Online banking is exceptionally convenient, allowing users the option to manage their funds anytime and from anywhere. The U.S. alone is expected to have 216.8 million digital banking users by 2025. The thriving market has led to many online banks constantly offering new incentives to expand their customer base. The question is—which service would work best for you?

Our guide helps you make the right decision by exploring some of the best online bank accounts with debit cards and other useful features. We will also discuss the essential safety measures that users should follow when using online banking and payment services.

Online Checking Account With Debit Card—What Features To Look For

While most traditional banks have online or mobile banking solutions, this guide is focused on online-only banks. Online banks have fewer overhead and operational costs than their brick-and-mortar counterparts, which can lead to lower service charges, higher annual percentage yield (APY), or both.

Users typically have diverse criteria when evaluating online banks, depending on their priorities. Below are common aspects that typically influence their decision-making process:

Source: Austin Distel

Online Banking With Debit Card Facility—Three Options

Based on the criteria mentioned above, here are three options for online checking accounts that also offer debit cards:

1. Chime^®—A financial technology company with low fees
2. TIAA Bank^®—A full-service online bank with competitive APYs
3. LendingClub Bank^®—An online bank with a unique rewards checking account
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Read the reviews below to explore the standout features of each bank/financial company (current as of May 2023) and make an informed decision. 

Chime—A Financial Technology Company With Low Fees

Chime is an online financial technology company^[2] that focuses on offering lower-cost products compared to traditional banks. Its banking services are provided through The Bancorp Bank, N.A. or Stride Bank, N.A.^[2].

Chime offers users an online checking account with no minimum balance, no monthly fees, and no credit check required. Users can fund the account by:

• Setting up a direct payroll deposit (requires sharing their Chime routing and account number with an employer)^[3]
• Making a bank transfer or mobile check deposit^[3]
• Depositing cash from 75,000+ retail locations (such as Walmart, 7-Eleven, and CVS)^[3]

Chime users can access a Visa^® Debit Card^[4] from their account that can be used at over 60,000 fee-free ATMs. After requesting a physical debit card, users get a temporary online card (with card numbers displayed) while they’re waiting for their chip-enabled EMV card to arrive. 

Chime’s distinguishing feature includes a no-fee overdraft facility^[3] (up to $200) on debit card purchases for eligible customers. If a user sets up direct deposit, they may get their paycheck up to two days earlier^[3] compared to a traditional bank account. They can also opt for a High-Yield Chime Savings Account^[6] that offers a 2.00% APY as of May 2023, which the platform claims to be nine times the national average.

Users can access Chime via a web browser or Android and iOS apps.

TIAA Bank—A Full-Service Online Bank With Competitive APYs

TIAA Bank offers online personal, business, and commercial banking services. The platform primarily provides Yield Pledge^® checking accounts, which come with the guarantee that the users’ APY rate stays in the top 5% of competitive accounts^[7] (based on Bankrate’s survey data updated on the last week of each month).

TIAA Bank accounts have $100^[8] deposit requirements and no monthly fee. Users can deposit money by mail, online transfer, or a mobile check. TIAA Bank’s services can be accessed on the website or through its iOS app.

The bank offers a Visa debit card with purchase protection^[8] to its account holders. The card can be used at over 80,000 no-fee ATMs (Allpoint^® and MoneyPass^®). Using the debit card at out-of-network ATMs may come with a charge, but TIAA Bank offers:

1. Reimbursements of up to $15 every month for accounts with balances under $5,000
2. Unlimited reimbursements for accounts with a daily average balance of $5,000^{[8]
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If a high yield is not a user’s priority, TIAA Bank’s basic checking account may appeal to them. With a $25 minimum deposit^[9], the basic checking account has a lower entry point and comes with the same debit card and ATM-use benefits as high-yield accounts.

TIAA Bank provides a variety of allied services for businesses, investments, and retirement planning—all accessible on a centralized platform.

Besides online banking, the company offers mobile banking via Android and iOS apps.

Source: Towfiqu barbhuiya

LendingClub Bank—Opening a Rewards Checking Account for Cashback

With LendingClub Bank, users can open a free online checking account with debit card services by depositing as little as $25^[10]. The platform offers Rewards Checking, an account with:

• Unlimited 1% cashback on eligible purchases made with a debit card^[10] 
• No fees for monthly maintenance in-network ATM use^[10] 
• Rebates for ATM fees charged by other banks^[10] 
• Interest earnings potential of 0.10% APY (account balance $2,500–$99,999.99)^[10] or 0.15% APY (account balance at and over $100,000)^[10] 

To earn interest or cashback, LendingClub users must maintain an average monthly balance of $2,500^[10]. Eligible online purchases automatically receive cashback. When shopping in-store, users should choose “credit” instead of “debit” at the point-of-sale terminal to qualify for the cashback benefit.

Like Chime, LendingClub allows users to get their paychecks deposited up to two days earlier. Another way to add cash to an account is by using a MoneyPass ATM.

