I have a couple of local backups — a main one for Time Machine, plus another external drive for videos.
I also want an online backup in case I lose the physical ones in my house (theft, fire etc). Ideally, this backup would be able to backup my external drive too, although I could manually sync the files if needed.
What’s the best route here? I’m happy to spend a bit, but don’t want an expensive subscription. I have Dropbox and iCloud, but assume there are better options purpose built for this.
I have been using Dropbox for full backups for probably about two years now. That's mainly by habit (I started with them sometime in 2009-2010), but my plan is deliberate. And it's not for just one computer, it's for many.
I use Carbon Copy Cloner to make daily backups to my NAS. These are all sparse disk images. Of course, CCC advises that you don't use those and instead use sparsebundles. But sparsebundles are hard to move around while disk images are just drag and drop.
I have a 3TB subscription with Dropbox, plus a few dollars extra for an additional 1TB. With my own 'free' space (what I had before the subscription) that totals out to 4.1TB of space.
So, CCC is a weekly backup to the Dropbox folder on one of my Mac Pro's internal drives (an 8TB drive). Again, these are sparse disk images. Since, only changes get backed up, these disk images are not uploading the entire backup every weekend when I do this - only the changed files. My PC has a different backup app.
Several other Macs also backup to the Dropbox folder on my Mac Pro (it's always left running, 24/7). And by that method those backups become a weekly offsite backup. Since these are sparse disk images, I can pull them whenever I need them to recover.
I had the necessity to do that a few month ago. My Mac Pro is running Sonoma via OCLP (it's a 2009 model). I simply had CCC restore my backup from the disk image to a new SSD (formatted APFS). I then booted from my Sonoma (OCLP) install stick (USB) and reinstalled Sonoma. That created the recovery partition, etc. With that everything was back to normal on a new SSD.
Now, I pay my home ISP for a Gigabit connection and unlimited data. I also work from home so that and my backups justify that if anyone cares (I don't, I don't need justification for it). But since these disk images are all up on Dropbox already (via the folder on my HD on my Mac Pro), backups never take that long to update to Dropbox.
Dropbox costs me around $28 a month. That's worth it for me because again, I have several Macs and a PC that backup weekly to Dropbox.

NOTE, the ONE sparsebundle in here is because CCC wouldn't let me force a sparse disk image on that Mac for some reason. In the website screenshot you can see that it's a folder. That's why sparebundles are such a PITA to move around.