Neobank Fees: What You Really Pay and How to Avoid Hidden Costs

When you sign up for a neobank, a digital-only bank that operates entirely through apps, without physical branches. Also known as digital bank, it promises no monthly fees, instant transfers, and slick mobile tools. But behind the clean interface, there’s often a hidden cost structure that catches people off guard. Many assume neobanks are free because they don’t charge overdraft fees or minimum balance penalties like traditional banks. But that’s only part of the story.

Neobanks make money in ways you might not notice. Take foreign transaction fees, charges applied when you spend money in another currency—some neobanks slap on 1-3% even if they advertise "no foreign fees." Others charge for ATM withdrawals after the first few per month. Then there’s virtual cards, digital payment cards issued instantly for online or app-based spending—useful for controlling business expenses, but sometimes locked behind premium tiers. And don’t forget fintech costs, the operational expenses baked into pricing models by digital financial services. These aren’t always listed as fees, but they show up as slower transfers, limited customer support, or paywalls on features you thought were basic.

What’s worse is that these fees change often. A neobank might remove a fee one month to attract users, then quietly reintroduce it six months later under a new name. That’s why comparing neobanks isn’t about which one looks prettiest—it’s about reading the fine print on transaction limits, currency conversion, and account maintenance. Some give you unlimited free transfers but charge $2 per ATM withdrawal. Others charge nothing for cashouts but limit you to $500 per month. If you travel, shop online, or run a small business, these numbers add up fast.

You don’t need to be a finance expert to spot the traps. Ask yourself: Do I use ATMs often? Do I pay in euros or dollars regularly? Do I need to send money internationally? Your answers will tell you which fees matter most. And if a neobank doesn’t clearly list its fee schedule on its website, walk away. Transparency isn’t a bonus—it’s the baseline.

Below, you’ll find real breakdowns of what top neobanks charge, how they compare to each other, and which ones actually deliver on their "no fees" promise. You’ll also see how tools like virtual cards and digital spending controls can help you avoid unnecessary costs—not just by cutting fees, but by giving you more control over where your money goes.