19 Neobanks and What They Offer Advertiser disclosure We consider you to be our first priority. Each time. We believe that every person should be able make financial decisions without hesitation. While our website doesn’t feature every company or financial product on the market, we’re proud that the guidance we offer as well as the advice we offer and the tools we create are objective, independent simple, and completely free. So how do we make money? Our partners compensate us. This may influence which products we write about (and where those products appear on the site) however it doesn’t affect our recommendations or advice that are based on thousands of hours of research. Our partners are not able to promise us favorable reviews of their products or services. . 19 Neobanks and What They Offer Neobanks differentiate themselves by focusing on specific communities, offering various benefits and more. By Spencer Tierney Senior Writer | Certificates of deposit, ethical banking, banking deposits Spencer Tierney is a consumer banking writer at NerdWallet. He has written about personal finance since 2013, with a particular focus on certificates of deposit and other banking-related subjects. He has had his work highlighted on The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He is based within Berkeley, California. Sep 23, 2021 Edited By Yuliya Goldshteyn Assistant Assigning Editor for Banking Yuliya Goldshteyn works as a banking editor with NerdWallet. She previously worked as an editor, writer , and research analyst in industries ranging from healthcare to market research. She received a bachelor’s level degree in the field of history from University of California, Berkeley. University of California, Berkeley and a master’s degree in social sciences from the University of Chicago. She can be reached via
. The majority of products featured here are from our partners, who pay us. This affects the products we review and where and how the product is featured on the page. However, this does not affect our opinions. Our opinions are our own. Here is a list of and . The information about investing on this page is intended for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell specific securities, stocks or other investment options. You can jump to a specific Neobank or category: For high yield savings: For the most extensive variety of accounts: low-cost overdrafts: for credit-building: For cash-back rewards: | | Investor-friendly: Neobanks are freelancer-friendly. are financial technology also known as fintech businesses that usually offer mobile-oriented accounts that are brimming with attractive features, such as no-cost cash-back rewards or credit. Certain established neobanks provide loans and credit cards as well as investing products, too. They usually have no branches and, as a majority of neobanks don’t have banking licenses, they collaborate with banks in order to secure security against the Federal Deposit Insurance Corp. In addition, they offer. All neobanks on this list are insured by FDIC. Saves Cash Management CD Checking Money Market Member FDIC SoFi Checking and Savings APY 3.75 percent SoFi members who have direct deposit can earn up to 3.75 per cent per year in annual percentage return (APY) in savings account balances (including vaults) and 2.50 percent APY on their checking balances. No minimum amount of direct deposit needed to be eligible for 3.75% APY for savings, and 2.50% APY for checking balances. Members without direct deposit will get 1.20% APR on all balances in checking and savings (including vaults). Rates of interest are subject to change and can change at any point. These rates are current as of 01/04/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet Min. balance for APY: $0 Member FDIC Marcus by Goldman Sachs Online Savings account APY 3.50 35% 3.50% APR (annual per cent yield) with a minimum balance of $0 to earn the APY stated. Accounts must have a healthy balance to continue to operate. APY current as of 02/07/2023. Min. balance for APY Cash accounts are $0 and offer a variety of services and features comparable to checking, savings and/or investment accounts in one product. These accounts for managing cash are usually offered by non-bank financial establishments. These cash accounts combine features and services similar to checking, savings and/or investment accounts in one package. The cash management account is generally offered by non-bank financial institutions. on Wealthfront’s website Wealthfront Cash Account APY 4.05 percent min. Balance of APY $1 on the Betterment website. Betterment Cash Reserve Paid non-client promotions APY 4.00 Percent Annual percentage yield (variable) is at 02/06/2023. Min. balance for APY CDs is $0 (certificates of deposit) are a type of savings account that comes with fixed rates and terms, and usually have higher rates of interest than regular savings accounts. CDs (certificates of deposit) are a form of savings account that comes with an unchanging rate and