There is no single best neobank in Australia: Up and ubank suit people who want an app-first everyday account backed by an established bank, ING and Macquarie suit people who want a bank with its own licence, and Revolut, which received an ADI licence in July 2026, suits frequent travellers.
The most useful test is who actually holds your money and whether that institution is an APRA-authorised deposit-taking institution (ADI), because only then does the Financial Claims Scheme apply, up to 250,000 dollars per account holder per ADI.
Last reviewed: October 2026.
Australia has had a turbulent neobank history. Two stand-alone start-ups with their own licences, Xinja and Volt, gave their licences back, and NAB bought a third, 86 400. What remains is a mix of digital brands owned by established banks, a few licensed digital specialists, and global players that are now adding local licences. This overview of the best neobank in Australia options describes the main providers, how each is regulated and who each tends to suit. It does not quote interest rates or fees, because they change often. Check each provider before you apply.
How Australian neobanks are regulated
APRA authorises banks in Australia under the Banking Act 1959, and the law calls them authorised deposit-taking institutions. APRA publishes a register of ADIs, and the Financial Claims Scheme protects eligible deposits up to 250,000 dollars per account holder per ADI. APRA explains that deposits held with one banking licence are added together, including those under any brands the institution operates.
This has two consequences. First, a digital brand that is simply a label for a bigger bank, such as Up, shares one 250,000 dollar limit with its parent. Second, a provider without an ADI licence cannot offer FCS-covered deposits, even if it is regulated in other ways. For the general explanation of regulation across countries, see our guide on whether neobanks are regulated.
Best neobank in Australia candidates at a glance
| Provider | Licence structure (per public sources) | Main focus |
|---|---|---|
| Up | A brand of Bendigo and Adelaide Bank Limited, which issues the accounts | App-based everyday account and savings tools |
| ubank | Operates under NAB’s ADI licence | Transaction and savings accounts and home loans |
| ANZ Plus | Operates within ANZ’s ADI structure rather than as a separate entity | Digital banking from a major bank |
| ING Australia | Holds its own ADI licence | Fee-light everyday and savings accounts |
| Macquarie Bank | Holds its own ADI licence, listed on APRA’s register | Everyday, savings and wider banking |
| Judo Bank | Listed on APRA’s ADI register | Business lending and deposits |
| Alex Bank | Listed on APRA’s ADI register; full ADI status reported from December 2022 | Digital lender, with deposit products rolling out |
| Revolut | ADI licence for Revolut Payments Australia announced by APRA on 21 July 2026 | Multi-currency accounts, travel and payments |
Naturally, the list is not exhaustive. A June 2026 Mozo guide says Australia has roughly 18 neobanks and digital banks but names only some. Product lines also change, so treat the table as a starting point.
Up and ubank: app-first accounts from established banks
Up is a brand of Bendigo and Adelaide Bank, and Up says balances in its Everyday, Savers and Essentials Saver accounts are held with that bank and fall under the Financial Claims Scheme. ubank belongs to NAB, which bought the neobank 86 400 in May 2021 for a reported price of around 220 million dollars and merged it into ubank. Both are strong best neobank in Australia candidates for people who want a modern app and the backing of a licensed bank. Because they are brands rather than independent banks, you should check which features, such as home loans or joint accounts, are currently offered.
ING, Macquarie and ANZ Plus: big names with digital-first products
ING Australia and Macquarie Bank hold their own ADI licences, and Mozo lists them among digital banking options. ANZ Plus is ANZ’s digital offering and sits within ANZ’s licence structure. These suit people who want simple everyday banking and savings without a branch, and who value the stability of a longer-established balance sheet more than new features.
Revolut: new licence, existing customers moving
Until mid 2026 Revolut in Australia operated under an e-money-style framework without an ADI licence. APRA announced on 21 July 2026 that it had granted an ADI licence to Revolut Payments Australia and a non-operating holding company licence to Revolut Australia NOHC. Trade reporting says Revolut can now offer government-guaranteed deposit accounts under the Financial Claims Scheme, and that Revolut will move existing customers to the licensed entity automatically.
If you already use Revolut, check the legal entity named in your account terms and confirm whether and when your balance is held by the licensed bank, and read the provider’s statement on which products are covered. The switch can be gradual.
Neobanks that did not last
Xinja received a full ADI licence in 2020 and returned it in January 2021, and Volt surrendered its licence in June 2022. Both returned customer deposits. The episodes illustrate that a licensed neobank can still struggle commercially, and that being an ADI is what protected customers. For the economics behind these exits see our guide on whether neobanks are profitable.
How to choose the best neobank in Australia for your situation
- Everyday spending and budgeting: compare Up, ubank, ANZ Plus and ING on current fees and features.
- Savings: compare current advertised rates and conditions yourself, since they change and are often tied to monthly deposit or spending requirements.
- International travel and currency: Revolut is built for it, but check which entity holds your balance.
- Business banking: look at ADIs with business products, such as Judo Bank, and compare the fee schedules.
- Large balances: remember the 250,000 dollar limit applies per account holder per ADI, and brands sharing a licence share the limit.
What this means for you
- Search the APRA ADI register for the legal name of any provider before depositing.
- Do not assume that two brands give you two limits. Check whether they share a licence.
- Read the product disclosure documents for fees and conditions rather than relying on marketing pages.
- Keep amounts you cannot afford to lose spread across institutions.
- For other regions, see our guides to the best neobanks in Europe and the best neobanks in the USA.
Questions to ask before opening an account
- Which legal entity is my account with? The terms and conditions name it. A marketing brand is not the same thing as the licensed institution.
