Cash News
Mobile-only banking can be appealing to tech-savvy consumers. But depending on your banking habits and general financial needs and goals, a mobile bank may not offer the products, services, and features you’re looking for.
As you consider your banking options, here’s what you need to know about mobile banks and how to determine if one is right for you.
What is a mobile-only bank, and how does it work?
Mobile banks are financial institutions that either solely operate on mobile platforms or prioritize the mobile experience while also offering online banking features.
Like , mobile banks don’t have physical branches. Instead, they offer all the banking features you need through a mobile app, such as:
Mobile bank accounts are often offered by in partnership with a traditional bank. That way, your funds still qualify for insurance coverage through the Federal Deposit Insurance Corporation (FDIC).
The bank may also partner with a nationwide ATM network, giving you access to fee-free withdrawals at tens of thousands of ATMs around the country — more than what many top traditional banks offer.
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Mobile bank examples
There aren’t many banks that are strictly mobile. Rather, most offer a mobile-first experience while also providing some online banking features you can access with your browser. With that said, here are some of the most popular mobile-first banks:
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Albert: Offers both a Cash and Savings account, with cash-back offers from select merchants and access to more than 55,000 fee-free ATMs. There are no , but the account requires a $14.99 monthly subscription.
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BankMobile: Offers a checking account exclusively for college students attending partner schools. Deposits earn a modest interest rate, and you’ll also get access to financial literacy tools. You’ll get access to more than 55,000 fee-free ATMs, but there is a $2.99 monthly service fee without $300 or more in monthly direct deposits.
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Current: Offers both Spend and Savings accounts. The linked card is a debit-credit hybrid that allows you to build credit with everyday transactions. You can earn rewards on debit card purchases with select merchants. You’ll also pay no monthly maintenance or overdraft fees, and you’ll have access to more than 40,000 fee-free ATMs.
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Go2Bank: Offers a checking and . You can earn cash back on gift card purchases made through the app. In addition to mobile deposit, you can also at more than 90,000 retail locations, though fees may apply. There’s a $5 monthly fee, but you can get it waived if you receive an eligible direct deposit each month. You’ll have access to fee-free withdrawals at thousands of ATMs.
Note that all of these banks’ mobile apps are available on both iOS and Android devices.
Pros and cons of mobile banks
As with traditional and online banks, there are both advantages and disadvantages to using a mobile-first bank for your everyday money management. Here’s what to keep in mind as you consider whether a mobile bank is right for you.
Pros
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Easy to manage: Most banks and credit unions offer , but with mobile-only banks, you’ll typically get a more intuitive experience.
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Relatively low fees: While mobile banks aren’t necessarily fee-free, they’re less likely than traditional banks to charge and overdraft fees. Among mobile banks that do charge a monthly fee, it may be easier to get them waived by meeting certain requirements.
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Broad ATM access: With a traditional bank, you typically only have access to the bank’s branded ATMs. With a mobile bank, however, you may be able to get fee-free withdrawals with tens of thousands of ATMs nationwide. In some cases, you may also be able to access your funds with participating retailers.
Cons
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Limited or no cash deposits: With no physical branches or bank-owned ATMs, it’s difficult for mobile banks to allow cash deposits. Some may provide this feature through participating retailers, but you’ll likely need to pay a fee for the privilege.
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Few products and services: Mobile banks typically only offer a handful of basic deposit accounts, such as checking and savings accounts. If you’re looking for other banking options, such as a or , you may need to look elsewhere. Mobile banks also typically don’t offer other financial products and services, such as investing or wealth management.
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No in-person support: If you prefer to do your banking in person at a local branch, you’ll want an account with a traditional bank or credit union.
Should you join a mobile-only bank?
As with any other bank, you’ll want to consider your financial situation, banking needs, and preferences to determine whether a mobile-only bank is the right fit for you.
Keep in mind that some situations could merit using multiple bank accounts to meet all of your needs. For example, if you prefer managing your money on your mobile device but occasionally handle cash, you could get a mobile bank account for most of your money management and a traditional bank account for occasional cash deposits.
Whatever you do, take your time to research and compare mobile banks, online banks, and traditional banks and credit unions to get a full picture of what each one offers. Then, consider which features you need to meet your banking needs and determine which type of bank provides what you want.