19 Neobanks and What They Offer Advertiser disclosure You’re our first priority. Every time. We believe that every person should be able to make sound financial decisions without hesitation. While our website doesn’t include every business or financial product on the market however, we’re confident that the guidance we offer and the information we offer and the tools we create are impartial, independent simple, and completely free. So how do we earn money? Our partners compensate us. This can influence the products we review and write about (and where those products appear on the site), but it does not affect our suggestions or recommendations that are based on hundreds of hours of research. Our partners are not able to pay us to guarantee favorable review of their services or products. . 19 Neobanks and What They Offer Neobanks distinguish themselves by focusing on certain communities, offering various benefits and more. Written by Spencer Tierney Senior Writer | Certificates of deposit, ethical banking, banking deposits 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 as well as other banking-related topics. He has had his work featured in The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He is located at Berkeley, California. Sep 23rd, 2021 Edited by Yuliya Goldshteyn, Assistant Assigning Editor for Banking Yuliya Goldshteyn is a bank editor at NerdWallet. She previously worked as an editor, writer and research analyst in industries ranging from healthcare as well as market research. She graduated with a bachelor’s degree in the field of history from Berkeley at the University of California, Berkeley and a master’s of social science from University of Chicago. She can be reached by email at
. A majority or all of the products featured here are from our partners, who pay us. This impacts the types of products we write about and where and how the product is featured on a page. However, this does not affect our opinions. Our opinions are our own. Here is a list of . The information about investing on this page is intended for educational purposes only. NerdWallet is not a broker or advisor. or brokerage services, nor does it recommend or advise investors to buy or sell specific securities, stocks or other investments. Navigate to a specific neobank or category: For high yield savings: the most extensive variety of accounts: inexpensive overdrafts for Cash-back rewards:| | Investor-friendly: Freelancer-friendly: are financial technology — (also known as fintech) firms which typically provide mobile-friendly accounts that have attractive features, such as no-cost cash-back or credit card rewards. Some established neobanks offer loans and credit cards as well as investment products too. They usually have no branches, and, as a majority of neobanks lack banking licenses, partner with banks to offer security by the Federal Deposit Insurance Corp. Other things include. The neobanks listed on this list are insured by FDIC. Savings Cash Management CD Checking Money Market Members FDIC SoFi Savings and Checking APY 3.75 percent SoFi members who have direct deposit can get up to 3.75 per cent annual percentage yield (APY) for savings accounts (including Vaults) and 2.50 percent APY on their checking balances. The minimum amount of direct deposit needed to be eligible for 3.75% APY for savings and 2.50% APY for checking balances. Members without direct deposit will earn 1.20 percent APR on all balances in checking and savings (including Vaults). Rates of interest are subject to change and subject to 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 Member $0 FDIC Marcus by Goldman Sachs Online Savings Bank with APY 3.50 35% 3.50% APY (annual percent yield) with $0 minimum balance to earn the stated APY. Accounts must have a healthy balance to continue to operate. APY current as of 02/07/2023. Min. balance for APY Cash accounts are $0 and offer a variety of services and features comparable to savings, checking and investment accounts in one. Cash management accounts are usually offered by non-bank financial institutions. These accounts offer features and services that are similar to checking, savings or investment accounts into one product. These accounts for managing cash are usually provided by non-bank financial institutions. On the website of Wealthfront, you can find Wealthfront Cash account APY 4.05% Min. balance of APY $1 on the Betterment’s website. Betterment Cash Reserve Paid non-client promotion APY 4.00% Annual percentage yield (variable) is as of 02/06/2023. Min. balance for APY $0 CDs (certificates of deposits) are a kind of savings account with an unchanging rate and term generally, they come with higher rates of interest than standard savings accounts. CDs (certificates of deposit) are a kind of savings account that has a fixed rate and term, and usually have higher interest rates than traditional savings accounts. CIT Bank CD APR 4.60% 1.5% Term 1.5 Years FDIC Marcus by Goldman Sachs High-Yield CD APY 4.4 FDIC Marcus by Goldman Sachs High-Yield CD APY 4.40 percent 4.40% APR (annual percentage yield) as of 01/25/2023 Term 1-year Checking account are used to deposit cash on a daily basis and for withdrawals. Checking accounts are utilized 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% annual percentage yield (APY) for savings accounts (including vaults) and 2.50% APY on checking balances. The minimum amount for direct deposits needed to earn the 3.75% APY for savings, or the 2.50 percent APY on checking balances. Direct deposit members will receive 1.20% APY on all account balances, including savings and checking (including vaults). Rates of interest are subject to change and subject to 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 