Today, the management of personal finance is a quickly developing sphere, and the inhabitants of the USA more and more often prefer digital bank accounts due to their favorable conditions, versatility, and new functions.
Neobanks or digital banks are fully fledged banks that provide services that are tailored for the millennials and Gen z. Here, we have gathered the list of the best digital bank accounts for young adults in the USA and discussed their features and why they are suitable for the young generation.
Chime: simplicity and savings
Chime has swiftly grown to become one of the biggest and most popular digital banks for the millennials and generation z. A major advantage is the lack of monthly fees, which is rather important as it helps to avoid common pitfalls of regular bank services.
Chime does not charge any minimum balance fees, overdraft fees and it provides its customers with more than 60,000 ATMs that are fee-free across the United States. The app also comes with what is called the automatic savings where as a user you are able to save your money effortlessly.
Thus, young adults can configure their account in a way that a certain portion of their monthly earnings is automatically directed into the savings account with no further actions needed from their part to manage their finances properly.
Lastly, Chime has a feature known as Round-Up that rounds up the transaction amount to the nearest dollar and transfers the excess amount to the savings account, hence encouraging saving without noticing it. Chime has such features as early direct deposit where the users can receive their salaries up to two days before the actual banking time.
This feature can be useful for the millennial population who are likely to be living from salary to salary and require immediate access to their money. In conclusion, the features of Chime’s app, no fees, and automated savings are helpful for young adults striving to be financially responsible.
Varo: comprehensive financial management
Varo is another digital banking service that has been attracting people’s attention due to its rich set of features that allow the users to better control their finances. Similar to Chime, Varo has no monthly fees, no minimum balance, and also allows its customers to withdraw cash without incurring any fees from other banks’ ATMs.
However, Varo takes it a notch higher by including features that help in improving the users’ financial standings. Varo also has a unique feature of high-yield savings account which has interest rates much higher than the average national rate.
This feature promotes saving among the young adults as they stand to gain something in the process. Also, thanks to the “Save Your Change” function, Varo rounds up transactions and transfers the extra amount to the savings account, so saving becomes a natural process.
Varo also offers the user tools for tracking and planning the expenses as well as possible changes in the spending habits. The app categorizes the transactions, which helps to see on which aspects the money is being spent every month.
This level of financial reporting is especially helpful for the millennial who is starting to get familiar with handling money and can easily see where their money is going. Also, there is early direct deposit, and cash advance options, which allow users to have more control over their money.
Thus, a high-yield savings account, budgeting tools, and fee-free banking make Varo a good option for young adults looking for an all-in-one solution to financial management.
SoFi: beyond banking
SoFi therefore is a digital bank that not only provides banking services but has other products and services that assist young people in achieving their financial goals. Besides, it offers checking and savings account with no fees and with access to over 40,000 ATMs, investment tools, personal and student loans, and refinancing.
SoFi offers a convenient option of combining banking and investment services, which is one of the best available in the market. Young adults are able to sign up for a SoFi Money account for their day to day banking needs and then easily transfer the money to a SoFi Invest account to begin investing.
This integration helps the users to handle their finances in one application and can begin investing at an early age, which is beneficial in the long run. It also provides several other services such as webinars, articles, and financial advice to shape the customer’s financial decisions.
These resources are quite helpful for young adults who perhaps have just started to handle their finances and require information on how best to manage their money, save, and even how to invest it, or use it to plan for certain events in their lives.
SoFi is a digital banking company which stands out from the other similar companies as it is focused on the financial literacy of its users, offering them all the necessary knowledge to manage their finances. Also, it has the element of community which enhances the feeling of togetherness among SoFi users.
The members get privileges of attending special events, career guidance and meetings with other people which can be very helpful for the young people who are just beginning their careers. Hence, through these services of banking, investing and community support, SoFi can be considered as a one-stop financial solution for young adults.
Conclusion
Digital bank accounts are changing the dynamics of how young adults in the USA handle their money. Chime, Varo and SoFi are three companies that have different features and benefits that will be useful for this tech-savvy generation.
Chime is best for its simplicity and the automated savings features whereas Varo is the best for comprehensive financial management tools and SoFi is the best for the integrated banking, investing and educational services.
These digital bank accounts are very useful for young adults who want to start managing their money and planning for the future on their own. Through using Chime, Varo, and SoFi’s features, young adults are able to better manage their finances in a rapidly evolving environment.