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19 Neobanks and the Services They Provide
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19 Neobanks and What They Offer
Neobanks distinguish themselves by focusing on certain communities, offering various advantages and benefits.
By Spencer Tierney Senior Writer | Certificates of deposit ethics, ethical banking, bank deposits Spencer Tierney is a consumer banking writer at NerdWallet. He has written about personal finance since 2013, with a focus on certificate of deposit as well as other banking-related topics. The work he has written for him was covered by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He is located in Berkeley, California.
Updated September 23, 2021
Written by Yuliya Goldshteyn Assistant Assigning editor Yuliya Goldshteyn is a banking editor for NerdWallet. She was previously an editor, researcher and writer in a variety of industries, from health care to market research. She received a bachelor's diploma in history from the University of California, Berkeley and a master's in social sciences from the University of Chicago, with a focus on Soviet culture and history. She is based at Portland, Oregon.
A majority of the products we feature are provided by our partners who compensate us. This influences which products we review and where and how the product is featured on the page. But, it doesn't influence our evaluations. Our views are our own. Here is a list of and .
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You can jump to a specific category or neobank:
For high-yield savings: •
To offer the broadest range of accounts:
For a cheap overdraft
For cash-back rewards: | || ||
Investor-friendly: || ||
Traveler-friendly: ||
Freelancer-friendly: ||
Neobanks refer to financial techalso known as fintech businesses that usually offer mobile-friendly banking accounts with eye-catching features such as low-cost credit or cash-back rewards. Certain established Neobanks provide loans credit cards, loans, or investment products too. They typically operate without branches , and, since most neobanks lack banking licenses, partner with banks in order to secure protection against the Federal Deposit Insurance Corp. In addition, they offer. All of the neobanks in this list are insured by FDIC.
Savings Cash Management CD Checking Money Market
Member FDIC
SoFi Savings and Checking
The APY is 4.00 Per cent SoFi Members who have direct deposit receive up 4.00 percent annually-percentage yield (APY) on savings balances (including Vaults) and 1.20 percent APY on checking balances. The minimum amount of direct deposit that is required to be eligible for 4.00 percent APY on savings. Customers who do not deposit direct deposits will receive 1.20 percent APY on their total account balances , including checking and savings (including vaults). Interest rates are variable and can change at any time. These rates are current as of 03/17/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
Min. balance required for APY $0
Member FDIC
Marcus is a product of Goldman Sachs Online Savings Account
APY 3.75 percentage 3.75% APR (annual percentage yield) with no minimum balance to earn the stated APY. Accounts must be in an active balance in order to remain open. APY valid as of 02/14/2023.
Min. balance to APY $0
Member FDIC
CIT Bank Platinum Savings
APY 4.75%
Min. balance to APY $5,000
The cash accounts offer features and services similar to checking, savings or investment accounts into one account. The cash management account is usually offered by non-bank financial institutions.
The cash accounts offer features and services that are similar to checking, savings and/or investment accounts in one account. Cash management accounts are usually provided by non-bank financial institutions.
on Wealthfront's website
The Wealthfront Cash Account
APY 4.30%
Min. balance to APY $1
on Betterment's website
Betterment Cash Reserve - Paid non-client promotion
APY 4.20 percent Annual percent yield (variable) is as of 03/27/2023.
Min. balance for APY $0
CDs (certificates of deposit) are a form of savings account that comes with a fixed rate and term generally, they offer higher rates of interest than standard savings accounts.
CDs (certificates of deposit) are a form of savings account that comes with the option of a fixed rate and time typically, they have higher interest rates than standard savings accounts.
Member FDIC
Marcus is a Goldman Sachs High-Yield 10-Month CD
APY 5.05 percent 5.05 percent APY (annual percent yield) as on 03/28/2023. Special Offer Expires 09/15/2023.
Ten months of term
CIT Bank CDs with no Penalty
APY 4.80%
The term 11 months
Checking accounts are used to deposit cash on a daily basis and for withdrawals.
