In 2022, digital banks (neobanks) have become an essential element of the global banking system. Technology has reached a level where it is no longer necessary to maintain a large number of physical branches, and all the necessary services can be obtained via the internet, using only a smartphone. Digital banks offer the services of classical financial institutions and make investments more convenient and affordable. The Traders Union has prepared a list of the best digital banks for your consideration.
List of the best digital banks online
Before choosing a digital bank, it is a good idea to explore the Traders Union ratings. The list comprises the best platforms that have proved themselves in terms of reliability, security, features, and benefits for the trader. Below is TU’s selection of the best digital banks for you.
| Position | Rating Score | Digital Bank | Loan rate | Credit rate | Supported Currencies | Open an account |
|---|---|---|---|---|---|---|
|
|
|
Loan rate:
No
|
Credit rate:
No
|
Supported Currencies:
54 currencies
|
Open an Account
STUDY REVIEW
Your capital is at risk.
Via Wise's secure website. |
|
|
|
|
Loan rate:
No
|
Credit rate:
No
|
Supported Currencies:
26 currencies
|
Open an Account
STUDY REVIEW
Your capital is at risk.
Via Curve's secure website. |
|
|
|
|
Loan rate:
Individual
|
Credit rate:
28.2%
|
Supported Currencies:
GBP, EUR, RON
|
Open an Account
STUDY REVIEW
Your capital is at risk.
Via Monese's secure website. |
|
|
4
|
|
Loan rate:
Individual
|
Credit rate:
Up to 1.25%
|
Supported Currencies:
USD
|
Open an Account
STUDY REVIEW
Your capital is at risk.
Via Axos Bank's secure website. |
|
|
5
|
|
Loan rate:
Individually
|
Credit rate:
3%-4,45%
|
Supported Currencies:
US dollar
|
Open an Account
STUDY REVIEW
Your capital is at risk.
Via Quontic's secure website. |
|
|
6
|
|
Loan rate:
No
|
Credit rate:
No
|
Supported Currencies:
GBP, EUR, RON, SEK (for transactions with other currencies, automated conversion is made)
|
Open an Account
STUDY REVIEW
Your capital is at risk.
Via Suits Me Bank's secure website. |
|
|
7
|
|
Loan rate:
0.65%-0.7%
|
Credit rate:
6.45%
|
Supported Currencies:
30 currencies
|
|
|
|
8
|
|
Loan rate:
The bank does not issue loans
|
Credit rate:
0.09% APY
|
Supported Currencies:
Euro (16 European currencies in the Easy Money plan)
|
Open an Account
STUDY REVIEW
Your capital is at risk.
Via Bunq's secure website. |
|
|
9
|
|
Loan rate:
От 0.1%
|
Credit rate:
0.1% -1.4%
|
Supported Currencies:
USD
|
|
|
|
10
|
|
Loan rate:
Credit cards ranges from 17.99% to 27.99. Auto loans — 6.19%, mortgages — 6.125%
|
Credit rate:
2%
|
Supported Currencies:
USA
|
|
|
|
11
|
|
Loan rate:
Individually
|
Credit rate:
2%
|
Supported Currencies:
UAE
|
|
|
|
12
|
|
Loan rate:
1.89%-22.23%
|
Credit rate:
0.90%-1.50%
|
Supported Currencies:
USD
|
|
|
|
13
|
|
Loan rate:
0.50%
|
Credit rate:
5%-30%
|
Supported Currencies:
USD
|
|
|
|
14
|
|
Loan rate:
10-33% APR
|
Credit rate:
2-5% APY
|
Supported Currencies:
USD
|
|
|
|
15
|
|
Loan rate:
2 × (0.9% of the principal loan amount + $0.7)
|
Credit rate:
$0-$5
|
Supported Currencies:
USA
|
|
|
|
16
|
|
Loan rate:
3%-5%
|
Credit rate:
No
|
Supported Currencies:
USD
|
|
|
|
17
|
|
Loan rate:
10.99%
|
Credit rate:
7.39%
|
Supported Currencies:
Australia
|
|
|
|
18
|
|
Loan rate:
0-19%
|
Credit rate:
1.16%-1.50%
|
Supported Currencies:
GBP
|
|
|
|
19
|
|
Loan rate:
0.05%
|
Credit rate:
15%-35%
|
Supported Currencies:
GBP, EUR, USD
|
|
|
|
20
|
|
Loan rate:
Individually
|
Credit rate:
4%
|
Supported Currencies:
US dollar
|
|
What is a digital bank?
A digital bank has no branches. Its work is carried out virtually and online. Each person who wants to become a digital bank’s client must download the mobile application and register. Like a physical bank, digital platforms require customer identification but do not require copies of documents. You just need to scan them with your smartphone and send them for approval. Once accepted, your account will be verified and you will be able to enjoy all the features.
Digital banks do not require branches because all the main functions of such banks can be performed online. For example:
-
Storage of personal information and financial documents.
-
Custody of customer funds.
-
Conducting transactions, and processing payments.
-
Formation of reports, etc.
A digital bank has all the same functions as a regular one, but it is much more convenient for the client. This is due to the huge popularity of such services and the constant growth in demand for their services.
Functions of digital banks online
The features of each digital bank are different. However, the principle of their work is similar. First, they are electronic services for processing financial transactions. For example, you can get a bank card for the convenience of payments. They may be:
Physical.
