Online banking has made it possible for customers to manage their money from anywhere in the world. Not only has this made personal finance more convenient, it has also made room for technological innovation to improve the banking industry, making it safer for everyone. In 2023, the best online banks come with fantastic consumer protection, advanced money management features, impressive APYs, and lots of helpful tools.
In this article, we take a look at some of the best European online banks to consider in 2023. We also discuss what to look for when choosing an online banking provider to make it easier to navigate the various options that are available.
A look at the best European online banks of 2023
Forbes recently published their entrants for the best European online banks to consider this year. The decision was made by comparing 60 different online banks to find the best ones that are available to customers. Here is a brief overview of the best ones.
Quontic Bank
Quontic Bank offers some of the lowest fees on the market as well as competitive interest rates that provide users with excellent returns on savings and investments. The Quontic High Yield Savings account pays a 3.70% APY and requires just a $100 minimum deposit. Even better, there are no monthly fees on any of Quontic’s online products, all of which can be accessed 24/7.
Discover Bank
Discover Bank is another option that doesn’t charge any fees for using the online platform, withdrawing from ATMs or for inactivity. What’s more, the checking account offers an impressive 1% cash back for purchases up to $3000 which makes it a great option for shoppers. The mobile app is also highly rated by customers and provides access to the bank’s 24/7 customer support services.
Axos Bank
Axos Bank is another great option for those who are looking for a bank with low fees and good interest rates. The savings account offers up to 0.61% APY and requires a low $250 minimum deposit. This online bank also comes with a low-fee overdraft that can be useful for more expensive months when you may need a little boost.
Ally Bank
Ally Bank is a popular option due to the number of advanced tools that it offers. These include innovative savings tools, ‘roundups’ and 24/7 customer service. There is also no minimum deposit requirement to open an account with this provider. Furthermore, Ally Bank pays an APY of 3.4% for online savings accounts.
What to look for in an online bank provider
We have briefly discussed why the above banks are good options to consider in 2023. However, when choosing an online provider it is important to look for more than just low fees and high-interest rates. Here are three things to consider before opening an account with an online bank.
Anti-fraud services
With the rise of online spending comes the rise of online credit card fraud. In 2022, there were over 400,000 cases of credit card fraud in the UK alone. As a result, it is vital that online banks offer fraud detection services that can prevent consumers from losing money to criminals.
The best online banks will provide in-house fraud detection and prevention through which your purchases will be monitored for suspicious activity. For example, Capital One provides users with a free virtual assistant opinion as well as instant card freezing and notifications to alert you of suspicious activity.
Not all European online banks will provide the high level of fraud detection that is needed to prevent the most serious cases of fraud.
Luckily, it is possible to use third-party services to keep your money safe online. Companies such as seon.io offer fast and effective credit card fraud detection services via risk scoring and data enrichment. The platform is able to run in the background of your banking app to detect and confront fraudulent activity before your money is put at risk. For more insight into banking trends see here.
Fee-free ATM withdrawals
While online banking platforms may be free to use, many banks charge for ATM withdrawals which can quickly add up if you regularly use cash. Therefore, it is important to check the cost of using an ATM before you sign up for a European online bank.
The best banking providers, such as Axos Bank, support free domestic ATM withdrawals. However, some providers may charge a steep fee. It is also worth considering the cost of using an AT abroad if you travel regularly. It is common for banks to charge a higher fee when using credit cards abroad which can quickly make your travels much more expensive! If you travel often, it may be worth signing up for a travel credit card with lower international ATM fees.
Multiple banking products
A good online bank should offer a variety of different products under one roof so that you can manage all of your personal finances together. For example, it is normal for consumers to have a debit card, a credit card, a savings account and a private pension pot. Managing all of these accounts is much easier if they are offered by the same banking provider.
Before you sign up with an online bank, it is a good idea to research the different products that they offer. We also recommend looking into minimum deposit requirements and account restrictions. If you are new to savings and personal finance, it is good to opt for a low minimum deposit provider. For example, Quontic Bank has a minimum deposit requirement of just $100 to open a savings account.
While you may start with just a basic savings account and credit card. It is helpful to have more options available later down the line. As you grow your savings, you may want to start investing or locking funds into a pension. Having multiple accounts available through one provider will make this a lot easier.
Overall, there are a number of great European online banks available to use in 2023. Each bank differs in the features and fees that are offered which means that it is important to conduct your own research before making any final decisions. The best banks should offer low fees, high APYs, credit card fraud detection, free ATM withdrawals and multiple account types.
