Neobanks are a relatively new introduction to the financial services industry, offering many banking services and financial products to rival big banks.
However, their business models are entirely different, having embraced newer technologies such as digital banking and blockchain while emphasizing user experience and ease of use.
Since most neobanks are effectively a digital bank startup, they don’t have the red tape and formalities usually associated with traditional banks.
And that’s what appeals to a different customer base – mostly millennials and tech-savvy customers who still care about their personal finance.
Their widespread adoption has led to incredible valuations, which in turn has given these challenger banks more cash to continue innovating their mobile apps.
What is a Neobank?
Neobanks, often called challenger banks, are a new breed of banks that have been challenging the banking norms that have been established for many years.
While they’re primarily fintech (an abbreviation of financial technology) companies, they offer many of the basic services that most of the best banks offer. But they do so at a lower price and in a more attractive package to the technology-savvy consumer.
Neobanks do not have any physical branches and, in most cases, operate (at least primarily) through an app. Their apps tend to be more efficient and feature-rich than those offered by banks, which is why they are taking off the way they are.
By treating the app as the primary interaction device, the apps feel more natural than those that are an extension to a bank account. That often means people have a greater degree of control over how they spend their money.
Because they have no physical branches, neobanks also tend to offer products and services at a much lower cost. Their entire monetization strategy is built around web principles to offer free and paid premium subscription services.
That’s very different from how traditional banks make money and is something that modern consumers know better.
The pandemic has also shown that branches may not be so important after all. Even traditional banks who banked on having branches as one of their selling points had to shutter them down.
One could argue that this has been a boost to what many perceived to be a con of neobanks and ultimately showing that online is the way forward.
How Safe Are Neobanks?
Generally speaking, neobanks are very safe since they operate within a regulated market. To ensure that the bank is as safe as possible, make sure you check out where it’s located and under which jurisdiction it operates.
We are also seeing a lot of European neobanks looking to tap the US market. Revolut and Monzo are two such banks.
Although new to the US, these kinds of banks have proven themselves on the other side of the pond.
They also often work with US banks to offer FDIC-insured accounts – usually for far higher amounts than traditional banks offer.
Best Neobanks for What You Enjoy
Unlike traditional banks, neobanks have veered off the one size fits all model. Each one of them offers something special that will undoubtedly appeal to different kinds of users.
This section will review the top neobanks according to the type of customer they appeal to, helping you choose the right one according to what you enjoy doing the most.
- Revolut: For the Traveler
- Varo: For the Saver
- Current: For the Rewards Seeker
- Aspiration: For the Eco-Conscious
- Bluevine: For the Business Owner
- Acorns: For the Aspiring Investor
- Chime: For the Saver
- Unifimoney: For the Money Manager
- NorthOne: For Startups
- Monzo: For the Overspender
- Oxygen: For the Hustler
- Bella: For the Shopper
- Lili: For the Freelancer
- Wealthfront: For the Experienced Investor
- LendingClub: Closest to a Traditional Bank
- Qube Money: For the Budgeter
For the Traveler
Checking, Savings, Crypto
$0 – $17
3.90% on your savings
Revolut is a UK company that has slowly been expanding globally. Last year it established offices in the EU and the US and, in many ways, has been a driving force behind the adoption of challenger banks with the mass market.
Their account accepts some 150 different currencies, and the company doesn’t charge fees for exchanging standard currencies.
That means you can use your Revolut card to hold and spend money around the world, hassle-free.
You also get access to vaults that can help you save money for upcoming expenses or projects, earn cash back rewards when you spend, and even order special cards to support causes.
Recently, Revolut added the ability to buy and sell several cryptocurrencies, stocks, and Junior – an account for kids aged between 7 and 17.
Parents can deposit allowances and set up rules to teach their children the importance of money.
For the Saver
Checking, Savings, Credit Builder
up to 5.00% on your savings
Varo is a neobank that was founded in 2015. Originally starting out as a fintech company that partnered with The Bancorp Bank, Varo acquired its own national banking charter in 2020.
