19 Neobanks and What They Offer Advertiser disclosure We consider you to be our first priority. Every day. We believe everyone should be able to make sound financial decisions with confidence. While our website doesn’t include every business or financial product available on the market We’re pleased of the advice we offer, the information we provide and the tools we develop are independent, objective easy to use and completely free. How do we earn money? Our partners pay us. This can influence the products we write about (and the way they appear on the website) however it in no way affects our suggestions or recommendations that are based on hundreds of hours of research. Our partners cannot be paid to ensure positive ratings of their goods or services. . 19 Neobanks and the Benefits They Provide Neobanks stand out by focusing on specific communities, offering various perks and more. By Spencer Tierney Senior Writer | Certificates of deposit bank accounts, ethical banking, deposits Spencer Tierney is a consumer banking writer for NerdWallet. He has covered the personal financial sector since, with a particular focus on certificates of deposit and other banking-related subjects. His work has been featured by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He’s based at Berkeley, California. Sep 23rd, 2021 Edited by Yuliya Goldshteyn Assistant Assigning Editor — Banking Yuliya Goldshteyn is a banking editor at NerdWallet. She was previously editor, writer and research analyst in various industries that range from health care and market research. She received a bachelor’s level degree in history from University of California, Berkeley. University of California, Berkeley as well as a master’s degree in social sciences from the University of Chicago. You can reach her at
. A majority or all of the products we feature are made by our partners, who pay us. This impacts the types of products we feature and where and how the product appears on the page. However, this does not affect our opinions. Our views are our own. Here is a listing of . The investing information provided on this page is for informational purposes only. NerdWallet does not provide advisory or brokerage services or advice or suggest investors buy or sell particular securities, stocks or other investment options. Jump to a specific neobank or category for high-yielding savings: widest range of accounts: For low-cost overdrafts: for credit building: For cash-back rewards: | | Investor-friendly: are financial technology also known as fintech companies that usually offer mobile-oriented banking accounts with eye-catching features, such as no-cost cash-back or credit card rewards. Certain established neobanks provide loans and credit cards as well as investment products too. They typically have no branches and, since most neobanks lack banking licenses, partner with banks to provide protection against their Federal Deposit Insurance Corp. Other things include. All neobanks on this list are insured by FDIC. Savings Cash Management CD Checking Money Market member FDIC SoFi Savings and Checking APY 3.75% SoFi members with direct deposit can get up to 3.75 percent annual percentage yield (APY) on savings balances (including Vaults) and 2.50 percent APY on checking balances. No minimum direct deposit amount needed to be eligible for 3.75 percent APY on savings and 2.50% APY on checking balances. Direct deposit members will receive 1.20 percent APR on all balances, including savings and checking (including vaults). Rates of interest are subject to change and can 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 Member $0 FDIC Marcus by Goldman Sachs Online Savings account with APY 3.50% 3.50% APY (annual percentage yield) with a minimum balance of $0 to earn stated APY. Accounts must have a positive balance in order to be open. APY is valid until 02/07/2023. Min. balance for APY Cash accounts are $0 and provide a range of services and features similar to checking, savings and/or investment accounts into one. The cash management account is generally provided by non-bank financial institutions. These cash accounts combine features and services similar to checking, savings and/or investment accounts in one account. These accounts for managing cash are usually offered by non-bank financial establishments. on the Wealthfront website. Wealthfront Cash Account APY 4.05 percent min. Balance for APY $1 on the Betterment website. Betterment Cash Reserve, Paid non-client promotions APY 4.00 Percent Annual percent yield (variable) is as of 02/06/2023. Min. balance for APY CDs is $0 (certificates of deposit) are a kind of savings account with fixed rates and terms generally, they come with higher rates of interest than regular savings accounts. CDs (certificates of deposit) are a kind of savings account that comes with an unchanging rate and term, and usually have more interest rates than standard savings accounts. CIT Bank CD APR 4.60% 1.5% Term 1.5 years Member FDIC Marcus by Goldman Sachs High-Yield CD APY 4.40% 4.40% APY (annual percentage yield) at 01/25/2023. Term 1 year Checking accounts are utilized for cash deposits on a regular basis as well as withdrawals. Checking accounts are utilized for day-to-day cash deposits and withdrawals. FDIC SoFi Checking and Savings APY 2.50% FDIC SoFi Checking and Savings APY 2.50 Members of SoFi with direct deposit have the opportunity to receive up 3.75 per cent annual percentage yield (APY) in savings account balances (including vaults) and 2.50% APY on checking balances. No minimum amount for direct deposits that is required to be eligible for 3.75% APY on savings, and 2.50% APY for checking balances. Members without direct deposit will receive 1.20% interest on balances, including savings and checking (including vaults). Interest rates are variable and subject to 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 