If in the past, traditional banks were the only option for those who needed to move their money – whether receiving a salary, transferring it to another account, or even keeping it –, with the advancement of technology and the internet, new models began to emerge and challenge the system, including the digital bank. Today, it is possible to control finances without the bureaucracy, expensive fees, and poor service of ordinary banks. Digital Bank is the name given to financial institutions that work online. This means that virtually everything the customer needs can be done virtually – from opening an account to servicing and paying bills.

Cash App

It’s impossible to talk about online transactions without mentioning the Cash App; the application has become a real success and has gradually developed several banking features. Previously known as Square Cash, Cash App is a peer-to-peer mobile payment app founded by the Square mobile payment platform in 2013. One of the most exciting points about the Cash App is how to use the free cash app card; the finance website Almvest made a post explaining exactly how to use the Cash app card; it’s worth checking out.

  • The Cash App is free to send, receive and transfer money using a debit card or bank account. Credit card transfers will have a 3% transaction fee.
  • The Cash App does not at this point support international money transfers (domestic transfers only).
  • Transfers are shipped immediately and deposited into a national bank account the same day for free or within one to three days free of charge.
  • By default, you can send up to $250 in any seven days and receive up to $1,000 in any 30 days. You can increase these limits, however.
  • Cash App is available for both iPhone and Android.

Axos Bank

Axox Bank became a famous online and digital bank with good accounts for anyone looking to save money and start an investment. Its history begins in the early 2000s, making it one of the oldest online banks in the US. In addition to all complete banking transactions, the bank also offers personal and corporate cards.

  • At the bank, you will find varied options to make transactions without interest and reasonable monthly fees.
  • The bank has a Rewards Checking which is some interest rates with options to decrease as the card is used.
  • Each purchase generates 1% cashback
  • Axox Bank has a value option for teenagers, an idea of ​​the first credit card.

Varo Bank

Varo Bank’s campaign is a bank for everyone. The intention is to aim for a more accessible and inclusive financial system. Varo is the first digital-only bank authorized to maintain a national portfolio in the US and is focused on the vast and diverse group of Americans “left behind” by the traditional banking system.

  • There is no minimum balance or monthly account fee requirement.
  • Direct deposit funds are quickly available.
  • There is a no-fee overdraft if you make five debit purchases per month and receive direct deposits of $1,000 or more each month.
  • You can make instant transfers between Varo Bank users.

What defines an excellent online bank?

  1. Security

If your bank or fintech spends more on advertising and funny ads than on security, you should be concerned. Another tip is to research who does the service (including on LinkedIn) and assess whether you feel credibility in the people you deal with.

  1. Practicality

If it’s bureaucratic or has a catch early on, it tends to be like that throughout the relationship with the company. A digital bank must offer practicality, convenience, agility, and much less bureaucracy.

  1. Cost

Any service that purports to be new and innovative must be cheaper than the previous one. The concept of “cheaper,” however, must always be evaluated. Don’t just look at the monthly fee offered, but at everything you’re going to pay. Doing math is essential to choosing the best option.

  1. Availability and excellent service

Does your bank only answer from 10:00 am to 4:00 pm, in person or by phone (and you need to be on the line for 1 hour to solve something simple)? Most of the people I know work precisely during business hours and, to use banking services, they have to sacrifice their lunch hours to solve problems. An excellent online bank must have an immediate, unique, and straightforward service.