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19 Neobanks and what they offer Advertiser disclosure We consider you to be our first priority. Every day. We believe that everyone should be able to make financial decisions with confidence. Although our site does not include every company or financial product that is available on the market however, we’re confident that the guidance we offer as well as the advice we offer and the tools we create are impartial, independent simple, and free. So how do we make money? Our partners compensate us. This may influence which products we review and write about (and the way they appear on our website) however it does not affect our recommendations or advice, which are grounded in hundreds of hours of study. Our partners do not promise us favorable review of their services or products. . 19 Neobanks and what they offer Neobanks stand out by focusing on particular communities, and offering a variety of perks and more. By Spencer Tierney Senior Writer | Certificates of deposit bank accounts, ethical banking, deposit accounts Spencer Tierney is a consumer banker at NerdWallet. He has written about personal finance since 2013 with a focus on certificates of deposit as well as other banking-related issues. The work he has written for him was highlighted in The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among other publications. He’s based at Berkeley, California. Sep 23, 2021 Edited by Yuliya Goldshteyn Assistant Assigning editor Banking Yuliya Goldshteyn works as a banking editor with NerdWallet. She previously worked as an editor, writer and research analyst in industries ranging from health care to market research. She received a bachelor’s level degree in the field of history from the University of California, Berkeley and a master’s of social science from University of Chicago. You can reach her via

. The majority of items featured here come from our partners who pay us. This impacts the types of products we feature as well as the place and way the product appears on the page. But, it doesn’t affect our assessments. Our opinions are our own. Here is a list of and . The information on investing provided on this page is for solely educational purposes. NerdWallet does not offer advisory or brokerage services and does not recommend or advise investors to buy or sell certain securities, stocks or other investments. Jump to a specific neobank or category for high-yielding savings: widest variety of accounts: inexpensive overdrafts for credit-building: For cash-back reward rewards:| | Investor-friendly: are financial technology — (also known as fintech) firms that usually offer mobile-oriented accounts that are brimming with attractive features such as low-cost cash-back or credit card rewards. Certain established neobanks provide loans and credit cards, as well as investing productsas well. They generally have no branches and, since the majority of them lack banking licenses, partner with banks to offer security by The Federal Deposit Insurance Corp. Other things include. All neobanks on this list have FDIC-insured accounts. Savings Cash Management CD Checking Money Market Members FDIC SoFi Savings and Checking APY 3.75 Members of SoFi with direct deposit have the opportunity to earn up to 3.75% per year in annual percentage return (APY) on savings balances (including vaults) and 2.50% APY on checking balances. No minimum amount of direct deposit needed to be eligible for 3.75 percent APY on savings, and 2.50% APY for checking balances. Direct deposit members will receive 1.20% interest on balances, including savings and checking (including Vaults). Interest rates are variable 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: $0 Member FDIC Marcus Goldman Sachs Online Savings Account APY 3.50 35% 3.50% APY (annual percentage yield) with a balance of zero to earn the APY stated. Accounts must have a positive balance in order to be open. APY current as of 02/07/2023. Min. balance for APY The cash accounts offer a variety of services and features comparable to checking, savings or investment accounts in one product. Cash management accounts are generally offered by non-bank financial establishments. These cash accounts combine features and services that are similar to savings, checking and investment accounts in one package. These accounts for managing cash are typically offered by non-bank financial institutions. on Wealthfront’s website Wealthfront Cash Accounts APY 4.05 percent min. balance to APY $1 on the Betterment website. Betterment Cash Reserve – Paid non-client promotions APY 4.00 percent annually percent return (variable) is as of 02/06/2023. Min. balance for APY CDs is $0 (certificates of deposits) are a kind of savings account that has a fixed rate and term, and usually have higher rates of interest than regular savings accounts. CDs (certificates of deposit) are a type of savings account that has fixed rates and terms typically, and have higher rates of interest than standard savings accounts. CIT Bank CD APY 4.60% Term 1.5 Years Member 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 accounts are utilized for day-to-day cash deposits and withdrawals. Checking accounts are utilized to deposit cash on a daily basis and for withdrawals. Members FDIC SoFi Savings and Checking APY 2.50% SoFi members with direct deposit can get up to 3.75% annual percentage yield (APY) for savings accounts (including vaults) and 2.50 percent APY on their checking balances. No minimum direct deposit amount that is required to be eligible for 3.75% APY for savings, or the 2.50% APY for checking balances. Direct deposit members will get 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. 