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Yahoo
31-03-2025
- Business
- Yahoo
The 5 best neobanks and fintech companies of 2025
Neobanks and fintech companies have revolutionized the way we manage money. They offer sleek apps, competitive interest rates, minimal fees, and innovative features that traditional banks often don't. But with so many options flooding the market, how can you tell which neobanks and fintechs stand out from the crowd? Our team evaluated the top neobanks and fintech companies on the market based on factors such as product offerings, interest rates, fees, digital tools, accessibility, and more. We then ranked these companies and identified the top five best. (See our full methodology here.) This embedded content is not available in your region. Best for a wide variety of banking products and services Social Finance Inc. — better known as SoFi — is an online financial company founded in 2011 by a group of Stanford business school students. In 2012, SoFi launched its Student Loan Refinancing program for federal and private student loans. Today, SoFi serves more than 6.9 million customers and has expanded its product offering to include lending, investing, personal banking, insurance, and more. SoFi offers some of the best interest rates available, particularly for savings and checking accounts. There are no minimum deposit requirements to open an account or earn interest. SoFi also prides itself on its no-fee model — there are no monthly maintenance fees, overdraft fees, or in-network ATM fees. Additionally, the new SoFi Plus app provides up to $1,000 in value each year, including a competitive interest rate on savings, the ability to earn rewards, and unlimited access to financial planners with SoFi Wealth. This premium membership is free with direct deposit to a SoFi checking and savings account. Read our full review of SoFi here Best for building credit Chime is a San Francisco-based financial technology company that offers banking services provided by its partner banks (The Bancorp Bank, N.A. or Stride Bank, N.A., which are both FDIC-insured institutions). Chime offers a smaller suite of banking products with a focus on checking and savings accounts and credit-building tools. The Chime checking account offers a number of benefits, including access to more than 50,000 fee-free ATMs and early direct deposit. Plus, eligible members can overdraw their accounts by up to $200 on debit card purchases without incurring overdraft fees through Chime's SpotMe® feature. Additionally, Chime offers the Chime Credit Builder Secured Visa Credit Card to help account holders build and improve their credit. There is no annual fee or interest, and no minimum deposit. Chime's mobile app has a rating of 4.8 and 4.7 stars on the App Store and Google Play, respectively. Customers can use it to check their account balance, pay bills, and transfer money to and from external bank accounts. Read our full review of Chime here Best for high-yield savings Founded in 2015, Varo Bank is a fully digital bank that offers checking accounts, savings accounts, loans, and credit-building tools. In particular, Varo Bank stands out for its high-yield savings account, which offers an impressive rate of up to 5.00% APY on balances up to $5,000 (balances over this threshold earn 2.50% APY). It also offers digital savings tools such as purchase round-ups and automated savings that will automatically save a percentage of your paycheck each month. Varo Bank customers also enjoy no monthly fees, early direct deposit, cash back at select merchants, and free cash deposits. Varo's mobile app has a rating of 4.9 and 4.7 stars on the App Store and Google Play, respectively. Read our full review of Varo Bank here Best for budgeting Albert is a comprehensive financial management app designed to assist users in budgeting, saving, spending, and investing — all within a single platform. It offers features such as automatic budgeting, early direct deposit, cash-back rewards, and access to financial experts for personalized advice. Its high-yield savings account currently offers a rate of 4% — more than nine times the national average. Funds in Albert Cash accounts are held in a pooled account at Sutton Bank (member FDIC), while funds in Albert Savings accounts are held at FDIC-insured banks, including Coastal Community Bank and Wells Fargo. The Albert App is available for download on the App Store and Google Play and has a rating of 4.6 and 4.5 stars, respectively. Best for immigrants in the US Comun is a newer fintech company that offers banking products and services for the underbanked. It aims to provide more inclusive financial services for immigrants and their families. Banking services are provided by Community Federal Savings Bank, an FDIC-insured institution. Comun's primary product is a checking account that's free to open and doesn't charge any monthly fees or minimums. It also offers early direct