Neobanks can save you money on fees, but traditional banks may offer stronger support when problems arise. Tada Images/Shutterstock
Neobanks like Chime and SoFi can offer lower fees, sleeker app designs, and tools that traditional banks rarely match. However, there are tradeoff areas to consider: deposit protection structure, customer service, and lending access, to name a few.
Which one is better for your money? That depends entirely on how you use banking day-to-day.
What Is a Neobank, Exactly?
A neobank is a financial technology, or fintech, company that offers banking services entirely through a mobile app or website—no branches, no teller window. Everything happens on your phone.
