16 Best Neobanks of 2024


In the past, you had to drive to your bank and work with a teller to manage your deposit accounts. These days, however, you have the option to complete virtually any banking need with any device that has internet access. You can pull out your smartphone and deposit a check. Or you may use your laptop to check your account balance.

That’s where banks called neobanks come in. It’s no surprise that neobanks are more popular than ever before. Let’s take a closer look at what they are and how they work so you can decide whether a neobank makes sense for your particular situation.

16 Best Neobanks

While traditional banks take up more market share than neobanks, you can still find a good amount of them if you do your research and shop around. The right neobank for you will depend on your unique lifestyle, needs, and preferences. To help you hone in on the ideal option, here’s our list of the top neobanks of 2024.

1. SoFi

SoFi entered the market as a student loan refinance company. Recently, however, the fintech company received its own bank charter to offer digital banking services. You can use the SoFi Checking and Savings account to manage your spending and saving needs in one place.

The savings account offers 4.60% APY, and you can earn 0.50% APY on checking account balances. For peace of mind, deposits are FDIC-protected up to $2 million.

Fortunately, SoFi doesn’t charge monthly maintenance fees, overdraft fees, or ATM fees. Additional perks and extras include no-fee overdraft coverage, subaccounts for various savings goals, and additional products like credit cards, cryptocurrency trading, and retirement accounts, like an individual retirement account.

Read our full review of SoFi to learn more.

2. Chime®

Founded in 2012, Chime is a financial technology company that offers banking services from The Bancorp Bank, N.A. and Stride Bank N.A. The Chime Checking Account is free of monthly maintenance fees and no minimum balance requirements.

Its perks include early direct deposit2, automated savings features, access to over 60,000 or more fee-free ATMs1, and free debit card replacement.

There’s also a Chime’s Savings Account, which offers a competitive interest rate with no cap on the amount of interest you can earn. Chime should be on your radar if you prefer a one-stop-shop for all of your banking needs.

You can read our full Chime review to learn more.

3. Upgrade

With the Rewards Checking Plus account, Upgrade harmonizes ease of use with financial perks. This account delivers several attractive perks, such as no monthly fees, overdraft fees, or transfer fees. Additionally, customers who set up direct deposits can earn up to 2% cash back on everyday debit card purchases.

Upgrade also allows customers to access their paychecks up to two days early using its direct deposit feature, providing extra flexibility for personal finance management.

For its Premier Savings account, Upgrade partners with Cross River Bank to offer a 5.21% APY, with all funds insured by the FDIC up to $250,000.

Take a look at our full Upgrade review to learn more.

4. Current

Since its inception in 2015, Current, which is not a bank, but a fintech company based in New York City, has partnered with Choice Financial Group and Metropolitan Commercial Bank to offer mobile and online banking services. Its flagship products are a personal checking and debit card you can access via a mobile app on any iOS or Android device.

With Current, you can build your credit effortlessly with each debit card swipe for your daily transactions—no need to borrow or undergo credit checks.

Even though Current’s product line is limited, the neobank prides itself on no shortage of perks and benefits. You can get your deposit up to two days early and earn cash back for debit card spending from more than 14,000 merchants. Additionally, Current doesn’t charge minimum balance fees or bank transfer fees and offers fee-free ATM withdrawals from ATMs in the Allpoint network.

If you would like to learn more, take a look at our Current review.

5. GO2bank

For more than a decade, Green Dot Corporation has specialized in alternative banking products. In 2013, GoBank made its debut as the first digital bank offering digital financial services. Then, in 2021, the company launched GO2bank, its second online bank.

GO2bank stands out from other neobanks which require you to sign up online because you can pick up their debit cards in person at Walmart and other popular retailers. GO2bank’s bank account tends to be a popular product in addition to its secured credit card that can help you build credit.

For a comprehensive overview, read our full GO2bank review.

6. Quontic Bank

Quontic Bank is a full-service, FDIC-insured online bank that was founded in 2002. It offers a range of banking products and services, including checking and savings accounts, credit cards, mortgages, and business banking solutions.

They offer some of the best annual percentage yields (APYs) in the industry. Quontic accounts come equipped with no overdraft fees, no incoming wire transfer fees, no monthly service fees, and access to over 90,000 surcharge-free ATMs.