deposit, 24/7 bilingual customer support, Zelle capabilities, and remote check deposit. The company also allows customers to send money abroad with a flat fee of $2.99 per transaction, regardless of the destination country or collection method, making it cost-effective to support family and friends overseas. Additionally, users can deposit cash at over 88,000 locations nationwide, including major retailers such as Walmart, Walgreens, CVS, Dollar General, and 7-Eleven. Read more: Can non-U.S. citizens open a bank account? A neobank is a digital-only financial institution operating entirely online without physical branch locations. Also known as "challenger banks," neobanks provide banking services such as checking and savings accounts, debit cards, payments, and financial management tools through user-friendly mobile apps and websites. Learn more: What is a neobank, and is it safe? Both neobanks and digital banks are quite similar, but they differ when it comes to their structure and how they're regulated. Neobanks don't have banking charters and instead offer their services in partnership with traditional, FDIC-insured banks. Meanwhile, digital banks have their own banking licenses or operate as the digital division of licensed banks. Fintech is short for 'financial technology' and refers to companies or platforms that rely on software, mobile apps, AI, and more to create better user experiences, reduce costs, and expand financial access. One of the major benefits of banking with a fintech company is that they often provide lower-cost services because they have less overhead than traditional banks. This can be great news for customers who want to avoid fees and don't necessarily need the convenience of a physical bank. It should be noted that fintechs typically don't provide banking services directly. Instead, they act as a middleman or marketplace in partnership with local or regional banks. Read more: What is fintech? There are several perks and downsides to banking with a neobank or fintech company. These include: Pros Lower fees: Neobanks and fintechs take a digital-first approach to banking. As a result, they face fewer overhead costs and pass savings on to customers in the form of lower fees. Higher deposit rates: In addition to lower fees, fewer overhead costs can also translate to higher rates on deposit accounts, including savings accounts. Convenience: When you bank with a fintech or neobank, all of your banking can be done from the comfort of your home or on the go. You don't have to visit a physical branch to open an account or deposit a check. Cons No in-person support: Even if you can't remember the last time you spoke with a bank teller, it certainly helps when you need to resolve an issue related to your bank account. Many fintechs and neobanks have customer service lines, but this isn't always the case, and you may have to deal with automated chats and/or limited customer service hours. Cash deposits may be difficult: Most neobanks and fintechs don't have their own ATM networks and instead partner with networks such as Allpoint. This could make depositing cash trickier than it would be with a traditional bank that offers branches and its own network of ATMs. Lack of FDIC insurance coverage: Neobanks and fintechs are typically not FDIC-insured. That said, they typically partner with traditional banks to offer coverage on customer deposits. However, this isn't always the case, so it's important to read the fine print to make sure your funds held with a neobank or fintech are protected in case the company fails. Read more: The downfall of Synapse: Is your money really safe with a fintech bank? As long as your neobank partners with an FDIC-insured institution, your deposits will be insured up to the federal limit (or even higher in some cases). There are a few drawbacks to be aware of when banking with a neobank. For one, they do not have physical branches, which could be an issue if you prefer to bank in person. Additionally, customer support may be limited to online or chat-based communication, potentially leading to delays or frustrations when resolving urgent or complicated issues. Fintech is short for 'financial technology' and refers to technology-driven innovations that improve, automate, or simplify financial services. Our grading system, collected and carefully reviewed by our personal finance experts, comprised more than 200 data points for 14 neobanks and fintechs to develop our list of the top five. We evaluated these companies according to several key metrics, with the ability to earn a maximum of 24 points. Here's a closer look at the categories we considered: App store availability: We rewarded fintechs that were available for download on both the Apple App Store and Google Play. Mobile check deposit: Apps that offered remote check deposits earned an extra point. Credit score monitoring: Neobanks and fintechs that offered credit score monitoring earned an extra