Written by: Eric Bank
Edited by: Jon McDonald
Reviewed by: Ashley Fricker
Chime and its competitors are financial technology companies that offer online and mobile app banking services. In Chime’s case, The Bancorp Bank and Stride Bank deliver traditional banking services, which include online checking accounts.
This article reviews online banks that compete with Chime for your business. They provide accounts you once could only get from traditional brick-and-mortar banks but do so without expensive physical branches.
We also look at four additional banks that deliver online services. Some of these are traditional banks with convenient online accounts.
Recommended Online Banks Like Chime
The following online banks cater to consumers with any credit or banking history. They offer second-chance bank accounts to consumers with poor credit who want online checking, high-yield savings, debit cards, direct deposits, remote check deposits, and ATM access.
These online-only banks don’t have brick-and-mortar branches, saving a tremendous cost that they share with customers.
1. Current
- Safe and secure Visa debit card with instant transaction alerts.
- Fee-free overdraft protection of up to $200 with Overdrive™.
- Earn 15x points when you swipe your card at participating merchants, which can be redeemed for cash in your Current Individual account.
- Access 40,000 fee-free Allpoint ATMs in the US.
- Get paid up to two days faster with direct deposit.
- Current is a financial technology company, not a bank. Banking services are provided by Choice Financial Group, Member FDIC.
- See official site, terms, and details.
| Monthly Fee | Minimum Deposit | Minimum Balance | Reputation Score |
|---|---|---|---|
| $0 | $0 | $0 | 7.5/10 |
Current offers a no-cost basic account, a premium account for a small monthly fee, and a version for teenagers. You can add money to your checking account through cash deposits at selected retailers, mobile check deposits, and direct deposit of your pay or benefit checks.
The Current mobile app allows you to receive instant purchase notifications, perform mobile deposits, and set up budgets for multiple spending categories. The premium account adds early access to direct deposits and instant gas station authorizations.
2. GO2bank
- Overdraft protection up to $200 with opt-in and eligible direct deposit*
- No monthly fees with eligible direct deposit, otherwise $5 per month
- Earn up to 7% cash back when you buy eGift Cards in the app
- Get your pay up to 2 days early – Get your government benefits up to 4 days early.*
- High-yield savings account, 4.50% APY paid quarterly on savings up to $5,000.*
- *Terms and conditions apply. Cards issued by GO2bank, Member FDIC, pursuant to a license from Visa U.S.A., Inc. Overdraft fees may apply. Click Apply Now to learn more.
- See official site, terms, and details.
| Monthly Fee | Minimum Deposit | Minimum Balance | Reputation Score |
|---|---|---|---|
| $0 or $5 | $20 | $0 | 8.0/10 |
GO2bank delivers the features you’d expect from an online bank account, including a mobile app, a high-yield savings account, and direct deposits. The bank requires a $20 minimum deposit to open an account and purchase a debit card at a participating retail store, but you can open the account online for free.
GO2bank offers a secured Visa credit card that lets you build credit through responsible use. The card doesn’t charge an annual fee or check your credit.
3. Oxygen
- Earn cash back on select purchases – no points or gimmicks – just real money.
- Create savings goals and make your money grow with Annual Percentage Yields (APYs).
- Get paid up to two days earlier with direct deposit.
- Four Visa debit card tiers to choose from, each with varying costs, rewards, and benefits.
- Oxygen is a financial technology company, not a bank. Banking services are provided by The Bancorp Bank, Member FDIC.
- See official site, terms, and details.
| Monthly Fee | Minimum Deposit | Minimum Balance | Reputation Score |
|---|---|---|---|
| $0 | $0+ (tier dependent) | $0 | 6.0/10 |
Oxygen provides personal and business accounts, making it an excellent resource for entrepreneurs. This account charges no monthly or minimum balance fees. It enables business owners to incorporate an LLC, manage expenses, and automatically set taxes and savings aside with an interest-bearing account. You can earn cash back on purchases from approved merchants and categories.
Individuals can receive personal services, including a spending account with no monthly or minimum balance fees. The Elements Fire account offers premium benefits, with high savings and cash back rates, travel perks, and luxury metal Visa debit cards.
