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19 Neobanks and the Benefits They Provide Advertiser disclosure: We make you our top priority. Each every time. We believe that everyone should be able make financial decisions without hesitation. And while our site doesn’t include every business or financial product available on the market We’re pleased that the guidance we offer as well as the advice we offer as well as the tools we design are independent, objective, straightforward — and cost-free. How do we earn money? Our partners pay us. This can influence the products we write about (and the way they appear on the site), but it in no way affects our recommendations or advice that are based on thousands of hours of study. Our partners do not pay us to guarantee favorable ratings of their goods or services. . 19 Neobanks and the Benefits They Provide Neobanks distinguish themselves by focusing on specific communities, offering various perks and more. By Spencer Tierney Senior Writer | Certificates of deposit and ethical banking, as well as banking deposit accounts Spencer Tierney is a consumer banking writer for NerdWallet. He has been writing about the personal financial sector since, with a focus on certificates of deposit and other banking-related issues. His work has been featured 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 for NerdWallet. She has previously worked as an editor, writer , and research analyst in various industries that range from healthcare as well as market research. She graduated with a bachelor’s degree in history from the University of California, Berkeley as well as a master’s degree in social sciences from the University of Chicago. You can reach her at

. A majority or all of the products featured here are from our partners who pay us. This influences which products we review and the location and manner in which the product is featured on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of . The information on investing provided on this page is for informational purposes only. NerdWallet does not offer advisory or brokerage services or advice or advise investors to buy or sell certain securities, stocks or other investments. Jump to a specific neobank or category for high-yielding savings: For the widest variety of accounts: inexpensive overdrafts for credit development: | | Investor-friendly: Traveler-friendly: Freelancer-friendly: are financial technology (also known as fintech) firms which typically provide mobile-friendly banking accounts with eye-catching features like low-cost cash-back rewards or credit. Certain established neobanks provide loans and credit cards, as well as investment products too. They typically have no branches, and, as a majority of neobanks do not have banking licenses, they partner with banks to provide security against the Federal Deposit Insurance Corp., among other things. 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 have the opportunity to receive up 3.75% per year in annual percentage return (APY) on savings balances (including vaults) and 2.50% APY on checking balances. The 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 earn 1.20% APY on all account balances of savings and checking (including Vaults). Interest rates are variable and subject to 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 $0 Member FDIC Marcus Goldman Sachs Online Savings Account APY 3.50 percent 3.50% Annual Percentage Yield (annual percentage yield) with a balance of zero to earn stated APY. Accounts must be in positive balance in order to be open. APY valid as of 02/07/2023. Min. balance for APY $0 These cash accounts combine services and features similar to checking, savings or investment accounts into one. These accounts for managing cash are generally offered by non-bank financial institutions. These accounts offer features and services that are similar to savings, checking or investment accounts into one product. The cash management account is usually provided by non-bank financial institutions. on Wealthfront’s website Wealthfront Cash account APY 4.05 percent min. balance of APY $1 on the Betterment website. Betterment Cash Reserve Paid non-client promotions APY 4.00% Annual percentage rate (variable) is at 02/06/2023. Min. balance for APY CDs is $0 (certificates of deposits) are a type of savings account that comes with a fixed rate and term typically, they have higher rates of interest than regular savings accounts. CDs (certificates of deposit) are a form of savings account that has fixed rates and terms typically, and have higher interest rates than standard 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 percent 4.40% The APY (annual percent yield) as of 01/25/2023 . 1 year Checking accounts can be used to deposit cash on a daily basis and for withdrawals. Checking accounts are utilized for day-to-day cash deposits and withdrawals. Members FDIC SoFi Checking and Savings APY 2.50 Members of SoFi with direct deposit have the opportunity to earn up to 3.75 per cent annual percentage yield (APY) in savings account balances (including vaults) and 2.50 percent APY on their checking balances. The minimum amount for direct deposits 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 percent 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. These rates 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 your Axos Visa(r) debit card to make 10 transactions per monthly (min 3 cents per transaction) or enroll for Account Aggregation/Personal Finance Manager (PFM) within Online Banking to earn 0.30% APR. Maintain an average daily balance of $2,500 per month in An Axos Managed Portfolios Invest Account for 0.20 percent annual percentage yield. Maintain an average daily balance of $2,500 per month within an Axos Self Directed Trading Invest