19 Neobanks and what they offer Advertiser disclosure We consider you to be our first priority. Every day. We believe that every person should be able make financial decisions without hesitation. While our website doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we develop are independent, objective, straightforward — and cost-free. 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 does not affect our recommendations or advice that are based on many hours of study. Our partners are not able to pay us to guarantee favorable reviews of their products or services. . 19 Neobanks and what they offer Neobanks distinguish themselves by focusing on certain communities, providing 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 banker at NerdWallet. He has covered the personal financial sector since, with a focus on certificates of deposit, as well as other banking topics. His work has been featured on 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 Banking Yuliya Goldshteyn works as a banking editor at NerdWallet. She previously worked as editor, writer and research analyst in industries ranging from health care to market research. She earned a bachelor’s degree in the field of history from Berkeley at the University of California, Berkeley and a master’s in sociology from the University of Chicago. You can reach her at
. Many or all of the products we feature are made by our partners, who pay us. This influences which products we feature as well as the place and way the product appears on a page. However, this does not influence our evaluations. Our views are our own. Here is a listing of . The information on investing provided on this page is intended for educational purposes only. NerdWallet is not a broker or advisor. or brokerage services or advice or suggest investors buy or sell particular stocks, securities or other investments. Jump to a specific neobank or category: For high yield savings: For the widest range of accounts: For inexpensive overdrafts for credit building: Cash-back rewards:| | Investor-friendly: are financial technology also known as fintech companies which typically provide mobile-friendly banking accounts with eye-catching features like low-cost cash-back or credit card rewards. Some established neobanks offer loans and credit cards as well as investment products too. They typically have no branches and, since the majority of them lack banking licenses, partner with banks to offer security by the Federal Deposit Insurance Corp. In addition, they offer. The majority of the neobanks in this list have FDIC-insured accounts. Saves Cash Management CD-checking Money Market Member FDIC SoFi Savings and Checking APY 3.75 Members of SoFi with direct deposit have the opportunity to receive up 3.75 per cent per year in annual percentage return (APY) on savings balances (including vaults) and 2.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 3.75% APY for savings, and 2.50% APY for checking balances. Customers who do not deposit direct deposits will earn 1.20% APY on all account balances, including savings and checking (including Vaults). The rates of interest are variable 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 APR 3.50 percent 3.50% APR (annual percentage yield) with a balance of zero to earn stated APY. Accounts must be in healthy balance to continue to operate. APY is valid until 02/07/2023. Min. balance for APY The cash accounts provide a range of services and features similar to checking, savings or investment accounts in one. These accounts for managing cash are generally offered by non-bank financial establishments. They combine the features and services similar to savings, checking and investment accounts in one account. The cash management account is generally provided by non-bank financial institutions. on Wealthfront’s website Wealthfront Cash account APY 4.05% Min. Balance of APY $1 on the Betterment website. Betterment Cash Reserve, Paid non-client promotions APY 4.00% Annual percent yield (variable) is at 02/06/2023. Min. balance for APY CDs is $0 (certificates of deposits) are a type of savings account with an unchanging rate and term generally, they come with higher interest rates than regular savings accounts. CDs (certificates of deposit) are a kind of savings account that has an unchanging rate and term, and usually have higher rates of interest than traditional savings accounts. CIT Bank CD APR 4.60% Term 1.5 Years Members FDIC Marcus by Goldman Sachs High-Yield CD APY 4.40% 4.40% The APY (annual percent yield) as of 01/25/2023 . One year checking accounts are utilized for day-to-day cash deposits and withdrawals. Checking accounts are used to make cash deposits on a regular basis as well as withdrawals. Members FDIC SoFi Savings and Checking APY 2.50% SoFi members with direct deposit are eligible to receive up 3.75 percent annually in percentage return (APY) for savings accounts (including vaults) and 2.50% APY on check balances. There is no minimum direct deposit amount required to qualify for the 3.75% APY on savings, and 2.50 percent APY on checking balances. Members without direct deposit will earn 1.20% APR on all balances of savings and checking (including vaults). The rates of interest are subject to fluctuation and are can change at any time. These rates 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. Make use of Your Axos Visa(r) debit card for a total of 10 transactions each monthly (min $3 per transaction) or sign up for Account Aggregation/Personal Finance Manager (PFM) in Online Banking to earn 0.30% annual percentage. Keep an average daily amount of $2,500 within an Axos Managed Portfolios Invest Account for 0.20 percent APY. Maintain an average daily balance of $2,500 per month within an Axos Self-Directed Trading Investment Account for 0.20% annual percentage yield. Utilize your Rewards Checking account to pay the full monthly Axos Consumer loan payment and earn 0.15 percent APR. Monthly