19 Neobanks and What They Offer Advertiser disclosure: We make you our top priority. Each time. We believe that every person should be able to make financial decisions with confidence. While our website does not include every company or financial product that is available on the market, we’re proud that the guidance we offer, the information we provide as well as the tools we design are independent, objective simple, and cost-free. So how do we earn money? Our partners pay us. This can influence the products we review and write about (and the way they appear on the website) however it in no way affects our suggestions or recommendations, which are grounded in many hours of research. Our partners do not be paid to ensure positive reviews of their products or services. . 19 Neobanks and What They Offer Neobanks stand out by focusing on particular communities, and offering a variety of advantages and benefits. By Spencer Tierney Senior Writer | Certificates of deposit and ethical banking, as well as banking deposit accounts Spencer Tierney is a consumer banking writer for NerdWallet. He has covered finances for individuals since the year 2013 with a focus on certificate of deposit and other banking-related topics. His work has been featured by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among other publications. He is based within Berkeley, California. Sep 23, 2021 Edited by Yuliya Goldshteyn Assistant Assigning Editor Banking Yuliya Goldshteyn is a banking editor at NerdWallet. She previously worked as an editor, writer , and research analyst in a variety of industries, ranging from healthcare and market research. She received a bachelor’s level degree in history from the University of California, Berkeley and a master’s of social science from University of Chicago. She can be reached at
. Many or all of the items featured here come from our partners who compensate us. This impacts the types of products we review and the location and manner in which the product appears on a page. However, this doesn’t affect our opinions. Our views are our own. Here is a list of and . The information about investing on this page is for informational purposes only. NerdWallet does not provide advisory or brokerage services and does not recommend or advise investors to buy or sell specific stocks, securities or other investments. Jump to a specific neobank or category: For high-yield savings: For the widest selection of accounts: low-cost overdrafts: for • For cash-back rewards: | | Investor-friendly: Neobanks are financial technology also known as fintech businesses that usually offer mobile-oriented accounts that have attractive features, such as no-cost cash-back or credit card rewards. Certain established neobanks provide loans and credit cards, as well as investing products, too. They usually operate without branches and, as a majority of neobanks don’t have banking licenses, they collaborate with banks to provide protection from The Federal Deposit Insurance Corp., among other things. All neobanks on this list have FDIC-insured accounts. Savings Cash Manager CD Checking Money Market Member FDIC SoFi Savings and Checking APY 3.75 Members of SoFi with direct deposit are eligible to receive up 3.75 percent annual percentage yield (APY) on savings balances (including Vaults) and 2.50 percent APY on checking balances. There is no minimum direct deposit amount that is required to earn the 3.75 percent APY on savings, and 2.50% APY on checking balances. Direct deposit members will get 1.20 percent APR on all balances, including savings and checking (including vaults). Interest rates are variable and can change at any time. 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 by Goldman Sachs Online Savings account APY 3.50 percent 3.50% APR (annual percentage yield) with $0 minimum balance to earn stated APY. Accounts must be in positive balance to remain open. APY valid as of 02/07/2023. Min. balance for APY $0 These cash accounts provide a range of services and features similar to checking, savings or investment accounts in one product. The cash management account is generally provided by non-bank financial institutions. They combine the services and features that are similar to savings, checking or investment accounts into one account. These accounts for managing cash are generally provided 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 percent return (variable) is as of 02/06/2023. Min. balance for APY CDs is $0 (certificates of deposit) are a type of savings account that has 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 an unchanging rate and term, and usually have higher interest rates than traditional savings accounts. CIT Bank CD Annual Percentage Yield 4.60% 1.5% Term 1.5 Years Member FDIC Marcus by Goldman Sachs High-Yield CD APY 4.40 percent 4.40% APR (annual percentage yield) at 01/25/2023. Term 1-year Checking account