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Banking in 2022: Top Online Banks & the Future of Finance

Online Banking: Top Banks for 2022

Technology has evolved significantly over the years, changing the way we do things in different sectors, including finance. Online banking has become one of the most popular banking options for consumers looking for flexibility, convenience, and cost-saving features.

With a mobile device or laptop, you can access your bank account, initiate transactions, pay bills, and check account balances. In this article, we will explore the top five online banks for 2022 and the pros and cons of online banking.

Ally Bank

Ally Bank has no account minimums and offers high yields on savings, checking, and CD accounts.

Ally Bank also reimburses surcharge-free ATM fees, making it easy to access your cash.

Banking fees are also relatively lower than traditional banks, making it an excellent option for consumers looking to save money. This bank has an intuitive mobile app that is easy to navigate, which is essential for a seamless online banking experience.

Discover Bank

Discover Bank offers round-the-clock customer service, which is essential for urgent inquiries that cannot wait. Upon signing up, customers get a cashback bonus on their debit card purchases.


Discover Bank also offers surcharge-free ATM fees, making it easy to access cash on the go. Customers can enjoy high yields on their savings and CD accounts, making it an excellent option for those looking to maximize their earnings.


TIAA Bank offers high CD yields and ATM fee reimbursements. Although the bank has minimum deposit requirements, the interest rates are significantly higher than those offered by traditional banks.

Customers also enjoy a range of account options that include checking, savings, money market, and CD accounts. The bank’s mobile app is also intuitive, making it easy for customers to initiate financial transactions from anywhere.

Axos Bank

Axos Bank offers a high online savings account yield, making it an excellent option for consumers looking to maximize their savings. It also offers three checking account types, each tailored to different customer needs.

Axos Bank also allows unlimited domestic ATM fee reimbursements, making it easy to access cash when and where you need it. The bank’s mobile app provides a straightforward and user-friendly interface.

First Internet Bank

First Internet Bank offers a wide range of products, including checking, savings, CDs, and mortgage loans. The bank offers a high APY on savings accounts, which makes it an excellent option for customers looking to grow their savings.

The bank also has a no-fee checking account with a monthly fee, making it a cost-effective option for many. The bank’s mobile app is also easy to use, making it easy to initiate transactions in just a few clicks.

Pros and

Cons of Online Banking

Pros of Online Banking

Convenience: Online banking makes it easy to access your bank accounts from anywhere, at any time. You no longer have to visit a physical branch, thus saving time and money.

Mobile deposit: With online banking, you can deposit checks using your mobile device, making it easy and convenient. Lower fees: Online banks typically have lower fees compared to traditional banks, making it an attractive option for customers who want to save money.

Higher interest rates: With online banks, you have access to higher interest rates on savings, checking, and CD accounts.

Cons of Online Banking

No physical branches: Although online banking is convenient, some customers still want to visit a physical branch for face-to-face interactions. Hard to deposit cash: Online banks typically do not have physical locations where you can deposit cash.

This can be an inconvenience for some customers who prefer depositing cash to their accounts. Limited customer service options: Although most online banks offer round-the-clock customer service, some customers may prefer face-to-face interactions.

This can become an issue when dealing with complex financial transactions. Fewer services compared to traditional banks: Some online banks may offer limited services, which can be a disadvantage for customers who require more comprehensive banking services.


In conclusion, online banking has revolutionized the banking sector, providing customers with flexible, convenient, and cost-effective banking options. The top five online banks for 2022 are

Ally Bank,

Discover Bank,

TIAA Bank,

Axos Bank, and

First Internet Bank.

Online banking also has its pros and cons. At the end of the day, it comes down to personal preferences and needs.

Do your research and compare different banks to find the one that meets your needs.

3) Switching to an Online Bank

With the growing popularity of online banking, consumers are increasingly exploring their banking options beyond the traditional brick-and-mortar banks. If you’re thinking about switching to an online bank, there are a few things you need to know about opening a new account and transferring money.

Opening an Online Bank Account

To open an online bank account, you will need to provide personal and financial information, such as your name, address, social security number, and income details. Online banks typically offer a few options to fund your account, including bank transfer, wire transfers, or check deposits via mail or mobile app.

Some online banks also offer an option to switch over an account from another bank. When opening an online bank account, it is essential to read the fine print and familiarize yourself with the bank’s policies, fees, and interest rates.

Ensure that the bank has adequate security measures to protect your personal and financial information, and check if the bank is FDIC-insured.

Transferring Money to an Online Bank

Once you’ve opened an online bank account, you’ll need to transfer money to your account. Online banks offer different methods of transferring money, including wire transfers, ACH transactions, and check deposits via mail or mobile app.

