19 Neobanks and what they offer Advertiser disclosure You’re our first priority. Each every time. We believe that everyone should be able to make financial decisions with confidence. And while our site doesn’t include every business or financial product that is available in the marketplace however, we’re confident that the advice we provide and the information we offer and the tools we develop are impartial, independent, straightforward — and free. How do we earn money? Our partners pay us. This could influence the types of products we write about (and the way they appear on the website) However, it does not affect our advice or suggestions, which are grounded in hundreds of 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 certain communities, and offering a variety of perks and more. Written by Spencer Tierney Senior Writer | Certificates of Deposit, ethical banking, banking deposits Spencer Tierney is a consumer banking writer at NerdWallet. He has written about the personal financial sector since, with a focus on certificate of deposit, as well as other banking subjects. His work has been covered by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He is located in Berkeley, California. Sep 23, 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 a variety of industries, ranging from healthcare to 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 in social sciences from the University of Chicago. You can reach her via
. Many or all of the items featured here come from our partners, who pay us. This affects the products we write about and the location and manner in which the product is featured on the page. But, it doesn’t affect our assessments. Our views are our own. Here is a list of . The information on investing provided on this page is for informational purposes only. NerdWallet is not a broker or advisor. or brokerage services and does not recommend or counsel investors to purchase or sell particular securities, stocks or other investment options. Navigate to a specific neobank or category: For high yield savings: For the the most extensive variety of accounts: low-cost overdrafts: for For cash-back rewards: | | Investor-friendly: Neobanks are freelancer-friendly. are financial technology also known as fintech firms that usually offer mobile-oriented banking accounts with eye-catching features such as low-cost cash-back or credit card rewards. Some established neobanks offer loans and credit cards, as well as investing productsas well. They typically have no branches, and, since most neobanks do not have banking licenses, they partner with banks to provide security by the Federal Deposit Insurance Corp. Other things include. The neobanks listed on this list have FDIC-insured accounts. Savings Cash Management CD checking Money Market Member FDIC SoFi Checking and Savings APY 3.75 Members of SoFi with direct deposit have the opportunity to get up to 3.75% per year in annual percentage return (APY) in savings account balances (including Vaults) and 2.50 percent APY on checking balances. There is no minimum direct deposit amount needed to be eligible for 3.75 percent APY on savings and 2.50% APY on checking balances. Members without direct deposit will get 1.20% APY on all account balances of savings and checking (including Vaults). The rates of interest are variable and may change at any time. 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 Member $0 FDIC Marcus by Goldman Sachs Online Savings account APY 3.50% 3.50% Annual Percentage Yield (annual percent yield) with a minimum balance of $0 to earn stated APY. Accounts must have a positive balance to remain open. APY valid as of 02/07/2023. Min. balance for APY The cash accounts combine services and features similar to checking, savings or investment accounts in one product. These accounts for managing cash are generally offered by non-bank financial institutions. These cash accounts combine features and services that are similar to savings, checking and investment accounts in one package. The cash management account is generally offered by non-bank financial institutions. on the Wealthfront website. Wealthfront Cash Account APY 4.05% Min. balance for APY $1 on the Betterment’s website. Betterment Cash Reserve Paid non-client promotions APY 4.00 Percent Annual percent return (variable) is at 02/06/2023. Min. balance for APY CDs is $0 (certificates of deposits) are a kind of savings account that comes 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 comes with a fixed rate and term typically, and have higher interest rates than traditional savings accounts. CIT Bank CD APR 4.60% 1.5% Term 1.5 year Member FDIC Marcus by Goldman Sachs High-Yield CD APY 4.40% 4.40% APR (annual percentage yield) as of 01/25/2023 Term 1 year Checking accounts are used for day-to-day cash deposits and withdrawals. Checking accounts are used to make cash deposits on a regular basis as well as withdrawals. FDIC SoFi Checking and Savings APY 2.50% FDIC SoFi Checking and Savings APY 2.50% SoFi members with direct deposit have the opportunity to earn up to 3.75 per cent per year in annual percentage returns (APY) in savings account balances (including vaults) and 2.50% APY on checking balances. No minimum direct deposit amount required to qualify for the 3.75% APY on savings and 2.50% APY for checking balances. Members without direct deposit will get 1.20 percent APY on all account balances in checking and savings (including vaults). The rates of interest are subject to fluctuation and are could change at any point. 