Quontic also has a savings accounts feature called “Roundup”, which makes saving money simple and easy. In addition, they have a responsive U.S. based customer service team available to assist with any questions or concerns.

Read our full Quontic review for more information.

See also: Free Online Checking Accounts: No Opening Deposit Required

7. Sesame Cash

Emerging from the renowned online lender Credit Sesame, established in 2010, Sesame Cash burst onto the scene in March 2020. It offers a unique digital banking solution, particularly tailored to cater to individuals living paycheck to paycheck. The core offering revolves around building a credit history without relying on a credit card, complemented with benefits like credit monitoring alerts and insights into your credit score.

Customers can also enjoy cashback rewards on their debit card transactions. However, it comes with a $9.99 monthly fee and a $3 inactivity fee, unless certain transactional criteria are met. On the downside, the lack of a dedicated customer support number could be a drawback for some.

Credit Sesame’s partnership with Community Federal Savings Bank ensures the FDIC insurance on the Sesame Cash account. If you’re in the market for a digital banking solution coupled with credit-building features, Sesame Cash is an option worth considering.

8. Betterment

Established as one of the pioneers in the robo-advisory landscape, Betterment is a New York City-based fintech company founded in 2008. The company, widely recognized for its robust robo-advisory platform, has also made its mark in the banking world with its checking, savings, and investment accounts.

The standout feature is the Cash Reserve account, a high-yield savings account with a minimum opening deposit of $10, an impressive APY of 5.50%, and unlimited penalty-free withdrawals. Individual and joint accounts enjoy insurance of up to $1 million and $2 million, respectively. Plus, users can reap benefits from a cash-back rewards option. However, Betterment’s variety of account options is relatively limited compared to some competitors.

9. Varo

Varo Bank began in 2015 as a fintech company that partnered with The Bancorp Bank. In 2020, it acquired its own national banking charter, making it different from other neobanks you might come across. Even though Varo operates as an actual bank, it focuses on online banking via its website and mobile app.

Its checking account is free of monthly fees and there’s no minimum balance requirement. Plus, it comes with a debit card. In addition, Varo partners with more than 55,000 ATMs through the Allpoint ATM network.

We can’t forget its other perks, such as contactless payments, credit cards with reporting to the major credit bureaus, early direct deposits, and no foreign transaction fee or transfer fees. Varo might be worthwhile if you’re looking for a bank account with all the bells and whistles.

Read our Varo Bank review to learn more.

10. Bluevine

Bluevine made its debut in 2013 as a fintech company with a mission to improve banking for small and mid-sized business owners. Its flagship product is the Bluevine Business Checking. It’s completely free and comes with a competitive annual percentage yield and unlimited transactions. This is rarely seen in the world of business checking.

In addition to the business checking account, Bluevine offers financing products, such as lines of credit of up to $250,000. Bluevine should be on your radar if you’re a business owner in search of fast, convenient startup banking and financing.

11. One

One is a neobank owned by Walmart. It offers a budget-friendly overdraft program with customized budgeting and savings options for its customers. One’s banking account allows users to organize their money into subaccounts called Pockets.

Pockets offer saving rates of 1% on up to $5,000 for any customer and 1% on up to $25,000 for customers with direct deposit. Additionally, One provides fee-free overdraft coverage of up to $200 for customers with direct deposits of at least $500 per month.

12. Cheese

Cheese is a digital banking platform that was launched in March 2021 and caters specifically to the immigrant and Asian American communities. It offers up to 10% cash back at 10,000 businesses, including Asian-owned businesses and restaurants.

Cheese’s customer support is available in English and Chinese, with more languages to be added in the future. One of the benefits of opening an account with Cheese is that accounts earn interest and do not have monthly fees or ATM fees when using the national MoneyPass ATM network.

13. Oxygen

San-Francisco based Oxygen focuses on two bank accounts: the free thinker account for individuals and a business bank account called the pioneer account. Even though it doesn’t charge fees, like monthly fees, ACH fees, and overdraft fees, you will have to pay an annual fee that can go up to a few hundred dollars.

While most neobanks don’t allow for cash deposits, Oxygen does. As long as you have an Oxygen bank account, you can make deposits at GreenDot locations, which are usually located inside popular retailers, like Walmart, Walgreens, and CVS. If you don’t mind paying an annual fee and like the convenience of being able to deposit cash, Oxygen is worth exploring.