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. Utilize the Axos Visa(r) debit card to make a maximum of 10 transactions per calendar month (min 3 cents per transaction) or sign up for Account Aggregation/Personal Finance Manager (PFM) in Online Banking to earn 0.30% APR. Maintain an average daily amount of $2,500 on An Axos managed Portfolios Investment Account for 0.20% annual percentage yield. Maintain an average daily balance of $2,500 per month in an Axos self-directed trading Invest Account for 0.20% APR. Utilize your Rewards Checking account to make the full monthly Axos Consumer loan payment to earn 0.15% APR. Monthly fee of $0. Money market accounts have rates comparable to savings accounts and include some checking features. Market accounts earn rates that are similar to savings accounts and have certain features for checking. FDIC UFB Best Money Market 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 percent Min. Balance for APY $1. Learn more about: The number of fintech companies that could be called neobanks keeps growing. Between 2018 and 2020, Neobanks have exploded from 60 to 256 worldwide according to a study by the business strategy company Exton Consulting. With increased competition comes greater competition. Some once-innovative services are becoming more common for neobanks. These include two-day early access to direct deposits and access to free nationwide ATM networks. Some digital wallets, like and are competing with neobanks by offering some of these features. Neobanks are looking for ways to differentiate themselves by appealing to certain groups, like freelancers or travellers from abroad, and providing benefits that aren’t available at traditional banks. This article will provide an overview of how some current and upcoming Neobanks attempt to distinguish themselves. >> Learn more: For high-yield savings Chime was established in 2013 Chime is one of the largest neobanks, with more than 12 million users. Partnered with two banks, it offers savings and checking accounts, both without monthly fees, and a secured credit card that you can utilize to build credit. Chime’s savings account offers an interest rate that is competitive at 2.00 percent annual percentage yield** with no minimum balancerequirement, there is no maximum amount to earn interest and no monthly fees. (The Chime Checking Account is required to open a savings bank account; savings Account is an option.) The account for spending gives free access to more than 60,000 ATMs nationwide and, for customers who make direct deposits, they can benefit from a cost-free overdraft program covers up to $200. Cash deposits are available at major retailers ****, and is not a feature that all Neobanks offer. The process of signing up can be more straightforward than with traditional banks because there is no check on credit or previous banking records, but Chime offers the ability to do this . Learn more about Chime *Chime states: “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. Member FDIC.” “**” **”The annual Percentage Yield (“APY”) for the Chime Savings Account is variable and can alter at any moment. The APY disclosed is in effect from October 25 2022. There is no minimum balance requirement. Must be in possession of $0.01 in savings to earn interest. ” ***”Out-of-network ATM withdrawal charges could apply, except for MoneyPass ATMs at 7-Eleven store, or at any Allpoint and Visa Plus Alliance ATM.” ****”The retailer who takes your cash is responsible for transferring the funds for deposit into the Chime Checking Account. There may be fees for cash deposits for any retailer other that Walgreens.” Check out Chime reviews: To the Top Varo Bank Varo Bank offers savings, checking in addition to cash advances. Established in 2015, and initially using partnership with banks, the bank became a nationally chartered bank in August 2020, allowing it to provide the services of its very own FDIC insurance. Per Varo its website, it had 6 million customers as of mid-2022. The checking account is access to a free 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 charges. Its savings account has two requirements to earn the highest rate of 5.00 percent APY for the first $5,000 of savings, which includes a $1,000 minimum in monthly direct deposits, and maintaining an open checking and savings balance at the close of the month. Otherwise the rate is 3.00% APR. Read Varo review Return to top for the largest selection of options SoFi SoFi — which stands for “Social Finance” began as a student loan refinance business, but has recently received the charter of a bank owned by SoFi. The SoFi Savings and Checking account is a combination account that can handle funds for saving and spending. It has no account fees for overdrafts, ATM usage, or monthly maintenance (subject to change at any time). Some perks include earning interest, establishing subaccounts to save as well as for customers who have qualifying direct deposits, no-fee overdraft coverage that can be up to $50. SoFi also offers many types of loans, active and automated investing as well as cryptocurrency trading as well as credit cards and retirement accounts. Check out SoFi reviews: Back to top One owned by Walmart One’s bank account offers a low overdraft program, custom-designed budgeting and savings choices. Customers can choose to arrange their funds into pocket-sized accounts, also known as subaccounts. The pockets that are dedicated to saving are rated at 1.1% on up to $5,000 for every customer, and 1% on up to $25,000 for customers with direct deposit. One gives free overdraft coverage up to $200 for customers who deposit direct at least $500 per month. That’s cheaper than big banks charge for overdrafts that can range from 35 cents per transfer. Read More information about credit building GO2bank (and GoBank) Green Dot Corporation has offered different banking services since. Starting with prepaid debit cards and later expanding into its first digital bank, GoBank which was launched in 2013, and its second brand of bank, GO2bank, in 2021. All Green Dot deposit accounts are federally insured by Green Dot Bank. Contrary to many neobanks which