Digital banks can send plastic cards by mail, courier delivery services, or at points of issue.
Virtual.
Such bank cards are generated directly in the application and can be used to pay for goods or services via NFC.
Also, digital banks allow you to open accounts in different currencies and quickly exchange them among the various altcoins. To do this, you can open special currency accounts. As a rule, banks allow the exchange of major world currencies among themselves — the US dollar, euro, Canadian dollar, British pound sterling, the Swiss franc, etc. The list of currencies may vary, depending on each bank.
Digital banks also allow regular payments. For example, these can be payments for utilities or other services via an International Bank Account Number (IBAN), to a current account, etc. Applications may have the ability to create templates and automatically debit funds. In this case, payments are made regularly, on the specified days of the month.
Another important function of such banks is the possibility of quick lending. Ordinary financial institutions require a visit to the branch and the submission of a documents package. In virtual banks, you can submit documents online, which saves time. Checking documents and credit history is the same as in a regular bank.
Best online banks for savingsInvestments through digital banks
One of the key features of digital banks is the ability to invest. Most virtual services offer this option. Investing through digital banks is much easier and more convenient than through conventional financial institutions.
Some regular banks allow telephone orders to buy or sell certain assets. A special section is provided in the digital bank for these purposes. Traders can view charts of certain assets and price histories, and make a purchase or sale by pressing a single button. In addition, the platforms may contain analytics, analysis, and other information that will help clients of the bank make sound decisions.
The list of assets for investment may differ, depending on the platform. For example, these could be:
In addition, digital banks can include various services for saving and accumulating money. For example, it may include cash backs or deductions from each payment to a special savings account. Moreover, there may be special programs such as deposits, accrual of the balance on the account, etc. Find below a comparative table of digital banks' investment programs by TU experts.
| Digital bank | Program terms |
|---|---|
|
Revolut |
Investments in stocks, metals, and cryptocurrencies. Vaults are available to keep money at an annual interest rate. The amount depends on the tariff plan. |
|
Chime |
Savings account. Standard rate is 0.5% per annum. |
|
Aspiration Bank |
An account for investing in environmental startups. Taxable investment account. IRA Account |
|
Monzo |
Deposits from $500 or the equivalent, for 12 months or more. The interest rate varies from 1.12% to 1.5%. |
|
Starling |
Payments on the account balance. The rate is 0.05%. |
|
Wise |
Opportunity to invest in Wise shares, which are traded on the London Stock Exchange. |
|
Curve Bank |
Savings account. 0.5% per annum |
|
Monese |
Savings account. 0.5% per annum |
|
N26 |
Savings account. 0.5% per annum |
Digital banks’ commissions & fees
When choosing a digital bank, pay close attention to its commissions and fees. Assess whether it is profitable to work with a particular platform? The main types of commissions that you should evaluate before choosing a digital bank are the following:
- Overdraft fees.
- ATM withdrawal fees.
- International transfer fees.
- Exchange fees.
The analysts of the Traders Union have prepared a detailed comparison of the most popular digital banks.
| Digital bank | Overdraft fee | ATM withdrawal fee | International transfer fee |
International exchange fee |
|---|---|---|---|---|
|
Monzo Bank |
19-39% |
Free in the UK In other countries: - up to £200 - free - beyond £200 - 3% |
€0.5 |
0.35%-2% |
|
Starling Bank |
15-35% |
No |
0.4% transfer fee + local fees |
0.4% |
|
Wise |
No |
Up to £200 - free - beyond £200 - 1.75% |
From 0.41% |
From 0.41% |
|
Revolut |
No |
Up to $350 - free - beyond $350 - 2% |
0.3% (min. $0.30, max. $6) |
From 0% to 1% |
|
Curve Bank |
No |
Up to €200 - free - beyond €200 - 2% |
No |
Up to €1,000 - free - beyond £200 - 2% |
|
Chime Bank |
No |
No |
No |
3% (max.$5) |
|
Monese Bank |
28.2% |
£1.5 |
From 0% to 2.5% |
From 2.5% |
|
Aspiration Bank |
No |
No |
$19.50 |
No |
|
N26 Bank |
8.9% |
3 to 5* free ATM withdrawals per month, beyond this - €2 |
From €0 to €0.49 |
No |
|
SoFi Bank |
0% |
$0-5 |
0% (P2P payments) |
0.2%-0.9% |
Reliability of digital banks
The reliability of digital banks is also an important issue, which is why the best digital banks guarantee their performance by registering with a regulatory agency. Thereafter, the banks are governed by the financial laws of the countries in which they are registered. This ensures that services comply with the requirements of financial regulators, which is important for the client. A licensed digital bank provides the same protection as a regular digital bank with a banking license.
In addition, digital banks provide additional security measures for clients’ accounts. This can be two-factor authentication, access control (the ability to log in from one phone only), security questions, and much more. All modern digital data supports biometric login, which makes unauthorized access almost impossible.
Best Digital banks by countries
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FAQs
Are digital banks business-friendly?
Many of these banks do have business services, accounting, reporting, and much more.
How are taxes paid on investments through digital banks?
As a default, the bank acts as a tax agent, and it pays taxes on investments at the rate applicable in your state.
Can I use digital banking services when traveling abroad?
Yes. Account services are maintained across borders, although regional restrictions may apply.
Is it possible to challenge any actions of a digital bank in court?
Yes. Any digital bank is run by a legal entity, and if any problems arise, they can usually be resolved in court.