19 Neobanks and What They Offer Advertiser disclosure We consider you to be our first priority. Each every time. We believe that every person should be able to make financial decisions without hesitation. Although our site does not include every company or financial product on the market We’re pleased that the guidance we offer, the information we provide as well as the tools we design are impartial, independent, straightforward — and free. How do we earn money? Our partners pay us. This can influence the products we review and write about (and the places they are featured on our website), but it does not affect our recommendations or advice, which are grounded in thousands of hours of study. Our partners cannot promise us favorable reviews of their products or services. . 19 Neobanks and the Benefits They Provide Neobanks differentiate themselves by focusing on particular communities, providing perks and more. Written by Spencer Tierney Senior Writer | Certificates of Deposit, ethical banking, banking deposit accounts Spencer Tierney is a consumer banker at NerdWallet. He has been writing about finances for individuals since the year 2013, with a focus on certificate of deposit as well as other banking-related subjects. The work he has written for him was covered in The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He is based within Berkeley, California. Sep 23rd, 2021 Edited by Yuliya Goldshteyn Assistant Assigning editor Banking Yuliya Goldshteyn is a banking editor at NerdWallet. She was previously an editor, writer and research analyst in a variety of industries, ranging from healthcare as well as market research. She received a bachelor’s level degree in history at Berkeley at the University of California, Berkeley as well as a master’s degree in sociology from the University of Chicago. You can reach her at

. Many or all of the products featured here are from our partners who compensate us. This affects the products we review as well as the place and way the product appears on the page. But, it doesn’t affect our opinions. Our opinions are entirely our own. Here is a list of . The information about investing on this page is intended for educational purposes only. NerdWallet does not offer advisory or brokerage services and does not recommend or counsel investors to purchase or sell particular securities, stocks or other investments. You can jump to a specific Neobank or category: For high yield savings: widest selection of accounts: cheap overdraft: For credit-building: • Cash-back rewards:| | Investor-friendly:Traveler-friendly: Neobanks are freelancer-friendly. are financial technology — or fintech — companies that usually offer mobile-oriented banking accounts with eye-catching features such as low-cost credit or cash-back rewards. There are some established Neobanks that offer loans, credit cards or investment products too. They usually operate without branches and, since most neobanks lack banking licenses, partner with banks to offer security from the Federal Deposit Insurance Corp. In addition, they offer. All neobanks on this list have FDIC-insured accounts. Savings Cash Manager CD checking Money Market member FDIC SoFi Checking and Savings APY 3.75% SoFi members with direct deposit are eligible to get up to 3.75 percent per year in annual percentage return (APY) in savings account balances (including vaults) and 2.50% APY on checking balances. No minimum direct deposit amount needed to be eligible for 3.75% APY for savings, and 2.50% APY for checking balances. Customers who do not deposit direct deposits will earn 1.20% APR on all balances of savings and checking (including Vaults). Rates of interest are subject to change 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 Member $0 FDIC Marcus by Goldman Sachs Online Savings Account with APY 3.50 percent 3.50% APY (annual percent yield) with a balance of zero to earn stated APY. Accounts must have a positive balance to remain open. APY valid as of 02/07/2023. Min. balance for APY $0 These cash accounts offer a variety of services and features comparable to checking, savings or investment accounts in one. Cash management accounts are generally offered by non-bank financial establishments. They combine the services and features that are similar to savings, checking or investment accounts into one account. These accounts for managing cash are usually offered by non-bank financial establishments. on Wealthfront’s website Wealthfront Cash Accounts APY 4.05% Min. Balance to APY $1 on the Betterment’s website. Betterment Cash Reserve, Paid Non-Client Promotion APY 4.00 percent annually percentage return (variable) is at 02/06/2023. Min. balance for APY CDs is $0 (certificates of deposit) are a kind of savings account that comes with a fixed rate and term, and usually have higher interest rates than regular savings accounts. CDs (certificates of deposit) are a type of savings account with an unchanging rate and term typically, and have higher rates of interest than regular savings accounts. CIT Bank CD APY 4.60% Term 1.5 year 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% The APY (annual percentage yield) as of 01/25/2023 . 