19 Neobanks and what they offer Advertiser disclosure You’re our first priority. Every day. We believe that every person should be able to make financial decisions with confidence. While our website doesn’t feature every company or financial product that is available on the market, we’re proud of the advice we offer, the information we provide as well as the tools we design are independent, objective, straightforward — and free. How do we earn money? Our partners compensate us. This could influence the types of products we review and write about (and where those products appear on our website) However, it doesn’t affect our recommendations or advice, which are grounded in many hours of study. Our partners do not be paid to ensure positive ratings of their goods or services. . 19 Neobanks and What They Offer Neobanks differentiate themselves by focusing on specific communities, providing advantages and benefits. Written by Spencer Tierney Senior Writer | Certificates of deposit bank accounts, ethical banking, deposit accounts Spencer Tierney is a consumer banking writer at NerdWallet. He has covered personal finance since 2013, with a particular focus on certificates of deposit and other banking-related issues. 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’s based within Berkeley, California. Sep 23rd, 2021 Edited by Yuliya Goldshteyn Assistant Assigning Editor for Banking Yuliya Goldshteyn is a bank editor for NerdWallet. She was previously an editor, writer , and research analyst in a variety of industries, ranging from health care and market research. She earned a bachelor’s degree in history at Berkeley at the University of California, Berkeley and a master’s in social sciences from the University of Chicago. She can be reached at
. A majority or all of the items featured here come from our partners who pay us. This influences which products we review and where and how the product appears on the page. But, it doesn’t affect our opinions. Our opinions are entirely our own. Here is a list of . The investing information provided on this page is for educational purposes only. NerdWallet is not a broker or advisor. or brokerage services, nor does it recommend or counsel investors to purchase or sell specific stocks, securities or other investments. Jump to a specific neobank or category for high-yielding savings: For the most extensive range of accounts: For inexpensive overdrafts for For cash-back rewards: | | Investor-friendly: Traveler-friendly: are financial technology — (also known as fintech) firms which typically provide mobile-friendly accounts that are brimming with attractive features like low-cost credit or cash-back rewards. There are some established Neobanks that offer loans, credit cards or investing products, too. They typically have no branches, and, as a majority of neobanks do not have banking licenses, they partner with banks to offer security from their Federal Deposit Insurance Corp., among other things. The neobanks listed 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 have the opportunity to get up to 3.75 per cent annual percentage yield (APY) on savings balances (including Vaults) and 2.50% APY on checking balances. There is no minimum amount of direct deposit required to qualify for the 3.75% APY for savings, and 2.50 percent APY on checking balances. Customers who do not deposit direct deposits will earn 1.20 percent APR on all balances of savings and checking (including vaults). Interest rates are variable and may change at any point. The rates listed 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 Online Savings by Goldman Sachs Account APY 3.50 percent 3.50% APR (annual percentage yield) with $0 minimum balance to earn stated APY. Accounts must have a positive balance to remain open. APY current as of 02/07/2023. Min. balance for APY $0 These cash accounts combine services and features similar to savings, checking and investment accounts into one. Cash management accounts are usually offered by non-bank financial institutions. These cash accounts combine features and services that are similar to savings, checking and investment accounts in one package. Cash management accounts are typically offered by non-bank financial institutions. On the website of Wealthfront, you can find Wealthfront Cash Accounts APY 4.05% Min. Balance for APY $1 on the Betterment’s website. Betterment Cash Reserve Paid non-client promotion APY 4.00 percent annually 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 typically, they have higher rates of interest than standard savings accounts. CDs (certificates of deposit) are a kind of savings account with a fixed rate and term which usually come with higher rates of interest than standard savings accounts. CIT Bank CD Annual Percentage Yield 4.60% 1.5 years Term 1.5 Years Member FDIC Marcus by Goldman Sachs High-Yield CD APY 4.40 percent 4.40% APR (annual percent yield) as of 01/25/2023 Term One year checking accounts are utilized for day-to-day cash deposits and withdrawals. Checking accounts are utilized to make cash deposits on a regular basis as well as withdrawals. Members FDIC SoFi Checking and Savings APY 2.50% SoFi members with direct deposit are eligible to receive up 3.75% per year in annual percentage returns (APY) for savings accounts (including Vaults) and 2.50% APY on checking balances. The minimum amount for direct deposits required to qualify for the 3.75% APY on savings, or the 2.50 percent APY on checking balances. Customers who do not deposit direct deposits will earn 1.20% APR on all balances, including savings and checking (including vaults). Interest rates are variable and could change at any point. These rates 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 Your Axos Visa(r) debit card to make 10 transactions each month (min $3 per transaction) or join Account Aggregation/Personal Finance Manager (PFM) through Online Banking to earn 0.30 percent APR. Keep an average daily balance of $2,500 in An Axos managed Portfolios Investment Account to earn 0.20% annual percentage yield. Keep an average daily balance of $2,500 per month with An Axos Self-Directed Trading Invest Account in order to receive 0.20% APR. Utilize the Rewards checking account to pay your full monthly Axos Consumer loan payment to earn 0.15 percent annual percentage yield. Monthly fee: $0. Market accounts earn rates that are similar to savings accounts, and come with some checking features. Money market accounts have rates similar to savings accounts and include some checking features. Member FDIC UFB’s best Money Market Rate APY 4.21 Percentage Min. balance for APY 0 Member FDIC Discover Bank Money Market Account APY 3.20 0.20 % Min. balance for APY $1 >> Learn more about: The number of fintech companies that could be referred to as neobanks is growing. From 2018 to 2020, neobanks skyrocketed from 60 to 256 across the globe, according to a report by the business-focused strategy firm Exton Consulting. With increased competition comes greater competition. Some once-innovative features are now more popular for neobanks. These include two-day early access to direct deposits and access to free nationwide ATM networks. And some digital wallets, like and , are competing with Neobanks by offering these features. Neobanks are finding ways to distinguish their offerings by appealing to specific groups, like freelancers or international travelers, or by offering advantages that you can’t find at traditional banks. This article will provide an overview of how some current and upcoming Neobanks are trying to make themselves distinct. More information for high-yield savings Chime was founded in 2013. Chime is among the largest neobanks, with more than 12 million users. Partnered with two banks*, it provides savings and checking accounts, both with no charges for monthly usage, as well as a secured credit card that you can use to build credit. Chime’s savings account has an interest rate that is competitive at 2.00% annual percentage yield** with zero minimum balances, no maximum amount for earning interest and no monthly fees. (The Chime Checking Account must be opened to open a savings bank account; The Savings Account is available as an optional.) The spending account offers access to more than 60,000 ATMs*** throughout the nation as well as for customers who have direct deposits, a fee-free overdraft service that can cover up to $200. Cash deposits can be made at big retailers ****, a service not all Neobanks offer. The sign-up process can be easier than at traditional banks because there is no verification of credit or prior bank records, but Chime offers an . See more information from Chime *Chime says: “Chime is a financial technology company, not a banking institution. Banking services provided via The Bancorp Bank, N.A. as well as Stride Bank, N.A. and Stride Bank, N.A. Members of the FDIC.” “**” **”The annual Percentage Yield (“APY”) for Chime Savings Account is subject to change and could be changed at any time. The APY disclosed is in effect from October 25 2022. There is no minimum balance requirement. It is required to be in possession of $0.01 saved to get interest. ” ***”Out-of-network ATM withdrawal charges may apply except at MoneyPass ATMs located in 7-Eleven store, or at any Allpoint or Visa Plus Alliance ATM.” ****”The retailer who receives your cash will be accountable for the transfer of funds to deposit into the Chime Checking Account. There may be fees for cash deposits if using a retailer other than Walgreens.” Review Chime reviews: To the Top Varo Bank Varo Bank offers savings, checking, and cash advances. Founded in 2015 and originally operating with partnership with banks, the bank was made an officially chartered institution in August of 2020. This allowed