The 7 Best Bank Accounts for Millennials

If you are like the majority of millennials, you are probably tired of the underwhelming service offered by traditional brick-and-mortar megabanks. Instead, you probably prefer tech-forward startups that provide better customer service, have extra features and allow you to do most of your banking on your phone.

You probably also want a bank that can provide financial advice and support you with real-time data on your spending and saving habits. Luckily, many banks now offer financial services with the younger generation in mind, and this article details some of the best. 

If you're looking to upgrade to a more tech-savvy banking solution, this article will provide you with the information you need to make the best choice!

Why Banks for Millennials Need to Be Different

It's no secret: the millennial generation faces perhaps the most challenging economic climate since the Great Depression. This age group, born from 1981 to 1996, is experiencing its second recession in only a decade. As a result, many have little faith in banks and feel the financial system is rigged against them.

As young adults, millennials are in a crucial period to start building financial stability, and the majority have yet to find their footing. Unfortunately, many have college debt, stagnant salaries, and no control over the rapidly rising cost of living.

Thus, this generation is more open to disruptive banks with new approaches. They're also critical of unnecessary fees, disappointing interest rates, and poor customer service.

But it's not just about the things banks don't do; it's also about the things they do well. 

What Makes a Bank Great for Millennials

Millennials are holding banks to a higher standard than previous generations. They expect their bank to work for them and are not afraid to close accounts with banks that don't meet their standards.

If a bank is going to win a millennial's business, it needs to do a few key things well:

• Have a high-quality mobile banking app
• Have no hidden fees, or better yet, no fees at all
• Have flexible account requirements

Let's examine each of these elements in-depth!

Mobile Access

Millennials are the first generation to have continuous internet access across all devices. Because of that, connectivity has become a critical aspect of banking for them. In fact, according to data from American Bankers Association (ABA), millennials are three times more likely to open a bank account on their phone than in person. Thus, the best banks for millennials must offer 24/7 access across all devices.

This easy-access format of banking is more convenient, efficient, and practical. In addition, some of these apps also provide tools such as budgeting, envelope banking, and goal setting. These extra features can help millennials create and visualize their financial plan, monitor their spending habits, and stay on track for the future.

Low, Transparent, or No Fees

With so much debt piling up, it's no surprise millennials are fed up with excessive fees. According to data, 93% of millennials prefer banks with no fees. That means no maintenance fees, no minimum balance fees, and minimal or no overdraft fees. So if you're looking for a bank account for a millennial, finding one with minimal fees is likely to be a necessity.

It might seem farfetched to demand banks have no fees, but at the very least, they must have no hidden fees. The millennial generation requires transparency from banks, and getting hit with hidden fees is a dealbreaker for many. Therefore, banks that wish to attract millennial clients must offer a transparent fee structure.

Flexibility & Minimal Requirements

Flexible criteria are critical for millennial banking. This can range from minimum account balance conditions to having an easy account setup process, preferably one that can be completed on a mobile device. The ideal banks for millennials make their services available and have versatile guidelines.

This laid-back form of banking allows account holders to access their money anytime they need it, offering liquidity and a flexible experience. Many millennials prioritize having a bank account that is easy to use and requires as little of their time as possible. That way, they can spend their time on more important things.

The 7 Best Bank Accounts For Millennials 

Finally, based on these relevant features and tools that millennials look for when choosing a bank, here are the best banks for millennials that meet our criteria.

Due

Due allows you to send and receive payments from clients and customers from your account. This process can be done by phone or email in as little as ten minutes. It also only takes one day to send money to a conventional bank account. When it comes to security, Due encrypts all of your information and stores it on a secure server. Next-generation digital payment technology also monitors unauthorized transfers.

Chime

This online bank offers all the traditional services, such as sending money to friends and paying bills, without charging any monthly or overdraft fees. However, what makes Chime stand out is its automated savings. This feature works by rounding up your transactions to the next dollar and converting that amount to your savings.

Ally

Ally is one of the most popular and highly rated online banks. This bank achieved this position due to its no-fee checking, high savings and CD yields, and 24/7 customer support. Ally also offers a savings account and a 12-month CD with very competitive interest rates. Finally, Ally bank accepts and sends transfers from every bank in the United States.

Moven

The online mobile bank Moven provides a checking account and the ability to monitor your financial health at all times. The app keeps track of not only your Moven account but also any other banking accounts you've linked to it. It also doesn't charge overdraft fees and has only a few account fees. The only major disadvantage of Moven is that checks can take up to 10 days to clear.

Circle

Circle takes great pride in being more than a payment app. It states it is a platform that really can transform the world economy. Circle uses blockchain technology to offer you the opportunity to send and receive money from anywhere in the world quickly, anonymously, and for free. It only takes a picture of your debit card to send money to a friend instantly. Circle also offers GIFs or emojis to personalize your payments and make them more fun.

Outlet

Outlet is an alternative to a bank with similar features. Outlet offers a 5% APY savings account alternative that leverages stablecoins to generate yield on the blockchain. Users can also apply for a debit card to freely spend their balance.

This savings account platform allows clients to easily navigate the crypto environment without requiring any prior experience or knowledge. On top of all that, Outlet is free to use and doesn't charge any hidden fees whatsoever. Furthermore, Outlet holds your funds with an SOC II Compliant custody partner and has insurance against loss of funds due to hacks.

Revolut

Revolut is a mobile-first bank that makes managing your money simple and fast. It allows you to make online transfers securely, reliably, and quickly from your mobile app in many different currencies. In addition, Revolut customers can apply for debit cards that work at all major ATMs.

But as with every option, Revolut has its downsides. If you pass the monthly withdrawal limit - which is as low as $300 - you will have to pay a fee. You also can't add money to your account with cash or check. Instead, you need to transfer from another account – for now, at least.

Banking as a Millenial

Choosing who to bank with is an important decision. A small amount of interest can add up throughout your life, so it's crucial to ensure you're getting the best deal possible. Millennials are young, and the decisions they make today matter. Just like your interest rate, your actions' positive and negative consequences will compound as you age.