Checking accounts can be used to deposit cash on a daily basis and for withdrawals.
They are FDIC Insured
Current Account
APY N/A
Monthly fee: $0
Chime Checking Account
APR N/A
Monthly fee: $0
Member FDIC
Axos Bank(r) Rewards Checking
APY 3.30% Your annual percentage yield can be as high as 3.30% based on the following combined rate rewards Direct deposits (not including inter-bank transfers from an account) with a total of $1,500 or more each month earn 0.40%. A qualifying direct deposit is required to satisfy the remaining eligibility requirements for interest rates. Ten (10) transactions at the point of sale each month with Your Rewards Visa(r) Debit Card for ordinary purchases that have a minimum of $3 per transaction, or by enrolling in Account Aggregation/Personal Finance Manager (PFM) will earn 0.30%; maintaining an average of at least $2,500 per month for your Axos Self-Directed Trading Invest account will earn 1.00%. Maintaining unbeatable balances of $2,500 per month on the Axos managed Portfolio Invest account earns 1.00%; and making a monthly payment to an open Axos Bank consumer loan (commercial and business loans excluded) through a transfers from the rewards checking account earns up to 0.60 percent.
Monthly fee: $0
Money market accounts pay rates that are similar to savings accounts, and come with certain features for checking.
Money market accounts pay rates similar to savings accounts. They also have some checking features.
Member FDIC
Discover Bank Money Market Account
APY 3.50%
Min. balance to APY $1
>> Learn more:
There are a lot of Fintech companies which can be classified as neobanks keeps growing. Between 2018 and 2020, the number of neobanks jumped between 60 and 256 around the world according to a study by the business-focused strategy firm Exton Consulting. With the rise of more players comes more competition. And some previously innovative services are becoming more standard among neobanks, such as two-day early access to direct deposits as well as free access to national ATM networks. And some digital wallets, including and, are competing with neobanks by offering some of the same features.
Neobanks are trying to distinguish themselves by appealing to specific groups, like freelancers or travelers from abroad, or providing advantages that aren't available at traditional banks. This article will provide an overview of the ways that some of the upcoming and current neobanks try to stand out.
>> Learn more:
For high-yield savings
Chime
Established in 2013, Chime is one of the biggest neobanks with over 12 million users. With two banks*, it offers checking and savings accounts that are both free of monthly fees, and a secured credit card you can use to establish credit. Chime's savings accounts offer a competitive interest rate of 2.00 per cent annual percentage yield** with no minimum balancerequirement, no maximum amount for earning interest and no monthly fees. (The Chime's Checking Account is required to open a savings account; savings Account is an option.) The account for spending gives access to more than 60,000 ATMs*** throughout the nation and, for customers with direct deposits, a fee-free overdraft program that covers as much as $200. Cash deposits are available at major retailers ****, and is not a feature that all neobanks provide. The process of signing up can be easier than at traditional banks since there's no credit check or previous banking records however, Chime offers an .
Find out more details from Chime
*Chime states: "Chime is a financial technology company and not an institution of banking. Services for banking are provided through The Bancorp Bank, N.A. and Stride Bank, N.A. Members of the FDIC."
**" The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may change at any time. The APY disclosed is in effect from October 25, 2022. No minimum balance required. You must have $0.01 in savings to earn interest. "
***"Out-of-network ATM withdrawal charges are applicable, excluding MoneyPass ATMs in a 7-Eleven store, or at any Allpoint as well as the Visa Plus Alliance ATM."
****"The retailer who receives your cash will be accountable for the transfer of funds to Your Chime checking Account. Deposit fees can be charged when you use a different retailer that Walgreens."