LendingClub does not provide an overdraft facility^[11] but may allow users to overdraw on their accounts for certain expenses, like recurring payments. In such cases, the bank does not charge any overdraft fee.

Hide Your Banking and Debit Card Information Online With Virtual Cards

Regardless of the type of bank you choose (online or physical), it’s essential to safeguard your debit card information from potential misuse, especially when shopping online. 

With the rising popularity of digital and contactless transactions, instances of e-commerce fraud and card theft have also increased. According to Juniper Research, e-commerce fraud cases in 2022 led to a loss of $41.4 billion, and the figure is expected to increase by 131.2% by 2027.

When you share card information with a merchant, you risk getting your financial data exposed in the case of a data breach. A malicious actor may bypass the website’s security and steal your payment card data to:

• Perform fraudulent purchases
• Engage in identity theft schemes
• Sell it on the dark web

If you want to conduct safe online and over-the-phone transactions, you won’t find a better option than virtual cards.

A virtual card is an electronically generated payment card that exists only online and is linked to a funding source, such as your debit card or bank account. The card has a randomly generated 16-digit number, CVV code, and expiration date to help you complete payments without revealing your real card or bank information to the merchant. In the event of a data breach, the fraudster can only access your virtual card information while your actual payment data remains hidden.

Source: RDNE Stock project

Many online and brick-and-mortar banks offer virtual cards, but they typically have limited features or additional fees. If you want to secure your online shopping experience with a reliable virtual card service—start using Privacy.

What Are Privacy Virtual Cards?

Privacy is a Better Business Bureau ^®-accredited card provider offering Mastercard and Visa virtual cards for secure digital transactions. You can request Privacy Virtual Cards if you:

• Are a U.S. resident over the age of 18
• Have a checking account or debit card with almost any U.S. bank

The platform provides an integral layer of security in case of data breaches with the help of Merchant-Locked and Single-Use Cards:

You can also set spending limits on your virtual card, and Privacy will decline any charges that exceed the preset limit. Besides helping you stick to a budget, this feature can be useful for monitoring your kids’ spending as Privacy allows you to share cards with close family members while remaining in full control of the settings.

Source: Karolina Grabowska

Everyday Benefits of Using Privacy Cards

With Privacy, you get access to a host of options that make everyday spending and budget management seamless:

• Browser extension for quick and smooth checkouts—You don’t have to switch back and forth between multiple tabs or look for your wallet to find your payment data. Privacy’s Chrome and Firefox browser extensions make checking out faster by auto-filling your card data in the designated payment fields.
• Effortless card closing, pausing, and unpausing—You can close or pause a Privacy Virtual Card instantly without affecting your real card. This feature is convenient if you notice any suspicious activity in your account. You can also use it when you want a subscription service to stop charging you while a cancellation is being processed (make sure to reach out to the merchant and cancel the subscription directly).
• Mobile app—You can install Privacy’s Android/iOS app to create virtual cards on the go and get real-time notifications for every new payment and card decline. Use the centralized Privacy dashboard to monitor your account closely.
• 1Password integration—Privacy enables free integration with the password manager. You can keep account passwords and financial data in a secure encrypted vault and manage them from a single, centralized platform.

Request Your First Virtual Card With Privacy

Privacy does not require a credit check, but you must provide KYC details to open an account. Here’s what the process entails:

1. Access the registration page
2. Input the mandated KYC information
3. Connect your bank account or debit card
4. Request and create virtual cards

Privacy offers 1% cashback on eligible transactions totaling up to $4,500 a month on the Pro ($10/month) or Premium ($25/month) plan. The base plan is free for domestic transactions, and offers 12 virtual cards a month plus features such as spending limits, browser extensions, and card pausing and closing.

The platform follows PCI DSS guidelines and other banking industry standards to protect your sensitive information.

References

^[1] Benji Stawski, Brett Holzhauer, Elizabeth Gravier. CNBC. https://www.cnbc.com/select/best-high-yield-savings-accounts/, May 18, 2023

^[2] Chime. https://www.chime.com/about-us/, sourced May 2023

^[3] Chime. https://www.chime.com/checking-account/#, sourced May 2023

^[4] Chime. https://www.chime.com/debit-card/, sourced May 2023

^[5] Chime. https://www.chime.com/credit-builder/, sourced May 2023

^[6] Chime. https://www.chime.com/savings-account/, sourced May 2023

^[7] TIAA Bank. https://www.tiaabank.com/banking/yield-pledge-promise, sourced May 2023

^[8] TIAA Bank. https://www.tiaabank.com/banking/interest-checking, sourced May 2023

^[9] TIAA Bank. https://www.tiaabank.com/banking/basic-accounts, sourced May 2023

^[10] LendingClub. https://www.lendingclub.com/personal-checking/rewards-checking, sourced May 2023

^[11] Ruth Sarreal. NerdWallet. https://www.nerdwallet.com/reviews/banking/lendingclub-bank, March 31, 2023

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