Wire transfers are a quick way to transfer large sums of money to your online bank account. However, they can be expensive, with fees ranging from $15 to $50, depending on your bank’s policies.

Another option to transfer money to your online bank account is an ACH transaction. This is a low-cost option that typically takes 2-3 business days to process.

You can initiate an ACH transaction from another bank account or through a third-party payment platform like PayPal or Venmo. Depositing a check via mail or mobile app is another option to transfer funds to your online bank account.

Some online banks may offer an instant deposit feature that allows you to take a photo of the check with your mobile app and deposit it directly into your account.

4) GOBankingRates Survey on Banking Preferences

A recent survey by GOBankingRates on banking preferences revealed some interesting findings about American’s banking habits.

Banking Preferences of Americans

According to the survey, 47% of Americans prefer online banking, while 28% prefer traditional banking, and 25% have a preference for both. Mobile app banking is also gaining popularity, with 32% of survey participants preferring banking via a mobile app.

Factors Influencing Bank Switching Decision

The survey also found that dissatisfaction with fees and rates is the primary reason why Americans switch banks. 41% of survey participants cited high fees and low-interest rates as the primary reason for switching banks.

17% of respondents cited a lack of customer service as another reason to switch banks.

Features Important for Choosing a Bank

When choosing a bank, lower fees and high-interest rates are the most critical features for Americans, with 36% of survey participants citing these as the most important factors. Mobile app options and no account minimums were also important features cited by respondents.

In conclusion, the GOBankingRates survey shows that Americans are increasingly switching to online banks due to their lower fees and high-interest rates. Mobile banking apps are also gaining popularity among Americans.

When choosing a bank, it is essential to consider factors such as fees, interest rates, and customer service options. Before opening an account with an online bank, it is also essential to familiarize yourself with the bank’s policies, security measures, and FDIC insurance.

5) History of Online Banking

Online banking has revolutionized the way we manage our finances. However, not too long ago, online banking was merely a concept.

In this section, we will discuss the emergence of online banking, early concerns about the security of online banking, and the current state of online banking.

Emergence of Online Banking

The mid-1990s saw the emergence of online banking. Some of the earliest online banking services were provided by large traditional banks and credit unions.

Online banking services provided an alternative for customers who were unable to visit brick-and-mortar banks during typical business hours. Online banking offered customers the convenience of 24/7 access to their bank accounts, banking statements, and financial transactions.

As the Internet became more popular, so did online banking.

Early Concerns about Online Banking

The early introduction of online banking also brought about concerns about security. Many customers felt more comfortable banking in a brick-and-mortar bank, where they could speak face-to-face with a bank teller or customer service representative.

There was also a stigma attached to online banking, with some customers viewing online banking as impersonal and less trustworthy. However, banks worked to alleviate these concerns.

Banks implemented security features such as two-factor authentication, encryption, and firewalls to protect customer information from hackers and other types of fraudulent activities. As a result, customers began to see online banking as a safer alternative to traditional banking.

Current State of Online Banking

Today, online banking is widespread and widely accepted. Many customers now prefer online and mobile banking over physical branches.

Online banking offers many benefits, including the convenience of banking from anywhere at any time, lower fees, and higher interest rates. Mobile banking has also become increasingly popular, allowing customers to bank on-the-go using their mobile devices.

Banking apps provide customers with access to all the features of online banking and offer additional features such as mobile check deposit, budgeting tools, and bill pay. Traditional banks have also adapted and embraced online banking, with many banks providing online banking as a standard service for their customers.

Digital-only banks, such as

Ally Bank and Chime, have gained popularity. These banks do not have physical branches, and all banking transactions are done online.

In conclusion, the history of online banking has been a journey from a novel idea to widespread acceptance. Despite early concerns about security, online banking has evolved to become a preferred banking option for many customers.

Banks have implemented security measures to protect customers’ personal and financial information from fraudulent activities. With the rise of mobile banking, customers can now manage their accounts from anywhere, further enhancing the convenience of online banking.

The article covers various topics related to online banking, including the top five online banks for 2022, the pros and cons of online banking, switching to online banking, and the history of online banking. The article highlights the convenience, cost-effectiveness, and high-interest rates associated with online banking.

Moreover, it addresses early concerns regarding online banking security and a lack of personalized customer service. However, with advanced security measures and user-friendly mobile apps, customers can now manage their accounts from anywhere at any time.

The takeaway is that online banking has transformed the banking industry and is continuously evolving to meet customers’ ever-changing needs, providing customers with unparalleled convenience and flexibility.

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