MoneyLion is a financial technology company, not a traditional bank
MoneyLion is a mobile app and website that offers banking-like services, but it is not a bank itself. The company partners with actual banks — currently Customers Bank and Evolve Bank & Trust — to hold your money and provide deposit insurance. MoneyLion handles the interface you see: the app design, customer service, and the features layered on top of basic checking and savings accounts.
This matters because it means your deposits are insured the same way they would be at any other bank. The Federal Deposit Insurance Corporation (FDIC) protects your money up to $250,000 per account type at the partner bank, just as it does at Chase or Bank of America. You are not taking on extra risk by using MoneyLion instead of walking into a branch.
MoneyLion makes money by charging monthly subscription fees for premium features, not by charging you overdraft fees or requiring a minimum balance. The basic account is free, but most of the features people use require a paid subscription.
Key Takeaways
- MoneyLion is a financial app partnered with real banks, not a bank itself, but your deposits carry the same FDIC insurance as traditional banks.
- The basic checking account is free with no monthly fee, but features like early direct deposit and spending controls require a paid subscription starting around $1 per month.
- You can open an account entirely through the app in minutes, and you receive a debit card that works anywhere Mastercard is accepted.
- MoneyLion also offers optional features like credit-building loans and investment accounts, but the core checking account is straightforward.
What accounts MoneyLion offers
MoneyLion's main product is a checking account with a linked savings account. Both sit at the partner bank, and both earn interest on your balance — the rate varies but is typically higher than what you would find at a large national bank. You get a Mastercard debit card that arrives in the mail within 5 to 7 business days.
The free version includes basic checking, a debit card, and the ability to send money to other people using their phone number or email. You can also set up direct deposit and automatic bill payments. There is no monthly fee, no minimum balance requirement, and no overdraft fees — if you spend more than you have, the transaction is straightforward declined.
If you pay for a MoneyLion subscription (called MoneyLion Plus), you unlock features like early direct deposit (getting your paycheck up to two days early), spending controls that let you set limits on categories like dining or entertainment, and access to their credit-building loan product. The subscription costs vary depending on which tier you choose, starting at around $1 per month for basic features.
How to open a MoneyLion account
You open an account entirely on your phone or computer. read the MoneyLion app or visit their website, then provide your name, date of birth, email, phone number, and Social Security number. The company verifies your identity when ready using information from credit bureaus and public records.
Next, you link a bank account you already have — this is temporary and only used to verify you. MoneyLion deposits two small amounts (usually under $1 each) into that account, and you confirm the amounts in the app to prove you own it. Once verified, you can set up direct deposit to your new MoneyLion account, and you do not need the old account anymore.
Your debit card ships within a few business days. Until it arrives, you can use your phone to pay at stores that accept contactless payments, or you can request a temporary virtual card number to use online.
Fees and costs you should know about
The checking account itself has no monthly fee, no minimum balance, and no overdraft fees. If you spend more than you have, the transaction declines — you are not charged $35 like you might be at a traditional bank.
MoneyLion does charge for certain services. Sending money to someone outside the MoneyLion network costs $0.50 per transfer. If you need a paper statement mailed to you, there is a small fee. International wire transfers cost money, as they do everywhere. The subscription tiers (MoneyLion Plus) start at around $1 per month and go up depending on which features you want.
One thing to watch: if you use an ATM that is not in MoneyLion's network, you may be charged a fee by that ATM's owner. MoneyLion reimburses some out-of-network ATM fees depending on your subscription level, but the basic free account does not include this. Check their current ATM network before opening an account if you rely on ATMs regularly.
How MoneyLion compares to traditional banks
MoneyLion is faster to open than a traditional bank — you can have an account in minutes instead of visiting a branch. There are no branches to visit; everything happens on your phone. Customer service is available through the app, usually via chat or email rather than a phone call.
Interest rates on savings are typically higher at MoneyLion than at large national banks like Chase or Bank of America, though they fluctuate with the broader economy. You will not find a physical location to deposit cash, so if you receive cash regularly, you would need to deposit it at an ATM or transfer it from another account.
MoneyLion's strength is for people who want a straightforward, low-fee account and do not need in-person banking. Its weakness is the lack of physical locations and the fact that some features require a paid subscription. If you want a completely free account with no upsells, traditional banks often offer that, though they may charge overdraft fees if you overspend.
Security and FDIC protection
Your money at MoneyLion is insured by the FDIC up to $250,000 per account type, just like money at any other bank. This is not a MoneyLion may provide — it is a federal law that applies to all banks and their partners. If the partner bank fails, the FDIC steps in and returns your money.
MoneyLion uses encryption to protect your login information and uses multi-factor authentication (a code sent to your phone) to verify it is really you when you sign in. You can also set a PIN or biometric lock (fingerprint or face recognition) on the app itself.
If your debit card is lost or stolen, you can freeze it when ready in the app, and MoneyLion will send you a replacement. Fraudulent charges are handled the same way they are at any other bank — you report them, and the bank investigates.
Who MoneyLion works well for
MoneyLion works well if you want a straightforward checking account with no monthly fee, no overdraft fees, and a straightforward mobile app. It is a good fit if you receive your paycheck by direct deposit and do not need to deposit cash regularly. It also works well if you want to earn a bit of interest on your savings without jumping through hoops.
MoneyLion is less of a fit if you need to deposit cash frequently, prefer talking to someone in person, or want a completely free account with zero optional features. In those cases, a traditional bank or a credit union might serve you better.
Frequently Asked Questions
Is MoneyLion a real bank?
MoneyLion is not a bank itself, but it partners with real banks (Customers Bank and Evolve Bank & Trust) that hold your money. Your deposits are FDIC insured the same way they would be at any other bank. The difference is that MoneyLion provides the app and customer service, while the partner bank handles the actual account.
Can I use my MoneyLion debit card anywhere?
Yes, your MoneyLion debit card is a Mastercard and works anywhere Mastercard is accepted — in stores, online, and at ATMs. Out-of-network ATM fees may explore depending on your subscription level.
What happens if MoneyLion goes out of business?
Your money is held at the partner bank, not at MoneyLion. If MoneyLion closes, your account transfers to the partner bank, and you keep your money. The FDIC insurance protects you either way.
Do I need a credit card to use MoneyLion?
No, MoneyLion is a checking and savings account with a debit card. You do not need a credit card to open an account. MoneyLion does offer a credit-building loan as an optional feature if you want to build credit history, but it is not required.
How long does it take to get my debit card?
Your physical debit card arrives within 5 to 7 business days. You can request a temporary virtual card number to use online or on your phone while you wait for the physical card to arrive.