Account to earn 0.20% annual percentage yield. Make use of your Rewards Checking account to pay the full each month Axos customer loan payment to earn 0.15 percent annual percentage yield. Monthly fee: $0. Money market accounts have rates comparable to savings accounts and have some checking features. Money market accounts have rates that are similar to savings accounts, and come with some checking features. Member FDIC UFB Best Money Market APY 4.21% Min. balance for APY $0 Member FDIC Discover Bank Money Market Account APY 3.20 0.20 % Min. balance for APY $1 >> Learn more: The number of fintech companies that could be termed neobanks continues to grow. From 2018 to 2020 neobanks skyrocketed by 60-256 around the world, according to a report by the business strategy firm Exton Consulting. With increased competition comes greater competition, and some once-innovative services are becoming more common for neobanks. These include two-day early access to direct deposits as well as free access to national ATM networks. And some digital wallets, including and , are competing with neobanks by offering some of the same services. Neobanks are finding ways to distinguish themselves by appealing to particular groups, like freelancers or international travelers, or 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. >> Learn more about high-yielding savings Chime was established in 2013 Chime is one of the biggest neobanks with over 12 million customers. It is partnered with two banks, it offers checking and savings accounts, both with no monthly fees, and secured credit cards that you can utilize to build credit. Chime’s savings account offers an attractive interest rate of 2.00 percent annual percent yield with no minimum balance, no maximum limit for earning interest and no monthly fees. (The Chime Savings Account must be opened to create a savings account, while savings Account is an option.) The account for spending gives access to more than 60,000 ATMs nationwide as well as for customers who have direct deposits, a fee-free overdraft program covers the amount of $200. Cash deposits are available at large retailers ****, a service not all neobanks provide. The process of signing up can be simpler than traditional banks because there is no verification of credit or bank records from the past however, Chime has a . Learn more about Chime Chime: “Chime is a financial technology company, not a banking institution. Banking services provided via 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 be changed at any time. The APY disclosed is in effect as of October 25, 2022. No minimum balance required. You must have $0.01 saved to get interest. ” ***”Out-of-network ATM withdrawal fees are applicable, except for MoneyPass ATMs located in 7-Eleven store, or at any Allpoint or Visa Plus Alliance ATM.” ****”The retailer that accepts your cash is accountable for the transfer of funds to deposit into your Chime checking Account. Deposit fees can be charged when you use a different retailer than Walgreens.” Check out Chime reviews: Back to page Varo Bank Varo Bank offers savings, checking, as well as cash advances. It was founded in 2015 and initially using partnership with banks, the bank changed to an official national chartered bank in the month of August, 2020. This allowed it to provide its very own FDIC insurance. As per Varo the bank had 6 million customers at the middle of 2022. The checking account comes with no cost ATM access, as well as no monthly fees, in addition to advantages like cash back at specific retailers as well as no international transaction charges. The savings account comes with two requirements to earn an interest rate of 5.00 percent APY on the first $5,000, including the requirement of a minimum of $1,000 in monthly direct deposits, and maintaining a positive checking and savings balance at the end of the month. Otherwise it’s 3.00% per annum. Read Varo review To the top widest range of account types SoFi SoFi — short in the sense of “Social Finance” — started out as a student loan refinance business, but has recently gained its own bank charter. SoFi Checking and Savings is their account that allows the money to spend and save. It has no account fees for overdrafts, ATM usage, or monthly maintenance (subject to changes at any point). There are perks like earning interest, opening subaccounts for savings as well as, for customers with qualifying direct deposits, no-fee overdraft protection of that can be up to $50. SoFi also offers many types of loans that are automatic and active investing and trading in cryptocurrency credit cards, as well as retirement accounts. Read SoFi reviews: Back to top One is owned by Walmart, One’s banking account comes with a low-cost overdraft program, custom-designed budgeting and savings choices. It offers customers the ability to organize their money into pockets, which are subaccounts that can be referred to as Pockets. The pockets that are dedicated to saving offer rates of 1percent of up to $5,500 for every customer, and 1% on up to $25,000 for those who deposit direct. One gives free overdraft coverage of up to $200 for those who deposit direct at least $500 monthly. This is less expensive than banks with large branches with overdraft charges, which can be around $35 per transaction. Read Find out more 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, in 2013 and its second bank brand, GO2bank, in 2021. Every one of the Green Dot deposit accounts are federally insured by Green Dot Bank. Contrary to many neobanks which require online signup, you can pick up GoBank as well as GO2bank card at stores such as Walmart and activate them online to use with an app for mobile devices. In comparison to the other brands, GO2bank is by far the more preferred alternative, as it