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) Credit Card to make a maximum of 10 transactions per month (min 3 cents per transaction) or enroll for Account Aggregation/Personal Finance Manager (PFM) within Online Banking to earn 0.30 percent annual percentage. Keep an average daily balance of $2,500 in the Axos managed Portfolios Investment Account for 0.20 percent annual percentage yield. Maintain a daily average amount of $2,500 with An Axos Self Directed Trading Investment Account in order to receive 0.20% annual percentage yield. Make use of Your Rewards Checking Account to make your full month’s Axos Consumer loan payment and earn 0.15 percent APR. Monthly fee: $0. Market accounts earn rates that are similar to savings accounts, and come with certain checking features. Market accounts earn rates similar to savings accounts, and come with certain checking features. Member 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. balance for APY $1. Read more: The amount of fintech firms that can be called neobanks keeps growing. Between 2018 and 2020, Neobanks have exploded from 60 to 256 across the globe according to a study by the business 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 advance access to direct deposits and free access to nationwide ATM networks. Some digital wallets, like and , are competing with neobanks by offering some of these same features. Neobanks are looking for ways to differentiate their offerings by appealing to specific groups, like freelancers or international travelers, or offering advantages that you can’t find at traditional banks. Here’s an overview of how some new and emerging Neobanks are trying to stand out. More information for high-yield savings Chime was founded in 2013. Chime is among the biggest neobanks with over 12 million customers. With two banks*, it provides checking and savings accounts, both with no costs for monthly charges, as well as a secured credit card you can utilize to build credit. Chime’s savings account offers an attractive interest rate of 2.00 per cent annual percentage yield** , with no minimum balancerequirement, there is no maximum amount to earn interest and no monthly charges. (The Chime Savings 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 across the country as well as for customers who have direct deposits, there is a no-cost overdraft program covers as much as $200. Cash deposits are offered at big retailers ****, and is not a feature that all neobanks provide. The process of signing up can be simpler than traditional banks as there’s no credit check or bank records from the past however, Chime has an . Learn more about Chime Chime: “Chime is a financial technology company, not a banking institution. Banking services are offered through 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 variable and may be changed at any time. The declared APY will be in effect as of October 25, 2022. There is no minimum balance requirement. It is required to have $0.01 in savings to earn interest. ” ***”Out-of-network ATM withdrawal fees could apply, except for MoneyPass ATMs in a 7-Eleven store, or at any Allpoint as well as Visa Plus Alliance ATM.” ****”The retailer who accepts your cash is accountable for the transfer of funds to deposit into Your Chime Account. Account. Deposit fees can be charged for any retailer other than Walgreens.” Check out Chime reviews: Return to Top Varo Bank Varo Bank offers checking, savings as well as cash advances. Founded in 2015 and originally using banking partnerships. It changed to an officially chartered bank in the month of August, 2020, which allowed it to offer their own FDIC insurance. As per Varo the bank had 6 million customers as of mid-2022. The checking account comes with no cost ATM access and no monthly fees, in addition to perks such as cash back from certain retailers with no transaction charges. The savings account comes with a couple requirements to earn a top rate of 5.00 percent APY on the first $5,000, including a $1,000 minimum in monthly direct deposits as well as an active savings and checking balance at the end of each month. In other cases, you earn 3.00% APY. Read Varo review Return to top for widest variety of options SoFi SoFi — which stands in the sense of “Social Finance” — started out as a 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. There are no charges for accounts for overdraft, ATM usage, or monthly maintenance (subject to changes at any point). There are perks like earning interest, establishing subaccounts to save as well as, for customers with qualifying direct deposits, no-fee overdraft protection of for up to $50. SoFi also offers many types of loans, active and automated investment and trading in cryptocurrency as well as credit cards and retirement accounts. Check out SoFi reviews: to top One is owned by Walmart, One’s banking account comes with a low-cost overdraft program, custom-designed budgeting and savings choices. Customers are able to divide their cash into pockets, which are subaccounts that can be referred to as Pockets. Pockets that are devoted to saving are rated at 1% on up to $5,000 for any customer, and 1% on up to $25,000 in the case of customers who deposit direct. One gives free overdraft coverage up to $200 for customers who make direct deposits of at least $500 per month. This is less expensive than banks with large branches charge for overdrafts that can range from 35 cents per transfer. Read Find out more about the credit-building GO2bank (and GoBank) Green Dot Corporation has been offering different banking services since. Beginning with debit cards for prepaid, it expanded into GoBank, its very first bank online GoBank, in 2013 and its second bank brand, GO2bank, in 2021. Every one of the Green Dot deposit accounts are federally