Read Chime reviews: ||
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Varo Bank
Varo Bank offers checking, cash advances, and savings. Established in 2015, and initially operating with partnership with banks, the bank changed to an officially chartered bank in August 2020, allowing it to provide its own FDIC insurance. As per Varo the bank had a total of 6 million customers as of mid-year 2022. The checking account is access to a free ATM access, as well as no monthly fees, plus perks such as cash-back at certain stores as well as no international transaction fees. Its savings account has two requirements to earn an interest rate of 5.00% APY on the first $5,000, including an annual minimum of $1,000 direct deposits and keeping a positive savings and checking balance at the end of the month. If not, it's 3.00% per annum.
Read Varo review:
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For widest range of accounts
SoFi
SoFi -- short to mean "Social Finance" -- was initially a student loan refinance company but recently received its own bank charter. SoFi Checking and Savings is its account that is a combination of money for spending and saving. There are no charges for accounts for overdrafts, ATM usage, or monthly maintenance (subject to change at any time). Some perks include earning interest, creating subaccounts to save, and those who make the right direct deposit, no-fee overdraft protection up to $50. SoFi also offers a range of loans that are automatic and active investment as well as cryptocurrency trading, credit cards, and retirement accounts.
Read ||||
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To get a cheap overdraft
One
The account is owned by Walmart The bank account has a cheap overdraft program, customized savings and budgeting choices. Customers can choose to divide their funds into subaccounts called Pockets. Pockets that are dedicated to saving are rated at 1percent on up to $5,000 for any customer, and 1% on up to $25,000 in the case of customers who deposit direct. One provides fee-free overdraft coverage up to $200 for customers with direct deposits of no less than $500 per month. That's cheaper than big banks' overdraft fees, which could be as high as $35 per transaction.
Read One reviews:|
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>> Learn more about
For credit building
GO2bank (and GoBank)
Green Dot Corporation has offered alternative banking products since 1999. Beginning with debit cards for prepaid It expanded to the first online bank in GoBank which was launched in 2013, and then its next brand of bank, GO2bank, in 2021. Every one of the Green Dot deposit accounts are federally insured by Green Dot Bank. In contrast to most neobanks that require an online sign-up You can get GoBank and GO2bank debit cards from retailers like Walmart and activate them on the internet to use them with an app for mobile devices.
Between the two brands, GO2bank is easily the most affordable option, with a lower monthly cost and perks but not as numerous as the other neobanks, such as Chime or Varo. GoBank's $9 per month fee is waived with $500 direct deposits, while the GO2bank's fee of $5 per month is waived with direct deposits without a specified minimum. In addition to the bank account, GO2bank offers an unsecured credit card to improve credit scores and also a savings vault that earns 1% APY for as much as $5,000. In contrast, GoBank doesn't offer a credit card and its savings vault does not earn interest.
Read GoBank review:
Read further about GO2bank:
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Sesame Cash
The credit firm Credit Sesame launched a free digital banking account in March 2020 that focuses on serving people living from paycheck to paycheck. The account's features include direct-deposited pay cheques that can be made up to two days in advance in advance, mobile and cash deposits, a limited cash-back program for debit cards and free access to a nationwide ATM network. With the account, customers have access to Credit Sesame's credit monitoring service for free and daily update of credit scores.
• Compare the
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MoCaFi
MoCaFi is also known as Mobility Capital Finance, is an online platform owned by Blacks in 2016 that provides free checking to serve largely unbanked and underbanked communities and focuses on closing the gap in wealth between the races. It provides a bill pay feature that allows customers to report rent payments to major credit bureaus to build credit history. As a rare perk, MoCaFi collaborates with third-party partners to provide free cash deposits at various stores and mobile check deposits that allow for quick withdrawal of funds.
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Dave
Dave was founded in 2017 as a pay advance business, but later expanded to offer a full-fledged checking account. By mid-2021, it had about 10 , million users. It allows you to receive a small cash advance from your next pay without any interest or credit check, and those who have at least $1,000 in direct deposit each month can establish credit histories through rent payments. Dave also provides budgeting that includes upcoming expenses and the capability to look for side-jobs in its mobile app. There aren't any fees for overdrafts , or when using ATMs in the nationwide MoneyPass network, and there are there are no minimum balance requirements.
