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19 Neobanks and the Benefits They Provide Advertiser disclosure You’re our first priority. Each every time. We believe that everyone should be able to make financial decisions without hesitation. Although our site does not include every company or financial product that is available in the marketplace however, we’re confident that the guidance we offer as well as the advice we offer as well as the tools we design are independent, objective easy to use and cost-free. So how do we make money? Our partners compensate us. This can influence the products we write about (and the way they appear on the website) however it doesn’t affect our recommendations or advice that are based on hundreds of hours of research. Our partners do not be paid to ensure positive review of their services or products. . 19 Neobanks and what they offer Neobanks differentiate themselves by focusing on particular communities, and offering a variety of benefits and more. By Spencer Tierney Senior Writer | Certificates of Deposit, ethical banking, banking deposits Spencer Tierney is a consumer banking writer at NerdWallet. He has covered the personal financial sector since with a particular focus on certificates of deposit and other banking-related subjects. He has had his work highlighted by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He’s based at Berkeley, California. Sep 23, 2021 Edited By Yuliya Goldshteyn, Assistant Assigning Editor — Banking Yuliya Goldshteyn is a bank editor at NerdWallet. She has previously worked as an editor, writer and research analyst in a variety of industries, ranging from healthcare and market research. She graduated with a bachelor’s degree in the field of history from the University of California, Berkeley and a master’s degree in sociology from the University of Chicago. You can reach her at

. A majority or all of the 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 is featured on a page. But, it doesn’t affect our assessments. Our opinions are entirely our own. Here is a list of . The investing information provided on this page is for informational purposes only. NerdWallet is not a broker or advisor. or brokerage services, nor does it recommend or counsel investors to purchase or sell specific securities, stocks or other investment options. Jump to a specific neobank or category: For high yield savings: the most extensive range of accounts: For inexpensive overdrafts for credit-building: • | | Investor-friendly: Traveler-friendly: Freelancer-friendly: are financial technology — (also known as fintech) businesses that usually offer mobile-oriented banking accounts with eye-catching features such as low-cost cash-back or credit card rewards. Certain established neobanks provide loans, credit cards or investment products too. They generally operate without branches and, since the majority of them lack banking licenses, partner with banks to provide security by The Federal Deposit Insurance Corp. Other things include. All neobanks on this list have FDIC-insured accounts. Saves Cash Management CD checking Money Market Members FDIC SoFi Checking and Savings APY 3.75% SoFi members with direct deposit are eligible to receive up 3.75 per cent annual percentage yield (APY) on savings balances (including Vaults) and 2.50 percent APY on checking balances. The minimum direct deposit amount required to qualify for the 3.75% APY for savings and 2.50 percent APY on checking balances. Members without direct deposit will receive 1.20% APY on all account balances in checking and savings (including vaults). Rates of interest are subject to change and can 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 Goldman Sachs Online Savings Bank with APY 3.50 35% 3.50% APR (annual percent yield) with a balance of zero to earn the APY stated. 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 into one. The cash management account is usually offered by non-bank financial institutions. These cash accounts combine features and services that are that are similar to savings, checking and/or investment accounts in one package. The cash management account is typically provided by non-bank financial institutions. on Wealthfront’s website Wealthfront Cash account APY 4.05% min. balance for APY $1 on Betterment’s website Betterment Cash Reserve Paid Non-Client Promotion APY 4.00 percent annually percentage yield (variable) is as of 02/06/2023. Min. balance for APY CDs is $0 (certificates of deposits) are a type of savings account with an unchanging rate and term typically, they have higher rates of interest than standard savings accounts. CDs (certificates of deposit) are a type of savings account that has a fixed rate and term, and usually have more interest rates than traditional savings accounts. CIT Bank CD Annual Percentage Yield 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) at 01/25/2023. Term 1 year Checking accounts are used for cash deposits on a regular basis as well as withdrawals. Checking accounts are utilized 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 percent SoFi members who have direct deposit are eligible to receive up 3.75 percent annual percentage yield (APY) for savings accounts (including Vaults) and 2.50% APY on checking balances. The minimum direct deposit amount that is required to be eligible for 3.75 percent APY on savings and 2.50 percent APY on checking balances. Direct deposit members will get 1.20% interest on balances of savings and checking (including vaults). The rates of interest are subject to fluctuation and are subject to 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. Utilize your Axos Visa(r) debit card to make a maximum of 10 transactions each month (min $3 per transaction) or join Account Aggregation/Personal Financial Manager (PFM) within Online Banking to earn 0.30 percent