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19 Neobanks and What They Offer
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19 Neobanks and the Services They Provide
Neobanks differentiate themselves by focusing on particular communities, and offering advantages and benefits.
Written by Spencer Tierney Senior Writer | Certificates of deposit and ethical banking, as well as banking deposit accounts Spencer Tierney is a consumer bank writer for NerdWallet. He has written about the personal financial sector since with a particular focus on certificates of deposit, as well as other banking issues. The work he has written for him was highlighted by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among other publications. The location of his work is Berkeley, California.
Updated Sep 23 2021
Edited by Yuliya Goldshteyn Assistant Editor Yuliya Goldshteyn is a banking editor with NerdWallet. She was previously an editor, a writer and a research analyst in industries ranging from healthcare to market research. She earned a bachelor's degree in history from the University of California, Berkeley and a master's in social sciences from the University of Chicago, with the focus on Soviet culture and history. She is based in Portland, Oregon.
A majority of the products featured here come from our partners who pay us. This impacts the types of products we write about and where and how the product is featured on a page. But, it doesn't affect our assessments. Our views are our own. Here's a list and .
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Jump to a specific category or neobank:
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Neobanks can be described as financial technology -- or fintech -- firms that typically provide mobile-focused accounts for banking with appealing features like low-cost credit or cash-back rewards. Certain established Neobanks provide loans and credit cards, as well as investing productsas well. They generally operate without branches , and as a majority of neobanks don't have bank licenses, they work with banks in order to secure protection against their Federal Deposit Insurance Corp. In addition, they offer. The neobanks listed on this list are insured by FDIC.
Saves CD Management Checking Money Market
Member FDIC
SoFi Savings and Checking
APR 4.00 percent SoFi customers who have direct deposit are eligible to receive up 4.00 per cent annually-percentage yield (APY) on savings balances (including Vaults) and 1.20% APY on checking balances. No minimum amount of direct deposit required to qualify for the 4.00 percent APY on savings. Direct deposit members will earn 1.20 percent APY on their total account balances in checking and savings (including Vaults). The rates of interest are variable and can change at any point. The rates shown are current as of 03/17/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
Min. balance to APY $0
Member FDIC
Marcus by Goldman Sachs Online Savings Account
APR 3.75% 3.75% APY (annual percentage yield) with $0 minimum balance to earn stated APY. Accounts must have an open balance to stay open. APY is valid until 02/14/2023.
Min. balance to APY $0
Member FDIC
CIT Bank Platinum Savings
APY 4.75%
Min. balance to APY $5,000
They combine the services and features that are similar to savings, checking and investment accounts into one account. Cash management accounts are usually provided by non-bank financial institutions.
These cash accounts combine features and services that are similar to checking, savings or investment accounts into one product. These accounts for managing cash are typically offered by non-bank financial institutions.
on Wealthfront's website
The Wealthfront Cash Account
APY 4.30%
Min. balance for APY $1
on the Betterment's website.
Betterment Cash Reserve - Paid non-client promotion
APY 4.20 Percentage of annual percentage yield (variable) is at 03/27/2023.
Min. balance to APY $0
CDs (certificates of deposit) are a type of savings account that has an interest rate fixed and a term generally, they offer higher rates of interest than regular savings accounts.
CDs (certificates of deposit) are a type of savings account that comes with the option of a fixed rate and time generally, they offer higher interest rates than traditional savings accounts.
Member FDIC
Marcus from Goldman Sachs High-Yield 10-Month CD
APY 5.05% 5.05% APY (annual percentage yield) as on 03/28/2023. Special Offer Expires 09/15/2023.
The term is 10 months
CIT Bank CD with no penalty
APY 4.80 percent
Term 11 months
Checking accounts are utilized to make daily cash deposits as well as withdrawals.
Checking accounts are utilized for day-to-day cash deposits and withdrawals.
They are FDIC Insured
Current Account
APY N/A
Monthly fee of $0
Chime Checking Account
APY N/A
Monthly fee $0
Member FDIC
Axos Bank(r) Rewards Checking
APY 3.30 percent The annual percentage yield could be up to 3.30% depending on the following combination rate-rewards direct deposits (not including intra-bank transfers from an account) that total more than $1500 each month will earn 0.40 percent. A qualifying direct deposit is required to satisfy the remaining rates to be eligible. Ten (10) transactions at the point of sale per month using your Rewards Checking Visa(r) Debit Card to make ordinary purchases that have the minimum amount of $3 per transaction, or registering for Account Aggregation/Personal Financial Manager (PFM) will earn 0.30%; maintaining an average of at least $2,500 per month in an Axos self-directed trading Invest account earns 1.00%. Maintaining an average daily balance of $2,500 a month in an Axos Managed Portfolio Invest account earns 1.00 percent. Likewise, making a monthly payment to an open Axos Consumer Bank loan (commercial and business loans excluded) via the Rewards Checking Account can earn up to 0.60%.
