Neobanks supply personalised and technology-driven on-line banking versus conventional banks with bodily branches. With the younger technology focusing extra on digital and low-cost banking expertise, we now have a number of zero-balance neobanks gaining traction in India. However, given the completely different merchandise, it might get tough to determine which one to go for. Therefore, we’re right here with 5 of the very best zero-balance neobank apps in India to make use of in 2021.
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What Are Neobanks?
For starters, Neobanks are 100% on-line banks that use digital channels to supply providers to clients. Unlike conventional banks, there are not any bodily branches, and all the work is completed by way of digital or mobile-only providers.
There are two varieties of neobanks- one which has its personal banking license and the opposite which has tied up with an present conventional financial institution to supply providers. In India, on account of regulatory restrictions, we don’t but have neobanks with their very own licenses.
Hence, the neobanks in India are extra of a layer of providers backed by an already established financial institution having a bodily presence.
Why Use Neobanks in India?
While conventional banks additionally supply digital providers, neobanks maintain the next benefits that make them stand out available in the market:
- Quick onboarding course of
- Enhanced, personalised person expertise
- Driven by AI and machine studying
- Flexible, on-line buyer help
- Valuable insights
- Low-cost construction
Most neobanks have a low-cost construction whereby you don’t have to keep up a mean stability or pay for important providers. Some even supply free debit playing cards coupled with extra perks. All of it, when coupled with totally on-line service, makes up for a perfect product for every day banking wants.
Best Zero-Balance Neobank Apps in India in 2021
The neobank mannequin has lately began gaining recognition within the nation. Some gamers have achieved a superb buyer base, whereas some are nonetheless of their preliminary part. Below are 5 low-cost neobank apps with zero stability necessities which you can select from.
1. Jupiter Money- Neobank with Rewards and Cashbacks
Jupiter Money presents a no-fee, zero-balance financial savings account in partnership with Federal Bank. It’s constructed by trusted individuals, together with the CEO Jitendra Gupta, the founding father of Citrus Pay, which he offered in 2016.
With Jupiter, you get a free VISA Signature debit card with no becoming a member of or annual payment. Plus, it presents 1% cashback on the debit card and UPI spends at verified retailers, adopted by 5% cashback on worldwide transactions (3.5% foreign exchange expenses).
The app is very intuitive and presents extra options like checking your web price, i.e., stability throughout all of your financial institution accounts, energetic loans, and likewise exhibits a real-time breakdown of all of your spending throughout the month.
Besides, there’s a novel Pots account whereby it can save you cash to your monetary objectives. It additionally has fast and responsive buyer help and an energetic group. With all of the perks and options, Jupiter tops the listing of greatest neobank apps in India.
Pros
- Free UPI funds (no limits)
- Free VISA Signature debit card (free alternative)
- 1% Cashback on debit card and UPI spends
- Track spendings, web price
- Quick 24 x7 chat help
- Detailed charges here
Cons
- Forex markup expenses on worldwide transactions
- IMPS chargeable after 5 transactions (for quantity > Rs. 1000)
Partner Bank: Federal Bank
Interest Rate: 2.5%
Owned by: Amica Financial Technologies Pvt. Ltd.
Android Coming quickly on iOS
2. Fi Money- Best Neobank for International Transactions
Fi Money has partnered with the identical Federal Bank to supply banking providers within the nation. The neobank was based by co-creators of Google Pay- Sujith Narayanan & Sumit Gwalani and is especially focused at salaried millennials and dealing professionals.
Fi presents a glossy VISA Platinum debit card with none expenses. Plus, there’s no foreign exchange markup payment, that means you can also make worldwide funds with none further expenses. The app appears to be like extremely intuitive and gives extras like every day, weekly, and month-to-month insights in your spending.
You get the choice to open Smart Deposits to save lots of to your monetary objectives at respectable rates of interest. You may create FIT guidelines that routinely put aside a specific quantity for saving. For instance, it may well put apart Rs. 10 each time you order meals from Swiggy.
Overall, Fi Money is a head-to-head rival for Jupiter and presents comparable options. While it doesn’t supply cashback because the latter does, it’s at present the very best neobank in India for worldwide transactions and good deposits.
Pros
- Free funds
- Free VISA Platinum debit card (with free first-time alternative)
- 0% foreign exchange markup expenses
- Smart deposits, FIT guidelines
- Built-in expense tracker
- Good buyer help
- Detailed charges here
Cons
- Open just for working professionals
Partner Bank: Federal Bank
Interest Rate: 2.5%
Owned by: epiFi Technologies Private Limited
Android iOS Version underneath beta testing
3. NiyoX Digital- Neobank with High-Interest Rates
Niyo was one of many first startups to introduce neo-banking in India. Initially, they partnered with IDFC First Bank. However, later they dropped it and got here up with NiyoX in partnership with Equitas Small Finance Bank.