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. Use Your Axos Visa(r) Debit Card for a total of 10 transactions per monthly (min 3 cents per transaction) or join Account Aggregation/Personal Financial Manager (PFM) in Online Banking to earn 0.30 percent annual percentage. Maintain an average daily balance of $2,500 per month within an Axos managed Portfolios Investment Account to earn 0.20% APR. Maintain an average daily amount of $2,500 with an Axos self-directed trading Invest Account to earn 0.20 percent APY. Make use of the Rewards checking account for your full each month Axos customer loan payment to earn 0.15 percent APY. Monthly fee $0 Money market accounts pay rates that are similar to savings accounts and have certain checking features. Market accounts earn rates that are similar to savings accounts and have 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 percent Min. Balance 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 across the globe according to a study by the business strategy company Exton Consulting. With increased competition comes greater competition, and some once-innovative features are now more popular among neobanks, such as two-day early access to direct deposits and free access to nationwide ATM networks. Some digital wallets, like and are competing with Neobanks, offering the same services. Neobanks are finding ways to differentiate themselves by appealing to particular groups, like freelancers or tourists from other countries, as well as by offering benefits that aren’t available at traditional banks. Here’s an overview of how some current and upcoming Neobanks are trying to stand out. More information for high-yield savings Chime Founded in 2013, Chime is one of the largest neobanks that has more than 12 million users. It is partnered with two banks, it offers savings and checking accounts that are both free of monthly fees, and a secured credit card you can use to establish credit. Chime’s savings accounts offer an attractive interest rate of 2.00 percent 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 available as an optional.) The spending account gives you access to more than 60,000 ATMs throughout the nation, and for customers with direct deposits, there is a no-cost overdraft service that can cover the amount of $200. Cash deposits can be made at big retailers ****, and is not a feature that all Neobanks offer. The sign-up process can be simpler than traditional banks because there is no verification of credit or previous banking records, but Chime has an . Find more details from Chime *Chime states: « Chime is a financial technology company, not a banking institution. Banking services are offered by The Bancorp Bank, N.A. and Stride Bank, N.A. Member FDIC. » ** » ** »The annual Percentage Yield (« APY ») for Chime Savings Account is subject to change and could change at any time. The declared APY will be in effect as of October 25, 2022. No minimum balance is required. You must be in possession of $0.01 of savings in order to receive interest. » *** »Out-of-network ATM withdrawal charges may apply except at MoneyPass ATMs located in 7-Eleven or an Allpoint or Visa Plus Alliance ATM. » **** »The retailer who takes your cash is accountable for the transfer of the cash for deposit into your Chime Checking Account. There may be fees for cash deposits if using a retailer other from Walgreens. » Review Chime reviews: Return to Top Varo Bank Varo Bank offers checking, savings, as well as cash advances. Established in 2015, and initially using partnership with banks, the bank changed to an official national chartered bank in August 2020, allowing it to provide the services of its very own FDIC insurance. According to Varo the bank had a total of 6 million customers by mid-year 2022. The checking account has access to a free ATM access and no monthly fees, in addition to perks such as cash back at specific retailers and no foreign transaction fee. Its savings account has some requirements for earning the highest rate of 5.00% APY on the first $5,000, which includes the requirement of a minimum of $1,000 in monthly direct deposits and keeping an active savings and checking balance at the end of each month. In other cases, the rate is 3.00% per annum. Read Varo review To the top widest selection of options SoFi SoFi — abbreviation to mean « Social Finance » began as an student loan refinance firm, but it has since received an own charter for a bank. SoFi checking and savings is a account that can be used to manage the money to spend and save. There are no fees for account usage, for overdraft, ATM usage, or monthly maintenance (subject to changing at any time). Some perks include earning interest, creating subaccounts for savings as well as those who make qualified direct deposits, free overdraft protection of that can be up to $50. SoFi also provides a variety of loans including active and automated investing, cryptocurrency trading, credit cards, and retirement accounts. — Return to top One owned by Walmart, One’s banking account comes with a low-cost overdraft program, customized budgeting and savings options. Customers can choose to divide their cash into subaccounts called Pockets. Pockets that are devoted to saving are rated at 1% on up to $5,000 for every customer, and 1% on up to $25,000 for customers with direct deposit. One offers free overdraft protection of up to $200 for those who deposit direct at least $500 monthly. It’s less expensive than the big banks charge for overdrafts, which can be around $35 per transaction. Read reviews on One:Previous pageMore information about the credit-building GO2bank (and GoBank) Green Dot Corporation has offered alternatives to banking since. Starting with prepaid debit cards It expanded to GoBank, its very first bank online GoBank In 2013, before launching its second brand of bank, GO2bank, in 2021. Every one of the Green Dot deposit accounts are federally insured by Green Dot Bank. Unlike nearly all neobanks, which require online registration and registration, you can purchase GoBank and GO2bank debit cards from retailers such as Walmart and activate them online to use with a mobile app. In comparison to the other brands, GO2bank is easily the better alternative, as it has a lower monthly fee and more perks but not as numerous as other neobanks like Chime and Varo. GoBank’s $9 per month fee is waived by $500 direct deposits, whereas GO2bank’s $5 monthly fee is waived when you deposit direct with no minimum amount. Alongside the bank account, GO2bank offers a secured credit card to improve credit scores and also savings vaults that earn 1% APY for the amount of up to $5, 000. In contrast, GoBank doesn’t offer a credit card and its savings vault doesn’t earn interest. Read GoBank review: Read more about GO2bank: Back to top Sesame Cash The credit firm Credit Sesame launched a free digital banking account in March 2020 . The account is geared towards helping people live pay-to-pay. The account’s features include access to direct-deposited paychecks that can be made up to two days in advance, cash and mobile check deposits, a limited debit card cash-back program, and access to a free all-encompassing ATM network. With the account, customers are able to access Credit Sesame’s credit monitoring service for free and daily updates to credit scores. • Compare the Top to Back MoCaFi MoCaFi, also known as Mobility Capital Finance is black-owned digital platform launched in the year 2016 that provides free checking services to people who are largely unbanked and unbanked with a primary focus on closing the gap in wealth between the races. It provides a bill pay feature that allows customers to report rent payments to the major credit bureaus in order to build credit history. As a rare perk, MoCaFi cooperates with its third-party partners to give free cash deposits at many merchants and also free mobile check deposits with fast release of funds. Back to the top Dave Dave started in 2017 as a paycheck advance company and expanded to offer a full-fledged checking account. As of the middle of 2021, it had around 10 , million users. You can receive a small cash advance from your next salary without any interest or credit check, and customers with at least $1000 in direct deposits per month are able to build credit history by making rent payments. Dave also offers budgeting tools that factors in upcoming bills and the ability to search for jobs that are not listed on its mobile application. There are no charges for overdrafts , or using ATMs in the national MoneyPass network and no minimum amount of balance required. Read the Dave review Return to top reward cash back Current Current, founded in 2015, offers no-cost and premium checking options with cash-back at certain merchants, two-day early direct deposit, and quick reimbursements for gas station debit hold on cards. These two benefits are only available for premium accounts, which charge the cost of $5 per month. Premium accounts with direct deposits also come with the possibility of having up to $100 worth of overdrafts protected at no cost. Read Current review: Return to the top Upgrade Personal loan company Upgrade began operations in the year 2017, introduced a free checking account in 2021 that offers cash-back benefits that are greater than Current’s. The main benefits offered by Upgrade to their customers who have a checking account include 2% cash back on everyday purchases such as in restaurants and drugstores and the possibility of 20% rate reductions on the company’s personal loans. Customers can also see their credit scores for free , as well as a summary of their credit history through the Upgrade Credit Health service. Check out the reviews of Upgrade:Refresh Bella Bella’s banking strategy is, as it says, « built on love. » This translates into an account reward program for checking accounts which offers a variable 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. Currently, Bella also covers fees that are charged by non-network ATM operators. Also, there is a free savings account, though it has low interest rates and an optional « karma account, » that is a savings account to pay for the small purchases of other customers or to be a recipient of another’s karma account generosity. >> See this list for the Back to top Cheese Started in March 2021. Cheese tailors its digital banking platform to the immigrant and Asian American communities, offering up 10% cashback for 10,000 businesses, which includes Asian-owned restaurants and businesses. Support is provided in English as well as Chinese as well as other languages to come. Accounts are able to earn interest and do not have monthly fees or ATM charges in the national MoneyPass ATM network. Find out More on Back to top Investor-friendly Acorns 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. The account includes the debit card as well as a limited rewards program and is available in a bundle that includes an investment account that is tax deductible as well as individual retirement accounts, all for $3 per month (or $5 for a family-friendly version). Customers are able to opt into a « round-up » feature in which each purchase is rounded by an amount, and the change is then invested. The rewards program offers a small percentage or amount of money back on purchases made by more than 300 businesses, and it can also be invested. Read Acorns review: Back to top Aspiration Aspiration is an internet-based brokerage company that has the cash management account known as Spend & Save, that functions as a hybrid checking and savings account. There are two different versions of this account. The standard Spend & Save account has the potential to earn up to 3.00% interest on savings, and as high as 5% cashback and a monthly fee that is optional which customers pay as they consider fair starting at $0 on up. The premium Aspiration Plus plan has an annual fee of almost $72 and with up to 10 percent cashback and up to 5.00 percent APY. There are two accounts to choose from as well, which means you can invest in businesses that are sustainable businesses and social causes. 