Compare digital bank accounts in the US

The best digital bank accounts offer savings or budgeting features, low fees and 24/7 customer support. We researched more than 20 digital banks and compared each of their offerings. We weighed their fees, deposit requirements and features such as cash-back deposits, automated savings, rewards, interest rates, etc. Among all the digital banking providers we’ve reviewed, these four come out on top.

Varo

Finder Rating: 4.7 / 5 ★★★★★

Go to site on Varo's secure site Read review

• Pros and cons

  Pros

  • Minimal fees. You won't pay any fees for monthly maintenance, overdrafts, transfers, foreign transactions and card replacements. But you'll pay $2.50 for non-network ATMs.
  • Early payday. Enroll in direct deposits and get your paycheck and government benefits up to two days earlier than you would with a traditional bank.
  • Up to 6% cash back. Use your debit card at participating retailers and get rewarded, an unusual perk for a checking account.

  Cons

  • Only two accounts. Varo doesn't offer any CDs or business accounts. And you must open a checking account before you can open a savings account because they're linked.
  • No checks or wire transfers. Varo doesn't support checks or wire transfers of any kind.
  • Cash deposits with a fee. Deposit cash at one of 90,000+ Green Dot locations, but you'll pay up to $5.95 for the deposit.

• More details

  APY	5.00% on balances of $0 to $5,000 (with direct deposits of $1,000+) 3.00% on balances of $5,000+
  Intro or bonus offer	Earn $30 bonuses every time a friend signs up for an account and spends at least $20 within 30 days
  Fee	$0 per month
  Nonsufficient funds fee	$0
  ATM transaction fee	$0
  Foreign transaction fee	0%
  Overdraft fee	$0

APY	Up to 5.00%
Fee	$0 per month
Minimum deposit to open	$0

Go to site on Varo's secure site Read review

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Chime Checking account

Finder Rating: 4.7 / 5 ★★★★★

Go to site on Chime's secure site Read review

• Pros and cons

  Pros

  • No fees. Chime doesn't charge anything for monthly maintenance and foreign transactions.
  • Free overdraft protection. On overdraws up to $100, Chime will spot you the difference for free and deduct it from your next direct deposit. But you must have at least $500 in monthly direct deposits to qualify.
  • Automate your savings. Open Chime's optional savings account and earn 0.50% annual percentage yield (APY) on your total balance. Plus, use savings tools like round-ups and automatic transfers to grow your nest egg.

  Cons

  • Only two accounts. Chime only has a checking and a savings account, and you must open the checking account to qualify for the savings account.
  • Account closures. Chime is under investigation after numerous reports of account closures in 2021.
  • No joint accounts. You can't open any Chime accounts jointly with a partner, family member or friend. You also can't request a secondary debit card.

• More details

  APY	N/A
  Fee	$0 per month
  ATM transaction fee	$0
  Foreign transaction fee	0%
  Overdraft fee	$0

Partner terms and conditions

Chime says:

Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa cards are accepted.

The retailer that receives you cash will be responsible for transferring the funds for deposit into you Chime Checking Account. Cash deposit fees may apply if using a retailer other than Walgreens.

Chime Checking Account is required to be eligible for a Savings Account.

Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We 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.

Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each month. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member's Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime's discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won't cover non-debit card transactions, including ACH transfers, Pay Friends transfers, or Chime Checkbook transactions. See Terms and Conditions.

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

Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member's direct deposit enrollment status.

FDIC deposit insurance limit to $250,000 per depositor, per insured bank, per ownership category. For Stride Savings Account depositors, funds are eligible for FDIC insurance when it arrives at the bank. Please visit the Chime site for more details on FDIC insurance.

Fee	$0 per month
Minimum deposit to open	$0

Go to site on Chime's secure site Read review

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SoFi Checking and Savings

Finder Rating: 4.6 / 5 ★★★★★

Go to site on SoFi's secure site Read review

• Pros and cons

  Pros

  • Solid APY. Earn up to 2.5% APY with your checking account and 3.75% with savings if you receive direct deposits.
  • No fees. There are no service fees or overdraft fees associated with this account.
  • Early access to paychecks. Get access to your paychecks up to two days before your actual payday.

  Cons

  • Perks linked to direct deposit. You only earn the APYs and fee-free overdraft protection for both accounts if you receive direct deposits. And overdraft coverage requires at least $1,000 in qualifying direct deposits before it kicks in.

• More details

  APY	3.75% on balances of $0+ 2.50% on balances of $0 to
  Intro or bonus offer	Get up to $250 when you open a new account or switch your direct deposit to SoFi checking and savings. In order to qualify for the $250 bonus, you must have $5,000+ in qualifying direct deposits within a month, and to qualify for $50, you must deposit $1,000 to $4,999.99. This offer is available until Jan 31, 2023
  Fee	$0 per month
  ATM transaction fee	$0
  Foreign transaction fee	0%
  Overdraft fee	$0

APY	Up to 3.75%
Fee	$0 per month
Minimum deposit to open	$0

Go to site on SoFi's secure site Read review

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Juno

Finder Rating: 4.8 / 5 ★★★★★

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• Pros and cons

  Pros

  • Metal plan free with direct deposit. Juno's top-tier Metal plan is free when you set up direct deposit.
  • Juno gives back. The company donates 2.15% of its profits to charities in India in an effort to reduce wealth inequality.
  • Cashback rewards. You'll earn 5% cash back on five brands of your choice, up to $500 in purchases for the Basic plan and $3,000 for the Metal plan.
  • Earns an APY-like bonus. You'll earn a 5% bonus on balances up to $25,000, and 3% on balances between $25,001 and $250,000. This rate is among the highest in the industry.

