7 Best Neobanks for People Who Want to Ditch Traditional Banking

6. Varo - The First True Neobank Charter

Varo Bank made history in 2020 by becoming the first fintech company to receive a full national bank charter in the United States, marking a significant milestone in the evolution of digital banking. This achievement allows Varo to offer FDIC-insured accounts directly rather than through partner banks, providing customers with enhanced security and the full protection of federal deposit insurance. Varo's fee-free banking philosophy eliminates monthly maintenance fees, minimum balance requirements, and overdraft fees, while offering early direct deposit that can provide paychecks up to two days early. The bank's savings account features a competitive interest rate that increases based on qualifying activities such as maintaining a minimum balance and making regular direct deposits, incentivizing healthy financial behaviors. Varo's automatic savings tools include round-up features and the ability to set percentage-based savings from each paycheck, making wealth building an effortless part of customers' financial routines. The platform's budgeting and financial wellness tools provide detailed spending insights, bill tracking, and personalized recommendations to help users improve their financial health over time. Varo's mobile app includes innovative features such as real-time spending notifications, the ability to instantly disable and enable debit cards, and location-based security alerts that help prevent fraudulent transactions. The bank's customer support combines AI-powered chatbots with human representatives, ensuring customers receive timely assistance while maintaining cost efficiency. Varo's commitment to financial inclusion is evident in its efforts to serve underbanked communities and provide accessible banking services to individuals who may have been overlooked by traditional financial institutions, making it a socially conscious choice for consumers seeking ethical banking alternatives.