term typically, and have higher rates of interest than traditional savings accounts. CIT Bank CD Annual Percentage Yield 4.60% Term 1.5 Years Member FDIC Marcus by Goldman Sachs High-Yield CD APY 4.40 percent 4.40% APY (annual percentage yield) at 01/25/2023. Term One year checking accounts can be used for day-to-day cash deposits and withdrawals. Checking accounts can be used to deposit cash on a daily basis and for withdrawals. Members FDIC SoFi Savings and Checking APY 2.50% SoFi members with direct deposit can get up to 3.75 percent annually in percentage return (APY) for savings accounts (including vaults) and 2.50 percent APY on their checking balances. The minimum amount of direct deposit that is required to be eligible for 3.75% APY on savings, and 2.50 percent APY on checking balances. Direct deposit members will receive 1.20% APR on all balances of savings and checking (including Vaults). The rates of interest are subject to fluctuation and are subject to change at any point. The rates listed are current at 01/04/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet Monthly fee $0 Upgrade Rewards Checking APY N/A Monthly fee $0 Deposits are FDIC Insured Current Account APY N/A Monthly fee $0 Deposits are FDIC Insured Chime Checking Account APY N/A Monthly fee $0 Member FDIC Axos Bank(r) Rewards Checking APY 1.25% Receive monthly direct deposits totaling $1,500 or more to earn 0.40% APY. Make use of the Axos Visa(r) debit card for a total of 10 transactions each monthly (min $3 per transaction) or join Account Aggregation/Personal Financial Manager (PFM) within Online Banking to earn 0.30% APR. Keep an average daily balance of $2,500 in An Axos Managed Portfolios Invest Account for 0.20 percent annual percentage yield. Maintain a daily average balance of $2,500 in An Axos Self-Directed Trading Investment Account to earn 0.20 percent APY. Use the Rewards checking account to pay your entire monthly Axos Consumer loan payment to earn 0.15 percent annual percentage yield. Monthly fee of $0. Money market accounts pay rates similar to savings accounts, and come with some checking features. Money market accounts pay rates comparable to savings accounts and include certain features for checking. FDIC UFB Best Money Market Member FDIC UFB Best Money Market APY 4.21% Min. balance for APY $0 FDIC Discover Bank Money Market Account APY 3.20% Min. balance for APY $1. Learn more: The amount of fintech companies that could be termed neobanks continues to grow. From 2018 to 2020 neobanks skyrocketed by 60-256 across the globe according to a study by the business strategy firm Exton Consulting. With increased competition comes greater competition. And some previously innovative services are now becoming common for neobanks. These include two-day early access to direct deposit and free access to nationwide ATM networks. And some digital wallets, like and are competing with Neobanks, offering these same features. Neobanks are finding ways to differentiate themselves by appealing to particular groups, like freelancers or tourists from other countries, as well as providing benefits that aren’t available in traditional banks. This article will provide an overview of the ways that some of the upcoming and current Neobanks attempt to distinguish themselves. Find out more for high-yield savings Chime Founded in 2013, Chime is one of the largest neobanks, with more than 12 million customers. It is partnered with two banks, it offers savings and checking accounts, both with no costs for monthly charges, as well as a secured credit card you can utilize to build credit. Chime’s savings account offers a competitive interest rate of 2.00 percent annual percent yield with zero minimum balances, no maximum amount for earning interest and no monthly charges. (The Chime Savings Account is required to open a savings bank account; The Savings Account is an option.) The spending account offers free access to more than 60,000 ATMs throughout the nation, and for customers with direct deposits, they can benefit from a cost-free overdraft service that can cover the amount of $200. Cash deposits are available at major retailers ****, a service not all Neobanks offer. The process of signing up can be more straightforward than with traditional banks since there’s no check on credit or prior bank records, but Chime has an . Learn more about Chime *Chime states: “Chime is a financial technology firm, not a bank. Services for banking are provided via The Bancorp Bank, N.A. or Stride Bank, N.A. and 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 declared APY will be in effect on October 25 2022. No minimum balance is required. It is required to have $0.01 of savings in order to receive interest. ” ***”Out-of-network ATM withdrawal fees are applicable, except for MoneyPass ATMs in a 7-Eleven store, or at any Allpoint or Visa Plus Alliance ATM.” ****”The retailer who accepts your cash is accountable for the transfer of the cash to the Chime Account. Account. Cash