can be used to deposit cash on a daily basis and for withdrawals. Checking accounts can be used for day-to-day cash deposits and withdrawals. FDIC SoFi Checking and Savings APY 2.50% FDIC SoFi Savings and Checking APY 2.50 percent SoFi members who have direct deposit are eligible to receive up 3.75 per cent annually in percentage return (APY) on savings balances (including Vaults) and 2.50 percent APY on their checking balances. The minimum direct deposit amount required to qualify for the 3.75 percent APY on savings, and 2.50 percent APY on checking balances. Customers who do not deposit direct deposits will receive 1.20 percent APY on all account balances in checking and savings (including Vaults). Interest rates are variable and could change at any time. The rates listed are current at the time of 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. Utilize the Axos Visa(r) Credit Card for a total of 10 transactions each calendar month (min 3 cents per transaction) or enroll for Account Aggregation/Personal Finance Manager (PFM) in Online Banking to earn 0.30 percent annual percentage. Keep an average daily balance of $2,500 on An Axos managed Portfolios Investment Account to earn 0.20% annual percentage yield. Maintain a daily average balance of $2,500 per month in An Axos Self-Directed Trading Investment Account to earn 0.20 percent APY. Utilize the Rewards checking account to make your full each month Axos Consumer loan payment and earn 0.15 percent annual percentage yield. Monthly fee $0 Money market accounts pay rates comparable to savings accounts and include certain checking features. Money market accounts pay rates similar to savings accounts, and come with certain features for checking. Members FDIC UFB’s Best Money Market APR 4.21 Percentage Min. balance for APY 0 Member FDIC Discover Bank Money Market Account APY 3.20 0.20 % Min. amount for APY $1. Read 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 worldwide according to a study by the business-focused strategy firm Exton Consulting. With more players comes more competition, and some once-innovative features are now more popular for neobanks. These include two-day early access to direct deposit and free access to nationwide ATM networks. Digital wallets, such as and, are competing with Neobanks, offering these features. Neobanks are looking for ways to differentiate themselves by appealing to certain people, like freelancers and international travelers, or providing perks you might not find at traditional banks. Here’s a look at how some new and emerging neobanks try to make themselves distinct. More information about high-yielding savings Chime was founded in 2013. Chime is one of the largest neobanks, with more than 12 million customers. It is partnered with two banks, it offers checking and savings accounts, both with no charges for monthly usage, as well as secured credit cards that you can use to establish credit. Chime’s savings account has an interest rate that is competitive at 2.00% annual percentage yield** with no minimum balancerequirement, no maximum limit for earning interest and no monthly charges. (The Chime Checking Account must be opened to open a savings account; The Savings Account is an option.) The spending account offers access to more than 60,000 ATMs*** across the country, and for customers with direct deposits, a fee-free overdraft service that can cover the amount of $200. Cash deposits can be made at big retailers ****, which is a benefit that not every neobank offers. Sign-up procedures are more straightforward than with traditional banks because there is no verification of credit or prior bank records However, Chime has an . See more information from Chime Chime: “Chime is a financial technology company, not a banking institution. Services for banking are provided through The Bancorp Bank, N.A. as well as Stride Bank, N.A., Members FDIC.” **” **”The annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may be changed at any time. The declared APY will be in effect on October 25, 2022. There is no minimum balance requirement. You must be in possession of $0.01 in savings to earn interest. ” ***”Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs located in 7-Eleven store, or at any Allpoint and Visa Plus Alliance ATM.” ****”The retailer who receives your cash will be accountable for the transfer of funds to deposit into Your Chime Checking Account. There may be fees for cash deposits for any retailer other from Walgreens.” Check out Chime reviews: Back to Top Varo Bank Varo Bank offers savings, checking, as well as cash advances. Founded in 2015 and originally operating with banking partnerships. It became an official national chartered institution in August of 2020. This allowed it to provide their individual FDIC insurance. According to Varo its website, it had a total of 6 million customers at mid-year 2022. The checking