This means that while other digital banks rely on a chartered bank to provide their accounts and insurance, Varo is able to operate independently.
Varo stands out for its savings account, which offers an APY of 3.00% on all savings balances, with the option earn up to 5.00% APY on balances up to $5,000 by meeting two qualifications:
- Receiving direct deposits totaling $1,000 or more, and
- Ending the month with a positive balance in your accounts
It also has automatic “set it and forget it” savings features similar to Chime, including round-ups, Save Your Change and a percentage of your payroll, Save Your Pay.
For users with less than stellar credit history, the Varo Believe credit card is for you. It has no monthly or annual fees, no APR, and no up-front security deposit.
You’ll be eligible to apply when you open a Varo Bank account and receive $500 in direct deposits within 90 days.
When you spend with your Believe credit card, funds are automatically transferred to your Varo Believe Secured Account, which will be used to pay off your credit card balance each month automatically.
Varo then reports your on-time payments to major credit bureaus, and your score can grow over time.
For the Rewards Seeker
up to 4.00% on your savings
Current Bank is a New York City-based fintech company that offers mobile-only checking accounts. To date, Current has over 4 million customers.
The company operates on the premise that banking should be accessible and affordable for everyone. To that end, Current keeps things super simple, offering one hybrid account with checking, savings, and investing features.
Across the board, there are no balance requirements. There is also high interest on your deposits, and you can earn cash back with every debit card purchase.
Current is one of our top picks for rewards banking. The company claims you can earn up to 7 times the cash-back rewards on purchases from more than 14,000 merchants. The account also comes with spending insights to help you budget and manage your money more wisely.
Current lets you make mobile deposits, eliminating one of the biggest reasons to visit a bank. If you need to access an ATM, you can make fee-free withdrawals from Allpoint’s network of more than 40,000 ATMs.
For the Eco-Concious
Spend & Save Account, Credit Card
$0 – $8
up to 3.00% on your savings
Under the motto “Do Well. Do Good.”, Aspiration aims to help you align your values with your banking and spending, by vowing not to let your deposits fund oil projects, offering up to 10% cash back on Conscience Coalition purchases, and providing an impact score revealing the social and environmental impact of the businesses you’re shopping.
They offer cash accounts, savings, and a couple of investment accounts. They also recently launched their Zero credit card, which plants a tree every time you swipe.
For the Business Owner
Business Checking, Business Loans
up to 2.00% on your checking balance
Bluevine is a fintech company that aims to improve banking for owners of small and medium-sized businesses.
The Bluevine Business Checking account is Bluevine’s flagship product and provides an easy-to-use, online business bank account that simplifies the banking experience for business owners.
It’s a free account that allows unlimited transactions – not super common in the business checking world. You can also send international payments in eight currencies to to clients and partners in 26 different countries with a flat fee.
Bluevine Business Checking is also interest-bearing, and account balances of $250,000 or less will earn an impressive Annual Percentage Yield (APY) of up to 2.00%.
Beyond their checking account, Bluevine also offers business owners several financing options: Paycheck Protection Program loans, invoice factoring, and credit lines up to $250,000.
For the Aspiring Investor
$3 – $5
Acorns made its name with its microinvesting app that invested your spare change. It was and continues to be a great choice for hands-off investors.
In 2018, Acorns expanded its offering to also include a checking account.
With Acorns Checking, you’ll have all of the typical checking account features, including early direct deposit, mobile check deposit, no overdraft fees, and access to a network of 55,000 ATMs.
What sets Acorns Checking apart, however, is its seamless integration into the microinvesting that made Acorns famous.
When you use your debit card, you’ll earn cash back at participating retailers, and both the cash back and your spare change will be invested.
You can also opt to have a percentage of every paycheck automatically transferred to your Invest account as well.