it to provide their very own FDIC insurance. According to Varo its website, it had a total of 6 million customers at mid-2022. The checking account has free ATM access, and there are no monthly fees, in addition to benefits like cash-back at certain stores with no transaction fees. The savings account is subject to two requirements to earn a top rate of 5.00% APY on the first $5,000, which includes a $1,000 minimum in monthly direct deposits and keeping an active checking and savings balance at the close of the month. In other cases, you earn 3.00% APR. Read Varo review: Back to top For widest range of options SoFi SoFi — abbreviation in the sense of “Social Finance” began as an student loan refinance firm, but it has since gained its own bank charter. SoFi checking and savings is their account that can be used to manage the money to spend and save. There are no charges for accounts for overdrafts, ATM usage, or monthly maintenance (subject to changing at any time). Certain benefits include earning interest, establishing savings accounts as well as for customers who have the right direct deposit, free overdraft coverage up to $50. SoFi also provides a variety of loans that are automatic and active investing, cryptocurrency trading credit cards, as well as retirement accounts. Review SoFi: to top For cheap overdraft One Owned by Walmart, One’s banking account comes with a low-cost overdraft program, custom-designed budgeting and savings choices. It offers customers the ability to arrange their funds into pockets, which are subaccounts that can be referred to as Pockets. The Pockets dedicated to saving have rates of 1% for up to $5,000 for any customer and 1% for up to $25,000 in the case of customers with direct deposit. One gives free overdraft coverage as high as $200 for customers with direct deposits of at least $500 monthly. This is less expensive than banks with large branches with overdraft charges that can range from $35 per transaction. Read Previous page> Learn more about For credit building GO2bank (and GoBank) Green Dot Corporation has been offering alternative banking products since 1999. Starting with prepaid debit cards It expanded to 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 which require online signup for customers, you can get GoBank as well as GO2bank card at stores like Walmart and then activate them on the internet to use with an app for mobile devices. In comparison to the other brands, GO2bank is easily the better choice, with a lower monthly cost and perks however less than other neobanks such as Chime and Varo. GoBank’s monthly fee of $9 is waived when you make $500 direct deposits, whereas the $5 fee for GO2bank’s monthly service is waived with direct deposits without a specified minimum. Alongside its bank account, GO2bank provides a secured credit card to increase credit score and savings vaults that earn an APY of 1% for as much as $5,000. In contrast, GoBank doesn’t offer a credit card, and its savings vault doesn’t earn interest. Read GoBank review: Learn more about GO2bank. Return to top Sesame Cash The credit firm Credit Sesame launched a free digital banking account in March 2020 . The account concentrates on helping those who live paycheck to paycheck. The account’s features include direct deposit of pay checks up to 2 days earlier as well as mobile and cash deposits as well as a restricted cash-back program for debit cards and access to a free national ATM network. Through the account, users have access to Credit Sesame’s credit monitoring service for free and daily updates to credit scores. Check the Back to top MoCaFi MoCaFi, or Mobility Capital Finance. It’s a black-owned digital platform started in 2016 and offers free checking to serve the majority of communities that are unbanked or underbanked, with a focus on closing the gap in wealth between the races. It provides a bill pay feature that allows customers to report rent payments to the major credit bureaus in order to build credit history. A rare perk, MoCaFi collaborates with third-party partners to give cash-free deposits at a variety of merchants and also free mobile check deposits with fast withdrawal of funds. Back to Top Dave Dave started in 2017 as a payday advance business and later expanded to provide an all-inclusive checking account. In mid-2021, the company had more than 10 , million users. You can get a small cash advance from your next pay without interest or a credit check, and those with at least $1000 in direct deposit each month can establish credit histories through rent payments. Dave also offers budgeting tools that factors in upcoming bills and the capability to look for jobs that are not listed through its mobile app. There are no charges for overdrafts , or using ATMs in the national MoneyPass network, and there aren’t any minimum amount of balance required. Review by Dave: Back to top For