Online banks provide banking services exclusively on the internet. You can do your banking on your computer or from your phone. Online institutions can offer higher interest rates on saving accounts with no physical branches to maintain.
Using an online bank requires customers to be more tech-savvy, but they also have good customer support options to help people who might experience problems.
The mobility of online banking comes in handy if you’re planning to move, are constantly traveling, or living the lifestyle of a digital nomad. In this article, you’ll find a list of the five best online banks that are worth consideration.
Best Online Banks
1. Wise
With Wise, you can send money overseas quickly, easily, and affordably. As a result, they have become one of the world’s largest international money transfer services thanks to their slick, snappy branding and favorable transaction rates. Every year, they deal with billions of dollars’ worth of transactions for millions of customers.
Wise’s services are designed for speed, convenience, and transparency. When you send money through this service, you can count on it to arrive quickly for your receivers, and their exchange rates are some of the bests in the industry.
Wise charges a service fee if you use a credit or debit card to pay your USD transfer. Personal transfers incur a 1.25% fee with debit cards and 3.8% with credit cards. Paying with a business card has different fees. Debit cards will incur a fee of 1.1%, while credit cards will pay a fee of 4.33%.
Wise charges a flat fee plus a percentage of the money you send as a service fee. Transferring money to another country or converting currencies significantly impacts the conversion rate.
The system behind it is peer-to-peer. People who transfer money to Europe pay Wise in USD, and the money stays in a local U.S. account until they find someone who wants to transfer the same amount of money to the U.S. Wise will then transfer the EUR from the other customer to a European bank account once they’ve found a match.
Also, Wise’s communications are excellent, and they have apps for both Android and iOS devices. All this has made them a popular choice for transferring money to loved ones in the U.S. It’s also much more affordable than using your bank, Western Union, or PayPal to send money across country lines.
2. TorFX
TorFX is a major provider of currency exchange services, transferring approximately $3 billion in funds each year. TorFX has been used by more than 50,000 individuals and 4,000 businesses to move money internationally. In addition, the FCA (Financial Conduct Authority) has officially licensed the company to provide financial and banking services in the United Kingdom.
Personal information can be entered over the phone or through an internet browser when opening an account. Dedicated customer service representatives are always available to help. In addition, every new customer is paired with an account manager to answer any questions they may have and help them get the most out of their experience with the company.
The exchange rate is displayed for the customer to check with every money transfer before the order is processed. Transfers under $25,000 can use TorFX’s online service, which is available 24/7. Money transfers are treated with complete transparency, trustworthiness, and urgency.
Detailed information about TorFX’s exchange rates and fees are available upon request. This holds true for both personal and business financial transfers. However, you must first apply for a free quote by filling in the selling and buying currencies, along with some personal information, to get an exchange rate.
To ensure that all money transfers are free, this international money transfer company does not charge any additional fees beyond the exchange rate it provides. Additionally, despite not charging any transfer fees and the exchange rate being its only source of income, the company still has a competitive exchange rate
3. XE
XE is a well-known money transfer company that offers transfers at a fraction of the cost of going through a traditional financial institution. Euronet Worldwide owns the company, and it is traded on NASDAQ.
XE serves larger transactions or exotic currencies and supports 139 different currencies. Many countries are covered by XE’s services, including individuals and businesses.
If you want to transfer large sums of money from the United Kingdom, the United States, Canada, Australia, New Zealand, the European Union, and some other countries, then XE is the right fit. This is because XE supports transactions from these areas to 220 countries via bank-to-bank and card-to-bank methods.
Not surprisingly, XE is a popular choice for large transfers because of its broad receiving network.
Moreover, this online bank can handle all of your errands conveniently through the internet. Setting up transfers while at home or on the go is one of the perks of using an online-only service like this. XE’s online interface is simple to navigate, and its mobile apps (for Android and iOS) are highly regarded.
XE is a good option for those comfortable with all aspects of online money transfer. But don’t worry; if you need assistance with your transfer, you can contact XE’s multilingual customer service team.
If you’re looking to cut costs on international business transfers by a large margin, XE can help you. The bank provides a wide range of services for its business customers, including spot contracts, forward contracts, and market orders.
4. Payoneer
Merchant services provider Payoneer allows users to send and receive payments without managing a merchant account. The service is catered toward Airbnb, freelancers, and foreign corporations.
You don’t have to pay by credit card if you’re using Payoneer. Instead, a prepaid debit card and tax tools are included in the service, which gets high marks from all reviewers. Before signing up, make sure you know which payment method your customers prefer.
Using Payoneer, you can make international bank transfers in more than 150 different currencies without dealing with complicated exchange rates.
In addition, payments can be accepted in the United States, United Kingdom, Japan, China, Mexico, Canada, and Australia via a localized bank transfer through Payoneer. This reduces the cross-border expenses that you would otherwise be charged.
The platform will charge clients without a Payoneer account a 3% service charge for credit card transactions and a percentile fee for eCheck payments. If the money in your Payoneer account is in a currency other than the one your local bank uses, you will be charged a percentile fee when transferring it to your bank account.
You will be charged $1.50 if you deposit money in the same currency. There is a 0.5% fee for transferring funds between your Payoneer account’s different currencies.
A Payoneer account can be opened and used to make and receive payments from other Payoneer account holders for free. In addition, when using Payoneer’s network of marketplaces, most payments are free of charge unless marketplace or banking fees apply.
5. Varo
Varo has a checking and savings account, but it doesn’t have a certificate of deposit for you to transfer money. If customers meet specific monthly requirements, the interest rate on their savings accounts rises 3% a year.
You can receive a direct deposit of at least $1,000, keep a savings account with a monthly balance below $5,000, and keep a balance in both a checking and a savings account.
A Varo customer must use a Green Dot-enabled third-party retailer, like 7-Eleven, CVS, or Walgreens to deposit cash, as there are limits and fees for cash deposits. In addition, Varo charges a $2.50 fee for customers who use an ATM outside of the Allpoint network. This fee is in addition to any fees that the ATM owner may impose.
Why Choosing Online Banks Makes Moving to a New State Easier
With all the paperwork and stress that comes with moving to a new state, you can skip changing banks or transferring funds. Customers prefer the best online banks because of their ease of use and flexibility. Your bank statements, bills, and money transfers can all be done at any time as long as you have an internet connection.
Going out into the world to make a deposit or fill out an application is something you can remove from your list of things to do. This is a great feature for someone who’s always on the go.
Moreover, you can transfer money to family and others at a very low price. In the long run, this means that you’re saving money and time by choosing an online bank.
Don’t Stand in Line
Managing your finances is a cinch when done through one of these top best online banks. Having all or most of your accounts in one place makes it easier to carry out routine tasks, such as paying bills. If you’re looking to switch banks, make sure the bank you choose is a good fit for your lifestyle and individual needs.