account comes with free ATM access, and there are no monthly fees, in addition to benefits like cash-back at certain stores as well as no international transaction fees. The savings account comes with a couple requirements to earn an interest rate of 5.00 percent APY on the first $5,000, including a $1,000 minimum in monthly direct deposits, and maintaining an open savings and checking balance at the end of each month. Otherwise the rate is 3.00 percent APY. Read Varo review To the top widest variety of accounts SoFi SoFi — which stands in the sense of “Social Finance” began as a student loan refinance firm, but it has since gained its own bank charter. SoFi Checking and Savings is its account that allows the money to spend and save. There are no fees for account usage, for overdraft, ATM usage, or monthly maintenance (subject to changes at any point). Certain benefits include earning interest, creating savings accounts as well as for customers who have qualifying direct deposits, no-fee overdraft protection of up to $50. SoFi also provides a variety of loans, active and automated investing as well as cryptocurrency trading credit cards, as well as retirement accounts. to top for a low-cost overdraft One Owned by Walmart, One’s banking account comes with a low-cost overdraft plan, a custom budgeting and savings choices. It offers customers the ability to divide their cash into pockets, which are subaccounts that can be referred to as Pockets. Pockets that are devoted to saving have rates of 1% of up to $5,500 per customer, and 1% on up to $25,000 for customers with direct deposit. One gives free overdraft coverage of up to $200 for those who make direct deposits of at least $500 per month. That’s cheaper than big banks with overdraft charges that can range from $35 per transaction. Read one reviews: Back to top >Find out more about credit building GO2bank (and GoBank) Green Dot Corporation has been offering alternative banking products since 1999. Beginning with debit cards for prepaid and later expanding into its first digital bank, GoBank, in 2013 and later its second bank brand, GO2bank, in 2021. All Green Dot deposit accounts are federally insured by Green Dot Bank. In contrast to most neobanks which require online signup and registration, you can purchase GoBank as well as GO2bank cards from retailers like Walmart and then activate them online using a mobile app. The two brands are comparable, but GO2bank is by far the more preferred choice, with a lower monthly cost and more benefits but not as numerous as other neobanks, such as Chime as well as Varo. GoBank’s $9 per month fee is waived when you make $500 direct deposits, while the GO2bank’s fee of $5 per month is waived with direct deposits with no minimum amount. In addition to its bank account, GO2bank provides an unsecured credit card to improve credit scores and also an account for savings that earns an APY of 1% for as much as $5,000. Contrary to this, GoBank doesn’t offer a credit card and its savings vault isn’t able to generate interest. Check out the GoBank review: Learn more about GO2bank: Return to the top Sesame Cash The credit company Credit Sesame launched a free digital bank account in March 2020 . The account focuses on serving people living paycheck to paycheck. The account’s benefits include direct-deposited pay checks up to 2 days early as well as mobile and cash deposits, a limited cash-back program for debit cards and access to a free nationwide ATM network. With the account, customers are able to access Credit Sesame’s credit monitoring service for free and regular updates to credit scores. >> Compare the top to the back MoCaFi MoCaFi, also known as Mobility Capital Finance, is a Black-owned digital platform that was launched in 2016 and offers free checking for the majority of communities that are unbanked or underbanked with a primary focus on closing the gap in wealth between the races. The platform offers a bill-pay feature that lets customers make rent payments available to the major credit bureaus in order to build credit history. As a rare perk, MoCaFi cooperates with its third-party partners to offer free cash deposits at many stores and mobile check depositing with quick release of funds. Then back to the Top Dave Dave started in 2017 as a payday advance business and expanded to offer an all-inclusive checking account. In the middle of 2021, it had around 1 million clients. You can receive a small cash advance from your next paycheck without any interest or credit check, and customers with at least $1,000 in direct deposit each month can build credit history through rent payments. Dave also offers budgeting tools that incorporates upcoming bills as well as the capability to look for side-jobs on its mobile application. There are no charges to use overdrafts or ATMs that are part of the nationwide MoneyPass network and no minimum balance