the Axos Visa(r) debit card to make a maximum of 10 transactions per monthly (min 3 cents per transaction) or sign up for Account Aggregation/Personal Financial Manager (PFM) through Online Banking to earn 0.30 percent APY. Keep an average daily balance of $2,500 within the Axos Managed Portfolios Invest Account in order to receive 0.20 percent APY. Maintain a daily average balance of $2,500 in An Axos Self Directed Trading Invest Account in order to receive 0.20 percent APR. Make use of the Rewards checking account for your full month’s Axos Consumer loan payment and earn 0.15% APR. Monthly fee of $0. Market accounts earn rates that are similar to savings accounts and have certain checking features. Money market accounts have rates similar to savings accounts and have certain checking features. Member FDIC UFB’s Best Money Market APR 4.21 Percentage Min. balance for APY $0 FDIC Discover Bank Money Market Account APY 3.20 0.20 % Min. amount for APY $1. Learn more about: The number of fintech firms that can be referred to as neobanks is growing. From 2018 to 2020 Neobanks grew between 60 and 256 around the world, according to a report by the business strategy company Exton Consulting. With more players comes more competition. Some once-innovative services are becoming more common among neobanks, such as two-day early access to direct deposit as well as free access to national ATM networks. Some digital wallets, like and are competing with Neobanks, offering these same features. Neobanks are looking for ways to distinguish themselves by appealing to particular groups, like freelancers or travellers from abroad, and offering advantages that you can’t find at traditional banks. Here’s an overview of the ways that some of the upcoming and current Neobanks attempt to distinguish themselves. >> Learn more about high-yielding savings Chime Founded in 2013, Chime is one of the largest neobanks that has more than twelve million clients. It is partnered with two banks, it offers checking and savings accounts, both without costs for monthly charges, as well as a secured credit card 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 balance, no maximum limit for earning interest, and no monthly costs. (The Chime Savings Account will be required in order to create a savings account, while the Savings Account is an option.) The spending account offers free access to more than 60,000 ATMs nationwide as well as for customers who have direct deposits, a fee-free overdraft program covers as much as $200. Cash deposits are available at major retailers ****, and is not a feature that every neobank offers. Sign-up procedures are simpler than traditional banks since there’s no check on credit or prior bank records However, Chime offers an . Learn more about Chime *Chime states: “Chime is a financial technology company, not a bank. 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 subject to change and could be changed at any time. The APY disclosed is in effect as of October 25 2022. There is no minimum balance requirement. Must be in possession of $0.01 saved to get interest. ” ***”Out-of-network ATM withdrawal charges are applicable, except for MoneyPass ATMs at 7-Eleven or an Allpoint as well as Visa Plus Alliance ATM.” ****”The retailer who receives your cash will be accountable for the transfer of the cash to the Chime checking Account. Cash deposit fees may apply if using a retailer other than Walgreens.” Check out Chime reviews: Return to page Varo Bank Varo Bank offers checking, savings in addition to cash advances. Established in 2015, and initially using bank partnerships, it became an officially chartered institution in August of 2020, which allowed it to offer the services of its individual FDIC insurance. According to Varo its website, it had 6 million customers at mid-2022. The checking account is no cost ATM access, and there are no monthly fees, plus benefits like cash-back at certain stores and no foreign transaction fees. The savings account comes with a couple requirements to earn an interest rate of 5.00 percent APY for the first $5,000 of savings, which includes the requirement of a minimum of $1,000 in monthly direct deposits, and maintaining an open checking and savings balance at the end of the month. Otherwise you earn 3.00 percent APR. Read Varo review To the top widest range of account types SoFi SoFi is abbreviation to mean “Social Finance” was founded as an student loan refinance business, but has recently obtained the charter of a bank owned by SoFi. SoFi checking and savings is a account that allows the money to spend and save. It has no account fees for overdrafts, ATM usage, or monthly maintenance (subject to changing at any time). There are perks like earning interest, establishing subaccounts to save, and, for customers with qualified direct deposits, free overdraft coverage that can be up to $50. SoFi also provides a variety of loans, automatic and active investing and trading in cryptocurrency credit cards, as well as retirement accounts. Return to top One is owned by Walmart, One’s banking account comes with a low-cost overdraft plan, a custom savings and budgeting options. Customers can choose to arrange their funds into subaccounts called Pockets. The pockets that are dedicated to saving offer rates of 1% of up to $5,500 for every customer, and 1% on up to $25,000 in the case of customers with direct deposit. One provides fee-free overdraft coverage as high as $200 for customers with direct deposits of at least $500 per month. That’s cheaper than big banks’ overdraft fees, which can be around 35 cents per transfer. Read reviews on One:Return to topMore information about credit building GO2bank (and GoBank) Green Dot Corporation has offered alternatives to banking since. Beginning with debit cards for prepaid, it expanded into its first digital bank, GoBank In 2013, before