cash-back rewards Current Current, founded in 2015, provides free and premium options for checking with cash-back at certain merchants, two-day early direct deposit, and quick reimbursements for gas station debit hold on cards. The latter two perks are only available on premium accounts, which charge a $5 monthly fee. Premium accounts that have direct deposits can also have up to $100 of overdrafts covered at no cost. Check out the Current review: Revert to top Upgrade The personal loan company Upgrade began operations in the year 2017 and launched a no-cost checking account in 2021 that offers cash-back benefits that are greater than Current’s. Upgrade’s main perks for their checking customers include cash-back of 2% on purchases made every day, such as at drugstores and restaurants and up to 20% rate discounts on the company’s personal loans. Customers can also view their credit scores for free , as well as a summary of their credit reports through the Upgrade Credit Health service. Check out the reviews of Upgrade:Refresh Bella Bella’s bank approach is, in the words of its website, “built on love.” This translates into an account reward program for checking accounts that offers a random percentage of cash back, anywhere from 5% to 200 percent, on randomly chosen purchases. Launched in 2020, Bella doesn’t charge monthly, overdraft or ATM fees. In the moment, Bella also covers fees charged by out-of-network ATM operators. Also, there is a free savings account, which has low interest rates as well as an alternative “karma account” that is a savings account to pay for smaller purchases made by other customers or to take advantage of another’s karma account generosity. Check out our complete list below of Back to top Cheese Started in March 2021. Cheese is able to tailor its digital banking platform for the immigrant as well as Asian American communities by offering up 10% cashback on 10,000 businesses, including Asian-owned businesses and restaurants. Support for customers is offered in English and Chinese, with more languages coming soon. Accounts earn interest and don’t have monthly fees or ATM fees within the national MoneyPass ATM network. Find out the details regarding Back to top Investor-friendly Acorns The microinvesting app Acorns main product is an automated investment for hands-off investors It expanded to banking in 2018 by introducing Acorns Checking. The account includes the debit card as well as a limited rewards program. It is offered only as a package that includes an investment account that is tax-deductible and an account for retirement that is individual, at a cost of $3 per month (or the equivalent of $5 per month for a family-friendly version). Customers can choose to participate in a “round-up” feature in which each purchase is rounded up by an amount, and the amount is invested. The rewards program offers some percentage or amount of money back on purchases made by more than 300 companies, and that also gets invested. Read Acorns review: Back to top Aspiration Aspiration is an internet-based brokerage firm with a cash management account, called Spend & Save, that is the hybrid savings and checking account. There are two different versions of the account. The standard Spend & Save account has up to 3.00% APY on savings, up to 5% cashback and a monthly fee that is optional — customers pay what they think is fair from beginning at $0 and up. The premium Aspiration Plus plan has an annual fee of almost $72 and up to 10% cashback and up to 5.00 percent annual percentage yield. There are two accounts to choose from as well, which means you can invest in businesses that are sustainability and social cause. As an official B Corp company, Aspiration is committed to being an environmentally responsible and socially conscious business that offers its customers individual sustainability scores that are based on which businesses they invest in. Read Aspiration review: Aspiration Spend and Save Accounts manage cash accounts offered through Aspiration Financial, LLC, an authorized broker-dealer, Member of FINRA/SIPC and an affiliate of Aspiration Partners, Inc. (“Aspiration”). Aspiration is not a financial institution.” Its Aspiration Save Account’s 5.00% Annual Percentage Yield (“APY”) with up to 83x the average national interest rate is variableand subject to change and is only accessible to customers who are enrolled in Aspiration Plus when the conditions are satisfied. Customers who aren’t enrolled in Aspiration Plus receive 3.00 percent APY once conditions are satisfied. Then they can go back to the top. Albert Albert started in 2016 as a money management app and launched a personalized banking service called Albert Cash in August 2021. It has over six million customers. Albert Cash is a banking account that offers cash back and includes the following benefits that include no-interest cash advances of up to $250 