Rory Brown, Managing Partner of Nicklaus Brown & Co., Outlines the Top Virtual Banks in 2020

For most traditional banking services, growing numbers of consumers are finding that a quality and reliable virtual bank is their best option in 2020. Virtual banks are online-only banking institutions that offer lower rates and greater convenience than traditional brick and mortar banks. The lower overhead these financial institutions enjoy is passed on to customers in the form of much lower fees and better interest rates on savings instruments. In this article, Rory Brown looks at the best virtual banks in 2020 and their most critical essential features.


Ally Bank


Ally is an industry leader in virtual banking and has a long-standing track record for customer service and attractive rates. Ally does not charge any direct ATM fees and reimburses ATM fees up to $10. Ally offers competitive rates on savings and checking accounts. Ally also provides lending services, including auto loans, home mortgages, and credit cards.


USAA Federal Savings Bank


Account ownership is limited to current and former members of the military service and their families. Customers who can qualify for an account will find essentially every service that virtual banks should offer at great rates. USAA Federal Savings Bank provides free checking, mobile deposits, and ATM refunds. Their customer service is consistent with the very high standards of all USAA products and services.


American Express Bank


American Express Bank is an excellent choice for anyone who wishes to continue to maintain accounts with traditional banking institutions. Their account will link directly with up to three existing accounts and allows for simple transfers between accounts. The bank consistently offers interest yields on savings that are at the top of the virtual banking market.


Radius Bank


Radius Bank is a well-capitalized bank that offers competitive business virtual banking services in addition to personal services. Their accounts provide unlimited checks and competitive yields on larger checking accounts and savings products. Their checking accounts link to other accounts for overdraft protection, and the bank also offers checking lines of credit.


Axos Bank


Axos Bank is a great choice for someone who wants a low-impact trial of virtual banking services. The bank has been in the virtual banking business since 2000 and has acquired several other virtual banks over the years. Their checking accounts are truly no-fee accounts that pay competitive rates. They also provide specialized accounts for teenagers that are co-managed with parents to provide early experience in handling financial accounts.


Discover Bank


As part of the same company that offers the Discover credit card, this bank is well established and has a solid reputation for reliable customer service. Their checking account pays 1% cashback on debit card purchases up to $3,000 per month. The debit card can be used with no fee at the thousands of no-fee Discover credit card ATMs throughout the country.


Bank 5 Connect


For customers in search of attractive rewards programs, Bank 5 Connect provides cardholder rewards for purchases made with their debit card. Large product purchases and gift card purchases stack rewards points up for customers, and the bank charges no monthly fees. The account also allows customers to write checks without fees.


About Rory Brown

Mr. Rory Brown has focused on financial technology and investment management for 30+ years. Rory Brown Co-Founded one of the world’s first Internet Banks and writes extensively about the industry.



Alex is a small business blogger with a focus on entrepreneurship and growth. With over 5 years of experience covering the startup and small business landscape, Alex has a reputation for being a knowledgeable, approachable and entrepreneurial-minded blogger. He has a keen understanding of the challenges and opportunities facing small business owners, and is able to provide actionable advice and strategies for success. Alex has interviewed successful entrepreneurs, and covered major small business events such as the Small Business Expo and the Inc. 500|5000 conference. He is also a successful entrepreneur himself, having started and grown several small businesses in different industries.