Neobank

A neobank is a type of digital bank that operates entirely online without any physical branches and focuses on a modern, streamlined experience. They do this by building their platforms completely free of the legacy banking systems used by traditional banks.

Yes, many neobanks do not have their own banking charter but partner with traditional FDIC-insured banks to hold customer deposits. This partnership ensures that your funds are protected up to the standard legal limit.

Neobanks are excellent for users who want granular control over their spending habits through advanced digital tools. They often feature real-time spending notifications, automatic savings buckets, and detailed transaction categorization.

Because they offer virtual card controls and a minimalist interface, many users do use neobanks for their primary daily spending. However, you should verify if they support features you might need, such as physical check deposits or joint accounts.