Monthly fee $0
The money market accounts have rates that are similar to savings accounts and have some checking features.
The money market accounts have rates similar to savings accounts and have some checking features.
Member FDIC
The Discover Bank Money Market Account
APY 3.50%
Min. balance to APY $1
>> Learn more:
There are a lot of Fintech firms that could be referred to as Neobanks continues to grow. Between the years of 2018 and 2020, the number of Neobanks increased by 60-256 worldwide, according to a report by the business strategy company Exton Consulting. With increased competition comes greater competition. And some previously innovative features are now more popular for neobanks. These include two-day early access to direct deposit and free access to nationwide ATM networks. Some digital wallets, including and, are competing with Neobanks, offering the same features.
Neobanks are trying to differentiate themselves by appealing to certain groups, like freelancers or international travelers, or by offering benefits that you can't find in traditional banks. This article will provide an overview of how some of the current and future Neobanks attempt to make themselves stand out.
>> Learn more:
To save money with high yields
Chime
Established in 2013, Chime was founded in 2013 and is one of the biggest neobanks with over twelve million clients. It is partnered with two banks*, it offers checking and savings accounts, both with no charges for monthly usage, as well as an unsecured credit card that you can use to create credit. Chime's savings accounts offer a competitive interest rate of 2.00% annual percentage yield** with no minimum balance, no maximum amount for earning interest, and no monthly costs. (The Chime's Checking Account is required to open a savings bank account; The Savings Account is an optional.) The spending account offers access to more than 60,000 ATMs*** nationwide and, for customers with direct deposits, they can benefit from a cost-free overdraft program that covers as much as $200. Cash deposits can be made at large retailers ****, and is not a feature that every neobank offers. The sign-up process can be easier than at traditional banks as there's no check on credit or previous banking records however, Chime offers an .
Get more details from Chime
*Chime claims: "Chime is a financial technology company and not an institution of banking. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A. Members of the FDIC."
*" The Annual Percentage Yield ("APY") for the Chime Savings Account is subject to change and could change at any time. The APY disclosed is in effect from October 25, 2022. No minimum balance required. It is necessary to have $0.01 in savings to earn interest. "
***"Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven store, or at any Allpoint and Visa Plus Alliance ATM."
****"The retailer that receives your cash will be responsible for transferring the cash for deposit into the Chime Account. Account. Deposit fees can be charged when you use a different retailer in addition to Walgreens."
Read Chime reviews: ||
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Varo Bank
Varo Bank offers checking, savings, and cash advances. Established in 2015, and initially working with bank partnerships, it changed to an officially chartered bank in August 2020. This allowed it to provide their very own FDIC insurance. As per Varo its website, it had a total of 6 million customers as of mid-year 2022. The checking account comes with access to a free ATM access, as well as no monthly charges, as well as benefits like cash-back at certain stores with no transaction fees. Its savings account has two requirements to earn an interest rate of 5.00% APY on the first $5,000, including a $1,000 minimum in monthly direct deposits as well as a positive savings and checking balance at the end of each month. In other cases, you earn 3.00% APR.
Read Varo review:
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We offer the widest variety of accounts
SoFi
SoFi -- a short form for "Social Finance" -- was initially a student loan refinance company but recently obtained its own bank charter. SoFi Checking and Savings is a account that is a combination of the money to spend and save. There are no fees for account usage, for overdrafts, ATM usage, or monthly maintenance (subject to change at any time). Some perks include earning interest, creating subaccounts for savings as well as, for customers with qualifying direct deposits, no-fee overdraft coverage up to $50. SoFi also offers many types of loans, automatic and active investment, cryptocurrency trading credit cards, retirement accounts.
Read SoFi reviews: ||||
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For a low cost overdraft
One
Owned by Walmart One's bank account has a cheap overdraft program, customized budgeting and savings options. Customers can choose to arrange their money into pockets, or subaccounts. The pockets that are devoted to saving are rated at 1.1% on up to $5,000 per customer and 1% for up to $25,000 for those who deposit direct. One gives free overdraft coverage as high as $200 for customers who make direct deposits of at least $500 per month. This is less expensive than banks with large branches' overdraft fees, which are typically around $35 per transaction.
Read One reviews: |
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Learn more about
For building credit
GO2bank (and GoBank)
Green Dot Corporation has offered alternative banking products since 1999. Starting with prepaid debit cards, it expanded into the first online bank in GoBank In 2013, before launching its new bank brand, GO2bank, in 2021. Every one of the Green Dot deposit accounts are federally insured by Green Dot Bank. Contrary to many neobanks which require online registration, you can pick up GoBank and GO2bank debit cards from retailers such as Walmart and activate them online using the mobile application.