1 year Checking accounts are used for cash deposits on a regular basis as well as withdrawals. Checking accounts are used to make cash deposits on a regular basis as well as withdrawals. Member FDIC SoFi Savings and Checking APY 2.50 Members of SoFi with direct deposit can earn up to 3.75 percent annually in percentage return (APY) in savings account balances (including Vaults) and 2.50 percent APY on their checking balances. There is no minimum amount of direct deposit required to qualify for the 3.75 percent APY on savings and 2.50% APY for checking balances. Direct deposit members will get 1.20% interest on balances in checking and savings (including vaults). Rates of interest are subject to change and could change at any point. The rates listed are current at 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 10 transactions per monthly (min 3 cents per transaction) or enroll for Account Aggregation/Personal Financial Manager (PFM) within Online Banking to earn 0.30% APY. Keep an average daily balance of $2,500 within an Axos Managed Portfolios Invest Account to earn 0.20% APR. Maintain an average daily balance of $2,500 with an Axos self-directed trading Invest Account in order to receive 0.20 percent APY. Use the Rewards checking account for the full monthly Axos consumer loan payment and earn 0.15% APR. Monthly fee of $0. Money market accounts have rates similar to savings accounts, and come with certain checking features. Market accounts earn rates that are similar to savings accounts and have some checking features. FDIC UFB Best Money Market Member FDIC UFB’s Best Money Market APR 4.21% Min. balance for APY $0 Member FDIC Discover Bank Money Market Account APY 3.20% Min. balance for APY $1. Learn more: The number of fintech companies that could be called neobanks keeps growing. Between 2018 and 2020, Neobanks grew from 60 to 256 across the globe, according to a report by the business strategy company Exton Consulting. With the rise of more players comes more competition, and some once-innovative features are now more popular in neobanks, like two-day early access to direct deposits and access to free nationwide ATM networks. 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 tourists from other countries, as well as providing perks you might not find in traditional banks. Here’s an overview of how some new and emerging neobanks try to stand out. Find out more: For high-yield savings Chime Founded in 2013, Chime is among the biggest neobanks with over twelve million clients. Partnered with two banks, it offers savings and checking accounts that are both free of charges for monthly usage, as well as a secured credit card you can use to establish credit. Chime’s savings accounts offer a competitive interest rate of 2.00 per cent annual percentage yield** with no minimum balance, there is no maximum amount to earn interest, and no monthly costs. (The Chime Savings Account must be opened to open a savings bank account; the Savings Account is optional.) The spending account offers free access to over 60,000 ATMs*** throughout the nation and, for customers who make direct deposits, there is a no-cost overdraft service that can cover as much as $200. Cash deposits are available at major retailers ****, which is a benefit that not all Neobanks offer. The process of signing up can be easier than at traditional banks since there’s no credit check or previous banking records, but Chime is the ability to do this . Find more details from Chime *Chime states: “Chime is a financial technology firm, not a bank. Services for banking are provided via 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 disclosed APY is effective as of October 25 2022. No minimum balance required. It is required to have $0.01 saved to get interest. ” ***”Out-of-network ATM withdrawal charges are applicable, except for MoneyPass ATMs in a 7-Eleven store, or at any Allpoint as well as Visa Plus Alliance ATM.” ****”The retailer who takes your cash is accountable for the transfer of funds to deposit into Your Chime Account. Account. Cash deposit fees may apply when you use a different retailer from Walgreens.” Check out Chime reviews: To the top Varo Bank Varo Bank offers checking, savings, and cash advances. Established in 2015, and initially working with bank partnerships, it changed to an official national chartered bank in the month of August, 2020, allowing it to provide their individual FDIC insurance. According to Varo the bank had 6 million customers at mid-2022. The checking account is no cost ATM access, as well as no monthly charges, as well as perks such as cash back from certain retailers as well as no international transaction fees. The savings account comes with two requirements to earn a top rate of 5.00 percent APY for the first $5,000, which includes an annual minimum of $1,000 direct deposits and keeping an active savings and checking balance at the end of each month. In other cases, you earn 3.00 percent APY. Read Varo review: Back to top For the most extensive range of account types SoFi SoFi — short to mean “Social Finance” — started out as a student loan refinance business, but has recently obtained the charter of a bank owned by SoFi. The SoFi Savings and Checking account is their account that allows the money to spend and save. There are no charges for accounts for overdraft, ATM usage, or monthly maintenance (subject to change at any time). Certain benefits include earning interest, creating subaccounts for savings as well as for customers who have qualifying direct deposits, no-fee overdraft protection up to $50. SoFi also offers many types of loans that are active and automated investment and trading in cryptocurrency as well as credit cards and retirement accounts. Check out SoFi reviews: to top for a low-cost overdraft One owned by Walmart One’s bank account comes with a low-cost overdraft plan, a custom budgeting and savings choices. Customers can choose to organize their money into pockets, which are subaccounts that can be referred to as Pockets. The Pockets dedicated to saving offer rates of 1percent for up to $5,000 per customer and 1% on up to $25,000 for those who deposit direct. One gives free overdraft coverage up to $200 for customers who make direct deposits of at least $500 monthly. It’s less expensive than the big banks charge for overdrafts which range from around $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. Beginning with debit cards for prepaid and later expanding into 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. Unlike nearly all neobanks, that require an online sign-up, you can pick up GoBank and GO2bank debit card at stores like Walmart and activate them online to use with the mobile