insured by Green Dot Bank. In contrast to most neobanks which require online registration for customers, you can get GoBank and GO2bank debit cards at retailers such as Walmart and activate them online using a mobile app. In comparison to the other brands, GO2bank is easily the better alternative, as it has a lower monthly cost and more benefits, though not as numerous as other neobanks such as Chime as well as Varo. GoBank’s monthly fee of $9 is waived when you make $500 direct deposits. the GO2bank’s fee of $5 per month is waived when you deposit direct without a minimum. Alongside the bank account, GO2bank provides a secured credit card to build credit and has a savings vault that earns 1percent APY up to $5,000. Contrary to this, GoBank doesn’t offer a credit card, and its savings vault isn’t able to earn interest. Read GoBank review: Read more about GO2bank. Return to top Sesame Cash The credit company Credit Sesame launched a free digital bank account in March 2020 that is geared towards helping people live from paycheck to paycheck. The account’s benefits include direct deposit of paychecks that can be made up to two days early in advance, mobile check and cash deposits, a limited debit card cash-back program, and access to a free nationwide ATM network. Through the account, users have 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. It’s a black-owned digital platform started in 2016 that 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 allows customers to report rent payments to major credit bureaus to create credit history. As a rare perk, MoCaFi works with its third-party partners to offer free cash deposits at various retailers and free mobile check deposits that allow for quick withdrawal 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. By mid-2021, the company had more than 1 million clients. You can receive a small credit on the next pay without interest or a credit check, and customers with at least $1000 in direct deposit each month can build credit history through rent payments. Dave also offers budgeting tools that includes upcoming expenses and the option to search for side jobs in its mobile app. There aren’t any fees to use overdrafts or ATMs within the nationwide MoneyPass network, and there aren’t any minimum requirement for balance. 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, as well as quick refunds on gas station debit hold on cards. These two benefits are only available on premium accounts, which have a $5 monthly fee. Premium accounts that make direct deposits also come with up to $100 of overdrafts backed up at no cost. Check out the Current review: Revert to the top Upgrade The personal loan company Upgrade was founded in 2017, introduced a free checking account in 2021 with cash-back rewards more extensive than Current’s. The main benefits offered by Upgrade to their customers with a checking account are 2% cash back for everyday purchases, like in restaurants and drugstores and up to 20% discount on personal loans. Customers are also able to view their credit scores no cost and a summary of their credit reports through the Upgrade Credit Health service. Review Upgrade’s reviews: Bella Bella’s bank approach is, as it says, “built on love.” That translates to an account reward program for checking accounts that offers a random amount of cash back, between 5% and 200%, on randomly selected purchases. The program was introduced in 2020. Bella doesn’t charge monthly ATM, overdraft or other fees. Currently, Bella also covers fees that are charged by non-network ATM operators. Also, there is a free savings account, which has minimal interest rates, and an optional “karma account” which can be used to cover other customers’ small purchases or to be a recipient of another’s generosity with karma accounts. Check out our complete list below of Back to top Cheese Started in March 2021. Cheese customizes its online banking platform to the immigrants as well as Asian American communities with up to 10% cash back on 10,000 businesses, including restaurants and Asian-owned businesses. Support is provided in English and Chinese as well as other languages soon. Accounts earn interest and don’t have monthly charges or ATM fees for the nationwide MoneyPass ATM network. >> Learn more about Back to top Investor-friendly Acorns While the microinvesting app Acorns’ core 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 a debit card and limited rewards program and is available in a bundle that includes an investment account that is tax deductible as well as an account for retirement that is individual at a cost of $3 per month (or the equivalent of $5 per month for a family-friendly version). Customers are able to opt into an “round-up” feature in which each purchase is rounded by an amount, and the amount is invested. The rewards program involves receiving some percentage or amount back from purchases at over 300 businesses, and it is also invested. Read Acorns review: Back to top Aspiration Aspiration is an internet-based brokerage firm with an account for cash management, named Spend & Save, that functions as a hybrid checking and savings account. There are two different versions of this account. The basic Spend & Save account has up to 3.00% APR on savings, as high as 5% cash back and an optional monthly fee — customers pay what they consider fair starting at the point of zero up to. The premium Aspiration Plus plan comes with an annual fee of almost $72 and up to 10% cash back in addition to 5.00% APR. There are two accounts to choose from also, which allows you to invest in businesses that are sustainable businesses and social causes. As a certified B Corp company, Aspiration is committed to being an environmentally and socially conscious firm