14. Bella

Bella is a fairly new player in the neobanking space. Its partner bank is nbkc bank, which allows it to provide digital banking solutions. With Bella’s checking account rewards program, you can receive a random percentage of cash back on randomly selected purchases.

The cash back amount may be anywhere from 5% to 200%. Like most neobanks, Bella doesn’t charge monthly fees, ATM fees, and overdraft fees. You can also opt for a no-fee savings account. Bella accounts are FDIC insured for up to $5,000,000.

15. Lili

Lili services small business owners and believes that managing two bank accounts is a hassle. That’s why this neobank offers a single account you can use for both your business and personal transactions.

Come tax time, Lili will eliminate financial stress and let you automatically save a certain percentage of your income into a “tax bucket.” Plus, it produces quarterly and yearly reports instantly, reducing your tax prep costs. While the Lili Standard account is free, Lili Pro will run you a couple dollars per month.

If you upgrade to Lili Pro, you’ll get cashback rewards on all your debit purchases and 1% interest on your savings accounts. Lili could be a solid pick if you’re a freelancer or solopreneur hoping to simplify your finances.

16. Monzo

Monzo is a UK-based neobank that just opened up to the U.S. market in late 2022. Recognized for its modern approach to banking, every account holder in the U.S. can rest easy knowing their funds are backed by the FDIC insurance, safeguarding up to $250,000.

With Monzo, you get access to over 38,000 ATMs across the nation without the burden of withdrawal fees. International travelers or those dabbling in overseas shopping have more reasons to rejoice. Monzo assures there are no foreign transaction fees or currency conversion fees.

What is a neobank?

Often called challenger banks, neobanks have recently entered the financial services industry and challenged banking norms. Most neobanks are fintech companies that offer the same banking services you may find at a traditional financial institution, like Bank of America or Chase.

But they promote innovation and act like digital banks or online banks, as they don’t have any physical branches and operate via apps. Most of these apps are user-friendly and loaded with a variety of handy features, such as early deposit and savings tools, to simplify the banking experience. They are specifically designed to give you greater control of how you manage and spend your money.

Also, since neobanks don’t have any physical branches, their overhead costs and customer acquisition costs are low and enable them to offer more affordable banking products and services. Many neobanks let you choose from a number of free and paid premium subscription services.

Are neobanks safe?

Since neobanks are fairly new and different from traditional banking, you might wonder whether they’re safe. Fortunately, most of them are very safe because they operate within a regulated market.

These financial institutions typically work with U.S. banks to offer FDIC-insured accounts, which protect your money from potential bank failures and the losses that come with them. To help determine if a neobank is safe, check out their ratings and reviews on reputable websites like the Better Business Bureau (BBB).

Neobanks vs. Traditional Banks

To further explain neobanks and their modern spin on traditional banking, let’s take a closer look at how they differ from traditional banks.


Neobanks operate without physical branches. To take advantage of their offerings, you’ll likely need to download an app and provide some personal information.

While you can expect fewer banking and credit products than you’d find with traditional banking, you’ll reap the benefits of lower fees and extras that improve the overall banking experience.

Some neobanks have decided to expand their lineup of products and services to create more of a one-stop-shop you’d get from a traditional bank. Since most neobanks don’t earn money from lending, like incumbent banks, their business model depends on interchange fees or transaction fees, which usually come from debit cards. They might also charge for premium accounts and extra features.

Traditional Banks

Traditional banks often have brick-and-mortar locations across the country or in a specific geographic region or area. But many of them also have digital banking divisions, in which you can perform banking services online.

Most banks focus on strong customer relationships and earning interest through loans as well as account fees from banking, lending, and investing. They typically target customers who appreciate customer engagement and a traditional in-person banking experience.

