but that is no longer the case.

I suggested that she should consider getting rid of that account and opening an online checking account.

At first, she objected. But after learning what some highly reputable institutions offer checking account customers, it was starting to sound better and better.

Our Picks for the Best High-Yield Savings Accounts of 2024

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of January 1, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of January 1, 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 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. 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. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. 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 4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 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. Member FDIC.	4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 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.

Here are three factors in particular that could finally persuade her to make the switch -- you might find them valuable as well.

You might be surprised at the perks and savings of online checking accounts. Click here for our up-to-date list of the best checking accounts on our radar.

1. No more fees

Online checking accounts typically don't have monthly maintenance fees, overdraft fees, or NSF fees. Most branch-based accounts give you a few ways to avoid fees (such as by setting up direct deposit or maintaining a certain minimum balance, but it can be far easier to not have to worry about it.

Not only do the top online checking accounts not have monthly maintenance or overdraft fees, but some of them pay interest. It isn't likely to rival what you'll get from a high-yield savings account, but it's certainly better than what most branch-based banks offer.

2. ATMs can be even more convenient

Branch-based banks generally have their own networks of thousands of ATMs. For example, Bank of America has about 15,000 ATMs in the United States. So, it might seem as if you're giving up easy (and free) access to your money.

That isn't really the case, though. In fact, there are some online checking accounts we cover that provide fee-free access to networks of as many as 70,000 ATMs. My online bank has four fee-free ATMs within a 10-minute drive of my house, and I live in a fairly rural area.

Not only that, but there are some online checking accounts that provide reimbursement for out-of-network ATM fees. Don't think you're necessarily giving up access to your money by making the switch.

3. You get some unique benefits

Online checking accounts often have other perks as well. For example, the Discover® Cashback Debit account allows you to earn as much as 1% back on debit card purchases, subject to certain limitations. Click here to learn more and open an account today.

Several banks on our radar offer free checks, early access to direct deposits, and more. You might be surprised at the valuable benefits that no-fee checking accounts offer.

Online banking is fine for 99% of situations

The bottom line is that online banking is just better, and in many ways. Plus, many people overestimate the convenience factor of brick-and-mortar banking in their heads. In my own case, before I switched to an online checking account, I said things like "With online banking, I won't be able to visit a branch if I need help," only to realize I hadn't set foot into one of my bank's branches in years.

Not only do online banks have lower fees and better perks, but some have top-notch customer service. If you've been thinking about getting rid of your brick-and-mortar bank, now could be a great time to make the change.