NiyoX presents a first-year free VISA platinum debit card with the choice to decide on between two designs. From the second yr onwards, you’ll should pay Rs. 150 + GST because the annual payment. Anyways, they could quickly carry up some stability upkeep standards to waive off these expenses.
The newly launched debit card options tap-to-pay and likewise brings in zero foreign exchange expenses until 31 Dec 2021. Past which, you possibly can keep a MAB of Rs. 5,000 if you wish to get pleasure from 0 foreign exchange expenses on worldwide transactions.
Moving additional, NiyoX enables you to put money into direct mutual funds from inside the app (in fact, we now have higher mutual fund apps on the market). Interestingly, it gives a novel characteristic known as “Invest the Change,” which auto-invests the spare each time you spend.
The transactions are free, give common rewards, and there’s no stability dedication. However, Niyo fails in terms of buyer help. Having used it for some time, I neither preferred their customer support nor the reliability of the underlying financial institution.
Pros
- First-year free Visa platinum debit card
- 7% rate of interest for quantities above 1 lakh
- Zero foreign exchange markup expenses*
- “Invest the Change” characteristic
- Detailed charges here
Cons
- Lackluster customer support
- Debit card chargeable from second yr onwards
- The app wants extra refinement
Partner Bank: Equitas Small Finance Bank
Interest Rate: 3.5% (for quantity <1L), 7% (for quantity >1L)
Owned by: Niyo Solutions Inc.
4. Finin- AI-Fueled Neobank to Manage, Save, and Invest
Finin is an AI-fueled neobank launched in partnership with the State Bank of Mauritius. Founded in 2019 by Suman Gandham and Sudheer Maram, the neobank is focused at college students, millennials, and employed professionals.
It enables you to onboard inside two minutes with a easy KYC course of. Like Jupiter, you possibly can see the stability in all of your accounts in a single place. Plus, the AI-driven insights suggest budgets for you primarily based in your spending habits.
You can arrange automated saving objectives and budgets and obtain invoice fee notifications and reminders to cancel your trial subscriptions. Besides, Finin presents personalized funding options and monetary recommendation personalised to fit your revenue and general profile.
Once you signup, you get a handsome VISA signature card powered by SBM. The card is totally free, and there are not any expenses in any way. International transactions and rewards on spending are at present within the pipeline.
Unfortunately, Finin has briefly stopped taking new signups as they’re making modifications to the onboarding course of. We anticipate them to reopen it quickly.
Pros
- Free VISA Signature Card by SBM
- Good rates of interest
- Reminders about subscriptions and trials
- Smart budgeting for month-to-month spends
- Automate financial savings with round-up transactions
Cons
- Temporarily not onboarding new clients
Partner Bank: SBM Bank (State Bank of Mauritius)
Interest Rate: 3.50% (for stability as much as 2L), 4% (for stability between 2-5L), 5% (for balances >5L)
Owned by: Dinero Innovations Pvt. Ltd.
Are These NeoBanks Safe?
The neobanks in India have partnered with present banks to supply providers. Your stability quantity is stored with these banks and never the neobank entity. For Fi and Jupiter, the cash stays with Federal Bank. Whereas, within the case of NiyoX and Finin, it’s with Equitas and SBM Bank, respectively.
Moreover, your deposits as much as 5 lakh are insured by DICGC, a subsidiary of RBI. Hence, it’s protected to park your cash in these banks. But given the latest fiasco with Yes Bank and PMC Bank, it’d be higher to not hold all of your financial savings in a single financial institution, particularly if it’s a small establishment.
If you’re questioning about SBM Bank, it’s a business financial institution from Mauritius that operates in main metropolitan cities in India. It comes underneath the rules of RBI and therefore is insured for quantities as much as 5L by DICGC.
Alternatives to NeoBanks by Traditional Banks
As an alternative choice to neobanks, you possibly can go for digital choices by conventional banks with zero stability necessities in India, given under.
Kotak 811 Digital
- A digital checking account by Kotak Mahindra Bank.
- It could be opened with video KYC.
- It has zero-balance necessities and offers a free digital VISA debit card.
- The bodily card (obtainable upon request) would price you Rs. 199 + GST yearly.
ICICI Mine
- Zero-balance financial savings account by ICICI for individuals aged 18-35.
- It could be opened with video KYC.
- The debit card prices Rs. 150 + GST yearly.
- You’ll get common presents on Amazon and Flipkart.
IndusInd Digi-Start
- Digital financial savings account with zero non-maintenance expenses.
- It could be opened immediately with Aadhaar and PAN, adopted by video KYC.
- It requires preliminary funding of Rs. 20,000.
- The debit card would price you Rs. 249 + GST.
Wrapping Up- Banking with NeoBanks in India
These have been among the greatest neobank apps in India with zero stability upkeep necessities. Out of all, my private favorites are Jupiter and Fi Money for obvious causes. Anyways, which one do you want? Have anything to ask or suggest? Do let me know within the feedback under. Stay tuned for extra such articles.
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