See also: Best Alternatives to Traditional Banks

Pros & Cons of Neobanks

Just like all types of financial institutions, neobanks have benefits and drawbacks you should consider, including:


  • Lower fees: Compared to traditional banks, neobanks offer lower fees. That’s because they don’t have the high overhead costs associated with the upkeep of physical branches.
  • Higher rates: Neobanks and online banks often pride themselves on higher interest rates on their checking and savings accounts. This can make it easier and faster for you to save money.
  • Convenience: Perhaps the greatest benefit of neobanks is the convenience they bring. You can perform various banking tasks, like depositing checks or making payments from your smartphone device, round-the-clock.
  • Easy access: You can manage your banking 24/7 without ever having to leave your home and visit a local branch. All you have to do is download an app from the app store.
  • Simple setup: It’s usually fast and easy to open an account with neobanks. Many of them will approve you, regardless of your credit score or credit history.
  • Focused services: While most neobanks don’t offer all the services you might find at traditional banks, the few services they do provide focus on service quality and are typically loaded with perks and benefits. For example, you can get a free checking account with cash back rewards.


  • No bank charters: Neobanks don’t have bank charters. Instead, they often partner with traditional banks to insure their products. Before you move forward with a neobank, ensure they partner with a Federal Deposit Insurance Corp or FDIC-insured bank and offer their own FDIC insurance.
  • Customer service restrictions: Since neobanks operate on app instead of through physical branches, customer service can be a downside. You may have to turn to chatbots or social media for basic banking questions and support. If you notice fraud in your account, it may be more difficult to resolve the issue.
  • Fewer services: Traditional banks usually pride themselves on a long list of services, including loans, wealth management, and brokerage services. Most neobanks, however, tend to limit their offerings to checking and savings accounts or cash management accounts.
  • Unproven track record: Neobanks are still in the startup phase, as many made their debut within the last few years. This means that they may fail and force you to look elsewhere for your banking needs.
  • Require knowledge of technology: While most neobank apps are intuitive and designed for the average person to use with ease, they may still be inconvenient for some people. If you don’t consider yourself tech literate, a neobank might not make sense.

Bottom Line

There’s no denying that neobanks have revolutionized the banking industry and financial industry. If your primary goal is convenience, and you prefer online and mobile banking, a neobank can be a great alternative to a traditional bank or legacy bank. Just make sure you explore all your options and read the fine print before you choose one.

Frequently Asked Questions

Are my funds safe with a neobank?

Most reputable neobanks partner with established banks to ensure that customer funds are held in FDIC or equivalent insured accounts, providing the same level of protection as traditional banking institutions. However, it’s crucial to check each neobank’s insurance and partnership details to be certain.

How do neobanks make money?

Neobanks often have a different revenue model than traditional banks and credit unions. While they might not charge the same types of fees, they might earn money through other channels such as interchange fees, premium account services, third-party partnerships, or offering additional financial products.

What are the biggest neobanks?

The biggest neobanks vary by region, but globally recognized names include Chime, Revolut, N26, and Monzo, among others. It’s essential to look into the most prominent neobanks specific to your region for localized services.

Is a neobank a fintech?

Yes, a neobank is a type of fintech. Fintech, or financial technology, encompasses a range of financial services that leverage modern technology. Neobanks, being digital-only banks without physical branches, fall under the fintech umbrella.

Can I open a business account with a neobank?

Yes, many neobanks now offer business accounts tailored to freelancers, startups, and small businesses. These accounts often come with tools designed for business management, invoicing, and expense tracking.

Do neobanks offer the same services as traditional banks?

Neobanks generally offer core banking services like checking accounts, savings accounts, and payment transfers. Many also provide additional features like budgeting tools, international currency exchanges at competitive interest rates, or cashback offers. However, some services like mortgages or personal loans might be limited or not offered at all.

How fast is the sign-up process for a neobank?

One of the benefits of neobanks is the rapid and hassle-free sign-up process. Most neobanks allow users to open an account in minutes using a mobile app or online platform, without the need to visit a physical branch or provide extensive documentation.

Can I use a neobank for international transactions?

Yes, many neobanks cater to international customers and offer global payment solutions, often with lower fees than traditional banks. Some also provide multi-currency accounts, making it easier to manage and transfer money in various currencies.

Are there any hidden fees associated with neobanks?

While many neobanks pride themselves on transparent fee structures, it’s essential to read the terms and conditions carefully. Look out for fees related to international transactions, ATM withdrawals, or inactivity.

Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.

1. Out-of-network ATM withdrawal fees may apply with Chime except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

2. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. Chime generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

Anna Baluch
Meet the author

Anna Baluch is a freelance personal finance writer from Cleveland, OH. She enjoys helping people make smart financial decisions.