The investment account is a robo-advisor that doesn’t give you the flexibility to pick individual stocks, but does let you choose between 5 levels of risk tolerance:
- Aggressive: 100% stocks
- Moderately Aggressive: 20% bonds, 80% stocks
- Moderate: 40% bonds, 60% stocks
- Moderately Conservative: 20% bonds, 80% stocks
- Conservative: 100% bonds
Overall, Acorns is a great choice for those who want to get started with investing.
|Acorns Acorns Invest [Referral Program]||$1200||September 30, 2023||
|Acorns Acorns Invest||$20||Limited Time||
For the Saver
Checking, Savings, Credit Builder
2.00% on your savings
Chime is a neobank that can help people improve their financial situation. There are three types of accounts available, including a Spending Account, Credit Builder, and Savings Account (with an APY of 2.00%).
If you qualify for SpotMe, you can get up to $200 in fee-free overdraft while paychecks arrive up to 2 days earlier (no credit check required!).
If your credit score is hurting, you can improve your score by as much as 30 points with Chime’s secured credit card. Speaking of credit cards, you get fee-free withdrawals from over 38,000 ATMs.
Chime’s app features many security-related functions, including the ability to block debit card transactions and alerts whenever there’s a transaction on your card.
You can also deposit checks straight from the app, and transfers are a breeze.
For the Money Manager
Checking, Savings, Investment, Crypto, Credit Card
$0 – $10
0.20% on your savings
Unifimoney aims to reclaim some of the $20 trillion that millennials stand to lose over their working lives. We lose this cash by committing the 3 sins of money management:
- Having too much money sitting in a deposit account, earning next to no interest
- Using a credit card that doesn’t maximize the returns on our spend
- Not dollar-cost averaging our investments
So, Unifimoney aims to bring simplicity and automation to money management. Rather than needing several apps and products, Unifimoney offers a bundle of tools that all work seamlessly together: a high-yield checking account, an HSA, self-directed and robo-advisor investing, a crypto exchange, and a credit card.
They even offer home loans and insurance, student loan refinancing, car insurance, and 24/7 access to buy or sell precious metals.
- Read our full Unifimoney review, including an interview with one of their co-founders
NorthOne is a New York-based FinTech company that provides digital business banking services to small business owners, freelancers, and startups.
NorthOne was founded in 2016, and its mission is to make the financial system more inclusive by rebalancing the economy from the bottom up.
While most business accounts from the big-brand banks have transaction limits that force you to upgrade to premium accounts as your company grows (read: higher monthly fees), NorthOne charges a flat $10 per month and then no additional fees for ACH payments, deposits, transfers, purchases, or app integrations.
Additionally, you’ll have free access to an unlimited number of sub-accounts (called Envelopes), letting you bucket savings for taxes, payroll, or anything else.
With a user-friendly mobile app, transparent pricing, and tech-driven banking tools, NorthOne serves up a fresh take on business bank accounts.
For the Overspender
Checking, Savings (“Pots”)
None in U.S. yet
Monzo is a UK-based neobank that is currently launching in the US. Their waiting list is already open, allowing those who want to join this bank to call first dibs.
There isn’t much information on the US site except that accounts are insured by the FDIC up to $250,000, and that fee-free withdrawals count some 38,000 ATMs. Insurance is offered through Sutton Bank.
However, in the UK, Monzo offers overdrafts of up to £1,000, which equates to about $1,400 and change. You can set up budgets for each spending category and get alerts should you start burning through your budget too fast.
There is no reason why Monzo wouldn’t offer the same to US customers.
If you’ve spent too much money and would like to start setting some aside, you can use Pots, acting as a separate savings account.
There are no monthly fees and no minimum balances to maintain, while currency exchanges come with no markups.
For the Hustler
$0 – $200
up to 3.00% on your savings
Oxygen has two accounts to choose from – one is for the free thinkers, the others for pioneers. Their free-thinkers account is for individuals, while the pioneers account targets business users.
