Have you heard of neo banks? It’s a digital bank that has no physical branches and get this, no fees.
I call them disruptors. Innovative ideas that challenge the old way of doing things.
In 2017, traditional banks charged customers over $34 billion in fees. But many people don’t need a bank with marble floors, tellers, or even a checking account.
You can pay almost all your bills online, so neo banks give you a spending account. It’s completely free. No minimum balance. No overdraft fees. No monthly fees. If you need a check to pay a bill, the digital bank will create and mail one for free.
Neo banks make their money when you spend money using their Visa card and they get a small percentage. They offer cash back and free ATMs.
Just make sure the neo bank is FDIC insured. Most are.
Tap or click below to hear Kim talk about neo banks on her Consumer Tech Update podcast.