Best online banks like Monzo in 2023

Looking to switch banks, and interested in an online solution? There are lots of options to choose from, including the popular mobile money app Monzo.

Monzo’s personal account has a lot going for it, including no monthly fees, a free debit card and a straightforward approach to day-to-day banking. But it’s far from the only mobile banking solution out there.

In this guide, we’ll show you some of the best online banks like Monzo in 2023.

So, let’s get started.

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Looking for an alternative? Try Wise

While Wise is not a bank but a Money Service Business (MNB), it can be a great alternative to cover many of your banking needs. It’s especially useful for anyone who travels a lot, lives or works abroad, or has family, property or any other dealings in other countries.

With the Wise Account, you’ll get the following features:

• Bank details in 10 currencies
• The option to hold, send, spend and convert 50+ currencies at once
• Send money overseas with low and transparent fees,
• Order a Wise card for a one time fee of just $9 - for use in 174 countries
• Mid-market exchange rates on all transactions.

It’s quick, easy and free to open a Wise account online. And there’s even a handy Wise app so you can manage everything from your phone.

Please see Terms of Use for your region or visit Wise Fees & Pricing: Only Pay for What You Use for the most up-to-date pricing and fee information.

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Best online banks like Monzo in 2023 - your options

Here’s our roundup of the best online bank accounts of the moment.

Unfortunately, this doesn’t include the likes of Simple Bank, a hugely popular provider which closed for good in 2021.

But there are still plenty of other providers to choose from.

Before we dive into our list, it’s important to remember that the majority of the below aren’t registered and licensed banks. They’re financial technology companies, not the usual banks you might be used to.

However, many have partnered with registered banks in order to offer FDIC insurance cover and other protections for customers.

Juno

On its website, Juno promises to have “the most powerful checking account”. The fintech firm offers a huge list of features and benefits with this account, so perhaps the claim is justified. Let’s take a look:

• A Juno debit card
• 5% interest on your cash deposits (interest paid on the first $50,000 of your balance)
• 4% interest on balances between $50,000 and $250,000
• Unlimited fee-free transfers and withdrawals
• No account fees
• FDIC-insured cover for up to $250,000
• 5% cashback on participating brands, including Amazon and Doordash
• Pay bills instantly
• Free ATM withdrawals at 80,000+ locations.

Juno claims you can open an account in as little as 3 minutes. Its app also offers access to crypto trading, should this be something you’re interested in.

Current

Mobile banking specialist Current offers a choice of accounts for spending, saving and investing.

Its app-managed checking account offers all the essential services and features you’d expect for day-to-day banking. This includes:

• A debit card with no monthly fees
• Fee-free overdraft
• Get paid up to 2 days faster with direct deposit
• Earn points at over 14,000 participating merchant
• No minimum balance fees.
• Free cash withdrawals at over 40,000 ATMs.

Current also offers dedicated teen accounts, which is handy if you’re looking for banking products for more than just yourself.

Chime

Chime is one of the most popular choices for those looking for online banks like Monzo.

The San Francisco-based Chime offers an online checking account that’s free to open. Even better, it also comes with no monthly fees. You can manage your money 24/7 through the user-friendly Chime mobile app.

The Chime account features:

• A free debit card
• A fee-free overdraft up to $200
• Fee-free withdrawals at over 60,000 ATMs
• Get Paid Early feature - get your paycheck two days early via direct deposit.

Varo

Varo Money has both a checking account and savings account available, all managed online or through the Varo app.

The Varo checking account is fee-free, and offers the following features:

• A Varo Visa debit card
• Instant access to your money
• Early direct deposit so you can get paid up to 2 days early
• Zelle payments available through the Varo app
• 40,000+ free ATMs
• Cashback when spending at select brands or retailers.

Varo even provides FDIC protection of up to $250,000 in case it should ever go under.

According to Varo, it takes less than two minutes to open an account online. This means you should be able to get up and running in no time at all.

Revolut

Digital bank Revolut offers a choice of plans, including a free standard account. This comes with a personalized debit card, fee-free withdrawals at 55,000 ATMs and 1 free international transfer per month.

But pay a little more each month and you can unlock a whole bundle of other features. What you get all depends whether you go for the Premium plan ($9.99 a month) or the Metal plan ($16.99 a month).

Benefits include:

• Savings interest
• Primary accidental medical insurance
• Travel insurance
• Unlimited fee-free currency exchange
• Discounted airport lounge access
• Purchase, returns and ticket protection
• Commission-free stock trading.

Capital One

US bank Capital One’s main checking account is a digital one. It’s called the 360 Checking Account, and it promises no fees along with convenient 24/7 mobile banking. It also offers:

• A debit card
• Fee-free cash withdrawals at over 70,000 ATMs
• Overdraft options if needed
• Get paid up to 2 days early with ‘Early Paycheck’ feature (direct deposits)
• Easy Zelle payments in the Capital One app.

Capital One also offers digital savings, teen and kids savings accounts.

ONE

ONE is an online banking service, although it’s not to be confused with Capital One. The Sacramento-based startup is a fintech firm, which has partnered with Coastal Community Bank in order to offer its banking services.

The ONE app offers the following features:

• A debit Mastercard
• Round-ups - where you can set aside savings as you spend, and earn 1% APY
• Cash Rewards when shopping at some of your favourite brands
• Up to $200 overdraft protection
• No monthly fees
• Deposit cash at Walmart locations nationwide.
• Fee-free cash withdrawals at over 55,000 ATMs
• Early Payday with direct deposits.

Accounts at ONE are also covered by up to $250,000 FDIC protection per person.

Majority

Lastly, we come to Majority, which has a slightly different offer from the providers we’ve covered so far. Majority is a digital banking platform specifically aimed at newcomers to the US.

Along with banking services, it also offers other helpful services such as international calling. This could be very useful if you’ve just arrived and need to get set up quickly. It describes its services as “all in one mobile banking for migrants”.

Majority offers a checking account for everyday banking, along with a debit card and powerful mobile app. The long list of features includes:

• Mobile top ups with no fees
• International calling
• A personalized advisor, with multi-lingual support
• Money transfers with competitive exchange rates
• Get your paycheck early with direct deposits
• FDIC-insured protection for your money
• No minimum deposit or minimum balance required.

Unfortunately though, the features and benefits above don’t come for free. The Majority checking account has a $5.99 monthly fee. However, this isn’t too steep considering how much is included in the package.

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Bottom line

So, which online bank is best? And do any of them beat Monzo? The answer is, it depends on what you’re looking for.

Many of the options above let you manage a day-to-day checking account using just your smartphone, without any monthly fees. You’ll even get a physical debit card, just like with a standard bank.

And the apps offer all kinds of clever features, from budgeting tools to cashback and access to linked savings products.

The only thing to watch out for is when using these accounts abroad. Some may charge high fees and give you poor exchange rates, making spending overseas super expensive.

This is why Wise is the ideal option for travelers, vacationers, international students and families spread across multiple countries. The Wise Account lets you send, spend, convert and receive money in 50 currencies, all for low fees and mid-market exchange rates.

Hopefully after reading this guide, you’ll be all set to choose a great option for you - whether it’s Wise, Monzo or one of the others. You could even try more than one, to find the best fit for your needs.

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Sources used for this article:

1. Revolut - Our pricing plans
2. Current - Spend
3. Chime - Checking Account
4. Varo Money - Bank Account
5. Juno - Home
6. Capital One - Online checking account
7. ONE app
8. Majority - Home

Sources checked on 10-May-2023