Oxygen doesn’t charge monthly, ACH or overdraft fees, but there is an annual fee that ranges from $0 to $199.99. The higher tiers offer a higher APY on your savings, higher cash back, and more virtual cards.
The free-thinkers account comes with no monthly fees, no minimum balance requirements, nor overdraft fees. You also earn cashback whenever you make purchases from any of the approved merchants, while paychecks arrive up to 2 days earlier.
You can also flag certain expenses such as rent or a business lunch, take a picture of the receipt and attach it. This feature is excellent to help you keep tabs on your accounts.
One other important feature that Oxygen has is the ability to deposit cash – something many neobanks lack. You can deposit money using any GreenDot location, conveniently located at CVS, Walgreens, and Walmart.
For the Shopper
0.04% on your savings
Bella is a neobank designed with the conscious shopper in mind.
Whenever you shop with your Bella debit card, you may receive a random reward of up to 200% cashback on your purchase. They do this by lowering their marketing budget and spending the extra money on customer cash back instead.
But there’s another element to Bella surprises: you can choose a destination for that cash back.
You can keep it for yourself by having it deposited to your checking account, have it put into a Karma account to randomly surprise other Bella members, or have it donated to community initiatives.
Their checking account features a ton of personalization options, including the ability to add your photos and hashtags. Plus, their cards are made using recycled ocean plastic.
If you’re looking to save money, Bella makes it fun through their Unconventional Saving Rules system. Using this system, you can save money every time something specific happens – be it rain or sunshine.
For example, you could have $5 moved to your savings account every time there’s sun in your hometown.
Savings accounts earn interest rates with an APY of 0.20% and no minimum balance requirements.
Accounts are also insured by the FDIC up to $5,000,000, thanks to their partnership with nbkc bank, which will automatically spread your deposits across a network of FDIC-insured banks.
For the Freelancer
$0 – $5
2.00% on your savings
Lili has a slightly different approach to business banking than most of their competitors, and that’s their single account to seamlessly manage both your business and personal transactions.
In Lili’s perspective, managing two accounts is an unnecessary headache. Instead, freelancers can use their Lili card for every purchase or deposit, and then easily swipe in the app to categorize the transaction as personal or as business.
When it comes time for taxes, Lili makes life easier by letting you automatically push a certain percentage of any income into a “tax bucket” – no April 15 surprise bills here. Plus, the FinTech reduces your tax prep costs by generating yearly or quarterly expense reports, instantly.
There are two tiers: Lili Pro, for $4.99 per month, or Lili Standard, which is free.
The premise is the same for both, but Lili Pro gives you cashback rewards on your debit purchases and 1% on your savings.
The premium account also comes with a built-in invoicing feature, letting you create and send invoices straight from the app, and even accept direct payment for invoices under $1,000.
While we don’t necessarily think it’s a great system for bigger companies, Lili’s approach is awesome for freelancers and weekend warriors looking to simplify their finances.
- Read our full Lili review, including an interview with their founder
- Best Bank Accounts for Freelancers
For the Experienced Investor
4.55% on your cash account balance
Wealthfront is an innovative fintech company that offers advanced investing and budgeting tools.
You’ll earn an admittedly measley APY from your checking account, but you can move money instantly into higher-earning investment accounts.
For those investment accounts, Wealthfront automatically rebalances and diversifies your deposits, and includes daily tax-loss harvesting, which can significantly reduce capital gains taxes.
With cutting-edge tech that is relentlessly focused on making account holders as much money as possible, there’s a ton of overall growth potential for your funds, compared to traditional banking options.
As a cash account, you’ll have access to bill pay, a debit card, and the ability to create savings categories, such as setting cash aside for an emergency fund or down payment.
Other nice perks is the $1 million in FDIC insurance and that you’ll get paid up to 2 days early with direct deposit.