- Get paid up to two days faster with direct deposit.
- Download the mobile app to receive text or email messages with transaction details, deposits, and more. Check to see your balance anytime.
- Enroll in Direct Deposit to enjoy no-fee cash withdrawals of up to $400 a day at participating ACE Cash Express stores.
- Earn 0.01% APY on funds in your Flare Account.
- The ACE Flare Account is established by MetaBank, National Association, Member FDIC.
- See official site, terms, and details.
| Monthly Fee | Minimum Deposit | Minimum Balance | Reputation Score |
|---|---|---|---|
| $5.00 or $9.95 | $0 | $0 | 7.5/10 |
The Flare Account from ACE Cash Express offers a high-yield savings account and online second-chance banking services. Its mobile app enables remote check capture and cash back rewards on select purchases. You must activate your rewards to earn cash back.
The core Flare Account charges a monthly fee and pays a small APY on your deposited funds. But you can access a high-yield savings account and lower fees with monthly direct deposits of $500 or more. You can link the Flare Account to PayPal and other bank accounts to quickly transfer money.
Additional Online Banks Worth Considering
These banks offer highly rated banking services. Some also have at least one physical branch.
5. Discover Bank
Discover Bank does more than issue high-quality credit cards. It offers online banking products that include checking, savings, money market, CD, and IRA accounts. Discover Bank has a single physical branch in Greenwood, Delaware.
The bank gives you access to more than 60,000 no-fee ATMs at selected sites. You receive a Discover Cashback Debit card when you open a no-fee checking account, and you earn 1% cash back on up to $3,000 in monthly debit card purchases.
6. Capital One
The Capital One 360 Checking Account has no minimums or fees. The account provides access to more than 70,000 fee-free ATMs in retail locations. This online account comes with a debit card, remote deposits, and a mobile app with instant card locking and unlocking.
The bank has physical branches and Capital One Cafés in several states, a convenience for those who want in-person service. Optional overdraft protection is available, as is access to your pay two days faster through the Early Paycheck feature. Furthermore, you can deposit cash at any CVS or Walgreens location and transfer money quickly via Zelle.
7. Ally Bank
Ally’s Interest Checking Account is fee-free with no monthly maintenance or overdraft charges. You can access more than 43,000 no-fee Allpoint ATMs and receive reimbursement of up to $10 per statement cycle for fees other ATMs charge. The bank has no physical branches.
You can get paid up to two days ahead of time with early direct deposit after receiving two direct deposits to your checking account within six months. The online savings account lets you round up transactions to the next dollar and automatically transfer the difference to your savings. The bank doesn’t offer a money market account, but high-yield CDs are available.
8. Axos Bank
Axos Bank Essential Checking offers early direct deposit and unlimited domestic ATM fee reimbursements without balance requirements, monthly fees, or charges for overdrafts or insufficient funds.
The bank pays you a $50 referral bonus when you recommend a new customer who meets the bank’s welcome bonus requirement. The account provides a Visa debit card, peer-to-peer payments, account alerts, and automatic bill payment. The bank has branches in San Diego, Las Vegas, and Columbus, Ohio.
What Is an Online Bank?
Online banks offer checking and savings accounts that you can open and manage online or via a mobile app. These banks may have very few branches and online-only banks have no physical branches at all. Many online banks offer free checking accounts, including second-chance accounts for consumers with bad credit.
You don’t pay a monthly service charge or any transactional fees when the account is free, but other expenses and minimum deposit requirements may apply.
The Federal Deposit Insurance Corporation (FDIC) insures online and traditional bank accounts regardless of whether branches exist, and each insured bank is an equal housing lender. Similarly, the National Credit Union Administration backs share accounts at online and brick-and-mortar credit unions.
Which is the Easiest Bank Account to Open?
Second-chance accounts are the easiest to open because they don’t require credit checks. These accounts allow consumers with troubled financial histories to access banking services, including checking, debit cards, savings, and ATMs. Many banks offer second-chance accounts, which are essentially scaled-down versions of regular accounts.
