It is a Friday night. You are splitting a dinner bill, your phone buzzes with a spending alert, and your bank’s app takes four taps and a password reset just to show your balance. Then a friend says, “Why don’t you just switch to a digital bank?”
That question has pushed millions of people in the US and UK toward neobanks, which are app-first banking services with no (or very few) physical branches. But “digital bank” is a loose label. Some are fully licensed banks. Others are fintech apps that work with a partner bank. That difference affects how your money is protected.
In this guide, we compare 10 well-known neobanks in the US and UK, explain how deposit protection works in each country, and give you a simple checklist for choosing one.
Quick Answer: What Is a Neobank?
A neobank is a digital-first financial provider that offers accounts, cards and money tools mainly through a mobile app. Some hold their own banking licence (for example Monzo and Starling in the UK, or SoFi and Varo in the US). Others, like Chime in the US, offer banking services through partner banks. Always check which type you are dealing with before you deposit money.
The 10 Neobanks at a Glance
| # | Neobank | Main Market | Type | Fee Model (check current pricing) |
|---|---|---|---|---|
| 1 | Chime | US | Fintech with partner banks | No monthly fee on core account |
| 2 | SoFi | US | Chartered US bank | No account fees on checking and savings |
| 3 | Varo | US | Chartered US national bank | No monthly fee on standard account |
| 4 | Current | US | Fintech with partner bank | Free and paid tiers |
| 5 | Monzo | UK | Licensed UK bank | Free plan plus paid tiers |
| 6 | Starling Bank | UK | Licensed UK bank | Free personal account |
| 7 | Revolut | UK, US and global | Varies by country | Free plan plus paid tiers |
| 8 | Chase UK | UK | Digital bank by JPMorgan | Free current account |
| 9 | Wise | UK, US and global | Payments / money service (not a bank) | Pay per transaction, no subscription |
| 10 | Atom bank | UK | Licensed UK bank | Savings and mortgage focus |
The list is grouped by country and use, not a strict numerical ranking, because the best option depends on where you live and what you need.
How We Chose These 10
To keep this list fair and checkable, we looked at:
- Regulatory status: Is it a licensed bank, or does it rely on partner banks?
- Deposit protection: Is the money covered by FDIC (US) or FSCS (UK), and how?
- Fees: Monthly fees, overdraft charges and foreign transaction costs.
- Features: Budgeting tools, savings, early pay, credit building or multi-currency support.
- Reputation and reach: Public track record and how widely the product is used.
We did not accept payment for placement. If this page ever includes affiliate links, they will be clearly marked.
United States
1. Chime
What it is: One of the best-known US digital banking apps, built around simple everyday banking.
Good to know: Chime is a financial technology company, not a bank. Banking services are provided through partner banks, which is how deposits are held.
Often chosen for: Fee-light checking, early access to direct deposits and credit-building tools.
Keep in mind: It is designed mainly for domestic US use, so it may not suit frequent international spenders.
2. SoFi
What it is: A digital financial platform that offers checking, savings, loans and investing in one place.
Good to know: SoFi holds a US national bank charter, so deposits sit with the bank itself.
Often chosen for: People who want banking, borrowing and investing under one app.
Keep in mind: Features and rates depend on things like direct deposit, so read the conditions carefully.
3. Varo
What it is: A mobile-only bank that was the first all-digital US company to receive a national bank charter, in 2020.
Good to know: As a chartered bank, Varo holds deposits itself rather than relying only on partners.
Often chosen for: Everyday checking and savings with a simple app.
Keep in mind: Like most neobanks, it has no branches, so cash deposits work through retail partner options.
4. Current
What it is: A US fintech banking app focused on budgeting, early direct deposit and rewards.
Good to know: Current works with a partner bank for its accounts, so check how deposit insurance applies.
Often chosen for: Younger users and gig workers who want quick access to income.
Keep in mind: Features can depend on the pricing tier you pick.
United Kingdom
5. Monzo
What it is: A mobile-first UK bank, known for its bright coral card and budgeting “pots”.
Good to know: Monzo holds a full UK banking licence, and eligible deposits are covered by the FSCS.
Often chosen for: Budgeting, instant spending notifications and bill-splitting.
Keep in mind: It is strongest in the UK. Its US presence is much smaller.
6. Starling Bank
What it is: A UK digital bank founded in 2014, popular with both personal customers and small businesses.
Good to know: It holds a full UK banking licence and is covered by the FSCS.
Often chosen for: Everyday banking and sole traders or small business accounts.
Keep in mind: Features can differ between personal and business accounts.
7. Revolut
What it is: A UK-born financial app with multi-currency accounts, travel features, investing and more.
Good to know: Revolut’s licence and deposit protection differ by country, and its UK and US set-ups have changed over time. Check its current status for your country before depositing larger sums.