application. In comparison to the other brands, GO2bank is easily the better choice, with a lower monthly cost and more benefits however not as numerous as other neobanks like Chime or Varo. GoBank’s almost $9 monthly fee is waived by $500 direct deposits, whereas GO2bank’s $5 monthly fee is waived with direct deposits without a minimum. Alongside the bank account, GO2bank offers a secured credit card that can be used to increase credit score and an account for savings that earns 1percent APY as much as $5,000. In contrast, 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 firm Credit Sesame launched a free digital banking account in March of 2020. It concentrates on helping those who live from paycheck to paycheck. The account’s features include direct deposit of paychecks that can be made up to two days earlier as well as mobile and cash deposits as well as a restricted debit card cash-back program, and free access to a all-encompassing ATM network. Through the account, users are able to access Credit Sesame’s credit monitoring service for free and regular updates to credit scores. • Compare the top to the back MoCaFi MoCaFi, or Mobility Capital Finance. It’s a black-owned digital platform that was launched in 2016 and offers free checking to serve people who are largely unbanked and unbanked and focuses on closing the racial wealth gap. It also offers a bill pay feature that lets customers report rent payments to the major credit bureaus in order to build credit history. It is a unique perk. MoCaFi cooperates with its third-party partners to offer free cash deposits at various merchants and also free mobile check deposits that allow for quick release of funds. Back to Top Dave Dave started in 2017 as a company that offered a pay advance and expanded to offer an entire checking account. In mid-2021, the company had more than 10 million customers. You can get a small cash advance from your next pay without any interest or credit check. Customers with at least $1000 in monthly direct deposits can establish credit histories through rent payments. Dave also offers budgeting tools that incorporates upcoming bills as well as the capability to look for side-jobs through its mobile app. There are no charges to use overdrafts or ATMs that are part of the nationwide MoneyPass network, and there are no minimum requirement for balance. Review by Dave: Back to top For cash-back rewards Current Current, founded in 2015, provides 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 card holds. The latter two perks are only available for premium accounts, which have the cost of $5 per month. Premium accounts that make direct deposits can also have up to $100 in overdrafts backed up for free. Review Current review: Back to top Upgrade The personal loan company Upgrade, started in 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 with a checking account are 2% cash back on purchases made every day, such as at drugstores and restaurants, and up to 20% rate reductions on the company’s personal loans. Customers can also view their credit scores for no cost and a summary of their credit reports through their Credit Health service. Read Upgrade reviews: Refresh Bella Bella’s approach to banking is, in the words of its website, “built on love.” It’s a checking account rewards program that offers a random percent of cash back in the range of 5% to 200%, on randomly selected purchases. The program was introduced in 2020. Bella doesn’t charge monthly, overdraft or ATM fees. At present, Bella also covers fees that are charged by non-network ATM operators. Additionally, they offer a fee-free savings account, though it has minimal interest rates, as well as an alternative “karma account,” which can be used to cover smaller purchases made by other customers or to take advantage of another’s karma account generosity. Click here to see our complete list below of Back to top Cheese Started in March 2021, Cheese tailors its digital banking platform for the immigrant as well as Asian American communities by offering up to 10% cash back for 10,000 businesses, which includes Asian-owned restaurants and businesses. Customer support is available in English and Chinese, with more languages soon. Accounts accrue interest and don’t incur monthly fees or ATM fees for the nationwide MoneyPass ATM network. >> Learn More about 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 with Acorns Checking. The account includes the debit card as well as a limited rewards program and is available only as a package that includes a taxable investment account and an individual retirement account, at a cost of $3 per month (or the equivalent of $5 per month for a family version). Customers can choose to participate in a “round-up” feature where each purchase is rounded by an amount, and the amount is invested. The rewards program offers an amount or a portion back from purchases at over 300 companies, and that is also invested. Read Acorns review: Back to the top Aspiration Aspiration is an internet-based brokerage company with an account for cash management, named Spend & Save, that works like an hybrid savings and checking account. There are two types of the account. The standard Spend & Save account has up to 3.00 percent APY on savings, with up to 5 percent cashback and an optional monthly fee that customers pay the amount they believe is fair from beginning at $0 and up. The higher-end Aspiration Plus plan comes with an annual cost of just over $72 and as high as 10% cashback in addition to 5.00 percent APR. Two accounts are available also, which allows you to invest in companies with sustainable business practices and social causes. As a certified B Corp company, Aspiration is committed to being a socially responsible and environmentally conscious business that offers its customers customized sustainability scores depending on the companies they invest in. Check out the Aspiration review: Aspiration Spend & Save