deposit fees may apply when you use a different retailer than Walgreens.” Read Chime reviews: Return to Top Varo Bank Varo Bank offers checking, savings, as well as cash advances. Founded in 2015 and originally working with bank partnerships, it became a nationally chartered bank in the month of August, 2020. This allowed it to offer its own FDIC insurance. According to Varo its website, it had 6 million customers by mid-2022. The checking account comes with free ATM access, as well as no monthly fees, plus advantages like cash back from certain retailers and no foreign transaction fees. Its savings account has some requirements for earning an interest rate of 5.00 percent APY for the first $5,000, which includes an annual minimum of $1,000 direct deposits and keeping a positive savings and checking balance at the end of each month. If not, it’s 3.00 percent APY. Read Varo review To the top widest range of options SoFi SoFi — abbreviation in the sense of “Social Finance” began as a student loan refinance firm, but it has since obtained its own bank charter. SoFi Checking and Savings is a account that can be used to manage the money to spend and save. There are no charges for accounts for overdraft, ATM usage, or monthly maintenance (subject to changing at any time). Some perks include earning interest, creating subaccounts for savings as well as those who make the right direct deposit, free overdraft coverage for up to $50. SoFi also offers a range of loans including automatic and active investing and trading in cryptocurrency, credit cards, and retirement accounts. Read SoFi reviews: Back to top One Owned by Walmart, One’s banking account offers a low overdraft program, custom-designed savings and budgeting options. Customers can choose to organize their money into pockets, which are subaccounts that can be referred to as Pockets. The pockets that are dedicated to saving have rates of 1% on up to $5,000 for any customer and 1% for up to $25,000 for customers who have direct deposit. One offers free overdraft protection up to $200 for customers with direct deposits of at least $500 monthly. This is less expensive than banks with large branches charge for overdrafts that can range from $35 per transaction. Read reviews on One:More information about credit building GO2bank (and GoBank) Green Dot Corporation has been offering different banking services since. Starting with prepaid debit cards, it expanded into its first digital bank, GoBank which was launched in 2013, and its second brand of bank, GO2bank, in 2021. All Green Dot deposit accounts are federally insured by Green Dot Bank. Contrary to many neobanks that require an online sign-up for customers, you can get GoBank or GO2bank credit card at stores such as Walmart and then activate them online to use with a mobile app. Between the two brands, GO2bank is the best choice, with a lower monthly cost and perks however not as many as other neobanks such as Chime or Varo. GoBank’s almost $9 monthly fee is waived with $500 in direct deposits. the $5 fee for GO2bank’s monthly service is waived with direct deposits with no minimum amount. In addition to the bank account, GO2bank provides an unsecured credit card to improve credit scores and also a savings vault that earns an APY of 1% 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. Check out the GoBank review: Read more about GO2bank: Back to the top Sesame Cash Credit company Credit Sesame launched a free digital bank account in March 2020 that is geared towards helping people live from paycheck to paycheck. The account’s features include direct deposit of pay checks up to 2 days early as well as mobile and cash deposits as well as a restricted debit card cash-back program, and access to a free national ATM network. The account’s users get access to Credit Sesame’s free monitoring of credit scores and daily updates to credit scores. Check the top to the back MoCaFi MoCaFi, or Mobility Capital Finance, is a Black-owned digital platform launched in the year 2016 that offers free checking services to the majority of communities that are unbanked or underbanked with a primary focus on closing the racial wealth gap. The platform offers a bill-pay feature that allows customers to submit rent payments to major credit bureaus to establish credit histories. It is a unique perk. MoCaFi collaborates with third-party partners to give free cash deposits at various stores and mobile check deposits that allow for quick cash out. Back to the top Dave Dave started in 2017 as a company that offered a pay advance and later expanded to provide an entire checking account. As of mid-2021, it had about 10 , million users. You can receive a small credit on the next paycheck without any interest or credit check. Customers with at least $1,000 in monthly direct deposits can build credit history through rent payments. Dave also provides budgeting services that factors in upcoming bills and the ability to search for side jobs through its mobile app. There are no