Best Banks For Millennials [2024]: Bank Smart for a Better Future

If you’re a millennial searching for a bank, you likely know that you can get a lot of great features from today’s banks, whether at brick-and-mortar locations or entirely online.

While I don’t technically qualify as a millennial, I’m truly just a few months shy of the cutoff, so I’ve got a good idea of what millennials want and need in a bank. For me, convenience is paramount. I want a bank that offers easy access to my money, no matter where I am, and in-person banking isn’t that important to me.

According to a 2022 survey by the American Bankers Association, I’m not alone, since 58% of millennials said they preferred mobile banking over other methods, and another 18% preferred online banking.

In addition, many banks offer lots of services with no monthly fees as well as savings accounts that earn interest. Mobile banking tools are a high priority, too. Here are our picks for the best banks for millennials, including Capital One, Ally Bank, and SoFi®.

How we evaluate products

To determine the best banks for millennials, we first identified some of this generation's common banking needs and preferences. Our research found that millennials value convenience, technology, rewards, and low fees when choosing a bank.

Mobile access: Each of the banks featured in this roundup offers convenient access to financial accounts through online features and a mobile app. According to a 2022 survey reported by the American Bankers Association, 58% of millennials prefer mobile banking, so this is clearly a top priority for that generation.

Fees: We chose banks that either charge no monthly fees for accounts or offer a simple way to waive fees.

APY on savings: Most of the banks included in our selection of the best banks for millennials pay a significant annual percentage yield (APY) on savings accounts.

The best banks for millennials

• Discover® Bank
• U.S. Bank
• SoFi®
• Wealthfront
• Ally Bank
• Capital One

Comparison of the best banks for millennials

Bank	Best for:	Annual percentage yield
Discover	Cashback rewards	Discover® Cashback Checking: 1.00% on up to $3,000 in debit card purchases each month1 Discover® Online Savings: 4.00%23
U.S. Bank4	Branch access	U.S. Bank Smartly Checking:5 Must ask a banker for current rates
SoFi®	Online banking	SoFi Checking: 0.50% (as of 10/31/24) with direct deposit SoFi Savings: Up to 4.20% (as of 08/27/24) with direct deposit6
Wealthfront	Investors wanting high yield savings	Wealthfront Cash Account:7 5.00%
Ally Bank	Overdraft protection	Ally Bank Interest Checking: 0.25% (as of 10/28/24) Ally Bank Savings: 4.00% (as of 10/28/24)
Capital One	Traditional banking and kids’ accounts	Capital One 360 Checking: 0.10% (as of 10/28/24) Capital One 360 Performance Savings: 4.00% (as of 10/28/24)

Discover® Bank

Discover bank offers checking and savings accounts that work for you. I’m not much of a debit card user, but I like the fact that you earn cash back on your debit card without a minimum number of purchases. This maxes out at $3,000 per month, which is pretty generous, letting you earn up to $360 in annual cash back.

Plus, Discover has one of the best high-yield savings accounts with no minimum balance. Your savings earns a respectable 4.00% APY, which is excellent to stack with your cash back on debit purchases.

Other features that are great for millennials (and for everyone, honestly) are the option to get your paycheck up to two days early with direct deposit and easy ATM access (over 60,000 no-fee locations nationwide).

Member FDIC.

Visit Discover®️ Cashback Debit | Read our Discover banking review

U.S. Bank

U.S. Bank is one of the largest banks in the United States, with over 2,000 branches located in 26 states. So although you can’t bank in person everywhere in the U.S., it can be a great choice if you live in an area with a brick-and-mortar U.S. Bank.

The bank has the most branches in California, Ohio, Illinois, Missouri, and Washington. Customers can find the nearest U.S. Bank branch or ATM by using the online locator tool or the mobile app.

U.S. Bank’s mobile app lets you deposit checks, transfer money between your accounts, manage and pay your bills, and send, request, and receive money from friends with Zelle. You can also view insights on your spending and saving habits and benefit from overdraft protection.

Member FDIC.

Visit U.S. Bank Smartly®️ Checking | Learn more in our U.S. Bank Smartly Checking review

SoFi®

SoFi, Member FDIC⁸, is a fintech company that offers online banking services in the form of a checking and savings account that come together as a package deal. Both accounts have $0 monthly service fees and don’t require a minimum balance.⁹

If you receive direct deposit, you could earn an APY of up to 4.20% with the SoFi Savings account and 0.50% (as of 10/31/24) with the SoFi Checking account. There is no minimum requirement for your direct deposit amount (which is nice because I hate when banks require a high income to benefit from great rates).