accounts are cash-management account that are available by Aspiration Financial, LLC, registered broker-dealer, member of FINRA/SIPC. It is also a subsidiary of Aspiration Partners, Inc. (“Aspiration”). Aspiration is not a financial institution.” Its Aspiration Save Account’s up to 5.00 percent annual percentage yield (“APY”) and up to 83x the average national interest rate is variable, subject to change, and is only accessible to customers who are enrolled in Aspiration Plus once the conditions are satisfied. Customers not enrolled in Aspiration Plus receive 3.00% APY when conditions are fulfilled. Then they can go back to the top. Albert Albert started in 2016 as a mobile app for managing money 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 pays cash back and includes the following benefits: no-interest cash advances of up to $250, integrated budgeting and savings tools and annual savings bonus that can reach 0.10 percent. To use Albert’s investment feature you can get the savings rate to 0.25% and use the personalized support for customers which is known as Genius, there’s the minimum monthly cost of $4. You must have an account with a bank outside of the United Kingdom to establish an account with Albert. Recommendations for Travelers Revolut was launched in the year 2015 the UK-based Revolut offers attractive features for travellers from abroad who are looking for an exchange rate that is competitive and an account that allows be used to spend in more than 150 currencies. Customers can make international transfers to other Revolut customers, make withdrawals of up to $300 per month from ATMs with no fees, and get interest on savings. That’s all with the free account. For more perks, including international medical insurance, Revolut offers two accounts with monthly charges of $17 and $10. Review Revolut reviews: Return to top Wise Revolut U.K.-based money transfer business Wise which was previously known as TransferWise, created a multicurrency account that rolled out to U.S. customers in 2017. Although there’s an initial $9 fee on the credit card Wise isn’t affianced of monthly charges and also converts currencies at a fair exchange rate, with only a small initial fee. For converting a balance of $1,000 U.S. dollars to euros is, for instance, around $4.20 which is 0.42% that’s less expensive than most institutions’ foreign-transaction fees that range from 1% to three percent. The account can contain multiple balances and hold as many as 54 different currencies simultaneously and the conversion process could take just a few two seconds. Check out Wise review: Back to top of the list Freelancer-friendly Oxygen launched in the early part of 2020 the Oxygen digital banking account will help freelancers as well as self-employed people control the flow of cash. Oxygen doesn’t have monthly or ACH or overdraft fees however, there are four pricing tiers that can be used for the account. They range from free to $200 annually. All levels offer advantages for travel, including lost luggage and hotel theft protection. higher levels offer more benefits, including higher savings rates, cash back, and a variety of virtual cards. One unusual perk is the option to use the Oxygen app to incorporate, or legally establish a business, and then . Check out the Oxygen review: Return to the top Lili Launched in 2019, Lili is a no-cost mobile banking account specifically designed with freelancers and independent contractors in mind. With Lili you can classify your expenses simply by swiping left to indicate “life,” or personal or personal, and the right side for “work,” or business. Lili offers tools to assist freelancers to save money for taxes, and also an emergency fund. Plus, if you use Lili’s account to transfer the earnings you earn from online platforms and payment apps, you can receive your funds as early as two days before the due date. This last feature is common across a variety of neobanks. Check out Lili review The top Neobanks to come soon Keep 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 such as access to financial advisors and accounts with a person’s chosen name, rather than their legal name. Greenwood: The Black-owned digital banking firm already has half a million customers on its waitlist for savings and spending accounts which are geared towards reinvesting their wealth into Black and Latinx communities. (See our list of forthcoming and current .) First Boulevard is a Black-owned banking platform is focused on low-cost banking that offers cash back to Black-owned businesses, combined with short financial education videos. Its goal is to build generations of wealth that is accessible to Black Americans. Purple: Purple plans to provide mobile banking specifically for those with disabilities. It will include an account for checking and a tax-advantaged savings account called ABLE accounts, which lets those with disabilities save money, without the loss of any government benefits. Also, there will be an account that can be used to donate a portion of Purple’s revenue towards the Special Olympics. Back to top From credit monitoring tools to travel perks Modern checking accounts provide more features than their predecessors offered. Before you sign up, make sure to check whether the fintech company is a bank or a partner with a bank, and determine which features will most benefit your financial needs. The author’s bio: Spencer Tierney is an expert in certificates of deposit on NerdWallet. His work has been featured on USA Today and the Los Angeles Times. Similar to… Find the best savings account NerdWallet’s recommendations for the top high yield savings accounts on the internet. Explore Banking further Get more smart money moves right to your inbox. Sign-up and we’ll send you Nerdy articles about the money topics which matter to you the most and other strategies to help you get more out of your savings.

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