Often chosen for: Travel spending and holding several currencies.
Keep in mind: Paid plans unlock extra features, so compare tiers against what you will really use.
8. Chase UK
What it is: A digital-only retail bank launched in the UK by the US bank JPMorgan Chase.
Good to know: It operates in the UK under a UK banking licence, with deposits covered by the FSCS.
Often chosen for: People who like the backing of a very large banking group in a simple app.
Keep in mind: Offers and rewards change over time, so check the current terms.
9. Wise
What it is: A money transfer and multi-currency account service, popular for international payments.
Good to know: Wise is not a bank. Customer money is safeguarded, which is a different protection from deposit insurance.
Often chosen for: Sending money abroad and paying in foreign currencies at transparent rates.
Keep in mind: It is better as a travel and transfer tool than as your only savings account.
10. Atom Bank
What it is: A UK mobile-only bank that is best known for savings accounts and mortgages.
Good to know: It is a licensed UK bank, and eligible deposits are covered by the FSCS.
Often chosen for: Savers who want a fixed-rate or easy-access option without visiting a branch.
Keep in mind: It has fewer everyday spending features than some app-style rivals.
How Is Your Money Protected? US vs UK
This is the part many people skip, and it matters most.
| United States | United Kingdom | |
|---|---|---|
| Scheme | FDIC | FSCS |
| Limit | Up to $250,000 per depositor, per insured bank, per ownership category | Up to £120,000 per person, per authorised firm (raised from £85,000 on 1 December 2025) |
| Neobank catch | Fintechs working with partner banks: coverage depends on how deposits are held at the partner bank | Not all apps are banks, and e-money services like Wise use safeguarding instead |
A simple rule: before depositing, find out which regulated bank actually holds your money and confirm the protection on the official FDIC or FSCS site.
Neobank vs Traditional Bank: Quick Comparison
| Neobank | Traditional bank | |
|---|---|---|
| Branches | Usually none | Yes |
| Fees | Often lower | Often higher on basic accounts |
| App experience | Usually modern and fast | Varies |
| Cash and in-person help | Limited | Strong |
| Product range | Growing | Broad (mortgages, business, wealth) |
How to Choose a Neobank: A 6-Step Checklist
- Check who holds your money. Is it a licensed bank or a partner bank?
- Confirm deposit protection. Look for FDIC or FSCS on the official regulator site.
- Read the fee page. Look at overdraft, ATM and foreign transaction charges.
- Match features to your life. Do you need savings, budgeting, travel or credit building?
- Test customer support. Can you reach a human if something goes wrong?
- Start small. Many people keep a traditional bank as a backup and move money step by step.
Risks to Know Before You Switch
- Account freezes: Automated fraud checks can sometimes lock an account. Keep a backup account for essentials.
- Partner bank changes: If a fintech changes its partner bank, you may need to re-verify details.
- Limited cash services: Depositing or withdrawing cash can be harder.
- Changing terms: Fees and rewards can change, so review the terms regularly.
Frequently Asked Questions
What is the best neobank in the US? There is no single best option. Chime, SoFi and Varo are commonly compared, and the right one depends on fees, features and how you want your deposits held.
What is the best neobank in the UK? Monzo and Starling are two of the most widely discussed UK digital banks. Your choice depends on whether you want budgeting tools, business banking, savings or travel features.
Are neobanks safe? It depends on the provider. Licensed banks with FDIC or FSCS protection are different from fintechs that use partner banks or safeguarding. Always check the details on the regulator’s website.
Is my money protected in a neobank? In the US, deposits are protected by the FDIC up to $250,000 when held at an insured bank. In the UK, eligible deposits are protected by the FSCS up to £120,000 per person, per authorised firm.
Can I use a UK neobank in the US, or the other way around? Some, like Revolut and Wise, work across several countries. Others are focused on one market, so check availability and licensing for your country.
Do neobanks charge fees? Many offer free basic accounts, but some charge for premium plans, ATMs, overdrafts or currency exchange. Read the current fee page before you sign up.
Final Thoughts
Neobanks have made everyday banking quicker, simpler and often cheaper. But the shiny app is only half the story. What matters most is who holds your money, how it is protected and whether the features match your real life.
A smart approach for many people is to try a neobank for a few everyday needs, keep your safety net in place, and review your choice every year. Use this list as a starting point, then check each provider’s official site before you decide.
Sources and Further Reading
- FDIC: Deposit insurance basics (fdic.gov)
- FSCS: Deposit protection limit (fscs.org.uk)
- Financial Conduct Authority: Check a firm on the FS Register
- Consumer Financial Protection Bureau: Choosing a bank or account
- Disclaimer: This article is for educational purposes only. It is not financial, banking or legal advice. Features, fees and regulatory status change often, so please confirm details on each provider’s official website before opening an account. This list is not a recommendation to use any product.