You can also get your paycheck up to two days early when you set up direct deposit.¹⁰ Plus, you get purchase assurance and extended warranty benefits when you use your SoFi debit card.

Visit SoFi Checking and Savings | Learn more in our SoFi review

Wealthfront

Wealthfront calls itself “Not quite a bank” because it offers a Cash Account that acts like a bank account and charges no monthly service fees.⁷ It’s great if you’re a millennial who wants functional banking as well as the chance to invest your money for the future.

Like most of the banks listed here, Wealthfront’s Cash Account lets you get your paycheck directly deposited up to two days before payday. You can pay your bills, set up automatic savings, plus earn an awesome APY of 5.00%. My favorite part about this, besides the rate, is that there’s no minimum balance or debit transaction requirement to earn it.

Your money is covered by FDIC insurance. You’ll need to live in the U.S. and have a permanent U.S. address, plus be happy without any physical bank branches or paper checks. (Let’s be real here: very few businesses require you to pay with a check these days anyway.)

Visit Wealthfront Cash Account | Learn more in our Wealthfront review

Ally Bank

Ally Bank offers checking and savings accounts with $0 monthly maintenance fees. And if you’re concerned about overdrafts, Ally can help with its CoverDraft and Overdraft Transfer features.

You must wait 30 days after depositing $100 or more in your account to qualify for CoverDraft. Repay the overdraft funds within 14 days. At that point, CoverDraft will cover up to $100 of qualifying transactions, and you’ll have 14 days to deposit funds to bring your account out of the negative. That can increase to $250 in CoverDraft coverage if you have qualifying direct deposits of at least $250 for two months in a row, and you need to receive at least one direct deposit every 45 days to maintain the higher level of coverage.

With Ally Bank, you earn 4.00% (as of 10/28/24) on money in your savings account. I also really like the savings features like savings “buckets” and rounding up spending transactions to the nearest dollar (once your roundups reach $5, Ally transfers it to savings).

Ally’s APY on savings isn’t as high as some other banks, but the savings tools and overdraft protection might offset that difference for you.

Visit Ally Bank | Learn more in our Ally Bank review

Capital One

Capital One is a good banking option for millennials who prefer a more traditional banking experience without having to pay monthly service fees for their checking or savings accounts.

The bank can help you earn an APY of 4.00% (as of 10/28/24) on money in your 360 Performance Savings account. While we’re mentioning Capital One as a “traditional” banking experience, I simply have a savings account to earn a decent APY on that balance.

You can also benefit from receiving your paycheck up to two days early.

Millennials with young children or teenagers may also like that Capital One offers accounts for their kids. Parents can start saving for their kids’ college (or whatever expenses are going to crop up) with Capital One Kids Savings. This account has an APY of 2.50% (as of 10/28/24). I love the idea of my kids learning about compound interest with an account that actually grows their money.

When kids get into their teens and start making their own money, you can open a Capital One MONEY teen checking account for them. This account earns 0.10% (as of 10/28/24).

As a parent, you can monitor your teen’s spending and savings with the MONEY account, while your teen has their own separate login to learn to manage money for themselves.

Visit Capital One

How to choose the best banks for millennials

What do you need from a bank?

Determine what your banking needs are. Most people need checking or spending accounts that enable you to deposit your paychecks and pay the bills. You also should have a savings account for building an emergency fund and covering other future expenses.

You probably also are like basically everyone on the planet in that you want to get the most possible value for your money (or even better, for free). That means no-fee checking and savings accounts, and choosing accounts that pay an APY to actually increase your balances.

You may be looking for free ATM access, early access to your paychecks, or interest on your savings. (Most of the accounts on this list offer all three.) If you need help starting saving, you can prioritize banks with great savings tools and APYs.

Read the fine print.

When choosing a bank for your spending and savings needs, be sure to always read the fine print. Many banks still require you to make a minimum number of debit card purchases per month in order to earn their top APY, for example. I’d steer clear from those unless you truly have no problem meeting that requirement.

Check on any other requirements. If a bank requires direct deposit, or a minimum balance, or some other stipulation that might be hard to meet, then look elsewhere. There are plenty of banks that pay competitive APYs for all balance tiers, so you don’t have to burden yourself with keeping track of unnecessary requirements.

FAQs

Bottom line

When looking for the best banks for millennials, you want to ensure the bank offers low or no fees and enables you to handle most of your banking online via the bank website or mobile banking app. After that, the choice of what bank is best for you depends on what specific features you are looking for.

SoFi, Ally Bank, and Wealthfront are a few of the best banks for millennials. Compare rates you can earn on savings as well as other features to choose the best bank for you.

Explore more options in our list of the best banks.