require online registration for customers, you can get GoBank or GO2bank credit cards from retailers like Walmart and sign them up on the internet to use with an app for mobile devices. Between the two brands, GO2bank is by far the more preferred alternative, as it has a lower monthly cost and perks, though not as many as other neobanks like Chime or Varo. GoBank’s almost $9 monthly fee is waived with $500 in direct deposits, whereas the GO2bank’s fee of $5 per month is waived when you deposit direct with no minimum amount. In addition to the bank account, GO2bank offers a secured credit card that can be used to improve credit scores and also an account for savings that earns an APY of 1% for as much as $5,000. Contrary to this, GoBank doesn’t offer a credit card and its savings vault doesn’t earn interest. Check out the GoBank review: Read more about GO2bank. Return to the top Sesame Cash Credit company Credit Sesame launched a free digital banking account in March 2020 that focuses on serving people living 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 and a limited debit card cash-back program, and free access to a national ATM network. The account’s users have access to Credit Sesame’s free monitoring of credit scores and regular updates to credit scores. • Compare the Back to top MoCaFi MoCaFi or Mobility Capital Finance is black-owned digital platform that was launched in 2016 and offers free checking to serve the majority of communities that are unbanked or underbanked and focuses on closing the racial wealth gap. It also offers a bill pay feature that allows users to report rent payments to major credit bureaus to establish credit histories. It is a unique perk. MoCaFi works with its third-party partners to offer free cash deposits at various stores and mobile check deposits that allow for quick withdrawal of funds. Return to the top Dave Dave started in 2017 as a payday advance business and grew to include an all-inclusive checking account. As of mid-2021, it had about 10 , million users. You can receive a small advance on your next salary without any interest or credit check, and those with at least $1,000 in direct deposits per month can establish credit histories through rent payments. Dave also provides budgeting services that incorporates upcoming bills as well as the ability to search for side jobs in its mobile app. There aren’t any fees for overdrafts or for using ATMs in the national MoneyPass network and no minimum amount of balance required. Review by Dave Return to top Cash-back Rewards Current Current, founded in 2015, offers free and premium checking options that include cash back on certain merchants, two-day direct deposit, and quick refunds on gas station debit hold on cards. The two other perks are only available for premium accounts that have the cost of $5 per month. Premium accounts with direct deposit can also have up to $100 in overdrafts covered completely free of charge. Check out the Current review: Revert to top Upgrade Personal loan company Upgrade, started in 2017, launched a free checking account in 2021 with cash-back rewards more extensive than Current’s. The primary benefits of Upgrade’s customers with a checking account are the cash back of 2% on purchases made every day, such as at drugstores and restaurants as well as up to 20% rate discounts for personal loans. Customers can also view their credit scores for free , as well as a summary of their credit history through the Upgrade Credit Health service. Read Upgrade reviews: Back to top Bella Bella’s banking strategy is, in its words, “built on love.” That translates to an account reward program for checking accounts that gives a random amount of cash back, anywhere from 5% to 200%, on randomly selected purchases. Launched in 2020, Bella doesn’t charge monthly, overdraft or ATM fees. In the moment, Bella also covers fees for out-of-network ATM operators. Also, there is a free savings account, though it has minimal interest rates, as well as an alternative “karma account,” which is a fund to cover the small purchases of other customers or to be a recipient of another’s generosity with karma accounts. >> See this list for the Back to top Cheese Started in March 2021, Cheese customizes its online banking platform to the immigrant and Asian American communities, offering up 10% cashback on 10,000 businesses, including restaurants and Asian-owned businesses. Support is provided in English as well as Chinese as well as other languages soon. Accounts accrue interest and don’t incur monthly fees or ATM charges within the national MoneyPass ATM network. Find out More about Back to top Investor-friendly Acorns The microinvesting app Acorns main product is its automated investing for those who prefer not to be hands-on The company expanded its banking offerings in 2018 with Acorns Checking. The account includes a debit card and limited rewards program. It is offered in a bundle that includes a taxable investment account and individual retirement accounts, all for $3 per month (or $5 for a family-friendly version). Customers can choose to participate in an “round-up” feature where each purchase is rounded to a certain amount and that amount is invested. The rewards program allows customers to receive a small percentage or amount returned from purchases made at more than 300 businesses, and it can also be invested. Read Acorns review: Back to the top Aspiration Aspiration is an internet-based brokerage company that has an account for cash management, named Spend & Save, that is the hybrid savings and checking account. There are two versions of the account. The standard Spend & Save account has the potential to earn up to 3.00 percent APY on savings, as high as 5% cash back and a monthly fee that is optional — customers pay what they consider fair starting at $0 on up. The more expensive Aspiration Plus plan has an annual cost of just over $72 and as high as 10% cash back in