annual percentage. Keep an average daily balance of $2,500 in an Axos Managed Portfolios Invest Account to earn 0.20% annual percentage yield. Maintain a daily average amount of $2,500 with an Axos self-directed trading Invest Account in order to receive 0.20 percent APY. Make use of your Rewards Checking account for your full month’s Axos consumer loan payment to earn 0.15 percent annual percentage yield. Monthly fee of $0. Money market accounts have rates similar to savings accounts and include some checking features. Money market accounts pay rates comparable to savings accounts and include 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 0.20 % Min. Balance for APY $1 >> Learn more about: The number of fintech firms that can be called neobanks keeps growing. From 2018 to 2020, neobanks skyrocketed between 60 and 256 around the world according to a study by the business strategy firm Exton Consulting. With more players comes more competition. Some once-innovative services are now becoming common for neobanks. These include two-day advance access to direct deposits and free access to nationwide ATM networks. Digital wallets, including and, are competing with neobanks by offering some of these same features. Neobanks are finding ways to differentiate themselves by appealing to particular groups, like freelancers or tourists from other countries, as well as by offering advantages that you can’t find at traditional banks. Here’s an overview of the ways that some of the upcoming and current Neobanks attempt to stand out. More information: For high-yield savings Chime was founded 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 use to establish credit. Chime’s savings accounts offer an interest rate that is competitive at 2.00 percent annual percentage yield** with zero minimum balances, no maximum amount for earning interest and no monthly fees. (The Chime’s Checking Account is required to open a savings account; the Savings Account is optional.) The account for spending gives access to more than 60,000 ATMs throughout the nation, and for customers with direct deposits, a fee-free overdraft program covers the amount of $200. Cash deposits are offered at large retailers ****, a service not all neobanks provide. The sign-up process can be more straightforward than with traditional banks since there’s no credit check or bank records from the past However, Chime has a . See more information from Chime *Chime says: “Chime is a financial technology company, not a bank. Banking services provided through The Bancorp Bank, N.A. as well as Stride Bank, N.A. Member FDIC.” *” **”The annual Percentage Yield (“APY”) for Chime Savings Account is subject to change and could be changed at any time. The disclosed APY is effective on October 25 2022. No minimum balance required. It is required to be in possession of $0.01 of savings in order to receive interest. ” ***”Out-of-network ATM withdrawal charges are applicable, except for MoneyPass ATMs in a 7-Eleven store, or at any Allpoint and Visa Plus Alliance ATM.” ****”The retailer that accepts your cash is accountable for the transfer of the cash for deposit into your Chime Checking Account. There may be fees for cash deposits when you use a different retailer than Walgreens.” Check out Chime reviews: Return to page Varo Bank Varo Bank offers checking, savings as well as cash advances. Established in 2015, and initially operating with bank partnerships, it was made an official national chartered bank in August 2020. This allowed it to provide their own FDIC insurance. As per Varo, it had a total of 6 million customers as of mid-year 2022. The checking account comes with free ATM access, and there are no monthly charges, as well as perks such as cash back from certain retailers as well as no international transaction fees. The savings account is subject to a couple requirements to earn an interest rate of 5.00 percent APY for the first $5,000, which includes a $1,000 minimum in monthly direct deposits, and maintaining an open checking and savings balance at the close of the month. If not, you earn 3.00 percent APR. Read Varo review: Back to top For widest selection of accounts SoFi SoFi is abbreviation for “Social Finance” was founded as a student loan refinance company but recently received its own bank charter. The SoFi Savings and Checking account is a account that allows funds for saving and spending. There are no charges for accounts for overdraft, ATM usage, or monthly maintenance (subject to changes at any point). Some perks include earning interest, opening subaccounts for savings and, for customers with the right direct deposit, free overdraft protection that can be up to $50. SoFi also offers many types of loans, active and automated investment, cryptocurrency trading credit cards, as well as retirement accounts. Read SoFi reviews: to top One Owned by Walmart, One’s banking account offers a low overdraft plan, a custom savings and budgeting options. Customers can choose to organize their money into pockets, which are subaccounts that can be referred to as Pockets. The pockets that are dedicated to saving are rated at 1% on up to $5,000 per customer and 1% on up to $25,000 for customers who have direct deposit. One provides fee-free overdraft coverage up to $200 for customers with direct deposits of minimum $500 per month. This is less expensive than banks with large branches with overdraft charges that can range from $35 per transaction. Read One reviews: > Learn more about For the credit-building GO2bank (and GoBank) Green Dot Corporation has offered alternatives to banking since. Starting with prepaid debit cards and later expanding into GoBank, its very first bank online GoBank which was launched 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. In contrast to most neobanks which require online registration for customers, you