as well as integrated budgeting and savings tools, and annual savings bonuses of up to 0.10%. To access Albert’s investing feature you can get an interest rate of 0.25 percent, and take advantage of its personal customer service known as Genius, there’s an annual minimum fee of $4. You need to have an external bank account to establish an account with Albert. Return to top Traveler-friendly Revolut was launched in the year 2015 The United Kingdom-based Revolut offers attractive features for travellers from abroad who are looking for affordable exchange rates and the ability to spend in over 150 currencies. Customers can make international transfers with other Revolut users, withdraw up to $300 monthly at ATMs without fees, and get the interest from savings. That’s all with the account that is free. For more perks, including overseas medical insurance, Revolut offers two accounts with monthly charges of $10 and $17. Read Revolut reviews: Return to top Wise The U.K.-based money transfer company Wise which was previously known as TransferWise has created an account with multicurrencies that was rolled across to U.S. customers in 2017. While there’s a $9 initial cost to use the card as a debit, Wise doesn’t charge monthly charges and also converts 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, approximately $4.20 which is 0.42 percent, which is cheaper than many banks’ foreign transaction fees that range from 1% to 3%. An account can have multiple balances and hold at least 54 foreign currencies at a time, and converting may take only seconds. Check out Wise review: Back to the top of Freelancer-friendly Oxygen launched in the early part of 2020 The digital bank account of Oxygen aims to help freelancers and self-employed people control the flow of cash. Oxygen doesn’t have monthly or ACH as well as overdraft costs however, there are four pricing tiers that can be used for the account. They range from free to $200 annually. Each level offers travel benefits, such as lost luggage and hotel theft protection. higher levels have more perks that include more savings rates, higher cash back and more virtual cards. One unique benefit is the possibility to make use of the Oxygen app to incorporate, or legally establish a business after which you can then . Check out the Oxygen review: Back to the top Lili launched in the year 2019. Lili is a mobile banking account specifically designed for 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 account. Additionally, if you make use of Lili’s account to deposit the earnings you earn from online platforms and payment apps, you can receive the funds for up to 2 days earlier. This last feature is common for neobanks in general. Read Lili review: Back to top Neobanks to come soon Keep an eye out for these four neobanks’ debuts in the near future: Daylight: Formerly called be Money, Daylight plans to open a mobile banking account specifically targeting people in the LGBT+ community with features including access to financial coaches and accounts with a person’s chosen name, rather than the legal one. Greenwood: A Black-owned digital banking firm already has half a million people on its waitlist for savings and spending accounts which are geared towards reinvesting their wealth into Black or Latinx communities. (See our complete list of forthcoming and existing .) First Boulevard: The Black-owned banking platform focuses on low-cost banking and cash-back at Black-owned businesses, combined with short financial education videos. Its goal is to build generational wealth for Black Americans. Purple: Purple plans to provide mobile banking specifically for those with disabilities. It will include the option of a checking account as well as savings accounts that are tax-advantaged. These accounts are known as ABLE accounts, which lets people with disabilities save money without the loss of any government benefits. Also, there will be an account that can be used to donate some of the money earned by Purple to the Special Olympics. Return to top From credit monitoring tools to travel benefits Modern checking accounts provide greater benefits than the old ones did. Before signing up for one, verify whether the fintech business is a bank or partners with a bank, and see which features would best serve your financial life. About the author: Spencer Tierney is an expert in the field of deposits and certificates at NerdWallet. Its work was highlighted by USA Today and the Los Angeles Times. On a similar note… Get a better savings account See NerdWallet’s recommendations for the top high-yielding savings accounts online. Explore Banking further Get more smart money moves right to your inbox. Sign-up and we’ll email you Nerdy content on the topics in finance that matter most to you as well as other methods to help you get more from your savings.
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