- Is that entity on APRA’s register? If it is, the Financial Claims Scheme applies to eligible Australian dollar deposits up to the limit. APRA notes the scheme covers transaction, savings and term deposit accounts.
- What is excluded? APRA says life insurers, private health insurers and superannuation funds are not covered by the scheme, and that eligible accounts are in Australian dollars. Multi-currency balances may be treated differently, so ask.
- What are the conditions on any headline savings rate? For example, bonus rates often require deposits or card spending each month and may drop if you miss a month.
- How do I get help? Check whether support is chat only, and what complaint process and external dispute resolution scheme applies.
How we judged the best neobank in Australia
Rankings in this space often reward whoever advertises most, unfortunately. Instead, we used five tests that matter to your money, and we applied them to every provider in the table above.
- Who holds the deposit. An ADI, a brand of an ADI, or a non-bank. This decides whether the Financial Claims Scheme applies.
- Track record. Years operating in Australia and, for brands, the stability of the parent bank.
- Fit for a purpose. Everyday budgeting, savings, travel or business, since no provider leads in all four.
- Transparency. Whether the legal entity, conditions on bonus rates and dispute process are easy to find.
- Exit path. How easily you can move your money and close the account if the product changes.
We deliberately left out interest rates and fees, which change too often for a guide to stay accurate. Consequently, the best neobank in Australia for you is the one that passes these five tests and also wins on the current numbers you check yourself.
Worked example: three people, three different answers
The following illustrative profiles show why the best neobank in Australia depends on the person rather than the brand.
- Priya, 24, first full-time job. She wants spending categories, round-ups and savings pots. A brand of an established bank, such as Up or ubank, gives her the app features with FCS coverage through the parent.
- Tom, 41, saving a house deposit. His balance will approach the 250,000 dollar limit. He prefers an institution with its own ADI licence, such as ING or Macquarie, and he plans to split the deposit across two licences as it grows.
- Mei, 33, travels for work every month. She values multi-currency balances and cheap conversion, so Revolut suits her, although she keeps her salary at an ADI she has used for years and checks which entity holds her Revolut balance after the licence change.
In each case the person kept a second account elsewhere. That habit matters more than the choice of brand.
Common mistakes when picking the best neobank in Australia
- Chasing the headline savings rate. Bonus rates usually depend on monthly deposits or card spending and can drop if you miss a condition. Read the conditions first.
- Counting brands as separate limits. Two brands under one ADI share a single 250,000 dollar limit, as APRA explains.
- Assuming a global app is a local bank. Until a provider holds an ADI licence, its balances are not FCS deposits, even if the app looks identical.
- Ignoring cash and cheques. App-only providers may not accept cash deposits. Check before you rely on one for a small business.
- Closing the old account too soon. Keep it open until salary, direct debits and refunds have all moved across cleanly.
Switching step by step
Moving your everyday banking takes a few weeks if you do it carefully. First, open the new account and confirm the legal entity on the welcome documents. Second, update your employer’s payroll details and wait for one pay cycle to land. Third, move direct debits and subscriptions one at a time, checking each one goes through. Finally, keep a small balance in the old account for a month or two in case a refund or late debit arrives. For the general trade-offs of app-only banking, see our guide to the disadvantages of neobanks.
Sources and further reading
- APRA: Register of authorised deposit-taking institutions
- APRA: Financial Claims Scheme
- APRA: ADI licence granted to Revolut (21 July 2026)
- Up: Financial Claims Scheme page
- Mozo: Digital banking and neobanks in Australia
- Brokernews: Revolut secures ADI licence
- Infochoice: Alex granted banking ADI licence
Frequently asked questions
What is the best neobank in Australia?
There is no single best option. The right choice depends on whether you want everyday banking, savings, business accounts or international features, and on who holds your money.
Are Australian neobanks covered by the Financial Claims Scheme?
Deposits with an APRA-authorised deposit-taking institution are covered up to 250,000 dollars per account holder per ADI. Brands that run under a bank’s licence, like Up, are covered through that bank.
Is Up a bank?
Up is a brand of Bendigo and Adelaide Bank Limited, which issues the accounts, according to Up’s own page.
Does Revolut have an Australian banking licence?
APRA announced an ADI licence for Revolut Payments Australia on 21 July 2026. Check the provider for the status of your own account and which entity holds it.
What happened to Xinja and Volt?
Xinja surrendered its ADI licence in January 2021 and Volt in June 2022, and both returned customer deposits.
Do the 250,000 dollar limits stack across brands?
No. APRA says deposits held under one banking licence are added together, including those under its other brands.
More questions about the best neobank in Australia
How do I check if a provider is an ADI?
Search APRA’s register of authorised deposit-taking institutions by the legal name found in the product terms.
Do you list interest rates here?
No. Rates and fees change frequently and often depend on conditions, so check each provider directly.
Which is the best neobank in Australia for travel?
Revolut is built around multi-currency balances and travel spending, and since July 2026 it holds an ADI licence. Confirm which entity holds your balance and compare its conversion terms with ING and Macquarie cards.
Which is the best neobank in Australia for savings?
Any ADI or ADI brand can offer FCS-covered savings. The right one depends on the current rate and its conditions, which change often, so compare the advertised rate, the bonus conditions and whether your total at that licence stays under 250,000 dollars.
Is a digital brand of a big bank still a neobank?
In everyday language, yes. Up and ubank behave like neobanks in the app, but legally they are brands of Bendigo and Adelaide Bank and NAB, which is why they share the parent’s licence and deposit limit.
General information only, not financial advice. Providers, licences and products change, so confirm details with the provider and with APRA before deciding.