can get GoBank as well as GO2bank cards at retailers such as Walmart and sign them up online using a mobile app. In comparison to the other brands, GO2bank is the best alternative, as it has a lower monthly cost and more benefits however not as numerous as other neobanks such as Chime or Varo. GoBank’s almost $9 monthly fee is waived when you make $500 direct deposits, while the GO2bank’s fee of $5 per month is waived with direct deposits without a minimum. Alongside its bank account, GO2bank offers a secured credit card that can be used to build credit and has savings vaults that earn 1% APY for as much as $5,000. However, GoBank doesn’t offer a credit card and its savings vault isn’t able to earn interest. Read GoBank review: Learn more about GO2bank: Return to the top Sesame Cash The credit firm Credit Sesame launched a free digital bank account in March 2020 that focuses on serving people living pay-to-pay. The account’s benefits include direct deposit of paychecks up to two days earlier as well as mobile and cash deposits and a limited cash-back on debit cards, and access to a free all-encompassing ATM network. The account’s users get access to Credit Sesame’s credit monitoring service for free and regular updates to credit scores. >> Compare the Back to top MoCaFi MoCaFi or Mobility Capital Finance. It’s a black-owned digital platform started in 2016 that offers free checking to serve people who are largely unbanked and unbanked with a primary focus on closing the wealth gap between racial groups. The platform offers a bill-pay feature that allows users 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 offer cash-free deposits at a variety of retailers and free mobile check depositing with quick release of funds. Then back to the top Dave Dave started in 2017 as a paycheck advance company and grew to include a full-fledged checking account. In the middle of 2021, it had around 1 million clients. You can receive a small credit on the next pay without interest or a credit check, and those with at least $1,000 in monthly direct deposits can establish credit histories through rent payments. Dave also provides budgeting services that incorporates upcoming bills as well as the capability to look for side-jobs through its mobile app. There are no fees to use overdrafts or ATMs within the nationwide MoneyPass network, and there aren’t any minimum amount of balance required. Read Dave review: Back to top For Cash-back Rewards Current Current, founded in 2015, provides free and premium options for checking with cash-back at certain merchants, two days of early direct deposit, and quick reimbursements for gas station debit hold on cards. These two benefits are only available for premium accounts, which charge a $5 monthly fee. Premium accounts that have direct deposit can also have up to $100 of overdrafts protected for free. Check out the Current review: Return to top Upgrade A personal loan company Upgrade, started in 2017 and launched a no-cost checking account in 2021 with cash-back benefits that are greater than Current’s. Upgrade’s main perks for their customers who have a checking account include the cash back of 2% on everyday purchases such as in the restaurants and pharmacies and 20 percent rate discounts on the company’s personal loans. Customers are also able to view their credit scores free and summaries of their credit history through Upgrade’s Credit Health service. Check out the reviews of Upgrade:Refresh Bella Bella’s approach to banking 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, between 5% and 200 percent, on selected purchases. Launched in 2020, Bella does not charge monthly ATM, overdraft, or ATM charges. In the moment, Bella also covers fees for out-of-network ATM operators. Additionally, they offer a fee-free savings account, but it has low interest rates and an optional “karma account,” which can be used to help pay for other customers’ small purchases 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 customizes its online banking platform to the immigrant as well as Asian American communities, offering up to 10% cash back at 10,000 businesses, including Asian-owned businesses and restaurants. Support is provided in English as well as Chinese, with more languages coming soon. Accounts earn interest and don’t have monthly charges or ATM fees for the nationwide MoneyPass ATM network. >> Learn more regarding Back to top Investor-friendly Acorns The microinvesting app Acorns’ core product is automated investing for those who prefer not to be hands-on It expanded to banking in 2018 by introducing Acorns Checking. The account includes an ATM card, a debit card and a rewards program, and is available only as a package that includes an investment account that is tax-deductible and individual retirement accounts, all for $3 per month (or $5 for a family version). Customers can choose to participate in an “round-up” option where every purchase is rounded to a certain amount and that change is then invested. The rewards program offers an amount or a portion returned from purchases made at more than 300 businesses, and it is also invested. Read Acorns review: Back to the top Aspiration Aspiration can be described as an online broker company that has the cash management account known as Spend & Save, that is an hybrid savings and checking account. There are two different versions of the account. The basic Spend & Save account has the potential to earn up to 3.00 percent APY on savings, as high as 5% cashback and a monthly fee that is optional that customers pay the amount they consider fair starting at $0 on up. The higher-end Aspiration Plus plan comes with an almost-$72 annual fee, with up to 10 percent cash back and up to 5.00 percent annual percentage yield. Two accounts are available also, which allows you to invest in companies with sustainable business practices and social causes. As an accredited B Corp company, Aspiration is committed to being a socially responsible and environmentally conscious firm and offers customers customized sustainability scores depending on the companies they invest in. Read Aspiration review: The Aspiration Spend & Save Accounts are cash management accounts offered by Aspiration Financial, LLC, registered broker-dealer, member of FINRA/SIPC. It is also a subsidiary of Aspiration Partners, Inc. (“Aspiration”). Aspiration Financial is not a bank.” Aspiration is not a bank. Aspiration Save Account’s 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 available to customers who are members of Aspiration Plus after the conditions are met. 