Read Dave review:
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For cash-back rewards
Current
Current Established in 2015, Current, offers free and premium checking options that include cash back at some merchants, two-day advance direct deposit, and quick reimbursements for gas station holds on debit cards. The latter two perks are only available for premium accounts, which have the cost of $5 per month. Premium accounts with direct deposits can also have as much as $100 of overdrafts covered free.
Read Current review:
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Upgrade
A personal loan company Upgrade was founded in 2017 launched a completely free checking account for customers in 2021, with cash-back benefits that are greater than Current's. The primary benefits of Upgrade's customers with a checking account are cash-back of 2% for everyday purchases, like in restaurants and drugstores, and 20 percent discount on the company's personal loans. Customers can also view their credit scores free and summaries of their credit reports through their Credit Health service.
Read the reviews of Upgrade:|
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Bella
Bella's banking approach is, in its words, "built on love." It's an account reward program that gives a random percentage of cash back, between 5% and 200 percent, for randomly selected purchases. It was launched in 2020. Bella doesn't cost monthly or overdraft or ATM charges. In the moment, Bella also covers fees that are charged by non-network ATM operators. Also, there is a free savings account, which offers low interest rates as well as an alternative "karma account," which is a fund to pay for other customers' small purchases or to take advantage of a person's karma account generosity.
Click here to see our list of the
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Cheese
The program was launched in March 2021. Cheese has adapted its digital banking platform to the immigrant and Asian American communities, offering up 10% cashback for 10,000 businesses, which includes restaurants and businesses owned by Asians. Customer service is available in English and Chinese and will be available in more languages to come. Accounts accrue interest and don't incur monthly fees or ATM fees within the national MoneyPass ATM network.
Find out more about
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Investor-friendly
Acorns
Although the microinvesting application Acorns its main product is its automated investing for hands-off investors The company expanded its banking offerings in 2018 with Acorns Checking. It comes with a debit card and limited rewards program, and is available only in a package with a taxable investment account and an individual retirement account, each month for just $3 (or five dollars for the family version). Customers can choose to participate in the "round-up" feature where each purchase is rounded to an amount of a specific amount, and the change is then invested. The rewards program involves receiving an amount or a tiny percentage of money back for purchases made at more than 300 businesses. The money also gets invested.
Read Acorns review:
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Aspiration
Aspiration is an internet-based broker firm that offers the cash management account known as Spend & Save, that functions as a hybrid checking and savings account. There are two different versions of this account. The basic Spend & Save account has up to 3.00 percent interest on savings, and with up to 5 percent cash back and a monthly fee that is optional that customers pay the amount they consider fair starting at beginning at $0 and up. The higher-end Aspiration Plus plan comes with an almost-$72 annual fee, up to 10% cash back and up to 5.00 percent annual percentage yield. There are two accounts to choose from also, which allows you to invest in businesses that are sustainability and social cause. As a certified B Corp company, Aspiration is committed to being an environmentally and socially conscious company that offers its customers customized sustainability scores based on which businesses they make their purchases at.
Read Aspiration review:
The Aspiration Spend and Save Accounts are cash management accounts that are offered by Aspiration Financial, LLC, an authorized broker-dealer, a member of FINRA/SIPC and a subsidiary to Aspiration Partners, Inc. ("Aspiration"). Aspiration is not a bank."
The Aspiration Save Account's 5.00% annual percentage yield ("APY") and up to 83x the national interest rate can be variable subject to change and only available to customers who are members of Aspiration Plus when conditions are fulfilled. Customers not enrolled in Aspiration Plus receive 3.00% APY after conditions are met.