Closest to a Traditional Bank
15. LendingClub Banking
$0 – $10
up to 0.15% Checking; 4.50% HYSA
LendingClub Bank, formerly Radius Bank, is an online-focused bank based in Boston, Massachusetts. It is also a member of FDIC.
LendingClub started as a P2P (peer-to-peer) lender. In 2020, however, it acquired Radius Bank and switched its business model.
With a full suite of financial products for both personal and business customers, LendingClub aims to provide the modern experience of an online bank combined with the account options and personal support of traditional banking.
The bank offers cashback on selected credit/debit card purchases, interest on both checking and savings accounts, along with the added benefit of unlimited, worldwide ATM withdrawal fee rebates. Rebates will automatically be credited to your account by the bank at the end of each calendar month.
Overall, LendingClub is a great choice for those who want a traditional experience but with the perks of a neobank.
For the Budgeter
16. Qube Money
$0 – $11.50
Qube Money, or just Qube, is equal parts mobile bank account and budgeting app. It’s a cashless alternative to the Envelope Budgeting Method, also known as the cash envelope system, which Dave Ramsey made famous.
The idea of the Envelope Method is to create spending categories. Within each category, you then allocate a certain amount of your money each month.
Then, traditionally speaking, you would put physical cash into each category’s envelope. When the cash is gone, you’re done spending on that particular category for the month. Qube Money has modernized this method and turned it digital.
Qube officially launched in early 2021, but it’s been in the works since 2015. A Qube membership comes with a checking account, budget automation, and digital envelopes called Qubes to organize your spending.
Neobanks vs. Traditional Banks
Neobanks emerged as a response to consumers’ growing frustration with traditional banks.
Incumbent banks, or your traditional banks, were slow to introduce new tech or innovative new features.
What’s more, before challenger banks came along and began disrupting the market, traditional banks had no motivation to reduce their high fees.
Neobanks sought to change that, offering tech-savvy and underserved consumers innovative financial products and services and reduced costs.
Like online banks, neobanks are more agile than traditional banks because they don’t have the weight of those legacy systems or the overhead costs of operating physical branches.
These days, competition is slowly blurring the line between traditional, online, and neobanks.
Big banks have been investing in their own tech, partnering with neobanks, and making fees more transparent and straightforward. The pandemic also reduced interest rates across the board, so that many neobanks and online banks that used to womp the national averages no longer offer rates that are really all that competitive.
As a consumer, this is great news.
With so many options, it’s never been easier to align your money to your values, to bank frustrate-free, and to access features that make your life easier.
Pros & Cons
While Neobanks have many advantages over traditional banks, there are disadvantages (just like everything else in life).
Understanding what these pros and cons are can help you decide if this kind of bank is for you.
Advantages of Neobanks:
- Truly leverage the latest technology. Since neobanks are fintech companies, they truly leverage the latest technologies to make the banking experience the best it can ever be.
- Have low costs. With no branches and none of the red tape usually associated with traditional banks, neobanks can offer products and services at a much lower cost.
- Can be very efficient. By truly understanding technology and having much fewer overhangs, these banks can offer a very efficient banking experience with fewer issues and waiting times.
Disadvantages of Neobanks:
- No physical branches. Not having any physical branches allows neobanks to lower their prices. However, it can also be a con should you find yourself in difficulties as you’re limited to email, chat, and in some cases – phone.
- Limited products. Neobanks are relatively new to the market. As such, they have not had the time to develop the entire range of products and services you’ll find at traditional banks. As such, opting for a neobank will often mean choosing several different institutions – one for each of your financial needs.
- They’re a new breed. Traditional banks have been around for many years, which increases trust (even if we have seen centuries-old banks fail). However, neobanks can be something of an unchartered territory that may lead potential customers to feel apprehensive.