The reviewed online-only banks in this article offer second-chance accounts. Many other online and traditional banks (including Wells Fargo and Bank of America) offer second-chance accounts in addition to traditional accounts.
The following chart describes the differences between second-chance and traditional bank accounts.
| FEATURE | ONLINE-ONLY SECOND CHANCE BANK ACCOUNT | TRADITIONAL BANK ACCOUNT |
|---|---|---|
| Eligibility | Online banks design second-chance accounts for people with poor banking or credit history. They are usually easy to open. | Traditional banks require applicants to have good banking and credit histories. |
| Opening Deposit | The account may require a minimum deposit. | The required minimum deposit varies for different accounts. |
| Monthly Fees | Some second-chance accounts charge no monthly fees or waive them for customers who satisfy specific requirements, such as direct deposit activity. | Monthly fees vary according to the account’s features. |
| Overdraft Protection | Available with some online accounts. | Often available as an option. |
| Check Writing | Banks may limit or disallow paper checks. Customers use the account’s debit card instead of checks. | Traditional banks usually provide customers with paper checks and debit cards. |
| Debit/Credit Cards | The account provides a debit card and may offer a secured credit card. | Traditional accounts offer both debit and credit cards. |
| Interest Rates | Second-chance accounts rarely pay interest on checking balances but usually offer interest-bearing savings accounts. | Some traditional checking accounts offer interest on checking balances. |
| Online/Mobile Banking | Available | Available |
| Credit Building Features | Credit building is typically unavailable unless the customer opts for a secured credit card. | It may include features to help build credit, including unsecured credit cards. |
| Account Monitoring | These banks usually perform more stringent fraud monitoring. | Standard monitoring procedures apply. |
| Access to ATMs | Accounts may have fewer in-network ATMs. | Accounts have wider access to in-network ATMs. |
As the chart shows, second-chance accounts from Chime and similar online-only banks offer many of the benefits once limited to traditional bank accounts. Consumers should consider an online second-chance account to avoid rejected applications due to a low credit score.
What Should I Do If a Bank Refuses My Application?
A traditional bank is much more likely to reject an applicant with a history of banking problems. These banks use ChexSystems and other reporting bureaus to approve applications. They must send you an Adverse Action Notice (AAN) if they rely on a bureau’s information to deny your application.
An AAN explains why the bank declined your application. You can ask the bank to reconsider their decision if you can refute unfavorable information in the AAN.
If the bank doesn’t reverse its rejection, you can get a free copy of the bureau report and check it for errors. You can dispute misinformation directly with the bureau, which could remove the questionable information if you provide compelling evidence.
You should also clean up your report by fixing any negative items. For example, if you pay an unsettled charge, you can request the bureau to remove the item from the report. Once your report is clean and correct, you can reapply to the bank or one of its competitors.
If this fails, consider opening a second-chance account from our list of recommended online banks. Online-only banks may offer the best second-chance accounts because they have minimal fees and deposit requirements.
What Should I Look For in an Online Bank?
Online banks may not offer paper checks, physical branches, or in-person support. But they should provide financial consumers with the following:
- Online banking and bill pay: All online banks allow you to access banking services via the internet and a mobile app. With that technology, you can schedule payments, deposit and withdraw funds, and use a debit card to pay for purchases. Bill pay should allow you to set up automatic or recurring payments to ensure they aren’t late.
- Free checking accounts: Fees can quickly eat into your account balance and any interest earned. The best online bank accounts do not impose monthly service charges. Consider accounts that don’t charge transaction fees or require an initial deposit.
- Interest rates: Many online banks offer high-yield savings accounts and/or interest on checking account balances. Higher interest rates can help grow your money faster. You may want to compare annual percentage yields (APY) among online banks. Some online banks offer savings accounts with teaser rates of 4% or more. However, you may find that these high rates apply only to a portion of your account balance (e.g., the first $2,500 deposited). Only a few online banks pay interest on your checking account balance.
- Rewards checking: Several online accounts offer cash back or reward points when you use your debit card to pay for purchases and bills.
