What neobank debit cards offer to customers

In this day and age of anytime anywhere banking, neobanks—fintechs backed by a banking partner—are becoming the go-to choice for many customers.

Neo-banks such as Niyo, Fi, Jupiter and Freo, for example, partner with full-fledged banks to provide a range of products such as savings bank accounts, debit cards and loans. And while your dealings may be with the neobank, you are essentially a customer of the partner bank. Here we look at some neobank debit cards and how they fare vis-à-vis those from traditional banks.

Getting started

To start with, you must open a savings account using a neobank’s mobile app. This does not require any physical submission of documents and is a quick process. For example, in case of Niyo, you can open a NiyoX or a Niyo Global account, offered in partnership with Equitas Small Finance Bank and SBM Bank (India), respectively. This gives you access to the associated debit cards. Similarly, opening a savings account with Jupiter, offered in collaboration with Federal Bank, gives you access to a debit card.

What you get

These debit cards typically come with no issuance fee and zero annual card maintenance charges. Approaching the partner bank directly, on the other hand, can entail some debit card-related charges. Apart from this, the key attraction of debit cards from neobanks lies in the additional benefits that they offer over and above the usual bank debit cards. For instance, debit cards from Jupiter and Niyo offer benefits such as zero forex charges and free lounge access at airports. For example, you can use a Niyo Global card (linked to the savings account in Indian rupees) for transactions abroad without having to pay for currency conversion. In general, you are charged a forex markup by the card-issuing bank when you make foreign currency payments using your card. Also, unlike in case of a forex card (which is loaded with a specific currency), here, your account balance continues to earn the savings rate of interest until it gets used.

Neobank cards also come with additional rewards points, that may not be otherwise offered by the partnering bank to their own customers. There is also the ease of keeping track of your card transactions on a neobank app, something not feasible with all traditional banks.

Other details

When it comes to cash withdrawals, you can use a neobank debit card at the ATMs of the partner bank at no charge. Cash withdrawal at other bank ATMs beyond the free monthly transactions, though, involve a charge.

Also, in case of any grievance, while the concerned neobank will be your first port of call, customers can also consider approaching the partner bank directly for assistance.

So, if you care for offers and reward points, debit cards from neobanks can be a good option.