requirements. Review by Dave Return to top for cash-back rewards Current Current, founded in 2015, offers free and premium checking options with cash-back at certain merchants, two-day early direct deposit, and fast reimbursements for gas station debit card holds. These two benefits are only available for premium accounts, which charge a $5 monthly fee. Premium accounts with direct deposits also come with up to $100 of overdrafts backed up for free. Check out the Current review: Revert to top Upgrade The personal loan company Upgrade began operations in the year 2017, launched a free checking account in 2021 that offers cash-back rewards that are more generous than Current’s. The primary benefits of Upgrade’s customers who have a checking account include cash-back of 2% on everyday purchases such as in the restaurants and pharmacies as well as up to 20% rate reductions on personal loans. Customers can also view their credit scores for no cost and a summary of their credit reports via their Credit Health service. Read Upgrade reviews: Return to top of the page Bella Bella’s banking strategy is, as it says, “built on love.” This translates into an account reward program for checking accounts that gives a random percentage of cash back, in the range of 5% to 200 percent, on randomly chosen purchases. Launched in 2020, Bella does not charge monthly ATM, overdraft or other fees. At present, Bella also covers fees for out-of-network ATM operators. Additionally, they offer a fee-free savings account, which has minimal interest rates, and an optional “karma account” that is a savings account to cover other customers’ small purchases or to take advantage of another’s karma account generosity. >> See 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 and Asian American communities by offering up 10% cashback for 10,000 businesses, which includes Asian-owned businesses and restaurants. Customer support is available in English and Chinese, with more languages coming soon. Accounts earn interest and don’t have monthly charges or ATM fees in the national MoneyPass ATM network. Find out the details regarding Back to top Investor-friendly Acorns The microinvesting app Acorns principal product is its automated investing for hands-off investors, it expanded into banking in 2018 with Acorns Checking. The account includes a debit card and limited rewards program. It is offered in a bundle that includes a taxable investment account and 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 by a certain amount and that amount is invested. The rewards program offers a small percentage or amount back from purchases at over 300 companies, and that also gets invested. Read Acorns review: Back to top Aspiration Aspiration is an internet-based brokerage company that has the cash management account called Spend & Save, that functions as the hybrid savings and checking account. There are two different versions of the account. The standard Spend & Save account has up to 3.00 percent APY on savings, with up to 5 percent cash back and a monthly charge that can be negotiated — customers pay what they believe is fair from the point of zero up to. The higher-end Aspiration Plus plan has an annual fee of almost $72 and as high as 10% cash back and up to 5.00% annual percentage yield. There are two accounts available also, which allows you to invest in sustainability and social cause. As a certified B Corp company, Aspiration is committed to being a socially responsible and environmentally conscious company and provides customers with customized sustainability scores depending on the companies they spend money at. Read Aspiration review: Aspiration Spend and Save Accounts manage cash accounts offered through Aspiration Financial, LLC, an authorized broker-dealer, Member FINRA/SIPC, and an affiliate to Aspiration Partners, Inc. (“Aspiration”). Aspiration is not a bank.” Aspiration is not a bank. Aspiration Save Account’s 5.00 percent annual percentage yield (“APY”) that can be up to 83x the average national interest rate is variable, subject to change and is only accessible to customers who are who are members of Aspiration Plus after the conditions are satisfied. Customers who aren’t enrolled in Aspiration Plus get 3.00 percent APY once the conditions are met. Back to top Albert Albert started in 2016 as a mobile app for managing money and launched a personalized banking service known as Albert Cash in August 2021. The company has more than 6 million customers. Albert Cash is a banking account that earns cash back , and comes with the following advantages that include no-interest cash advances up to $250 with integrated budgeting and saving tools and annual savings bonus of up to 0.10 percent. For access to Albert’s investing features you can get an interest rate of 0.25 percent, and take advantage of its personalized customer support, called Genius and there is an