has a lower monthly cost and more benefits but not as many as other neobanks such as Chime and Varo. GoBank’s almost $9 monthly fee is waived when you make $500 direct deposits, while the $5 fee for GO2bank’s monthly service is waived when you deposit direct with no minimum amount. In addition to the bank account, GO2bank offers a secured credit card to improve credit scores and also an account for savings that earns 1% APY for up to $5,000. In contrast, GoBank doesn’t offer a credit card, and its savings vault doesn’t generate interest. Read GoBank review: Read more about GO2bank: Back to the top Sesame Cash Credit company 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 benefits include direct deposit of pay checks up to 2 days earlier, cash and mobile check deposits, a limited cash-back on debit cards, and access to a free national ATM network. Through the account, users have access to Credit Sesame’s free credit monitoring and daily updates to credit scores. Check the top to the back MoCaFi MoCaFi or Mobility Capital Finance, is a black-owned digital platform that was launched in 2016 that offers free checking for the majority of communities that are unbanked or underbanked and focuses on closing the wealth gap between racial groups. The platform offers a bill-pay feature that allows customers to make rent payments available to major credit bureaus to build credit history. As a rare perk, MoCaFi works with its third-party partners to provide cash-free deposits at a variety of merchants and also free mobile check deposits that allow for quick withdrawal of funds. Back to Top Dave Dave started in 2017 as a payday advance business and expanded to offer a full-fledged checking account. In the middle of 2021, it had around 10 million customers. You can get a small advance on your next paycheck without interest or a credit check, and customers who have 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 capability to look for side jobs in its mobile app. There are no 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 options for checking with cash back on certain merchants, two days of early direct deposit, and quick refunds on gas station card holds. The two other perks are only available to premium accounts that have an annual fee of $5. Premium accounts that make direct deposit can also have the possibility of having up to $100 worth of overdrafts backed up completely free of charge. Review Current review: Revert to the top Upgrade Personal loan company Upgrade, started in 2017, introduced a free checking account for customers in 2021, with cash-back benefits that are greater than Current’s. The primary benefits of Upgrade’s customers who have a checking account include the cash back of 2% on everyday purchases such as in the restaurants and pharmacies, and the possibility of 20% rate reductions for personal loans. Customers can also view their credit scores free and summaries of their credit report through their Credit Health service. Read Upgrade reviews: Bella Bella’s banking strategy is, as it says, “built on love.” It’s an account reward program for checking accounts that gives a random percentage of cash back, between 5% and 200 percent, on selected purchases. Launched in 2020, Bella does not charge monthly ATM, overdraft or other fees. In the moment, Bella also covers fees charged by out-of-network ATM operators. Additionally, they offer a fee-free savings account, but it offers low interest rates as well as an alternative “karma account” which is a fund to help pay for other customers’ small purchases or as a beneficiary of another’s karma account generosity. >> See our complete list below of Back to top Cheese Started in March 2021, Cheese customizes its online banking platform to the immigrant and Asian American communities by offering up to 10% cash back on 10,000 businesses, including restaurants and Asian-owned businesses. Support for customers is offered in English as well as Chinese, with more languages soon. Accounts earn interest and don’t have monthly fees or ATM fees within the national MoneyPass ATM network. Find out more regarding Back to top Investor-friendly Acorns While the microinvesting app Acorns’ core 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 the debit card as well as a limited rewards program. It is offered only in a package with an investment account that is tax-deductible and an individual retirement account, each month for just $3 (or $5 for a family-friendly version). Customers can opt in to an “round-up” option where every purchase is rounded by an amount, and the change is then invested. The rewards program offers some percentage or amount of money back on purchases made by more than 300 companies. The money is also invested. Read Acorns review: Back to the top Aspiration Aspiration is an online brokerage company that has a cash management account, named Spend & Save, that functions as a hybrid checking and savings account. There are two versions of the account. The standard Spend & Save account has the possibility of 3.00% APY on savings, with up to 5 percent cashback and a monthly charge that can be negotiated which customers pay as they believe is fair from $0 on up. The premium Aspiration Plus plan comes with an annual fee of almost $72 and as high as 10% cash back and up to 5.00% APY. Two accounts are available as well, which means you can invest in sustainable businesses and social causes. As a certified B Corp company, Aspiration is committed to being an environmentally and socially conscious company and provides customers with individual sustainability scores that are that are based on the businesses they invest in. Read Aspiration review: Aspiration Spend & Save accounts are cash-management accounts that are offered by Aspiration Financial, LLC, a registered