In comparison to the other brand names, GO2bank is easily the most affordable option, with a lower monthly cost and more benefits, though not as many as other neobanks like Chime or Varo. GoBank's almost $9 monthly fee is waived with $500 in direct deposits, while the GO2bank's fee of $5 per month is waived when you deposit direct with no minimum amount. Alongside the bank account, GO2bank offers a secured credit card that can be used to build credit and has a savings vault that earns 1% APY for up to $5,000. Contrary to this, GoBank doesn't offer a credit card and its savings vault isn't able to earn interest.
Read about GoBank's review. GoBank review:
Learn further about GO2bank:
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Sesame Cash
The credit company Credit Sesame launched a free digital bank account in March 2020 . The account is designed to serve people who live pay-to-pay. The account's benefits include direct deposit of paychecks up to two days in advance in advance, mobile and cash deposits, a restricted debit card cash-back program, and access to a free national ATM network. Through the account, users have access to Credit Sesame's free credit monitoring and daily update of credit scores.
• Compare the
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MoCaFi
MoCaFi or Mobility Capital Finance, is a Black-owned digital platform started in 2016 and offers free checking to serve the underbanked and unbanked majority of communities and focuses on closing the wealth gap between racial groups. It provides a bill pay feature that allows customers to report rent payments to the major credit bureaus in order to establish credit histories. A rare perk, MoCaFi cooperates with its third-party partners to give free cash deposits at various merchants and also free mobile check deposits that allow for quick withdrawal of funds.
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Dave
Dave was founded the company in 2017, as a paycheck advance company and expanded to offer a full-fledged checking account. As of mid-2021, it had about 10 million customers. You can get a small cash advance from your next pay without interest or a credit check. Customers who have at least $1,000 in monthly direct deposits are able to build credit history by making rent payments. Dave also provides budgeting that incorporates upcoming expenses as well as the ability to search for side-jobs on its mobile application. There aren't any fees for overdrafts , or when using ATMs within the nationwide MoneyPass network. There are also there is no minimum balance requirement.
Read Dave review:
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For cash-back rewards
Current
Current was founded in the year 2015 It offers both free and premium checking options that include cash back at some merchants, two-day early direct deposit, and fast refunds on gas station debit hold on cards. The latter two perks are only available to premium accounts, which have a $5 monthly fee. Premium accounts that have direct deposits can also have up to $100 of overdrafts covered no cost.
Read the Current review:
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Upgrade
Personal loan company Upgrade which was established in the year 2017, launched a free checking account in 2021 with cash-back rewards more extensive than Current's. The primary benefits of Upgrade's customers who have a checking account include cash-back of 2% for everyday purchases, like in restaurants and drugstores and 20 percent discount for personal loans. Customers are also able to view their credit scores no cost and a summary of their credit reports through Upgrade's Credit Health service.
Read reviews about Upgrade:|
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Bella
Bella's approach to banking is, in the words of its website, "built on love." That translates to an account reward program that gives a random percent of cash back, that ranges from 5% to 200%, on randomly selected purchases. The program was introduced in 2020. Bella doesn't cost monthly or overdraft, or ATM charges. At present, Bella also covers fees that are charged by non-network ATM operators. There's also a zero-fee savings account, though it has a low interest rate, as well as an alternative "karma account," which can be used as a reserve to help pay for smaller purchases made by customers or to be a recipient of another's generosity through a karma account.
Check out our list of the
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Cheese
Started in March 2021, Cheese is a digital bank that tailors its platform to the immigrants as well as Asian American communities by offering up to 10% cash back at 10,000 businesses, including restaurants and Asian-owned businesses. Support for customers is offered in English and Chinese as well as other languages coming soon. Accounts are able to earn interest and do not have monthly fees or ATM fees in the national MoneyPass ATM network.
Find out more about
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Investor-friendly
Acorns
The microinvesting app Acorns its main product is their automated investing service for investors who don't have hands, it expanded into banking in the year 2018 with Acorns Checking. The account includes a debit card and limited rewards program, and is available only as a bundle that includes an investment account that is tax deductible as well as an individual retirement account all for $3 per month (or $5 for a family version). Customers are able to opt into an "round-up" feature in which each purchase is rounded up by an amount, and the change is then invested. The rewards program allows customers to receive an amount or a tiny percentage returned from purchases at more than 300 businesses, and it can also be invested.
Read Acorns review:
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Aspiration
Aspiration is an online brokerage firm with the cash management account called Spend & Save, that is an hybrid savings and checking account. There are two versions of this account. The standard Spend & Save account has the potential to earn up to 3.00% APY on savings, as high as 5% cash back and an optional monthly fee which customers pay as they think is fair from beginning at $0 and up. The more expensive Aspiration Plus plan has an annual fee of almost $72 and as high as 10% cashback as well as up to 5.00 percent APR. There are two accounts available also, which allows you to invest in sustainable business practices and social causes. As an accredited B Corp company, Aspiration is committed to being a socially responsible and environmentally conscious business that gives customers customized sustainability scores in relation to the companies they make their purchases at.