fees for overdrafts or for using ATMs in the national MoneyPass network and no minimum amount of balance required. Read Dave review Return to top reward cash back Current Current, founded in 2015, provides free and premium checking options with cash back at some merchants, two-day early direct deposit, and quick reimbursements for gas station debit hold on cards. The latter two perks are only available to premium accounts that have the cost of $5 per month. Premium accounts that make direct deposit can also have the possibility of having up to $100 worth of overdrafts covered at no cost. Read Current review: Revert to top Upgrade A personal loan company Upgrade was founded in 2017, launched a free checking account for customers in 2021, with cash-back rewards more extensive than Current’s. Upgrade’s main perks for their customers who have a checking account include 2% cash back on purchases made every day, such as in restaurants and drugstores, and up to 20% rate discounts for personal loans. Customers are also able to view their credit scores for free , as well as a summary of their credit report through Upgrade’s Credit Health service. Bella Bella’s approach to banking is, in its words, “built on love.” That translates to a checking account rewards program which offers a variable percentage of cash back, in the range of 5% to 200 percent, on randomly chosen purchases. Launched in 2020, Bella does not charge monthly, overdraft or ATM fees. Currently, Bella also covers fees charged by out-of-network ATM operators. Additionally, they offer a fee-free savings account, though it has minimal interest rates, and an additional “karma account,” which can be used to help pay for the small purchases of other customers or to take advantage of a karma account’s generosity. Click here to see our list of the Back to top Cheese Started in March 2021, Cheese is able to tailor its digital banking platform to the immigrants as well as Asian American communities by offering up 10% cashback at 10,000 businesses, including Asian-owned restaurants and businesses. Support is provided in English as well as Chinese and will be available in more languages soon. Accounts accrue interest and don’t incur monthly fees or ATM fees for the nationwide MoneyPass ATM network. Find out the details regarding Back to top Investor-friendly Acorns While the microinvesting app Acorns main product is an automated investment for hands-off investors, it expanded into banking in the year 2018 with Acorns Checking. The account includes the debit card as well as a limited rewards program and is available in a bundle that includes an investment account that is tax deductible as well as an account for retirement that is individual 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 to an amount, and the amount is invested. The rewards program allows customers to receive a small percentage or amount returned from purchases made at more than 300 companies. The money can also be invested. Read Acorns review: Back to top Aspiration Aspiration is an internet-based brokerage company that has a cash management account, known as Spend & Save, that functions as a hybrid checking and savings account. There are two different versions of the account. The standard Spend & Save account has the possibility of 3.00% interest on savings, and up to 5% cashback and an optional monthly fee which customers pay as they consider fair starting at $0 on up. The premium Aspiration Plus plan comes with an almost-$72 annual fee, as high as 10% cash back as well as up to 5.00 percent APR. Two accounts are available too, meaning you can invest in companies with sustainability and social cause. As an accredited B Corp company, Aspiration is committed to being an environmentally and socially conscious company and provides customers with personalized sustainability scores based on which businesses they invest in. Check out the Aspiration review: The Aspiration Spend and Save accounts are cash-management account that are available through Aspiration Financial, LLC, a registered broker-dealer, Member of FINRA/SIPC and an affiliate to Aspiration Partners, Inc. (“Aspiration”). Aspiration is not a financial institution.” Aspiration is not a bank. Aspiration Save Account’s 5.00% annual percentage yield (“APY”) and up to 83x of the national interest rate is variable, subject to change, and only available to customers enrolled in Aspiration Plus after conditions are satisfied. Customers who are not part of Aspiration Plus get 3.00% APY when conditions are fulfilled. Back to top Albert Albert started in 2016 as a financial management app and then launched a personal banking service called Albert Cash in August 2021. The company has more than six million customers. Albert Cash is a banking account that earns cash back , and comes with the following benefits: no-interest cash advances of up to $250 with integrated budgeting and saving tools, and annual savings bonuses of up to 0.10 percent. To use Albert’s investment feature