Neobanks and fintech companies have revolutionized the way we manage money. They offer sleek apps, competitive interest rates, minimal fees, and innovative features that traditional banks often don’t. But with so many options flooding the market, how can you tell which neobanks and fintechs stand out from the crowd?
Our team evaluated the top neobanks and fintech companies on the market based on factors such as product offerings, interest rates, fees, digital tools, accessibility, and more. We then ranked these companies and identified the top five best. (See our full methodology here.)
Best for a wide variety of banking products and services
Social Finance Inc. — better known as SoFi — is an online financial company founded in 2011 by a group of Stanford business school students. In 2012, SoFi launched its Student Loan Refinancing program for federal and private student loans. Today, SoFi serves more than 6.9 million customers and has expanded its product offering to include lending, investing, personal banking, insurance, and more.
SoFi offers some of the best interest rates available, particularly for savings and checking accounts. There are no minimum deposit requirements to open an account or earn interest. SoFi also prides itself on its no-fee model — there are no monthly maintenance fees, overdraft fees, or in-network ATM fees.
Additionally, the new SoFi Plus app provides up to $1,000 in value each year, including a competitive interest rate on savings, the ability to earn rewards, and unlimited access to financial planners with SoFi Wealth. This premium membership is free with direct deposit to a SoFi checking and savings account.
Read our full review of SoFi here
Best for building credit
Chime is a San Francisco-based financial technology company that offers banking services provided by its partner banks (The Bancorp Bank, N.A. or Stride Bank, N.A., which are both FDIC-insured institutions). Chime offers a smaller suite of banking products with a focus on checking and savings accounts and credit-building tools.
The Chime checking account offers a number of benefits, including access to more than 50,000 fee-free ATMs and early direct deposit. Plus, eligible members can overdraw their accounts by up to $200 on debit card purchases without incurring overdraft fees through Chime’s SpotMe® feature.
Additionally, Chime offers the Chime Credit Builder Secured Visa Credit Card to help account holders build and improve their credit. There is no annual fee or interest, and no minimum deposit.
Chime’s mobile app has a rating of 4.8 and 4.7 stars on the App Store and Google Play, respectively. Customers can use it to check their account balance, pay bills, and transfer money to and from external bank accounts.
Read our full review of Chime here
Best for high-yield savings
Founded in 2015, Varo Bank is a fully digital bank that offers checking accounts, savings accounts, loans, and credit-building tools.
In particular, Varo Bank stands out for its high-yield savings account, which offers an impressive rate of up to 5.00% APY on balances up to $5,000 (balances over this threshold earn 2.50% APY). It also offers digital savings tools such as purchase round-ups and automated savings that will automatically save a percentage of your paycheck each month.
Varo Bank customers also enjoy no monthly fees, early direct deposit, cash back at select merchants, and free cash deposits.
Varo’s mobile app has a rating of 4.9 and 4.7 stars on the App Store and Google Play, respectively.
Read our full review of Varo Bank here
Best for budgeting
Albert is a comprehensive financial management app designed to assist users in budgeting, saving, spending, and investing — all within a single platform. It offers features such as automatic budgeting, early direct deposit, cash-back rewards, and access to financial experts for personalized advice. Its high-yield savings account currently offers a rate of 4% — more than nine times the national average.
Funds in Albert Cash accounts are held in a pooled account at Sutton Bank (member FDIC), while funds in Albert Savings accounts are held at FDIC-insured banks, including Coastal Community Bank and Wells Fargo.
The Albert App is available for download on the App Store and Google Play and has a rating of 4.6 and 4.5 stars, respectively.
Best for immigrants in the US
Comun is a newer fintech company that offers banking products and services for the underbanked. It aims to provide more inclusive financial services for immigrants and their families. Banking services are provided by Community Federal Savings Bank, an FDIC-insured institution.
Comun’s primary product is a checking account that’s free to open and doesn’t charge any monthly fees or minimums. It also offers early direct deposit, 24/7 bilingual customer support, Zelle capabilities, and remote check deposit.
The company also allows customers to send money abroad with a flat fee of $2.99 per transaction, regardless of the destination country or collection method, making it cost-effective to support family and friends overseas. Additionally, users can deposit cash at over 88,000 locations nationwide, including major retailers such as Walmart, Walgreens, CVS, Dollar General, and 7-Eleven.
Read more: Can non-U.S. citizens open a bank account?
A neobank is a digital-only financial institution operating entirely online without physical branch locations. Also known as “challenger banks,” neobanks provide banking services such as checking and savings accounts, debit cards, payments, and financial management tools through user-friendly mobile apps and websites.
Learn more: What is a neobank, and is it safe?
What’s the difference between a neobank and a digital bank?
Both neobanks and digital banks are quite similar, but they differ when it comes to their structure and how they’re regulated.
Neobanks don’t have banking charters and instead offer their services in partnership with traditional, FDIC-insured banks. Meanwhile, digital banks have their own banking licenses or operate as the digital division of licensed banks.
