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Compare digital bank accounts in the US
Browse digital accounts, discover the benefits of digital banking and learn how you can open an account today.
Compare digital bank accounts
Use this table to compare accounts from digital banks, or neobanks, to find one that's right for you. Take it a step further by filtering accounts by interest, fees and ATM access.
This article was reviewed by Marguerita Cheng, a member of the Finder Editorial Review Board and award-winning advocate for ethical financial planning for over 20 years.
The 4 best digital bank accounts
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.
OnJuno
Finder rating 4.8 / 5 ★★★★★
Pros
- Metal plan free with direct deposit. OnJuno's top-tier Metal plan is free when you set up direct deposit.
- OnJuno 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 1.2% bonus on balances up to $5,000 or $50,000, depending on your plan. This rate is among the highest in the industry.
Cons
- Bonus rate drops. The bonus rate drops to 0.25% on balances above $5,000 with the Basic tier and $50,000 with the Metal tier.
- No joint accounts. OnJuno 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 OnJuno, so it's not ideal for those who want to keep everything under one roof.
| APY | Up to 1.20% |
|---|---|
| Fee | $0 per month |
| Minimum deposit to open | $0 |
Chime Spending account
Finder rating 4.7 / 5 ★★★★★
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.
- 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.
Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A., Members FDIC.
| Fee | $0 per month |
|---|---|
| Minimum deposit to open | $0 |
Varo
Finder rating 4.7 / 5 ★★★★★
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.
- Accepts cash deposits. Deposit cash at over 90,000 Green Dot locations nationwide, unlike most digital banks that don't accept cash deposits at all.
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 live chat. Unlike other digital banks, the only way to contact customer service is via phone and email.
- No checks or wire transfers. Varo doesn't support checks or wire transfers of any kind.
| Fee | $0 per month |
|---|---|
| Minimum deposit to open | $0 |
SoFi Checking and Savings
Finder rating 4.6 / 5 ★★★★★
SoFi Checking and Savings lives up to its name by providing an interest-bearing checking account with optional savings “vaults.” Balances in both your checking account and savings vaults earn 1.25% APY, but only if you receive direct deposits on a recurring basis. And when you set up direct deposits, you will also get fee-free overdraft protection and early access to paychecks. Plus, you can get up to 15% back when you use your SoFi card at select retailers.
Pros
- Solid APY. Earn 1.25% APY 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 will only earn 1.25% APY and get fee-free overdraft protection if you receive direct deposits. And overdraft coverage requires at least $1,000 in qualifying direct deposits before it kicks in.
| APY | 1.25% |
|---|---|
| Fee | $0 per month |
| Minimum deposit to open | $0 |
What’s changed in 2021?
We updated this page to reflect that OnJuno‘s APY-like bonus rate is now 1.2%.
We added SoFi Checking and Savings to our list of the best digital banking accounts.
What is digital banking?
Digital banking refers to the management of finances through apps or websites rather than through human interaction at physical banks. The term is loosely defined, and many companies that exclusively specialize in digital banking are known as neobanks.A neobank is a digital bank that doesn’t use any existing legacy systems to operate. This means the bank doesn’t use any physical infrastructure or digital operating systems that are already being used by existing financial institutions. The technology used by these fully digital banks is developed from scratch.
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.
What are the benefits of a digital bank?
There are several perks of using a digital bank. Among them:
- They understand your habits. Digital banking apps have spending analysis features that evaluate where your cash is going. Look for automatic spending categorization, notifications, alerts and monthly reports.
- You can sync them with your budget. Use the spending analysis to set up budgets and track progress. The app may allow you to set goals and spend limits to make veering off course more difficult.
- Traveling perks. Some digital banks can make traveling easier by holding multiple currencies at once, skipping international ATM or foreign currency fees and locking or unlocking your card if it gets lost or stolen.
- Automated savings. Some digital banks prioritize stashing cash away. For instance, rounding transactions to the nearest dollar and sending the difference to your savings account.
What are the drawbacks of a digital bank?
Digital banks won’t suit everyone’s tastes. Before opening an account, consider these potential pitfalls:
- No in-person help.If you’re looking to navigate a complex financial plan with the aid of a professional, you might want to stick with a more traditional setup.
- Smaller product offerings. While industry giants also offer loans, mortgages and investment accounts, digital banks tend to specialize in checking and savings.
- Compatibility may be limited. Make sure your smartphone can handle whichever digital bank you choose — not all operating systems may be supported.
- Technical reliance. Technical difficulties could derail your ability to access and manage personal finances, which might present too big a risk for some.
6 common support options for digital banks
Digital banks offer a wide range of customer service outlets:
- Live chat. Speak to a representative in real-time on your computer or smartphone.
- Contact form. Send a secure message through its website or app.
- Email. Get help with your account by initiating an email correspondence.
- Phone. Call customer service during its business hours.
- Mobile app chat. Some digital banks let you chat with a rep right from the mobile app.
- 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:
| Features | Digital bank | Online bank |
|---|---|---|
| Competitive interest rates | ||
| Low opening deposits | ||
| Few fees | ||
| Built-in budgeting & automated savings tools | ||
| Branch locations | ||
| More account options | ||
| Accepts cash deposits |
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.
Must read: A bank offering Apple Pay isn’t necessarily a digital bank.
Many banks offer contactless payments via digital wallets like Apple Pay, Google Pay and Samsung Pay, but offering a digital feature doesn’t make them digital banks.
Similarly, if a bank offers a top-notch mobile banking app, Internet banking services, cardless cash facilities and digital savings tools, this doesn’t automatically mean it’s a digital bank either. Remember, a 100% digital neobank is one that doesn’t use any existing banking systems or infrastructure.
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:
- Banking access in your pocket
- Many companies offer 24/7 access to banking support
- Instant spending notifications
- Many banking apps offer ways to automatically save money
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
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