addition to 5.00 percent APY. There are two accounts to choose from also, which allows you to invest in companies with sustainable businesses and social causes. As an official B Corp company, Aspiration is committed to being an environmentally responsible and socially conscious firm and offers customers personalized sustainability scores depending on the companies they invest in. Read Aspiration review: The Aspiration Spend and Save accounts are cash-management account that are available through Aspiration Financial, LLC, a registered broker-dealer, Member FINRA/SIPC, and a subsidiary that is part of Aspiration Partners, Inc. (“Aspiration”). Aspiration is not a bank.” Aspiration is not a bank. Aspiration Save Account’s up to 5.00 percent Annual Percentage Yield (“APY”) and up to 83x the national interest rate is variableand subject to change and is only accessible to customers who are enrolled in Aspiration Plus once conditions are satisfied. Customers not enrolled in Aspiration Plus get 3.00% APY after the conditions are fulfilled. Then they can go back to the top. Albert Albert started in 2016 as a money management app and then launched a personal banking service named Albert Cash in August 2021. It currently has more than 6 million customers. Albert Cash is a banking account that offers cash-back and offers the following advantages 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 and earn a savings rate up to 0.25 percent and avail the personalized support for customers known as Genius and there is an annual minimum fee of $4. It is required to have an account with a bank outside of the United Kingdom for an account at Albert. Return to top Traveler-friendly Revolut Started in 2015 The United Kingdom-based Revolut provides attractive features to international travelers who want affordable exchange rates and the ability to be used to spend in more than 150 currencies. Customers can make international transfers to other Revolut users, and withdraw up to $300 per month from ATMs with no fees and earn interest on savings. This is all included in the account for free. For additional benefits, like overseas medical insurance, Revolut offers two accounts with monthly charges of between $10 and $17. Review Revolut reviews: Revolut reviews: Wise Revolut U.K.-based money transfer company Wise which was previously known as TransferWise has 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 for account usage and can convert currencies at a competitive exchange rate for a minimal upfront fee. For converting a balance of $1,000 U.S. dollars to euros, for example, costs about $4.20 or 0.42 percent that’s less expensive than most institutions’ foreign-transaction charges that range from 1% to three percent. A bank account can hold multiple balances and hold as many as 54 different currencies simultaneously, and converting may be as quick as a matter of minutes. Check out Wise review: Return to the top of Freelancer-friendly Oxygen Launched in early 2020 the Oxygen digital banking account will help freelancers as well as self-employed people manage the flow of cash. Oxygen doesn’t cost monthly fees, ACH and overdraft charges however, there are four pricing levels that can be used for the account. They range from zero to $200 per year. All levels provide advantages for travel, including the loss of luggage as well as hotel theft protection, and higher levels have more perks that include higher savings rates, cash back, and a variety of virtual cards. A unique perk is the option to make use of the Oxygen application to incorporate or legally register as a company after which you can then . Read Oxygen review: Back to top Lili It was launched in 2019. Lili is a mobile bank account that was designed with freelancers and independent contractors in mind. With Lili, you can categorize your expenses simply by swiping left to indicate “life,” or personal or personal, and the right side to indicate “work,” or business. Lili also has tools that help freelancers save to pay taxes and also an emergency savings account. Additionally, if you make use of Lili’s account to pay your earnings from websites and payment apps, you can receive the funds for up to 2 days earlier. This is a common feature for neobanks in general. Check out Lili review: Back to top Neobanks soon an eye out for these four neobanks’ debuts in the near future. Daylight: Previously dubbed 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 preferred name, not the legal one. Greenwood: The Black-owned digital banking company is already home to 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 ongoing .) First Boulevard: The Black-owned banking platform focuses on low-cost bank, with cash back at Black-owned companies, and short financial education videos. The goal of the platform is to create the wealth of generations that is accessible to Black Americans. Purple: Purple plans to provide mobile banking designed specifically for those with disabilities. It will include a checking account and savings accounts that are tax-advantaged. These accounts are known as ABLE accounts. These accounts let people with disabilities save money without losing any government assistance. There will also be the debit card that will donate part of the profits towards the Special Olympics. Return to top From credit monitoring tools to travel benefits, modern checking accounts offer greater benefits than the old ones offered. Before you sign up, make sure to check whether the fintech business is a bank, or is in partnership with a bank. Also, see which features would best serve your financial life. About the author: Spencer Tierney is an expert in the field of certificates of deposit at NerdWallet. His work has been featured in USA Today and the Los Angeles Times. On a similar note… Get the best savings account NerdWallet’s top picks for high-yielding savings accounts on the internet. 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