launching its second brand of bank, GO2bank, in 2021. The majority of Green Dot deposit accounts are federally insured by Green Dot Bank. Contrary to many neobanks which require online registration, you can pick up GoBank or GO2bank credit cards from retailers such as Walmart and activate them online to use with a mobile app. In comparison to the other brands, GO2bank is by far the more preferred choice, with a lower monthly cost and more benefits however not as many as other neobanks such as Chime and Varo. GoBank’s $9 per month fee is waived by $500 direct deposits. the $5 fee for GO2bank’s monthly service is waived when you deposit direct with no minimum amount. Alongside the bank account, GO2bank offers a secured credit card to increase credit score and an account for savings that earns an APY of 1% for the amount of up to $5, 000. However, 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 company 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-deposited paychecks up to two days early as well as mobile and cash deposits and a limited cash-back program for debit cards and free access to a national ATM network. Through the account, users get access to Credit Sesame’s free monitoring of credit scores and regular updates to credit scores. • Compare the top to the back MoCaFi MoCaFi, or Mobility Capital Finance is 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 focus on closing the racial wealth gap. The platform offers a bill-pay feature that allows users to report rent payments to major credit bureaus to create credit history. It is a unique perk. MoCaFi collaborates with third-party partners to give cash-free deposits at a variety of merchants and also free mobile check depositing with quick cash out. Back to the top Dave Dave started in 2017 as a paycheck advance company and later expanded to provide a full-fledged checking account. By the middle of 2021, it had around 1 million clients. You can get a small advance on your next paycheck without any interest or credit check. Customers with at least $1000 in direct deposits per month are able to build credit history by making rent payments. Dave also provides budgeting that includes upcoming expenses and the option to search for side jobs in its mobile app. There are no charges to use overdrafts or ATMs within the nationwide MoneyPass network and no minimum balance requirements. Read Dave review Return to top cash-back rewards Current Current, founded in 2015, offers no-cost and premium options for checking with cash-back at certain merchants, two-day direct deposit, and quick refunds on gas station debit hold on cards. The latter two perks are only available on premium accounts, which have an annual fee of $5. Premium accounts that make direct deposit can also have up to $100 in overdrafts protected at no cost. Read 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 main benefits offered by Upgrade to their customers with a checking account are the cash back of 2% for everyday purchases, like at drugstores and restaurants, and the possibility of 20% rate discounts on personal loans. Customers are also able to view their credit scores no cost and a summary of their credit reports by using their 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.” It’s an account reward program for checking accounts which offers a variable percent of cash back in the range of 5% to 200 percent, on randomly chosen purchases. The program was introduced in 2020. Bella doesn’t charge monthly, overdraft or ATM fees. Currently, Bella also covers fees that are charged by non-network ATM operators. There is also a no-fee savings account, but it offers low interest rates and an optional “karma account” which can be used to pay for other customers’ small purchases or as a beneficiary of a karma account’s generosity. Check out our list of the Back to top Cheese Started in March 2021, Cheese tailors its digital banking platform to the immigrant and Asian American communities with up 10% cashback for 10,000 businesses, which includes Asian-owned restaurants and businesses. Support is provided in English as well as Chinese, with more languages soon. Accounts earn interest and don’t have monthly charges or ATM fees within the national MoneyPass ATM network. >> Learn more about Back to top Investor-friendly Acorns Although the microinvesting application Acorns main product is its automated investing for investors who don’t have hands The company expanded its banking offerings in the year 2018 with Acorns Checking. It comes with the debit card as well as a limited rewards program. It is offered in a bundle that includes a taxable investment account and an individual retirement account at a cost of $3 per month (or $5 for a family version). Customers are able to opt into an “round-up” feature where each purchase is rounded up by a certain amount and that change is then invested. The rewards program offers an amount or a portion back from purchases at over 300 companies, and that can also be invested. Read Acorns review: Back to top Aspiration Aspiration is an internet-based brokerage firm with a cash management account, called Spend & Save, that works like an hybrid savings and checking account. There are two different versions of the account. The basic Spend & Save account has up to 3.00 percent APR on savings, as high as 5% cashback and an optional monthly fee that customers pay the amount they believe is fair from the point of zero up to. The higher-end Aspiration Plus plan comes with an annual fee of almost $72 and with up to 10 percent cashback as well as up to 5.00% APY. There are two accounts available also, which allows you to invest in businesses that are sustainability and social cause. As a certified B Corp company, Aspiration is committed to being an environmentally responsible and socially conscious business that offers its customers personalized sustainability