fee of $0. Market accounts earn rates similar to savings accounts and include some checking features. Market accounts earn rates similar to savings accounts, and come with certain features for checking. FDIC UFB Best Money Market Member FDIC UFB’s best Money Market Rate APY 4.21% Min. balance for APY $0 Member FDIC Discover Bank Money Market Account APY 3.20 percent Min. balance for APY $1 >> Learn more: The amount of fintech firms that can be called neobanks keeps growing. From 2018 to 2020 neobanks skyrocketed between 60 and 256 around the world according to a study by the business strategy company Exton Consulting. With more players comes more 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, like and , are competing with Neobanks, offering the same services. Neobanks are looking for ways to differentiate themselves by appealing to certain groups, like freelancers or tourists from other countries, as well as providing advantages that you can’t find in traditional banks. Here’s a look at how some current and upcoming neobanks try to stand out. >> Learn more about high-yielding savings Chime was founded in 2013. Chime is one of the largest neobanks that has more than 12 million customers. Partnered with two banks*, it offers savings and checking accounts that are both free of monthly fees, and secured credit cards that you can use to build credit. Chime’s savings account has an attractive interest rate of 2.00 per cent annual percentage yield** , with zero minimum balances, there is no maximum amount to earn interest, and no monthly costs. (The Chime Checking Account must be opened to open a savings bank account; the Savings Account is an option.) The spending account gives you free access to more than 60,000 ATMs throughout the nation as well as for customers who have direct deposits, a fee-free overdraft program that covers the amount of $200. Cash deposits are offered at large retailers ****, a service not all Neobanks offer. Sign-up procedures are simpler than traditional banks as there’s no check on credit or prior bank records however, Chime offers a . Find more details from Chime *Chime says: “Chime is a financial technology firm, not a bank. Banking services provided via The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.” *” The Annual Percentage Yield (“APY”) for Chime Savings Account is subject to change and could alter at any moment. The APY disclosed is in effect as of October 25, 2022. No minimum balance is required. You must be in possession of $0.01 saved to get interest. ” ***”Out-of-network ATM withdrawal fees could apply, except for MoneyPass ATMs at 7-Eleven store, or at any Allpoint as well as Visa Plus Alliance ATM.” ****”The retailer that receives your cash will be responsible for transferring the funds to deposit into the Chime Account. Account. Cash deposit fees may apply when you use a different retailer from Walgreens.” Check out Chime reviews: Back to page Varo Bank Varo Bank offers savings, checking, and cash advances. It was founded in 2015 and initially working with banking partnerships. It became an officially chartered bank in the month of August, 2020. This allowed it to provide its own FDIC insurance. As per Varo, it had a total of 6 million customers by mid-2022. The checking account is no cost ATM access, as well as no monthly fees, in addition to benefits like cash back from certain retailers as well as no international transaction fee. The savings account comes with some requirements for earning the highest rate of 5.00 percent APY on the first $5,000, which includes an annual minimum of $1,000 direct deposits and keeping an open savings and checking balance at the close of the month. If not, the rate is 3.00 percent per annum. Read Varo review: Back to top For widest range of options SoFi SoFi is abbreviation for “Social Finance” was founded as an student loan refinance company but recently gained the charter of a bank owned by SoFi. The SoFi Savings and Checking account is their combination account that can handle funds for saving and spending. There are no fees for account usage, for overdraft, ATM usage, or monthly maintenance (subject to change at any time). Some perks include earning interest, opening subaccounts for savings as well as those who make qualified direct deposits, free overdraft protection of for up to $50. SoFi also offers many types of loans, active and automated investment and trading in cryptocurrency credit cards, as well as retirement accounts. Back to top For cheap overdraft One owned by Walmart, One’s banking account has a cheap overdraft program, customized budgeting and savings choices. Customers can choose to divide their cash into pockets, which are subaccounts that can be referred to as Pockets. The Pockets dedicated to saving have rates of 1.1% of up to $5,500 for every customer, and 1% on up to $25,000 for those who have direct deposit. One offers free overdraft protection as high as $200 for customers who deposit direct at least $500 monthly. This is less expensive than banks with large branches’ overdraft fees that can range from $35 per transaction. Read One reviews: Return to top> Learn more about For credit building GO2bank (and GoBank) Green Dot Corporation has offered alternatives to banking since. From prepaid debit cards It expanded to GoBank, its very first bank online GoBank, in 2013 and its second brand of bank, GO2bank, in 2021. The majority of Green Dot deposit accounts are federally insured by Green Dot Bank. In contrast to most neobanks that require an online sign-up and registration, you can purchase GoBank or GO2bank credit cards from retailers such as Walmart and sign them up online using an app for mobile devices. In comparison to the other brands, GO2bank is by far the more preferred option with a smaller monthly cost and more benefits, though not as many as other neobanks such as Chime and Varo. GoBank’s almost $9 monthly fee is waived by $500 direct deposits, whereas the GO2bank’s