Read the Aspiration review:
The Aspiration Spend and Save Accounts are cash management account that are available by Aspiration Financial, LLC, a registered broker-dealer, Member FINRA/SIPC, and an affiliate to Aspiration Partners, Inc. ("Aspiration"). Aspiration isn't a bank."
The Aspiration Save Account's up to 5.00% Annual Percentage Yield ("APY") with up to 83x the national interest rate is subject to change and subject to change and is only available to those who are enrolled in Aspiration Plus after conditions are fulfilled. Customers not enrolled in Aspiration Plus get 3.00 percent APY once the conditions are met.
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Albert
Albert started in 2016 as a financial management app and later launched a customized banking service called Albert Cash at the end of August in 2021. The company has over six million customers. Albert Cash is a banking account that earns cash back , and comes with the following advantages including cash advances with no interest of up to $250 with integrated budgeting and saving tools, and annual savings bonuses that can reach 0.10 percent. For access to Albert's investing features you can get an interest rate of 0.25% and use the personalized support for customers, known as Genius There is a minimum monthly fee of $4. You need to possess an outside bank account to open an account with Albert.
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Traveler-friendly
Revolut
Since its launch in 2015, the UK-based Revolut provides attractive features to travelers from across the world who require an exchange rate that is competitive and a debit card that can spend in over 150 currencies. Customers can transfer funds internationally with other Revolut users, and withdraw as much as $300 monthly from ATMs at no cost, and get the interest from savings. That's all with the account that is free. For additional benefits, like medical insurance abroad, Revolut offers two accounts with monthly fees of between $10 and $17.
Read Revolut reviews: ||
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Wise
The U.K.-based money transfer company Wise which was previously called TransferWise, created a multicurrency account that rolled into U.S. customers in 2017. Although there's an initial $9 fee to use the card for debit, Wise doesn't charge monthly charges for account usage and can convert currencies at a fair exchange rate with a small upfront cost. 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 most bank foreign transactions fees between 1% and 3%. An account can have multiple balances, containing as many as 54 different currencies simultaneously, and converting may take only minutes.
Read Wise review:
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Freelancer-friendly
Oxygen
The account was launched in the early 2020s. Oxygen's digital bank account aims to help self-employed and freelance workers control their cash flow. Oxygen doesn't charge monthly, ACH or overdraft fees, but there are four pricing levels for the account, which range from zero to $200 per year. All levels provide benefits for travel, including lost luggage and hotel theft protection, and higher levels offer more benefits, including greater savings rates, cash back, and a variety of virtual cards. One unusual perk is the option to use the Oxygen app to incorporate, or legally establish a business in the future, and later .
Read Oxygen review:
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Lili
It was introduced in the year 2019. Lili is a free mobile bank account designed specifically with freelancers and contractors in mind. With Lili you can classify your expenses by simply tapping left for "life," or personal or personal, and the right side to indicate "work," or business. Lili also includes tools that assist freelancers to save money to pay taxes and also an emergency fund. Plus, if you use Lili's account to transfer your earnings from websites and payment apps, you'll be able to receive your funds for up to 2 days prior. This last feature is common with a lot of Neobanks.
Read Lili review:
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Neobanks coming soon
Be on the lookout for the debuts of these four Neobanks in the near future.
Daylight was formerly known as Be Money, Daylight plans to introduce the first mobile bank account focusing on the LGBT+ community with features including access to financial coaches and accounts under a user's preferred name, not their legal name.
Greenwood Digital: The black-owned banking firm has already half a million people on its waitlist for savings and spending accounts that are geared towards reinvesting their wealth into Black and Latinx communities. (See our list of forthcoming and active .)
First Boulevard: The black-owned banking platform is focused on low-cost banking, with cash back at Black-owned businesses, combined with short videos on financial education. Its aim is to create generational wealth to Black Americans.
Purple: Purple plans to provide mobile banking designed for the disability community with the option of a checking account as well as an account for savings that is tax-advantaged called ABLE accounts. These accounts allow people with disabilities save money, without the loss of any government benefits. Also, there will be the debit card that donates a portion of Purple's revenue towards Special Olympics. Special Olympics.
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(image: https://live.staticflickr.com/7836/31787196377_cd1ec35b3d.jpg)From credit monitoring tools to travel perks Modern checking accounts provide more than the traditional ones. Before you open one, verify whether the fintech firm is a bank, or is in partnership with a bank, and determine which features will best suit your needs in the financial realm.
About the author: Spencer Tierney is a writer and NerdWallet's official authority for certificates of deposit. The work of Spencer Tierney has been featured by USA Today and the Los Angeles Times.
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