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 money management app and later launched a customized banking service called Albert Cash in August 2021. It has over 6 million customers. Albert Cash is a banking account that offers cash back , and comes with the following advantages including cash advances with no interest up to $250 as well as integrated budgeting and savings tools, and annual savings bonuses of up to 0.10 percent. To access Albert’s investing feature you can get a savings rate up to 0.25 percent, and take advantage of the personalized support for customers known as Genius There is an annual minimum fee of $4. You must have an account with a bank outside of the United Kingdom to open an account with Albert. Back to top Traveler-friendly Revolut Started in 2015 the UK-based Revolut offers attractive features for international travelers looking for affordable exchange rates and an account that allows be used to spend in more than 150 currencies. Customers can make international transfers to other Revolut users, withdraw as much as $300 per month from ATMs with no fees and get an interest rate on their savings. All this is included with the free account. For more perks, including overseas medical insurance, Revolut offers two accounts with monthly fees of between $10 and $17. Review Revolut reviews: Back to top Wise Revolut U.K.-based money transfer firm Wise was previously called TransferWise has created a multicurrency account that rolled across to U.S. customers in 2017. There’s an initial $9 cost for the debit card, Wise isn’t affianced of monthly account fees and converts currencies at a competitive exchange rate with a small upfront fee. The conversion of a balance of $1000 U.S. dollars to euros, for example, costs around $4.20, or 0.42 percent, which is cheaper than banks’ foreign transaction costs of 1% to 3%. An account can have multiple balances, storing at least 54 foreign currencies at a time, and converting may take just a few minutes. Read Wise review: Back to top Freelancer-friendly Oxygen launched in the early part of 2020, Oxygen’s 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 There are however four pricing levels available for the account, ranging from zero to $200 per year. Each level offers advantages for travel, including the loss of luggage as well as hotel theft protection, and higher levels come with more benefits, including greater savings rates, cash back and numbers of virtual cards. One unique benefit is the option to use the Oxygen app to incorporate, or legally register as a company in the future, and later . Check out the Oxygen review: Return to the top Lili It was launched in 2019. Lili is a no-cost mobile bank account designed specifically for freelancers as well as independent contractors in mind. With Lili, you can categorize your expenses simply by swiping left for “life,” or personal, and right for “work,” or business. Lili also includes tools that aid freelancers in saving for taxes, and also an emergency fund. Plus, if you use Lili’s account to deposit your earnings from online platforms and payment apps You can get the funds for up to 2 days before the due date. This feature is standard for neobanks in general. Check out Lili review: Back to top Neobanks coming soon Keep on your watch for the emergence of these four Neobanks in near future: Daylight: Previously dubbed the Be Money, Daylight plans to open a mobile banking account that focuses on people in the LGBT+ community with features like access to financial advisors and accounts that use a user’s chosen name, rather than their legal name. Greenwood: A Black-owned digital banking company already has half a million clients on its waitlist for savings and credit cards which are geared towards reinvesting their wealth into Black as well as Latinx communities. (See our list of forthcoming and ongoing .) First Boulevard is a Black-owned banking platform focuses 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 an account that is tax-advantaged, a savings account known as ABLE accounts. These accounts allow disabled people save money, without losing any government aid. Additionally, there will be a debit card that sends some of the money earned by Purple for the Special Olympics. To the top: From credit monitoring tools to travel benefits, modern checking accounts offer more features than their predecessors had. Before getting one, check whether the fintech company is a bank or a partner with a bank. Also, determine which features will best serve your financial life. Author bio Spencer Tierney is an expert on certificates of deposit on NerdWallet. The work of Spencer Tierney has been featured by USA Today and the Los Angeles Times. Similar to… Get the best savings account NerdWallet’s recommendations for the top high-yield savings accounts online. Dive even deeper in Banking Get more smart money moves delivered straight to your inbox. Sign-up and we’ll send you Nerdy posts on the topics in finance which matter to you the most and other strategies to help you make more from your money.

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