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Albert
Albert started in 2016 as a financial management app and later launched a customized banking service known as Albert Cash in August 2021. It currently has more than 6 million customers. Albert Cash is a banking account that earns cash back , and comes with the following advantages including cash advances with no interest in excess of $250 with integrated budgeting and saving tools, and annual savings bonuses that can reach 0.10 percent. To use Albert's investment feature you can get a savings rate up to 0.25 percent and avail the personal customer service called Genius and there is an annual minimum fee of $4. You need to be a member of an additional bank account to open an account with Albert.
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Traveler-friendly
Revolut
Started in 2015, the United Kingdom-based Revolut offers appealing features to travelers from across the world who require competitive exchange rates and cards that allow you to spend in over 150 currencies. Customers can transfer funds internationally with other Revolut customers, make withdrawals of up to $300 monthly from ATMs at no cost and earn the interest from savings. All this is included with the free account. For more perks, including medical insurance abroad, Revolut offers two accounts that charge a monthly fee of $10 and $17.
Read Revolut reviews: ||
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Wise
The U.K.-based money transfer company Wise was previously called TransferWise established a multicurrency account that rolled into U.S. customers in 2017. There is an initial $9 fee on the credit card Wise doesn't charge monthly account charges and also converts currencies at an affordable exchange rate, with only a small upfront fee. For converting a balance of $1,000 U.S. dollars to euros is, for instance, around $4.20 or 0.42 percent that's less expensive than bank foreign transactions fees that range from 1% to three percent. A bank account can hold several balances, which can hold up to 54 currencies at once, and converting may be completed in a matter of seconds.
Read Wise review:
From top to bottom
Freelancer-friendly
Oxygen
The account was launched in the early 2020s. Oxygen's online banking account is designed to assist freelancers and self-employed workers manage their money flow. Oxygen doesn't cost monthly fees, ACH or overdraft fees, but there are four pricing tiers for the account, which range from zero to $200 per year. All levels provide travel benefits, such as the loss of luggage as well as hotel theft protection. higher levels have more perks such as higher savings rates, cash back, and a variety of virtual cards. One unusual perk is the possibility to utilize the Oxygen application to incorporate, or legally register a company in the future, and later .
Read Oxygen review:
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Lili
Launched in 2019, Lili is a free mobile bank account designed specifically with freelancers and independent contractors in mind. With Lili, you can categorize your expenses by simply tapping left to indicate "life," or personal and then right for "work," or business. Lili offers tools to aid freelancers in saving for taxes, and an emergency savings account. Additionally, if you make use of Lili's account to pay your earnings through online platforms and payment apps, you can get your money up to two days prior. This is a common feature among many neobanks.
Review Lili: Lili review:
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(image: https://i.ytimg.com/vi/_wDO8H8vmnk/hq720.jpg)Neobanks to be announced soon
Be on the lookout for these four neobanks' debuts in the near future:
Daylight was formerly known as"Be" Money, Daylight plans to create a mobile bank account focusing on the LGBT+ community with features like access to financial experts and accounts with a person's chosen name, rather than their legal name.
Greenwood The Black-owned digital bank has already half a million people who are waiting on their list to open savings and spending accounts that focus on reinvesting money into Black as well as Latinx communities. (See the list below of upcoming and current .)
First Boulevard The Black-owned bank platform focuses on low-cost banking, with cash back at Black-owned companies, and short financial education videos. Its aim is to create the wealth of generations for Black Americans.
Purple: Purple plans to provide mobile banking designed for those with disabilities. It will include a checking account and an account that is tax-efficient, referred to as ABLE accounts. These accounts allow disabled people save money without risking the loss of any government assistance. Also, there will be a debit card that sends a portion of Purple's revenue towards Special Olympics. Special Olympics.
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From credit tracking tools to travel perks Checking accounts today offer more than their predecessors did. Before you open one, verify whether the fintech company is a bank or partners with one, and see which features would best suit your needs in the financial realm.
The author's bio: Spencer Tierney is a writer, and NerdWallet's expert on certificates of deposit. The work of Spencer Tierney has been featured by USA Today and the Los Angeles Times.
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