broker-dealer, Member of FINRA/SIPC and an affiliate of Aspiration Partners, Inc. (“Aspiration”). Aspiration Financial is not a bank.” Aspiration is not a bank. Aspiration Save Account’s up to 5.00% Annual Percentage Yield (“APY”) with up to 83x the national interest rate is variable, subject to change, and is only accessible to customers who are who are members of Aspiration Plus after the conditions are met. Customers who aren’t enrolled in Aspiration Plus receive 3.00% APY when conditions are met. Return to top Albert Albert started in 2016 as a money management app and launched a personalized banking service known as Albert Cash in August 2021. The company has more than 6 million customers. Albert Cash is a banking account that earns cash back and includes the following benefits including cash advances with no interest up to $250, integrated budgeting and savings tools, and annual savings bonuses that can reach 0.10 percent. For access to Albert’s investing features and earn a savings rate up to 0.25 percent and avail its personalized customer support which is known as Genius, there’s the minimum monthly cost of $4. You must have an external bank account to open an account with Albert. Back to top Traveler-friendly Revolut In its first year of operation The United Kingdom-based Revolut offers attractive features for international travelers looking for competitive exchange rates and a debit card that can spend in over 150 currencies. Customers can transfer funds abroad with other Revolut users, and withdraw up to $300 per month from ATMs with no fees and earn the interest from savings. That’s all with the account for free. To get more benefits, such as medical insurance for overseas patients, Revolut offers two accounts with monthly charges of $17 and $10. Read Revolut reviews: Return to top Wise The U.K.-based money transfer company Wise which was previously known as TransferWise has created an account with multicurrencies that was rolled into U.S. customers in 2017. While there’s a $9 initial fee for the debit card, Wise doesn’t charge monthly account fees and converts currencies at a fair exchange rate for a minimal initial fee. For converting a balance of $1,000 U.S. dollars to euros is, for instance, about $4.20 which is 0.42% that’s less expensive than most bank foreign transactions fees between 1% and three percent. A bank account can hold multiple balances and hold at least 54 foreign currencies simultaneously and converting could be as quick as a matter of seconds. Check out Wise review: Return to top Freelancer-friendly Oxygen It was launched in the first quarter of 2020 the Oxygen digital banking account will help freelancers as well as self-employed people manage the flow of cash. Oxygen doesn’t have monthly or ACH or overdraft fees, but there are four pricing levels for the account, which range from zero to $200 per year. All levels offer travel benefitslike the loss of luggage as well as hotel theft protection. higher levels offer more benefits such as higher savings rates, cash back, and a variety of virtual cards. One unusual perk is the ability to make use of the Oxygen application to incorporate, or legally establish a business after which you can later . Check out the Oxygen review: Back to top Lili launched in the year 2019. Lili is a free mobile bank account designed specifically for freelancers as well as independent contractors in mind. With Lili you can organize your expenses by simply tapping left for “life,” or personal or personal, and the right side to indicate “work,” or business. Lili offers tools that aid freelancers in saving for taxes, and also an emergency savings account. In addition, if you use Lili’s account to deposit your earnings from online platforms and payment apps You can get your funds for up to 2 days prior. This last feature is common for neobanks in general. Check out Lili review Return to the top Neobanks coming soon Keep on your watch for the emergence of these four Neobanks in the near future: Daylight: Formerly called the Be Money, Daylight plans to create a mobile bank account focusing on members of the LGBT+ community with features like access to financial coaches and accounts that use a user’s preferred name, not the legal one. Greenwood: A Black-owned digital banking company already has half a million people waiting to be added to its list of customers for savings and spending accounts which are geared towards reinvesting their wealth into Black or Latinx communities. (See our list of upcoming and existing .) First Boulevard The Black-owned bank platform focuses on low-cost banking that offers cash back to businesses owned by Blacks, as well as brief financial education videos. The goal of the platform is to create generational wealth to Black Americans. Purple: Purple plans to provide mobile banking specifically for those with disabilities. It will include the option of a checking account as well as a tax-advantaged savings account called ABLE accounts, which lets disabled people save money, without the loss of any government assistance. Additionally, there will be a debit card that sends a portion of Purple’s revenue to the Special Olympics. To the top: From credit tracking tools to travel perks, modern checking accounts offer greater benefits than the old ones had. Before getting one, check whether the fintech firm is a bank or partners with a bank. You can also determine which features will best serve your financial life. About the author: Spencer Tierney is an expert in the field of certificates of deposit at NerdWallet. Its work was featured on USA Today and the Los Angeles Times. Similar to… Discover an alternative savings account NerdWallet’s picks for the best high yield savings accounts on the internet. 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