fee of $5 per month is waived with direct deposits without a minimum. Alongside its bank account, GO2bank provides a secured credit card that can be used to increase credit score and an account for savings that earns 1percent APY up to $5,000. However, GoBank doesn’t offer a credit card and its savings vault does not generate interest. Read GoBank review: Read more about GO2bank. Return to the top Sesame Cash The credit company Credit Sesame launched a free digital bank account in March of 2020. It is geared towards helping people live paycheck to paycheck. The account’s benefits include direct deposit of paychecks up to two days early in advance, mobile check and cash deposits as well as a restricted cash-back on debit cards, and access to a free national ATM network. The account’s users have access to Credit Sesame’s credit monitoring service for free and regular updates to credit scores. Check the Top to Back MoCaFi MoCaFi, also known as Mobility Capital Finance. It’s a Black-owned digital platform that was launched in 2016 and offers free checking services to largely unbanked and underbanked communities and focuses on closing the racial wealth gap. The platform offers a bill-pay feature that allows users to make rent payments available to major credit bureaus to build credit history. It is a unique perk. MoCaFi works with its third-party partners to provide free cash deposits at various stores and mobile check deposits with fast withdrawal of funds. Return 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, it had about 10 , million users. You can receive a small cash advance from your next salary without any interest or credit check, and those who have at least $1,000 in direct deposits per month can establish credit histories through rent payments. Dave also provides budgeting that factors in upcoming bills and the ability to search for jobs that are not listed through its mobile app. There aren’t any fees for overdrafts , or using ATMs in the national MoneyPass network, and there are no minimum requirement for balance. Read Dave review Return to top reward cash back Current Current, founded in 2015, offers no-cost and premium checking options that include cash-back at certain merchants, two days of early direct deposit, and quick refunds on gas station hold on cards. The two other perks are only available for premium accounts that have a $5 monthly fee. Premium accounts with direct deposits can also have the possibility of having up to $100 worth of overdrafts covered for free. Review Current review: Back to top Upgrade The personal loan company Upgrade, started in 2017, introduced a free checking account in 2021 with cash-back benefits that are greater than Current’s. The primary benefits of Upgrade’s customers who have a checking account include the cash back of 2% on purchases made every day, such as at drugstores and restaurants and 20 percent rate discounts on the company’s personal loans. Customers can also see their credit scores for free , as well as a summary of their credit reports through Upgrade’s Credit Health service. Return to top of the page Bella Bella’s banking strategy is, as it says, “built on love.” It’s a checking account rewards program that gives a random amount of cash back, anywhere from 5% to 200 percent, on selected purchases. It was launched in 2020. Bella doesn’t charge monthly ATM, overdraft or other fees. In the moment, Bella also covers fees that are charged by non-network ATM operators. There is also a no-fee savings account, but it has low interest rates and an optional “karma account” which can be used to cover other customers’ small purchases or to be a recipient of a karma account’s generosity. Click here to see this list for the Back to top Cheese Started in March 2021, Cheese tailors its digital banking platform to the immigrants as well as Asian American communities with up 10% cashback on 10,000 businesses, including restaurants and Asian-owned businesses. Support for customers is offered in English and Chinese as well as other languages to come. Accounts are able to earn interest and do not have monthly fees or ATM fees for the nationwide MoneyPass ATM network. Learn More regarding Back to top Investor-friendly Acorns Although the microinvesting application Acorns’ core product is its automated investing for investors who don’t have hands The company expanded its banking offerings in 2018 by introducing Acorns Checking. The account comes with a debit card and limited rewards program. It is offered in a bundle 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 five dollars for the family version). Customers are able to opt into the “round-up” feature where each purchase is rounded by a certain amount and that change is then invested. The rewards program offers a small percentage or amount of money back on purchases made by more than 300 companies. The money also gets invested. Read Acorns review: Back to the top Aspiration Aspiration is an online brokerage firm with an account for cash management, called Spend & Save, that works like a hybrid checking and savings account. There are two versions of the account. The basic Spend & Save account has up to 3.00% APR on savings, up to 5% cash back and an optional monthly fee that customers pay the amount they consider fair starting at beginning at $0 and up. The premium Aspiration Plus plan comes with an annual cost of just over $72 and as high as 10% cashback in addition to 5.00% APR. There are two accounts available as well, which means you can invest in sustainability and social cause. As an accredited B Corp company, Aspiration is committed to being a socially responsible and environmentally conscious company and provides customers with personalized sustainability scores depending on the companies they make their purchases at. 