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 based on which businesses they spend money at. Read Aspiration review: Aspiration Spend and Save Accounts are cash management account that are available by Aspiration Financial, LLC, an authorized broker-dealer, Member of FINRA/SIPC and an affiliate to Aspiration Partners, Inc. (« Aspiration »). Aspiration Financial is not a bank. » The Aspiration Save Account’s up to 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 available to customers who are enrolled in Aspiration Plus when conditions are satisfied. Customers not enrolled in Aspiration Plus receive 3.00% APY when the conditions are fulfilled. Return to top Albert Albert started in 2016 as a money management app and launched a personalized banking service called Albert Cash in August 2021. It has over six million customers. Albert Cash is a banking account that earns cash back , and comes with the following benefits that include no-interest cash advances of up to $250 with integrated budgeting and saving tools as well as annual savings bonuses of up to 0.10%. To use Albert’s investment feature and earn an interest rate of 0.25 percent, and take advantage of the personalized support for customers which is known as Genius, there’s the minimum monthly cost of $4. You need to have an account with a bank outside of the United Kingdom to open an account with Albert. Back to top Traveler-friendly Revolut was launched in the year 2015 The United Kingdom-based Revolut provides attractive features to travellers from abroad who are looking for an exchange rate that is competitive and the ability to spend in over 150 currencies. Customers can transfer funds abroad with other Revolut users, withdraw up to $300 per month from ATMs with no fees and get an interest rate on their savings. This is all included in the free account. To get more benefits, such as international medical insurance, Revolut offers two accounts with monthly fees of $10 and $17. Review Revolut reviews: Back to top Wise The U.K.-based money transfer firm Wise was previously called TransferWise established an account with multicurrencies that was rolled out to U.S. customers in 2017. Although there’s an initial $9 cost on the credit card Wise isn’t affianced of monthly charges for account usage and can convert currencies at a competitive exchange rate, with only a small upfront cost. For converting a balance of $1,000 U.S. dollars to euros as an example, will cost about $4.20, or 0.42%, which is cheaper than banks’ foreign transaction fees between 1% and 3percent. A bank account can hold multiple balances and hold at least 54 foreign currencies simultaneously and converting could take only seconds. Read Wise review: Back to the top of Freelancer-friendly Oxygen Launched in early 2020, Oxygen’s digital banking account will help freelancers as well as self-employed people manage their money flow. Oxygen does not have monthly or ACH or overdraft fees There are however four pricing tiers for the account, ranging from zero to $200 per year. Each level offers travel benefitslike loss of luggage and hotel theft protection. higher levels come with more benefits such as higher savings rates, cash back and numbers of virtual cards. A unique perk is the possibility to utilize the Oxygen application to incorporate or legally establish a business after which you can then . Check out the Oxygen review: Return to top Lili launched in the year 2019. Lili is a no-cost mobile bank account designed specifically for freelancers as well as independent contractors in mind. With Lili you can organize your expenses simply by swiping left for « life, » or personal or personal expenses, and then right for « work, » or business. Lili offers tools that aid freelancers in saving for taxes, as well as an emergency savings account. Plus, if you use Lili’s account to transfer the earnings you earn from websites and payment apps you will receive your funds for up to 2 days earlier. This is a common feature among many neobanks. Read Lili review The top Neobanks soon an eye out for the emergence of these four Neobanks in the near future: Daylight: Previously dubbed Be Money, Daylight plans to open a mobile banking account specifically targeting the LGBT+ community with features including access to financial coaches and accounts that are based on a person’s preferred name, not its legal title. Greenwood: A Black-owned digital bank already has half a million people waiting on its list for savings and spending accounts which are geared towards reinvesting their wealth into Black or Latinx communities. (See the list below of the upcoming and existing .) First Boulevard: The Black-owned banking platform focuses on low-cost banking that offers cash back to Black-owned businesses, combined with short financial education videos. The goal of the platform is to create generational wealth for Black Americans. Purple: Purple plans to provide mobile banking designed specifically for people with disabilities, including a checking account and a tax-advantaged savings account called ABLE accounts. These accounts let disabled people save money without risking losing any government assistance. Also, there will be an account that can be used to donate some of the money earned by Purple for the Special Olympics. To the top: From credit tracking tools to travel benefits Modern checking accounts provide greater benefits than the old ones did. Before signing up for one, verify whether the fintech business is a bank or a partner with a bank, and see which features would best suit your needs in the financial realm. About the author: Spencer Tierney is an expert in deposits and certificates at NerdWallet. The work of Spencer Tierney has been featured in USA Today and the Los Angeles Times. On a similar note… Discover an alternative savings account NerdWallet’s picks for the best high-yield online savings accounts. Go deeper into Banking Get more smart money moves delivered straight to your inbox. Sign up and we’ll send you Nerdy articles about the money topics that are important to you and other strategies to help you make more out of your money.
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