point. Zelle: Many neobanks and fintechs offer Zelle as an easy way to send and receive money. We rewarded these banks with an extra point for offering Zelle capabilities. In-app customer support and/or virtual assistant: Apps that offered customer support or a virtual assistant within the mobile app earned one point. Average app rating: Apps with a higher average mobile app rating on the Apple and Google storefronts scored more points than those that did not. Ability to transfer funds to external accounts: Neobanks and fintechs that allowed for external bank transfers earned an extra point. Face/touch ID verification: Apps that offered an extra layer of security in the form of face ID and/or fingerprint verification were awarded one point. In-app card controls: Apps allowing for in-app card locking and freezing earned an extra point. Bill pay: Neobanks and fintechs that offered bill pay services earned one point. Early direct deposit: Many banking institutions offer early direct deposit, giving customers access to their paychecks before payday. These institutions earned an extra point for offering this perk. Supports cash deposits: Neobanks and fintechs don't offer physical branches, so depositing cash can be more difficult. We rewarded institutions that supported cash deposits with an extra point. Budgeting and savings tools: Companies that offered customers digital budgeting and savings tools such as savings pods and round-ups earned an extra point. Knowledge base and/or FAQ section: We rewarded neobanks and fintechs with an extra point if they offered a dedicated knowledge base or FAQ section for customers. High-yield or rewards checking: Neobanks and fintechs that offered high-yield or rewards checking accounts earned an extra point. High-yield savings account: Neobanks and fintechs that offered high-yield savings accounts earned one point. No overdraft fees or offers overdraft protection: We rewarded banks that charged zero overdraft fees or offered customers the option to enroll in overdraft protection. Free ATM network and/or ATM reimbursement for out-of-network ATM fees: Neobanks and fintechs that offer a free ATM network and/or reimbursement for fees incurred at out-of-network ATMs earned up to two extra points. FDIC insurance: We rewarded institutions that offered FDIC insurance and gave an extra point for additional insurance above the typical $250,000 limit.
Yahoo
28-02-2025
- Business
- Yahoo
SoFi vs. TD Bank: Which bank is a better fit for you?
With many banking options available, including online banks that pay high rates on savings, a key question is often: Do you need access to in-person service? If you don't, signing up with an online bank can be a no-brainer. But for some consumers, having a bank branch nearby is essential, if not a nice benefit. When comparing SoFi and TD Bank, branch locations will inevitably be a deciding factor. SoFi doesn't have bank branches, while TD Bank has several across multiple states. Of course, other factors are also important, such as what each bank offers and their rates. We'll compare the details of each bank and see how they stack up. Social Finance Inc. (SoFi) is an online financial company founded in 2011 by Stanford Business School students. The group used an alumni-funded lending model to connect recent grads with alumni in their community. Initially, SoFi's main product was student loan financing, but it began offering personal loans and mortgages in the mid-2010s. In 2019, it introduced SoFi Money, which became SoFi Checking and Savings. Read our full review of SoFi here TD Bank, a subsidiary of Toronto-Dominion Bank, is a national bank based in New Jersey. The company's roots date to 1873, when Portland Savings Bank was founded. In 2008, TD Bank Group acquired Commerce Bank and rebranded it as TD Bank. Today, TD Bank has a network of 2,600 ATMs and branch locations throughout the East Coast. Although the company is based in New Jersey, its largest concentrations of branches are in Florida and New York, which both have over 300 branch locations. Read our full TD Bank review here This embedded content is not available in your region. SoFi's Checking and Savings is a free checking account for customers who want a solid APY and minimal fees. When you sign up, you automatically get checking and savings accounts linked for easy transfers. No monthly fees apply, regardless of your daily average balance, and SoFi doesn't charge overdraft fees. You can also access an extensive ATM network of more than 55,000 locations. However, SoFi doesn't have any physical branches. TD Bank offers multiple checking accounts, but only one of them earns interest, albeit a minimal amount. The Beyond Checking account pays 0.01% APY and charges a $25 monthly maintenance fee. It offers a few ways to waive the fee, such as having a $2,500 daily average balance or $5,000 in monthly direct deposits. It also charges a $35 overdraft fee, though there is a grace