Neobank Versus Traditional Bank: Which One Is Actually Better for Your Money?

Neobanks can save you money on fees, but traditional banks may offer stronger support when problems arise. Tada Images/ShutterstockNeobanks like Chime and SoFi can offer lower fees, sleeker app designs, and tools that traditional banks rarely match. However, there are tradeoff areas to consider: deposit protection structure, customer service, and lending access, to name a few.Which one is better for your money? That depends entirely on how you use banking day-to-day.What Is a Neobank, Exactly?A neobank is a financial technology, or fintech, company that offers banking services entirely through a mobile app or website—no branches, no teller window. Everything happens on your phone.