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 FINRA/SIPC, and a subsidiary to Aspiration Partners, Inc. (“Aspiration”). Aspiration is not a financial institution.” Aspiration is not a bank. Aspiration Save Account’s up to 5.00 percent Annual Percentage Yield (“APY”) with up to 83x the average national interest rate is subject to change, subject to change, and only accessible to customers who are enrolled in Aspiration Plus once the conditions are met. Customers not enrolled in Aspiration Plus get 3.00% APY when conditions are satisfied. Back to top Albert Albert started in 2016 as a money management app and launched a personalized banking service named Albert Cash in August 2021. It currently has more than six million customers. Albert Cash is a banking account that earns cash back and includes the following benefits including cash advances with no interest up to $250 with integrated budgeting and saving tools, and annual savings bonuses of up to 0.10%. For access to Albert’s investing features, get a savings rate up to 0.25 percent and avail the personalized support for customers known as Genius There is an annual minimum fee of $4. It is required to have an account with a bank outside of the United Kingdom to establish an account with Albert. Recommendations for Travelers Revolut In its first year of operation the UK-based Revolut provides attractive features to international travelers who want an exchange rate that is competitive and a debit card that can be used to spend in more than 150 currencies. Customers can transfer funds internationally with other Revolut users, and withdraw as much as $300 per month at ATMs without fees and earn an interest rate on their savings. This is all included in the account that is free. For additional benefits, like medical insurance for overseas patients, Revolut offers two accounts with monthly fees of between $10 and $17. Review Revolut reviews: Return to top Wise The U.K.-based money transfer business Wise was previously known as TransferWise established a multicurrency account that rolled across to U.S. customers in 2017. While there’s a $9 initial cost to use the card as a debit, Wise isn’t affianced of monthly charges for account usage and can convert currencies at a competitive exchange rate for a minimal upfront fee. The conversion of a balance of $1000 U.S. dollars to euros is, for instance, around $4.20, or 0.42 percent, which is cheaper than bank foreign transactions fees that range from 1% to 3percent. An account can have multiple balances, storing at least 54 foreign currencies at once and the conversion process could take only minutes. Read Wise review: Return to the top of Freelancer-friendly Oxygen launched in the early part of 2020 the Oxygen digital banking account is designed to assist freelancers and self-employed employees manage their money flow. Oxygen does not have monthly or ACH or overdraft fees There are however four pricing levels available that can be used for the account. They range from free to $200 annually. Each level offers travel benefitslike lost luggage and hotel theft protection. higher levels have more perks that include greater savings rates, cash back and more virtual cards. One unique benefit is the ability to make use of the Oxygen application to incorporate, or legally register as a company, and later . Review Oxygen review: Return to the top Lili Launched in 2019, Lili is a mobile banking account specifically designed for freelancers and contractors in mind. With Lili you can classify your expenses simply by swiping left to indicate “life,” or personal, and right for “work,” or business. Lili also includes tools to help freelancers save for taxes, as well as an emergency fund. Plus, if you use Lili’s account to transfer your earnings through online platforms and payment apps, you can receive the funds for up to 2 days prior. This feature is standard among many neobanks. Check out Lili review: Back to top Neobanks to come soon Keep on your watch for these four neobanks’ debuts in the near future: Daylight: Previously dubbed Be Money, Daylight plans to create a mobile bank account focusing on the LGBT+ community with features including access to financial advisors and accounts with a person’s preferred name, not their legal name. Greenwood is a Black-owned digital bank is already home to half-a-million people on its waitlist for savings and spending accounts that emphasize reinvesting wealth in Black as well as Latinx communities. (See our complete list of upcoming and existing .) First Boulevard The Black-owned bank platform is focused on low-cost banking that offers cash back to businesses owned by Blacks, as well as short videos on financial education. Its goal is to build generations of wealth to Black Americans. Purple: Purple plans to provide mobile banking designed specifically for people with disabilities, including a checking account and savings accounts that are tax-advantaged. These accounts are known as ABLE accounts. These accounts let people with disabilities save money without risking the loss of any government assistance. Additionally, there will be the debit card that will donate some of the money earned by Purple towards the Special Olympics. Return to top From credit monitoring tools to travel benefits modern checking accounts offer more than their predecessors offered. Before signing up for one, verify whether the fintech company is a bank, or is in partnership with a bank, and consider which features best serve your financial life. The author’s bio: Spencer Tierney is an expert in the field of certificates of deposit on NerdWallet. The work of Spencer Tierney has been featured in USA Today and the Los Angeles Times. Similar to… Get an alternative savings account NerdWallet’s picks for the best high-yielding savings accounts online. Dive even deeper in Banking Find more money-saving strategies – straight to your inbox Sign up and we’ll send you Nerdy articles on the topics in finance that are important to you and other strategies to help you make more from your savings.
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