FinTech Bonus Offers and Promotions
If you’re opening a new account with a neobank, be sure to check if they’re offering a sign-up bonus to new customers. For example, check out these promo offers from popular fintechs:
|Upgrade Rewards Checking Plus||$200||Limited Time||
|NorthOne Business Banking||$30||Limited Time||
|Found Business Banking||$20||Limited Time||
|Bluevine Business Checking||2.0% APY||Limited Time||
|Revolut Standard Account||3 free months||Limited Time||
|Baselane Baselane Banking||$300||Limited Time||
|SoFi SoFi Checking and Savings||up to $250||December 31, 2023||
Frequently Asked Questions
What is the meaning of neobank?
Neobanks are a special breed of online banks challenging the traditional banking establishment. They are digital only banks that offer innovative financial products and services that appeal to tech-savvy consumers, with snazzy apps and easy banking without formalities.
Is Monzo a neobank?
Yes, Monzo is a neobank currently working on launching its products and services to the US market. In the UK, they offer overdrafts that go as high as $1,400, free foreign currency exchange, and different budgeting tools and alerts to help you stay within budget without overspending.
How do neobanks earn money?
As financial institutions, neobanks earn money in different ways. Some neobanks offer premium paid accounts with extra services and perks that might make sense to some of their customers. Others might offer additional services at a cost for which you might have to pay a fee. They can also invest the deposits like traditional banks, giving them other revenue streams to sustain their business models.
Are neobanks safe?
Neobanking is relatively safe since the challenger banks still have to abide by the regulators of the jurisdiction in which they operate. Neobanks can also have banking licenses, which makes them as safe as any other bank. In most cases, you’ll also find extended FDIC insurance so that your money is as safe as it can ever be.
All Reviewed Neobanks
Interested in learning about other challenger banks? Click on any of the neobanks below to read our full review.
|Found||All in all, Found is an exceptionally well-thought-out banking tool for freelancers and sole proprietors. The financial management tools will help account holders manage their business income, and the lack of monthly fees will prevent their income from being nickel–and–dimed.||Business Products||2019|
|Bread Financial||Bread Financial (previously Comenity) is an excellent option for those looking to earn a high-interest rate on a savings account. The current APY is as good as you’ll find anywhere online, and with some savvy features and an easy-to-use platform, it’s well worth considering.||Personal/Consumer Products||1996|
|Live Oak Bank||Live Oak Bank’s mission is to be known as America’s small business bank. They define the ideal small business customer as a business with five employees or less, has been in business for less than five years, and earns anywhere from $50,000 to $500,000 in annual revenue.||Business Products||2007|
|Albert||The Albert app comes jam-packed with features designed to help you manage and grow your finances.||Personal/Consumer Products||2015|
|Quontic Bank||With unique reward structures, well above average APYs, and even a wearable debit card, you’ll find plenty of reasons why Quontic Bank stands apart as an adaptive digital bank.||Personal/Consumer ProductsBusiness Products||2009|
|Yotta Savings||Yotta is a savings account that's built around fun. It's like an opportunity to play the lottery without wasting money on lottery tickets.||Personal/Consumer Products||2019|
|Cash App||Cash App is one of the fastest-growing mobile payment apps, offering financial services like direct deposit, a cash card, investing, and more.||Personal/Consumer Products||2013|
|Moves Financial||Whether you're a courier, an Uber driver, or any other type of independent worker, you do it for a reason. Maybe it's the convenience or flexibility. Whatever your motivation is, you deserve a banking partner that understands your lifestyle. With Moves Financial, you have an option entirely dedicated to making things easier for you as a gig worker.||Personal/Consumer Products||2019|
|Acorns||Acorns is a low-cost investment platform that allows you to automate your account balance and personal finances. You'll have a diversified portfolio, automatic rebalancing when necessary, and financial advisors to guide you along the way.||Personal/Consumer Products||2012|