annual minimum fee of $4. You must have an account with a bank outside of the United Kingdom for an account at Albert. Return to top Traveler-friendly Revolut Started in 2015 the UK-based Revolut provides attractive features to international travelers looking for competitive exchange rates and the ability to be used to spend in more than 150 currencies. Customers can transfer funds abroad together with other Revolut customers, make withdrawals of up to $300 monthly at ATMs without fees, and earn an interest rate on their savings. That’s all with the account that is free. To get more benefits, such as international medical insurance, Revolut offers two accounts that charge monthly fees of $10 and $17. Read Revolut reviews: Revolut reviews: Wise Review: U.K.-based money transfer firm Wise which was previously known as TransferWise, created the multicurrency account which was launched across to U.S. customers in 2017. Although there’s an initial $9 cost to use the card as a debit, Wise doesn’t charge monthly charges for account usage and can convert currencies at a competitive exchange rate for a minimal upfront fee. Converting a balance of $1,000 U.S. dollars to euros is, for instance, approximately $4.20 which is 0.42 percent less than many bank foreign transactions charges between 1% and 3%. A bank account can hold multiple balances, holding as many as 54 different currencies at a time and the conversion process could take just a few seconds. Read Wise review: Return to top Freelancer-friendly Oxygen It was launched in the first quarter of 2020 the Oxygen digital banking account will help freelancers as well as self-employed workers manage their money flow. Oxygen does not have monthly or ACH and overdraft charges however, there are four pricing levels for the account, ranging from zero to $200 per year. All levels provide travel benefits, such as lost luggage and hotel theft protection. higher levels offer more benefits that include higher savings rates, cash back, and a variety of virtual cards. One unique benefit is the ability to make use of the Oxygen application to incorporate, or legally become a company after which you can then . Check out the Oxygen review: Return to the top Lili launched in the year 2019. Lili is a free mobile bank account designed specifically for freelancers as well as independent contractors in mind. With Lili, you can categorize your expenses simply by swiping left to indicate “life,” or personal or personal expenses, and then right to indicate “work,” or business. Lili also has tools to help freelancers save for taxes, and also an emergency fund. Additionally, if you make use of Lili’s account to pay your earnings through online platforms and payment apps You can get the funds as early as two days earlier. This last feature is common among many neobanks. Check out Lili review Return to the top Neobanks to come soon Keep on your watch for these four neobanks’ debuts in near future: Daylight: Formerly called Be Money, Daylight plans to create a mobile bank account specifically targeting the LGBT+ community with features like access to financial advisors and accounts with a person’s preferred name, not its legal title. Greenwood: The Black-owned digital banking firm currently has around half million people waiting on its list for savings and credit cards which are geared towards reinvesting their wealth into Black as well as Latinx communities. (See our list of forthcoming and existing .) First Boulevard is a Black-owned banking platform focuses on low-cost banking and cash-back at Black-owned companies, and short videos on financial education. Its aim is to create generations of wealth for Black Americans. Purple: Purple plans to provide mobile banking designed for the disability community with a checking account and a tax-advantaged savings account called ABLE accounts. These accounts allow those with disabilities save money without the loss of any government assistance. There will also be an account that can be used to donate part of the profits to the Special Olympics. To the top: From credit tracking tools to travel benefits, modern checking accounts offer more than their predecessors did. Before getting one, check whether the fintech firm is a bank or partners with a bank, and consider which features most benefit your financial needs. Author bio Spencer Tierney is an expert in deposits and certificates at NerdWallet. His work has been highlighted by USA Today and the Los Angeles Times. On a similar note… Find an alternative savings account NerdWallet’s recommendations for the top high-yielding savings accounts on the internet. Explore Banking further Get more smart money moves – straight to your inbox. Sign up and we’ll email you Nerdy content about the money topics that are important to you along with other ways to get more value from your money.
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