scores depending on the companies they invest in. Read Aspiration review: Aspiration Spend and Save Accounts are cash management account that are available through Aspiration Financial, LLC, registered broker-dealer, member of FINRA/SIPC. It is also a subsidiary that is part of Aspiration Partners, Inc. (“Aspiration”). Aspiration is not a financial institution.” The Aspiration Save Account’s 5.00 percent Annual Percentage Yield (“APY”) that can be up to 83x the average national interest rate is subject to change, subject to change, and is only available to customers who are members of Aspiration Plus once the conditions are met. Customers who are not part of Aspiration Plus get 3.00% APY after conditions are met. Back to top Albert Albert started in 2016 as a mobile app for managing money and launched a personalized banking service named Albert Cash in August 2021. The company has more than 6 million customers. Albert Cash is a banking account that earns cash back and includes the following benefits that include no-interest cash advances of up to $250, integrated budgeting and savings tools, and annual savings bonuses that can reach 0.10 percent. For access to Albert’s investing features, get the savings rate to 0.25 percent, and take advantage of the personalized support for customers, called Genius 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 was launched in the year 2015 the UK-based Revolut offers appealing features to international travelers looking for affordable exchange rates and a debit card that can use more than 150 currencies. Customers can make international transfers with other Revolut customers, make withdrawals of up to $300 monthly from ATMs at no cost and get the interest from savings. All this is included with the account that is free. To get more benefits, such as overseas medical insurance, Revolut offers two accounts that charge monthly fees of $17 and $10. Read Revolut reviews: Back to top Wise Revolut U.K.-based money transfer business Wise was previously called TransferWise established a multicurrency account that rolled into U.S. customers in 2017. While there’s a $9 initial cost on the credit card Wise doesn’t charge monthly charges and also converts currencies at an affordable exchange rate for a minimal upfront fee. For converting a balance of $1,000 U.S. dollars to euros as an example, will cost approximately $4.20 which is 0.42%, which is cheaper than banks’ foreign transaction charges of 1% to 3%. The account can contain multiple balances, holding as many as 54 different currencies at a time and the conversion process could take only seconds. Check out Wise review: Back to top Freelancer-friendly Oxygen Launched in early 2020 the Oxygen digital banking account aims to help freelancers and self-employed employees control their money flow. Oxygen does not cost monthly fees, ACH or overdraft fees, but there are four pricing tiers that can be used for the account. They range from zero to $200 per year. All levels offer travel benefitslike lost luggage and hotel theft protection. higher levels come with more benefits such as more savings rates, higher cash back and numbers of virtual cards. A unique perk 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 top Lili launched in the year 2019. Lili is a free mobile bank account that was designed with freelancers and independent contractors in mind. With Lili you can classify your expenses by simply tapping left to indicate “life,” or personal, and right to indicate “work,” or business. Lili offers tools that help freelancers save for taxes, and also an emergency savings account. 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 is a common feature for neobanks in general. Read Lili review The top Neobanks soon on your watch for the emergence of these four Neobanks in the near future. Daylight: Formerly called Be Money, Daylight plans to launch a mobile bank account specifically targeting members of the LGBT+ community with features like access to financial advisors and accounts with a person’s chosen name, rather than their legal name. Greenwood is a Black-owned digital banking firm already has half a million customers waiting to be added to its list of customers for savings and spending accounts which focus on reinvesting money in Black or Latinx communities. (See our list of upcoming and ongoing .) First Boulevard is a Black-owned banking platform focuses on low-cost banking that offers cash back to Black-owned companies, and brief financial education videos. Its aim is to create the wealth of generations to Black Americans. Purple: Purple plans to provide mobile banking specifically for people with disabilities, including an account for checking and an account that is tax-advantaged, a savings account known as ABLE accounts. These accounts allow those with disabilities save money without the loss of any government aid. There will also be a debit card that sends a portion of Purple’s revenue towards the Special Olympics. Return to top From credit monitoring tools to travel benefits Modern checking accounts provide more features than their predecessors did. Before signing up for one, verify whether the fintech firm is a bank or partners with a bank. Also, consider which features best suit your needs in the financial realm. Author bio Spencer Tierney is an expert in the field of certificates of deposit at NerdWallet. The work of Spencer Tierney has been highlighted by USA Today and the Los Angeles Times. On a similar note… Get an alternative savings account NerdWallet’s recommendations for the top high-yielding online savings accounts. Dive even deeper in Banking Make smarter money decisions right to your inbox Sign up and we’ll send you Nerdy posts about the money topics which matter to you the most along with other ways to help you get more from your savings.
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