period. TD Bank has a much smaller ATM network than SoFi, but it does have physical branches along the East Coast. TD Bank is also offering a sign-up bonus to new checking customers worth up to $300. Read more: New bank account promotions available now: Earn up to $3,000 At first glance, SoFi and TD Bank's savings accounts are comparable, with a relatively small difference in APY. However, SoFi offers the same APY on all balances, provided you have direct deposit. Conversely, TD's Signature Savings account uses tiered rates that require a balance of at least $100,000 to earn the highest rate. SoFi has no monthly maintenance fee, while TD charges $15 unless you maintain a daily average balance of at least $15,000. With its attractive yields and no monthly fees, SoFi made our list of the 10 best high-yield savings accounts. It's also offering a bonus of up to $300 for new customers who open its online bank account. SoFi doesn't offer any CD accounts. TD Bank offers several CDs with various terms. The bank's CDs have a relationship APY and a standard APY, meaning you must have a TD personal checking account to earn the highest rate. Currently, the highest rate available is 4% APY with a nine-month CD and a deposit of at least $100,000. SoFi's checking and savings products are popular, but far from all it offers. It also has student loan refinancing, private student loans, mortgages, credit cards, and other products. TD Bank is more traditional, so it has an extensive product and service lineup. It offers credit cards, personal loans, mortgages, and investing. Both banks offer strong APYs on savings account balances under the right circumstances, but you can earn higher rates on checking account balances with SoFi. Additionally, with SoFi, you can earn up to 3.80% APY on savings with direct deposit, but the rate drops to 1.00% APY without direct deposit. TD Bank doesn't require direct deposit, and you can earn an APY higher than 1.00% with balances of $10,000 or more. This makes TD a better option if you don't have direct deposit. TD Bank also offers CDs with APYs as high as 4%, while SoFi doesn't offer CDs. Neither bank offers consumer money market accounts. TD Bank charges monthly maintenance fees on many of its accounts, but it does offer ways to have those fees waived. SoFi, on the other hand, doesn't charge monthly maintenance fees, regardless of your average balance. SoFi also charges no overdraft fees. Overall, SoFi makes it easier to avoid fees, taking the edge over TD Bank. Read more: What is a monthly maintenance fee, and when do you have to pay it? SoFi is a good option for consumers who want a simple online banking option with favorable rates and low fees. Its checking and savings accounts are automatically linked, making it easy to move money between them. Its savings account also has a competitive APY that doesn't come with any caveats. It also gives you access to a sprawling national ATM network. Consumers who live on the East Coast and prefer a more traditional banking experience may consider TD Bank. It has numerous branch locations along the Atlantic, allowing customers to get help in person. In addition, it offers many savings products, such as CDs, mortgages, and personal loans.
Yahoo
13-02-2025
- Business
- Yahoo
SoFi review (2025): Online banking with (almost) zero fees
Summary: Social Finance Inc. — better known as SoFi — is an online financial company founded in 2011 by a group of Stanford business school students. In 2012, SoFi launched its Student Loan Refinancing program for federal and private student loans. Currently, SoFi serves more than 6.9 million customers and has expanded its product offering to include lending, investing, personal banking, insurance, and more. SoFi ranked among our top 10 picks for the best online banks. See our full ranking of the best online banks for 2025>> SoFi offers an interest-bearing combination checking and savings account with no account fees, minimum balance requirement, or minimum opening deposit to get started. Users who sign up for direct deposit can also take advantage of SoFi's early paycheck feature and get paid up to two days early. SoFi currently offers a cash checking account bonus of up to $300 for new customers who meet certain requirements. SoFi currently offers just one credit card. The SoFi Unlimited 2% Credit Card earns users unlimited 2% cash-back rewards for every dollar spent on purchases. With the SoFi credit card, you'll also earn 3% cash back on trips booked through SoFi travel. This card has no annual fee and offers zero fraud liability protection to ensure that you're never on the hook for unauthorized customers can trade stocks and ETFs right in their SoFi mobile app with SoFi Invest account. Once it's active, you can trade stocks commission-free. Currently, SoFi offers up to $1,000 in stock when you fund a new account.