Okay, let's break down the world of neobanks (also known as challenger banks or digital banks) that focus on offering accounts with minimal or no fees. It's important to remember that "no fees" is rarely completely true, and the devil is often in the details. Also, offerings change frequently. Therefore, always double-check the current fee schedule on the bank's website before opening an account.

Here's a breakdown of some popular neobanks known for low or no fees, along with their key features and potential fees to watch out for:

U.S. Focused:

• Chime:


• Key Features: FDIC-insured, no monthly fees, no overdraft fees (with SpotMe eligibility), early direct deposit, savings account options, access to a large ATM network (MoneyPass and Visa Plus Alliance).


• Potential Fees: Out-of-network ATM fees, potential fees for cash deposits (depending on the retailer). Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.


• Varo:


• Key Features: FDIC-insured, no monthly fees, no minimum balance requirements, high-yield savings account options, Varo Advance (small-dollar advance service).


• Potential Fees: Fees associated with Varo Advance if not repaid promptly. Out-of-network ATM fees.


• SoFi:


• Key Features: FDIC-insured SoFi Checking and Savings accounts. No monthly fees, earn interest, access to a large ATM network, round-up savings feature. SoFi also offers investing and lending products (student loans, personal loans, mortgages).


• Potential Fees: Out-of-network ATM fees, potential fees for certain wire transfers (check their fee schedule).


• Discover Bank:


• Key Features: FDIC-insured, no monthly fees, no overdraft fees, no minimum balance requirements, cash back rewards on debit card purchases. A traditional bank with a strong online presence.


• Potential Fees: While Discover is generally fee-free, double-check for fees related to specific services like wire transfers or stop payment orders.


• Ally Bank:


• Key Features: FDIC-insured, no monthly fees, no minimum balance requirements, interest-bearing checking and savings accounts, access to a large ATM network (Allpoint).


• Potential Fees: Outgoing wire transfers have a fee. Excessive transaction fees on savings accounts are possible (but unlikely for most users).


• Capital One 360:


• Key Features: FDIC-insured, no monthly fees, no minimum balance requirements for most accounts, interest-bearing checking and savings accounts, access to Capital One ATMs and partner ATMs.


• Potential Fees: Some rare fees may apply to specific services like outgoing wire transfers.

Things to consider when choosing a Neobank

• Features


• How important are physical branches or ATM access to you?


• Does the neobank offer a savings account or other financial products like loans?


• What budgeting or money management tools does the bank offer?


• FDIC Insurance: Make sure your deposits are FDIC insured. This protects your money up to $250,000 per depositor, per insured bank.


• Customer Service: Research the quality of customer service. Read reviews to see what other customers have experienced.

General Considerations and Potential Fees to Watch For:

• Out-of-Network ATM Fees: Almost all neobanks charge fees for using ATMs outside of their network (or networks they partner with). Check the ATM network size and locations carefully.


• Overdraft Fees: Many neobanks are eliminating or reducing overdraft fees. However, some may still charge them or offer overdraft protection services with associated costs. Understand the policy.


• Wire Transfer Fees: Outgoing wire transfers, especially international ones, often have fees.


• Stop Payment Fees: Fees for stopping payment on a check or electronic transaction.


• Account Closure Fees: Some banks might charge a fee to close your account, although this is becoming less common.


• Inactivity Fees: Some banks charge fees if your account is inactive for a certain period.


• Cash Deposit Limitations/Fees: Depositing cash can sometimes be tricky with neobanks. Some may offer partnerships with retailers (like Green Dot) where you can deposit cash for a fee. Check the deposit options and associated costs.


• International Transaction Fees: Fees for using your debit card internationally. Some banks have eliminated these.

How to Find the Right Neobank for You:

• Assess Your Needs: What are your banking priorities? No fees, high interest rates, specific features (like budgeting tools), ATM access, etc.?


• Research: Compare several neobanks. Read reviews, check their websites, and compare their fee schedules.


• Check FDIC Insurance: Verify that the neobank is FDIC-insured (or that the partner bank they use is).


• Read the Fine Print: Pay close attention to the terms and conditions, especially the fee schedule and any limitations.


• Consider Customer Service: Read reviews about customer service experiences.

By doing your research and carefully considering your needs, you can find a neobank that offers the low- or no-fee banking experience you're looking for. Good luck!