and offers customers customized sustainability scores that are based on the businesses they make their purchases at. Check out the Aspiration review: Aspiration Spend and Save Accounts are cash management accounts that are offered by Aspiration Financial, LLC, registered broker-dealer, member of FINRA/SIPC and an affiliate of Aspiration Partners, Inc. (“Aspiration”). Aspiration Financial is not a bank.” Aspiration is not a bank. Aspiration Save Account’s up to 5.00% Annual Percentage Yield (“APY”) with up to 83x the average national interest rate is subject to change, subject to change, and is only accessible to customers who are who are enrolled in Aspiration Plus once 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 financial management app and launched a personalized banking service called Albert Cash in August 2021. It has over 6 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 as well as integrated budgeting and savings tools, and annual savings bonuses that can reach 0.10%. To access Albert’s investing feature, get an interest rate of 0.25 percent and avail the personalized support for customers known as Genius There is the minimum monthly cost of $4. You need to have an account with a bank outside of the United Kingdom to establish an account with Albert. Back to top Traveler-friendly Revolut was launched in the year 2015 The United Kingdom-based Revolut offers appealing features to international travelers who want affordable exchange rates and the ability to spend in over 150 currencies. Customers can transfer funds abroad to other Revolut customers, make withdrawals of as much as $300 per month from ATMs with no fees, and earn interest on savings. This is all included in the account that is free. For more perks, including medical insurance for overseas patients, Revolut offers two accounts that charge monthly fees of $17 and $10. Review Revolut reviews: Revolut reviews: Wise Review: U.K.-based money transfer business Wise was previously known as TransferWise, created a multicurrency account that rolled into U.S. customers in 2017. There’s an initial $9 fee to use the card as a debit, Wise isn’t affianced of monthly charges for account usage and can convert currencies at an affordable exchange rate with a small upfront cost. For converting a balance of $1,000 U.S. dollars to euros, for example, costs approximately $4.20 which is 0.42 percent, which is cheaper than most banks’ foreign transaction fees between 1% and 3percent. An account can have multiple balances and hold as many as 54 different currencies simultaneously and converting could take just a few two seconds. Check out Wise review: Return to the top of Freelancer-friendly Oxygen It was launched in the first quarter of 2020 The digital bank account of Oxygen aims to help freelancers and self-employed people manage their cash flow. Oxygen doesn’t cost monthly fees, ACH and overdraft charges, but there are four pricing tiers that can be used for the account. They range from free to $200 annually. All levels provide travel benefits, such as lost luggage and hotel theft protection, and higher levels offer more benefits that include higher savings rates, cash back and more virtual cards. One unique benefit is the option to utilize the Oxygen application to incorporate or legally become a company after which you can later . Read Oxygen review: Return to the top Lili launched in the year 2019. Lili is a free mobile bank account that was designed for freelancers and contractors in mind. With Lili, you can categorize 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, and also an emergency savings account. Plus, if you use Lili’s account to deposit your earnings through websites and payment apps, you can receive the funds as early as two days before the due date. This last feature is common among many neobanks. Check out Lili review The top Neobanks to come soon Keep an eye out for these four new neobanks’ launches in the near future: Daylight: Previously dubbed Be Money, Daylight plans to create a mobile bank account that focuses on the LGBT+ community with features including access to financial experts and accounts with a person’s chosen name, rather than their legal name. Greenwood: A Black-owned digital banking firm already has half a million people waiting on its list for spending and savings accounts which focus on reinvesting money in Black and Latinx communities. (See our complete list of forthcoming and ongoing .) First Boulevard is a Black-owned banking platform is focused on low-cost banking that offers cash back to businesses owned by Blacks, as well as short financial education videos. Its aim is to create the wealth of generations for Black Americans. Purple: Purple plans to provide mobile banking specifically for people with disabilities, including the option of a checking account as well as 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 towards the Special Olympics. Back to top From credit monitoring tools to travel perks modern checking accounts offer more features than their predecessors had. Before getting one, check whether the fintech company is a bank or partners with a bank. Also, see which features would most benefit your financial needs. About the author: Spencer Tierney is an expert in deposits and certificates at NerdWallet. His work has been featured in USA Today and the Los Angeles Times. In a similar vein… Get an alternative savings account NerdWallet’s picks for the best high yield savings accounts on the internet. Dive even deeper in Banking Make smarter money decisions right to your inbox. Sign up and we’ll email you Nerdy content on money-related topics that matter most to you and other strategies to get more value from your money.
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