you can get an interest rate of 0.25 percent and avail its personal customer service known as Genius There is an annual minimum fee of $4. It is required to have an external bank account to open an account with Albert. Return to top Traveler-friendly Revolut In its first year of operation The United Kingdom-based Revolut offers attractive features for travellers from abroad who are looking for competitive exchange rates and a debit card that can use more than 150 currencies. Customers can transfer funds abroad with other Revolut users, and withdraw up to $300 monthly from ATMs with no fees and get an interest rate on their savings. That’s all with the free account. For more perks, including overseas medical insurance, Revolut offers two accounts that charge monthly fees of between $10 and $17. Review Revolut reviews: Return to top Wise Revolut U.K.-based money transfer business Wise, formerly called TransferWise has created a multicurrency account that rolled into U.S. customers in 2017. There’s an initial $9 cost to use the card as a debit, Wise doesn’t charge monthly account fees and converts currencies at an affordable exchange rate for a minimal upfront fee. Converting a balance of $1,000 U.S. dollars to euros, for example, costs about $4.20 which is 0.42% that’s less expensive than most bank foreign transactions charges between 1% and 3%. An account can have multiple balances, storing as many as 54 different currencies simultaneously and converting could take only seconds. Check out Wise review: Return to top Freelancer-friendly Oxygen Launched in early 2020, Oxygen’s digital banking account aims to help freelancers and self-employed people manage their money flow. Oxygen doesn’t charge monthly, ACH and overdraft charges however, there are four pricing levels available for the account, which range from free to $200 annually. All levels provide advantages for travel, including lost luggage and hotel theft protection. higher levels offer more benefits such as more savings rates, higher cash back and numbers of virtual cards. A unique perk is the possibility to utilize the Oxygen application to incorporate, or legally establish a business, and after that . Check out the Oxygen review: Back to top Lili Launched in 2019, Lili is a mobile bank account designed specifically with freelancers and independent contractors in mind. With Lili you can classify your expenses by simply tapping left for “life,” or personal, and right for “work,” or business. Lili offers tools to help freelancers save to pay taxes and also an emergency fund. In addition, if you use Lili’s account to deposit the earnings you earn from websites and payment apps you will receive your funds for up to 2 days prior. This feature is standard for neobanks in general. Check out Lili review The top Neobanks coming soon Keep an eye on these four new neobanks’ launches in the near future: Daylight: Formerly called the Be Money, Daylight plans to open a mobile banking account focusing on members of the LGBT+ community with features like access to financial coaches and accounts that are based on a person’s chosen nameinstead of the legal one. Greenwood: The Black-owned digital banking firm already has half a million people waiting to be added to its list of customers for savings and spending accounts which are geared towards reinvesting their wealth into Black as well as Latinx communities. (See our complete list of forthcoming and current .) First Boulevard: The Black-owned banking platform focuses on low-cost banking that offers cash back to Black-owned businesses, combined with short videos on financial education. Its aim is to create the wealth of generations to Black Americans. Purple: Purple plans to offer mobile banking specifically designed specifically for people with disabilities, including the option of a checking account as well as an account that is tax-advantaged, a savings account known as ABLE accounts, which lets disabled people save money, without losing any government aid. Additionally, there will be the debit card that will donate a portion of Purple’s revenue for the Special Olympics. Return to top From credit tracking tools to travel perks modern checking accounts offer greater benefits than the old ones had. Before signing up for one, verify whether the fintech firm is a bank or a partner with a bank, and determine which features will best suit your needs in the financial realm. Author bio Spencer Tierney is an expert on certificates of deposit at NerdWallet. The work of Spencer Tierney has been featured by USA Today and the Los Angeles Times. Similar to… Discover the best savings account NerdWallet’s recommendations for the top high-yielding online savings accounts. Go deeper into Banking Find more money-saving strategies – straight to your inbox Sign up and we’ll send you Nerdy posts about the money topics which matter to you the most as well as other methods to help you make more from your savings.
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