Best Banks for Millennials, 2017

(Image credit: iStockphoto)

published 24 May 2017

Millennials value strong mobile and digital features, as well as an active social media presence.

Instead of banks with lots of branches, we focused on ones with no- and low-fee checking accounts, as well as savings and money market accounts that pay decent yields.

Here's a look at our top bank picks for millennials.

The Best Bank for You, 2017

BEST: Ally

Ally Bank, which also tops our ranking of internet banks, is a stellar option for millennials. Its menu is limited to a single checking, savings and money market deposit account. There are no hidden fees, and the savings account yields 1.05% no matter what your balance. The money market deposit account yields 0.85% on all balances and comes with a debit card and free checks. Even the checking account pays 0.1% on balances under $15,000 (and 0.6% on deposits above that). Withdrawals from any ATM in the Allpoint network are free, and Ally will rebate up to $10 per month in surcharges from other ATMs. You can link your debit card to Apple Pay, Android Pay or Samsung Pay. Ally also offers Popmoney (the service that allows you to send or receive money using someone's mobile number or e-mail address).

You can link your checking account to a savings or money market account to cover shortfalls. If you don't set up an overdraft-transfer service, your transaction may be declined if you overdraw your account, and you may be penalized $25. Live customer service is available by phone or online chat 24/7. Ally is responsive on social media as well; you can expect an answer to most Facebook messages within a few hours.

13 Ways to Simplify Your Finances

RUNNER-UP: Langley Federal Credit Union

Even if you don't live or work in the Hampton Roads area of Virginia, where Langley Federal Credit Union is based, you can still become a member by joining one of several local associations. Langley offers a varied menu of no-fee checking accounts and savings accounts. On the checking side, if you want to earn interest on your money, the free LangleyPays checking account yields 1.61% on the first $1,000 in deposits and pays 10 cents every time you swipe your debit card. On the savings side, the Langley Saves account earns 1.61% on the first $1,000 but only 0.05% on higher balances. If you'd like a stricter way to keep track of your spending, you can use Langley's Spend Card, a prepaid card that is completely fee-free.

With the mobile app, you can deposit checks remotely, pay bills and even check your FICO score. Or enroll in "text banking" to check your balance or review transactions by sending simple text commands. Langley debit cards are compatible with Apple Pay, Android Pay and Samsung Pay.

Time-Tested Tactics to Build Your Wealth