  Cons

  • No joint accounts. Juno doesn't support joint accounts, so you can't open this account with a spouse or dependent.
  • No other accounts. You won't find any savings accounts, credit cards or loans with Juno, so it's not ideal for those who want to keep everything under one roof.

• More details

  APY	5.00% on balances of $0 to $25,000 3.00% on balances of $25,001 to $250,000
  Intro or bonus offer	Earn $50 back when you set up your first qualifying direct deposit of $250+.
  Rewards	5% cashback when you pay with cash or crypto, on total annual spends of $500 with the basic plan or $6000 of the total spend with the Metal plan
  Fee	$0 per month
  Nonsufficient funds fee	$0
  ATM transaction fee	$0
  Foreign transaction fee	0%

APY	Up to 5.00%
Fee	$0 per month
Minimum deposit to open	$0

Read Review

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What other digital banks have launched in the US?

There are a number of digital banks operating overseas that plan to launch in the US in the future, including:

• Revolut. This UK-based bank was created with travelers in mind, offering low fees for international purchases, withdrawals and money transfers.Revolut launched in the US in March 2020.
• Glint.This UK-based banks brings an old concept into the digital age. Glint lets you store your money as gold so that it’s less vulnerable to the economic factors than can impact a country’s currency. US customers can already use the app to buy gold, but Glint plans to launch a debit card that allows you to spend your gold or exchange it for US currency at an ATM in the near future.

6 common support options for digital banks

Digital banks offer a wide range of customer service outlets:

1. Live chat. Speak to a representative in real-time on your computer or smartphone.
2. Contact form. Send a secure message through its website or app.
3. Email. Get help with your account by initiating an email correspondence.
4. Phone. Call customer service during its business hours.
5. Mobile app chat. Some digital banks let you chat with a rep right from the mobile app.
6. Social media. Reach out through various social media platforms, including Twitter, Facebook and Instagram.

What’s the difference between a digital bank and an online bank?

Many banks in the US appear to be digital banks — they don’t have branches and customers use mobile banking apps to control their money — but that doesn’t mean they are. This table breaks down the difference between digital banks and online banks:

Online banks aren’t 100% digital banks

Many people refer to American Express and Discover as digital banks because they don’t have any physical branches. However, these banks aren’t neobanks because they rely on existing banking infrastructure and operate like a traditional bank.

Can a digital bank really replace my traditional bank account?

It depends on your personal needs. Banking apps let you fully manage your accounts — savings, checking and more — through your smartphone or computer. If you’ve never stepped into a branch location and don’t plan to anytime soon, switching over might make sense.

But remember that you don’t have to cancel your traditional bank account to use a digital bank. Having multiple bank accounts does not affect your credit score.

Are digital banks safe?

Digital banks need to have the same banking licenses and approvals as existing US banks before they’re able to offer products and services to consumers. These new banks will be regulated by the Federal Deposit Insurance Corporation (FDIC) and the US Securities and Exchange Commission (SEC) in the same way that existing banks are regulated.

Your deposit of up to $250,000 with an FDIC-insured bank is protected by the US government. This means if something were to happen to the bank, your money (up to this amount) would be safe. Note that some of the digital banks mentioned in this guide are not yet considered banks and haven’t yet been licensed or FDIC-insured.

How do I sign up for a digital bank?

The sign-up process varies between providers. You can generally start by downloading the provider’s app to your smartphone. Then, verify your identity by providing an ID such as your driver’s license or passport. You’ll also need to send personal details such as name, address and contact information. Some apps will send you a physical card, while others allow you to start spending instantly with a virtual debit card.

For new digital banks, you may need to join their waitlist by visiting their website. Once their product launches they’ll send an announcement to those on the waitlist first.

What is the difference between mobile and digital banking?

Mobile banking refers to the ability to manage your finances through an app or smartphone-friendly website. Digital banking is a broader term that also encompasses the ability to manage your finances via a website. You’ll get more convenience with Mobile banking because you don’t need a traditional desktop or laptop computer to access your account. There are several advantages to mobile banking:

Bottom line

Digital banks are getting a lot of hype right now, and for good reason. They often cater to specific niches and groups and they’re known for offering innovative apps. But before you ditch your current bank, take the time to read through all of the fine print to make sure the bank you’re interested in is as good as it sounds.

Frequently asked questions

• How can I tell if a bank is insured by the FDIC?

  Use the FDIC’s searchable database to find out if a bank is FDIC-insured.

• Are digital banks secured by the FDIC?

  Many digital banks are backed by the FDIC. To confirm, search for your provider on the FDIC website.

• How do I get help if there are no bank branches?

  Digital banks often have multiple ways to contact customer service, including via online chat, email and phone. Check with the bank you’re interested in to find out how they handle customer support before signing up.

• Do I have to close my traditional bank account before signing up with a digital bank?

  No. You can hold two or more transaction accounts at once if you want to. This may be a good idea if you aren’t sure whether the new bank app you’re signing up with is going to be right for you. This way, you can try out the app for a while and see if it suits your needs.