* To participate in the bonus offer, customers must make a minimum deposit of at least $10 within 30 days of opening the account. *Probability of Member receiving $1,000 is a probability of 0.028%. SoFi offers student loan refinancing options with no origination fees, prepayment penalties, or late fees. It also offers private student loans with no fees and multiple repayment terms. SoFi's personal loans range from $5,000 up to $100,000 to help you cover personal expenses such as your wedding, travel, and home improvements. Once approved, your money could be available as soon as the same day. SoFi's home mortgage loans offer fixed terms ranging from 10 to 30 years, with as little as 3% down. For extra protection, SoFi offers auto, home, life, renters, and cyber insurance. SoFi offers auto loan refinancing offers through Lantern, its product comparison platform. Customers can use this platform to find the best product offers available to them and secure the lowest possible rate for their financing needs. One of the benefits of banking with SoFi is that customers can expect to pay few, if any, fees. In fact, SoFi doesn't charge any account fees on your checking and savings accounts, including overdraft fees, ATM fees, or monthly maintenance fees. Customers should note a few major perks and drawbacks before banking with SoFi. No monthly account fees. SoFi prides itself on its no-fee model, which means it does not charge any monthly maintenance fees for its accounts. No overdraft fees. SoFi does not charge overdraft fees. Instead, it offers customers fee-free overdraft protection to help them avoid excessive fees. Competitive interest rates. SoFi's savings balances can earn customers an annual percentage yield (APY) well over 4% with qualifying direct deposits into their account, which is significantly higher than the national average. No physical branches. SoFi is an online financial company with no physical branches for customers to visit for in-person banking needs. Fee for cash deposits. SoFi used the Green Dot network for cash deposit, which requires customers to visit a participating retailer to deposit cash. Retail partners can charge a fee of up to $4.95 per cash deposit. No separate checking and savings account options. SoFi does not currently offer a separate checking and savings option; it only offers a combination account. SoFi customer support specialists are available to help with checking and savings products, personal loans, and student loans Monday through Thursday between 5:00 a.m. and 7:00 p.m. PT, and weekends from 5:00 a.m. to 5:00 p.m. PT. For support with home loans, specialists are available Monday through Friday from 6:00 a.m. to 3:00 p.m. PT, and closed on weekends. SoFi Invest customers can speak to a specialist Monday through Friday from 5:00 a.m. PT to 5:00 p.m. PT; support specialists are unavailable on the weekends. Credit card specialists are available 24/7 via telephone. SoFi also has a 24/7 virtual chat assistant. Customers who like to bank from their mobile devices can download SoFi's mobile app from the App Store or Google Play. The app has a rating of 4.8 and 4.0, respectively, and customers can use it to track account balances, set savings goals, organize their cash into separate savings vaults, sign up to boost their savings with round-ups, and more. SoFi's charitable giving arm, SoFi Gives, is a volunteer program that helps make it easier for SoFi employees to give back to their communities. According to SoFi's latest ESG report, in 2022, employees volunteered their time for over 2,700 hours and donated more than $80,000 to meaningful causes. In partnership with the SoFi Circles (SoFi's network of resource groups), SoFi created donation opportunities and volunteer events for 16 causes specifically supporting underrepresented communities. SoFi has committed to giving $250,000 annually to organizations supporting various mental health initiatives. SoFi has also committed to reducing its carbon footprint and in 2022, SoFi's headquarters earned the U.S. Environmental Protection Agency's (EPA) ENERGY STAR® certification for superior energy efficiency. SoFi Bank, N.A.'s routing number is 031101334. To make a withdrawal from your SoFi account, you'll need to visit an ATM within the Allpoint ATM network, which consists of more than 55,000 machines. Zelle is not currently a feature in the SoFi app, however you can download the Zelle app separately and connect your SoFi debit card to send and receive money via Zelle. Yes. You can transfer funds from your SoFi bank account to an external bank account using the SoFi app. Yes, SoFi is an FDIC-insured, nationally chartered bank offering checking and savings accounts. Yes, SoFi has a great reputation as a financial technology company, bank, and lender. It has an A+ rating from the Better Business Bureau. New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/2024. There is no minimum balance requirement. Additional information can be found at SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at