Fintech is short for “financial technology” and refers to companies or platforms that rely on software, mobile apps, AI, and more to create better user experiences, reduce costs, and expand financial access.
One of the major benefits of banking with a fintech company is that they often provide lower-cost services because they have less overhead than traditional banks. This can be great news for customers who want to avoid fees and don’t necessarily need the convenience of a physical bank.
It should be noted that fintechs typically don’t provide banking services directly. Instead, they act as a middleman or marketplace in partnership with local or regional banks.
Read more: What is fintech?
There are several perks and downsides to banking with a neobank or fintech company. These include:
Pros
Lower fees: Neobanks and fintechs take a digital-first approach to banking. As a result, they face fewer overhead costs and pass savings on to customers in the form of lower fees.
Higher deposit rates: In addition to lower fees, fewer overhead costs can also translate to higher rates on deposit accounts, including savings accounts.
Convenience: When you bank with a fintech or neobank, all of your banking can be done from the comfort of your home or on the go. You don’t have to visit a physical branch to open an account or deposit a check.
Cons
No in-person support: Even if you can’t remember the last time you spoke with a bank teller, it certainly helps when you need to resolve an issue related to your bank account. Many fintechs and neobanks have customer service lines, but this isn’t always the case, and you may have to deal with automated chats and/or limited customer service hours.
Cash deposits may be difficult: Most neobanks and fintechs don’t have their own ATM networks and instead partner with networks such as Allpoint. This could make depositing cash trickier than it would be with a traditional bank that offers branches and its own network of ATMs.
Lack of FDIC insurance coverage: Neobanks and fintechs are typically not FDIC-insured. That said, they typically partner with traditional banks to offer coverage on customer deposits. However, this isn’t always the case, so it’s important to read the fine print to make sure your funds held with a neobank or fintech are protected in case the company fails.
Read more: The downfall of Synapse: Is your money really safe with a fintech bank?
As long as your neobank partners with an FDIC-insured institution, your deposits will be insured up to the federal limit (or even higher in some cases).
There are a few drawbacks to be aware of when banking with a neobank. For one, they do not have physical branches, which could be an issue if you prefer to bank in person. Additionally, customer support may be limited to online or chat-based communication, potentially leading to delays or frustrations when resolving urgent or complicated issues.
Fintech is short for “financial technology” and refers to technology-driven innovations that improve, automate, or simplify financial services.
Our grading system, collected and carefully reviewed by our personal finance experts, comprised more than 200 data points for 14 neobanks and fintechs to develop our list of the top five.
We evaluated these companies according to several key metrics, with the ability to earn a maximum of 24 points. Here’s a closer look at the categories we considered:
App store availability: We rewarded fintechs that were available for download on both the Apple App Store and Google Play.
Mobile check deposit: Apps that offered remote check deposits earned an extra point.
Credit score monitoring: Neobanks and fintechs that offered credit score monitoring earned an extra point.
Zelle: Many neobanks and fintechs offer Zelle as an easy way to send and receive money. We rewarded these banks with an extra point for offering Zelle capabilities.
In-app customer support and/or virtual assistant: Apps that offered customer support or a virtual assistant within the mobile app earned one point.
Average app rating: Apps with a higher average mobile app rating on the Apple and Google storefronts scored more points than those that did not.
Ability to transfer funds to external accounts: Neobanks and fintechs that allowed for external bank transfers earned an extra point.
Face/touch ID verification: Apps that offered an extra layer of security in the form of face ID and/or fingerprint verification were awarded one point.
In-app card controls: Apps allowing for in-app card locking and freezing earned an extra point.
Bill pay: Neobanks and fintechs that offered bill pay services earned one point.
Early direct deposit: Many banking institutions offer early direct deposit, giving customers access to their paychecks before payday. These institutions earned an extra point for offering this perk.
Supports cash deposits: Neobanks and fintechs don’t offer physical branches, so depositing cash can be more difficult. We rewarded institutions that supported cash deposits with an extra point.
Budgeting and savings tools: Companies that offered customers digital budgeting and savings tools such as savings pods and round-ups earned an extra point.
Knowledge base and/or FAQ section: We rewarded neobanks and fintechs with an extra point if they offered a dedicated knowledge base or FAQ section for customers.
High-yield or rewards checking: Neobanks and fintechs that offered high-yield or rewards checking accounts earned an extra point.
High-yield savings account: Neobanks and fintechs that offered high-yield savings accounts earned one point.
No overdraft fees or offers overdraft protection: We rewarded banks that charged zero overdraft fees or offered customers the option to enroll in overdraft protection.
Free ATM network and/or ATM reimbursement for out-of-network ATM fees: Neobanks and fintechs that offer a free ATM network and/or reimbursement for fees incurred at out-of-network ATMs earned up to two extra points.
FDIC insurance: We rewarded institutions that offered FDIC insurance and gave an extra point for additional insurance above the typical $250,000 limit.
