Finder makes money from featured partners, but editorial opinions are our own. Advertiser Disclosure
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.
Digital banking refers to any bank that operates primarily online or through a mobile app. They don’t have physical locations, so all banking activities, such as depositing funds or speaking to customer service, is done online. Although not an actual bank, fintechs offer digital banking products by partnering with banks.
A few popular examples of digital banks include:
A digital bank, also called a neobank, is one that operates exclusively online without the use of any existing banking infrastructure. For example, while American Express doesn’t have a physical location, it still operates in the same way as a physical branch like Chase. These kind of offerings are considered online banks. Use this table to compare features across the two types.
| 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 |
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. 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.
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:
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 doesn’t affect your credit score.
Expert insight: Can online banks replace traditional banking?
While online banks offer better rates and features, they won't completely replace traditional banks unless we become a cashless society. As long as there's physical cash and people need to make cash deposits, traditional banks are here to stay.Also, digital banking complicates identity verification, especially with the rise in deepfake technology. Frontline staff at traditional banks have the upper hand in identifying red flags.
Digital banks offer a wide range of customer service outlets:
Yes. 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 banks are 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 although fintechs aren’t actual banks, they offer digital banking products and are FDIC insured through their partnering banks.
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.
Digital banks offer a lot to love for consumers, including higher interest rates, fewer fees and innovative apps. But before you ditch your current bank, take the time to compare your options make sure the bank you’re interested offers all of the financial tools you need to supplement or replace your existing banking option.
Projection of how much gas prices will go up over summer 2023.
Compare the best free kids’ debit card options that teach financial literacy.
An online bank, Grasshopper offers an interest-bearing checking account with unlimited cashback rewards and no monthly fees.
Find out which holiday is the deadliest traffic day in the US.
Business loans for veterans, including reduced fee SBA 7(a) loans.
Support your child’s financial knowledge and teach the important real-life money skills in a safe and controlled way with a kids’ debit card.
Mercury offers a modern banking solution with fine-tuned user controls and scalable digital tools.
Report on banking confidence in the US including demographic breakdowns.
Learn more about gold IRAs and how they work.
This guide provides step-by-step instructions on how to buy , lists some exchanges where you can get it and provides daily price data on .