- Mobile banking: Almost all banks provide mobile apps to customers. However, not all apps are equally valuable and easy to use, so it pays to compare them before you decide where to open your account. An app should support money transfers, mobile check deposits, payments, direct deposits, and other account management functions.
- Credit and debit cards: Online banks usually provide debit cards instead of paper checks. You can apply for the bank’s credit card (unsecured or secured) once you open a deposit account, but the bank may check your credit bureau reports. Online banks offer some of the best credit cards for building credit.
- Limits: Most online accounts impose limits on transaction amounts and volumes. Examples include limits on deposits, withdrawals, and transfers. You can compare different accounts if you think these limitations will be problematic.
- Security features: Online banks need robust security measures to protect your personal and financial information. Check if the bank offers multi-factor authentication, encryption, and other security protocols.
- Customer service: You need efficient customer service for resolving issues and queries. Ensure the bank offers various channels for customer service, such as live chat, email, and phone support. Look for reviews or ratings to gauge service quality.
- Additional features: Features such as budgeting tools or cash back rewards can add value to your online banking account. Check what other features are available and decide how useful they are for managing your finances.
If you are unhappy with your current bank account, consider switching to a new one. Note that some banks charge an account-closing fee.
What Fees Do Online Banks Charge?
Some of the online bank accounts we have reviewed have few fees. For example, Current doesn’t charge monthly, overdraft, transfer, or in-network fees and has no minimum balance requirements.
But Current charges fees for ATM cash loads, foreign transactions, inactivity, replacement cards, and account closure. Additional costs you may encounter include those for express mail or paper statements.
The following chart summarizes the types of fees an online bank may impose and tips on avoiding them.
| FEE TYPE | DESCRIPTION | HOW TO AVOID |
|---|---|---|
| Monthly Maintenance Fee | The bank charges a monthly fee for maintaining the account but may waive it if you meet certain conditions. | Select a bank that doesn’t impose this charge. Otherwise, maintain a minimum balance or meet other bank-specified conditions. |
| Overdraft Fee | You’ll pay this fee for spending more money than you have in your account. | Opt for overdraft protection or keep sufficient funds. |
| ATM Fees (Out-of-Network) | The fee for using an ATM that’s not part of the bank’s network. | Limit yourself to in-network ATMs or use ACH transfers instead. |
| Foreign Transaction Fee | You pay the fee for making purchases in a foreign currency. | Use a card or account with no foreign transaction fees. |
| Wire Transfer Fee | This fee is for sending money via wire transfer. | Use alternative methods, such as ACH transfer, if possible. |
| Returned Deposit Fee | You’ll want to avoid this fee for a bounced check or failed ACH transfer deposit. | Ensure the source account has sufficient funds and/or opt for overdraft protection. |
| Account Closure Fee | This fee is for closing the account within a certain period after opening. | Keep the account open for the minimum required period, or select a bank that doesn’t impose this fee. |
| Inactivity Fee | You’ll trigger this nuisance fee if you don’t conduct any transactions within a specific period. | Make occasional transactions. |
| Paper Statement Fee | This fee is for receiving paper statements by mail. | Opt for electronic statements. |
| Stop Payment Fee | The fee you’ll pay if you stop a payment or check. | Try to request stop payments only when absolutely necessary. |
It’s always wise to read the fine print when opening an online bank account. That helps ensure you completely understand all of its potential fees and limitations.
Chime and Similar Online Banks Want Your Business
Online banks provide websites and mobile apps that let you manage your bank accounts wherever and whenever convenient. Unless you miss waiting in line for the next available teller, we think online banking is the most sensible way to manage your financial chores conveniently and efficiently.
The institutions also benefit all types of consumers, including those who have bad credit or dislike the high fees many traditional banks charge. Chime and its competitors solve these problems and many others.
You can compare online banks by reading their customer agreements, articles like this one, third-party ratings (e.g., from the Better Business Bureau and TrustPilot), and comments on Reddit and other forums. If you have bad credit, an online second-chance account can offer you access to banking services when traditional banks refuse your business.
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