Compare digital bank accounts in the US

Chime Spending account

Finder Rating: 4.7 / 5

★★★★★

Apply nowat Chime's secure site

N/A
APY

None
Fees

None
Min. opening deposit

• Pros & cons
• Details

• No hidden 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% APY on your total balance. Plus, use savings tools like round-ups and automatic transfers to grow your nest egg.

• 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.

APY	0%
Account fees	$0 monthly
Can the fee be waived?	No
ATM transaction fee	$0
Foreign transaction fee	0%
Overdraft fee	$0

Disclaimer

Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank or Stride Bank, N.A., Members FDIC.

OnJuno

Finder Rating: 4.8 / 5

★★★★★

Apply nowat OnJuno's secure site

Up to 2.15%
APY

None
Fees

None
Min. opening deposit

• Pros & cons
• Details

• Metal plan free with direct deposit. OnJuno waives the $9.99 fee for the Metal plan 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 interest. You'll earn up to 2.15% APY depending on your plan and account balance. This rate is among the highest in the industry.

• APY and cashback limits. You'll earn 2.15% APY on up to $30,000 in balances for the Metal plan and $5,000 for the Basic plan. You'll earn 5% cash back on up to $3,000 in purchases for the Metal plan and up to $500 in purchases for the Basic plan.
• 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	2.15%
Account fees	$0 monthly
Can the fee be waived?	Yes
Insufficient funds fee	$0
ATM transaction fee	$0
Foreign transaction fee	0%
Accout closure fee	$0

Varo

Finder Rating: 4.7 / 5

★★★★★

Read review

N/A
APY

None
Fees

None
Min. opening deposit

• Pros & cons
• Details

• 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.

• 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.

APY	0%
Account fees	$0 monthly
Can the fee be waived?	Yes
Insufficient funds fee	$0
ATM transaction fee	$0
Foreign transaction fee	0%
Overdraft fee	$0

What’s changed in 2021?
We replaced Simple with OnJuno as one of the best digital banks because it’s shutting down in the near future.

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:

• N26. This German challenger bank lets you divide your money up into Spaces, or subaccounts, to help you budget and save. N26 launched in the US in July 2019.
• 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.