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One major change we’ve seen in the financial industry over the last couple of decades is the rise of neobanks. These financial institutions use technology to provide convenient banking services, such as electronic transactions, bill pay, mobile deposits, and more, all online or through mobile banking. Because they’re not a traditional brick-and-mortar bank, they can often pass on the savings to the customers and cut out many fees we’re used to paying with traditional banks and credit unions.
Neobanks have grown in popularity, but they’re not all equal in what they offer. We’ve looked at numerous options and narrowed down our list of the best neobanks of 2024.
Let’s look at some of our top picks for best banks, including each one’s unique features.
Revolut
Revolut offers several standout, innovative features centered around bringing modern convenience to each customer, starting with its ultra-user-friendly app. One of its most unique features is the ability to hold and exchange multiple currencies at interbank exchange rates, making international travel and transactions a breeze.
Revolut has also eliminated many transaction fees and foreign currency exchange fees. You may find the budgeting tools and spending analytics features incredibly helpful, giving you insights into your financial habits.
Revolut offers a free monthly plan, but if you want to unlock all its features, you can upgrade to a $9.99 or $16.99 plan, each with varying benefits.
Chime
Chime is another option worth considering. Chime's mobile app offers a hassle-free and user-friendly experience, designed to make it easier to control your money. One of the standout features setting Chime apart is its complete lack of traditional banking fees – which means no more monthly maintenance fees or overdraft charges.
Chime's early direct deposit feature can be a lifesaver for those who need access to their funds up to two days earlier. The "Save When You Get Paid" automatic savings program offers an effortless way to build your savings with every paycheck. You may also use the round-up feature, which rounds up your purchases to the nearest dollar and stashes away the spare change for you, making savings less painful.
Read a full review of Chime.
Varo
Varo is one of the first online banks, and this digital-only option means you must download the Varo app or sign up online to take advantage of its many features. But the good news is, it’s packed full of features to meet various banking needs.
Early payday, no minimum balance requirements, and no overdraft fees are a few of Varo’s perks, but it also features other conveniences. Benefits such as up to $250 instant cash advances and some of the highest annual percentage yields (APYs) you can find on savings accounts right now may be enough to make you want to try Varo.
Read a full review of Varo Bank.
Monzo
Monzo is another alternative offering basic financial services, such as personal checking and savings accounts, without any monthly fees. Plus, customers have access to over 40,000 ATMs completely fee-free. Like others on this list, customers may appreciate the early payday option and FDIC insurance, which gives them peace of mind on numerous levels with banking.
Monzo sets itself apart by making it easy to share the bank account with a partner, spouse, roommate, or friend so you can manage your shared finances more easily. You can also organize your money into “pots” (even with your partner) so you can set savings goals together and move money into these designated pots according to those goals.
SoFi
The SoFi name is well-known and continues to grow, offering more and more consumer financial products. The basic checking account SoFi offers is anything but basic, though. For starters, there are no monthly, overdraft, or other maintenance fees you need to worry about. Plus, the fintech company offers access to early direct deposit, so you can get your paycheck up to two days in advance for qualifying deposits. There’s even a promotion right now where you can earn up to $300 by simply opening a checking account and using direct deposit.
Savings accounts are worth a look, too, with APYs up to 4.60%, which is a highly competitive rate and can help you accelerate your savings goals. Beyond checking and savings accounts, though, SoFi offers one of the largest suites of banking services for a neobank, including personal loans, student loans, mortgages, and investment accounts.
Acorns
Acorns is best known as the app that helps you build up your savings by squirreling away small deposits one at a time. This same concept applies to an Acorns checking account, too, where you can easily invest any small or spare change in your checking account or a portion of your paycheck. Acorns debit card purchases have a Real-Time Round-Up, where you automatically invest your change with a swipe.
You also have access to an advance paycheck with direct deposit, and you can automatically invest. You can access Acorns’ 55,000+ fee-free ATM network whenever you need money. You don’t need to worry about overdraft or low account balance fees.
Starling Bank is a U.K.-based all-digital banking option and considers itself Britain’s first one. The digital banking experience means there are no paper statements and no physical branches, and the bank runs purely on renewable energy. Starling Bank strongly emphasizes sustainability, with a pledge to use $0 worth of investments with companies that harm the environment. Even its Mastercard is made up of 100% recycled plastic.
Starling offers both checking and savings options, and some of the accounts have unique features such as ways to automatically split payments among friends or family and useful spending insights so you can easily track where your money goes.
Wise
If you’ve ever had to send or receive money internationally, you know how expensive money transfer fees can be. The Wise checking account helps you avoid those costly fees and lets you send money to over 160 countries using 40 different currencies with low fees. You can also receive money for free from certain currencies. Plus, you’re allowed up to two monthly withdrawals in U.S. dollars for free. The debit card makes it easy to access your money without subscription fees and has a one-time fee of $7 per month.
Neobanks offer high levels of security, just like what you would find at a reputable bank. Neobanks are member FDIC and include insurance with deposits, but it’s a smart idea to double-check that this is offered. Neobanks can use added layers of security such as encryption and two-factor authentication for enhanced protection.
Is Paypal a neobank?
PayPal falls under the category of a neobank. It offers numerous banking services, such as debit and credit cards, lines of credit, prepaid cards, and savings accounts, by partnering with other national banks like Synchrony Bank.
What is the downside of a neobank?
One of the biggest drawbacks of a neobank is the lack of a physical location. While not everyone thinks this is important, many people prefer a more human touch with banking. Neobanks typically don’t offer loan products, such as mortgages, personal loans, or auto loans.
Neobanks offer many banking services we depend on for daily financial survival, although without any physical location. Neobanks offer services and often include perks and benefits you won’t always find at a traditional bank, such as early payday, cashback rewards programs, and higher APYs. If you’re looking for a traditional bank alternative, chances are there’s a neobank suited for your financial needs.
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Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.
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