|Daylight Bank||Daylight Bank is the first platform of its kind that strives to provide high-quality banking services to the LGBTQ+ community. Daylight does more than send inspiring emails during Pride Month, unlike most traditional banks. It was created by and is intended for LGBTQ+ people.||Personal/Consumer Products||2020|
|Qube Money||With Qube, you can get proactive. Money management is all about having a plan, and an app like Qube can help you take charge of your personal finances.||Business Products||2019|
|Lance Bank||Lance Bank is a neobank that offers accounts through its mobile app. It does not offer physical branches or in-person support. Lance partners with Blue Ridge Bank, a member-FDIC institution based in VA.||Personal/Consumer ProductsBusiness Products||2018|
|SoFi Checking and Savings||SoFi Checking and Savings (formerly SoFi Money) is an online checking and savings account rolled into one. Aside from banking, SoFi also offers several other products and services including a credit card, personal loans, student loans, refinance options including student loan refinancing, and credit score and budgeting.||Personal/Consumer ProductsBusiness Products||2011|
|Atmos Financial||Atmos offers an attractive savings rate and modern banking features. So if you’re looking for a bank that both helps the planet and your bank balance, Atmos is worth checking out.||Personal/Consumer Products||2020|
|HMBradley||HMBradley is built around one central premise – to help people save more money. To help savers grow their money, they reward those who save the most with higher interest rates on their balances.||Personal/Consumer Products||2019|
|Douugh||Douugh’s money management app is an all-in-one platform that’s equal parts digital bank account and personal financial planner. It is driven by AI tools that help put your finances on autopilot so you can focus on the things that matter most.||Personal/Consumer Products||2016|
|Green Dot Bank||Overall, Green Dot Bank is a safe option for people who don't want or need a traditional bank account. It also might be a great fit for those who can't qualify for one.||Personal/Consumer ProductsBusiness Products||1999|
|Ando Money||While they don't offer things like credit cards, if you value transparency, clean energy, reducing emissions, and want your bank to fight climate change, then Ando Spending Account is worth considering.||Personal/Consumer Products||2021|
|GoBank||If you have been having issues getting a bank account, GoBank might very well be just the solution for you. While it’s not perfect, nothing ever really is, it can be a great way to get started and access banking services without many frills.||Personal/Consumer Products||2013|
|Unifimoney||Unifimoney's high-yield checking account and premium credit card both have tons of potential. But for now, they're still in beta and positioned as an option for high earners, both of which limit its reach.||Personal/Consumer Products||2019|
|MoneyLion||MoneyLion provides a fresh look at what banking is evolving to in the 21st century. With intuitive personal finance tools, fully digital banking features, and an all-in-one approach, MoneyLion is an interesting mobile platform to consider.||Personal/Consumer Products||2014|
|M1 Finance||At its best, M1 plays the role of a financial advisor, lender, and banker all at once. The accounts work together seamlessly, and you can watch your money grow with automated asset allocation, low-rate loans, and a high-yield bank account.||Personal/Consumer Products||2015|
|Wealthfront Cash Account||The Wealthfront cash account comes with standard checking features like a debit card, direct deposit, and bill pay. You can easily make deposits and withdrawals and move money between your Cash Account and your Wealthfront investment account.||Personal/Consumer Products||2011|
|Varo Bank||Varo is one of the biggest neobanks out there and comes with a lot of features that people like. With low fees, high APYs, and solid customer service, Varo definitely qualifies as a good option for banking.||Personal/Consumer Products||2015|
|Mercury Bank||Mercury Bank provides a user-friendly, tech-forward banking platform, catering to entrepreneurs looking to take their business to the next level. With digital tools, customizable interfaces, and no fees to worry about, Mercury takes a modern approach to the traditional world of business banking.||Business Products||2017|
|Nearside||Nearside (formerly known as Hatch Business) has a lot to like, and its flexible, low-fee structure is sure to be appealing to many startup independent contractors alike. At only $10 per month and great cashback rewards available, Nearside business checking is worth checking out.||Business Products||2018|
|Revolut||Revolut is unique as a British fintech trying to make its mark in the US. The platform is positioned as a truly global option, so whether you're personally spending or your business needs to spend in Euros, GBP, or USD, you'll be set.||Personal/Consumer Products||2015|
|Level Bank||Level Bank is a legit, mobile-only neobank. Its accounts are backed by Tennessee-based Evolve Bank & Trust, which is a federally chartered financial institution. They offer a competitive APY on their banking account and up to 1.5% cashback on debit card purchases.||Personal/Consumer Products||2016|
|Juno||If you're looking for an easy-to-use digital banking solution, Juno is an attractive option. This neobank sets itself apart with its high earning potential through its checking account options.||Personal/Consumer Products||2019|
|Monzo||Along with other online banks like Starling and Revolut, Monzo is extremely popular in the UK, where it emerged as a challenger bank to the High Street banks and has grown its customer base to more than 5 million users in just six years. Its mobile app and customer service are well regarded, but whether or not its success and functionality will translate to the US market remains to be seen.||Personal/Consumer ProductsBusiness Products||2015|
|NorthOne Bank||With a user-friendly mobile app, transparent pricing, and tech-driven banking tools, NorthOne serves up a fresh take on business bank accounts.||Business Products||2016|
|Lili Bank||Overall, Lili is an interesting option for up-and-coming freelancers and independent contractors. With minimal fees, mobile functionality, and a lean, easy-to-use platform, there’s a lot to like about Lili.||Business Products||2018|
|One Finance||With the intuitive budgeting tools, no fees to worry about, and high-end interest rates, there’s a lot to like about One Finance.||Personal/Consumer Products||2019|
|Bluevine||Between a commitment to offering high APY, strong online functionality, quick access to cash when you need it, and a built-in payment platform, there's a lot to like about Bluevine Bank's business checking.||Business Products||2013|
|Current||Current is an all-in-one credit building and banking platform with competitive APY, convenient features, and a rewarding spending account.||Personal/Consumer Products||2015|
|Novo Bank||Overall, while Novo's product offerings are as lean as it gets, there's a lot to like in this comprehensive business checking account. In fact, it ranked among the best business checking accounts in 2020 by Money Magazine.||Business Products||2016|
|Aspiration Bank||Aspiration Bank has a slick online platform, and cash back earning options that can compete with any leading bank out there. On top of that, with a keen focus on sustainability, the fintech strives to help its customers do well financially while still doing good for the world.||Personal/Consumer ProductsBusiness Products||2013|
|Chime||Chime is a player in the FinTech space, with an intuitive mobile app, no maintenance, hidden or foreign transaction fees, and built-in features to help you save like their "save when you spend" and "save when you get paid" automatic transfers. They don't offer a lot of account options, but if their spend and savings accounts meet your needs, we recommend them. You'll find a competitive rate and a top-notch digital experience (as you'd expect!).||Personal/Consumer Products||2014|
Is a Neobank Best for You?
While neobanks are a relatively new concept, they are quickly proving themselves to be a favorite among customers.
While the UK and EU have traditionally been pioneers in this regard – giving us neobanks like Starling, Revolut, and Monzo – the US is also seen a surge of these banks.
Unsurprisingly, San Fransico and New York are the hotbeds for these technology-based banks.
A lot remains to be seen when it comes to this new breed of banks. After all, traditional banks have faced crises before. As a result of them, they’ve built robust systems over many, many years to withstand the most serious of challenges.
We must also recognize that we live in unprecedented times. Never before in history have we had access to as much information as we do today.
With challenger banks giving more control to their users, those who grew up with ubiquitous access to the internet and apps for just about anything will definitely appreciate what neobanks offer.
The Aspiration Spend & Save Accounts are cash management accounts offered through Aspiration Financial, LLC, a registered broker-dealer, Member FINRA/SIPC, and a subsidiary of Aspiration Partners, Inc. (“Aspiration”). Appreciation is under separate ownership from any other named entity. Aspiration is not a bank.