Neighbors Bank is a real, federally insured bank—but it operates only online
Neighbors Bank is a legitimate online bank chartered and regulated by the Office of the Comptroller of the Currency (OCC), a division of the U.S. Department of the Treasury. It holds Federal Deposit Insurance Corporation (FDIC) insurance, which means deposits up to $250,000 per account holder are protected if the bank fails. The bank does not operate physical branches; all transactions happen through its website or mobile app.
The bank was founded in 2015 and is owned by Axos Financial, a publicly traded company. You can verify Neighbors Bank's charter status through the OCC's website or by searching the FDIC's Bank Find tool using the bank's name or routing number (540991345). These are the same verification steps you would use for any bank.
Because Neighbors Bank has no branches, it cannot take cash deposits or process in-person transactions. All funding must come through electronic transfer—ACH from another bank account, wire transfer, or check deposit through mobile app. Withdrawals work the same way: you transfer money out to another account or request a check be mailed to you.
Key Takeaways
- Neighbors Bank is federally chartered and FDIC-insured, making it a legitimate bank regulated by the U.S. Treasury.
- The bank operates entirely online with no physical branches, so you cannot deposit cash or visit a location in person.
- All deposits and withdrawals happen through electronic transfer, mobile check deposit, or mailed checks.
- You can verify the bank's legitimacy by checking the OCC's charter database or the FDIC's Bank Find tool.
- The bank is owned by Axos Financial, a publicly traded company, and has been operating since 2015.
How to verify Neighbors Bank's legitimacy yourself
Start with the FDIC's Bank Find tool at banks.fdic.gov. Search for "Neighbors Bank" or enter the routing number 540991345. The tool will show you the bank's charter number, the date it was insured, and its current insurance status. If a bank appears in this database with active insurance, it is legitimate and your deposits are protected.
Next, check the OCC's charter database at occ.treas.gov. The OCC publishes a list of all national banks it has chartered. Neighbors Bank appears on this list as a national bank. You can also call the OCC's Customer Assistance Group at 1-800-613-6743 to confirm a bank's charter status by phone.
A third verification step is to look up Axos Financial on the Securities and Exchange Commission (SEC) website at sec.gov. Axos trades under the ticker AXO on the New York Stock Exchange. Public companies are subject to regular financial audits and disclosure requirements, which adds another layer of oversight to the parent company.
What Neighbors Bank accounts offer and what they do not
Neighbors Bank offers checking and savings accounts with no monthly maintenance fees and no minimum balance requirements. Interest rates on savings accounts vary and change with market conditions; you can see current rates on the bank's website. The bank does not charge overdraft fees, though it also does not offer overdraft protection—if you try to spend more than you have, the transaction will be declined.
The bank does not offer credit cards, loans, investment accounts, or wealth management services. It does not have a physical location where you can deposit cash, and it does not accept cash deposits through third-party retailers. If you need these services, you would need to use a different bank or financial institution alongside Neighbors Bank.
Neighbors Bank accounts come with a debit card for ATM withdrawals and purchases. The bank reimburses out-of-network ATM fees, meaning you can use any ATM and Neighbors Bank will refund the fee the ATM operator charged. This is a common feature among online banks that do not operate their own ATM network.
How money moves in and out of a Neighbors Bank account
To deposit money, you can transfer funds from another bank account using ACH (Automated Clearing House), which typically takes one to three business days. You can also deposit checks through the mobile app by taking photos of the front and back; mobile deposits usually clear within one to two business days. Wire transfers into your Neighbors Bank account are also possible, though the bank may charge a fee for incoming wires depending on the wire type.
To withdraw money, you can transfer funds back to another bank account via ACH, request a wire transfer out (which may carry a fee), or request a check be mailed to you. ATM withdrawals using your debit card are free at any ATM, with fees reimbursed by the bank. There is no way to withdraw cash directly from a Neighbors Bank employee because the bank has no physical locations.
All transfers are subject to standard banking timelines. ACH transfers typically take one to three business days. Wire transfers usually complete the same business day if submitted before the bank's cutoff time (typically 2 p.m. Eastern). Mailed checks take five to ten business days depending on postal delivery. Plan accordingly if you need money on a specific date.
Security and fraud protection at Neighbors Bank
Neighbors Bank uses encryption and multi-factor authentication to protect your login. The bank requires a password and typically a second form of verification (such as a code sent to your phone) to access your account. This is standard security practice for online banks.
If someone gains unauthorized access to your account and makes fraudulent transactions, your liability depends on how quickly you report it. If you report unauthorized transactions within two business days, your liability is capped at $50. If you report within 60 days, your liability is capped at $500. If you report after 60 days, you may be liable for the full amount, though banks often cover losses as a matter of policy. Report suspected fraud immediately by calling Neighbors Bank's customer service number or through your online account.
Neighbors Bank is also subject to the same federal fraud protection laws as any other bank. The bank must investigate claims of unauthorized transactions and return your money if the claim is valid. Keep records of all your transactions and review your account regularly to catch fraud early.
Common reasons people question Neighbors Bank's legitimacy
Neighbors Bank is sometimes confused with other financial institutions or scams because it operates only online. Some people assume that a bank without physical branches cannot be real, but online-only banks are now common and fully regulated. Legitimate online banks include Ally, Charles Schwab Bank, and Discover Bank, all of which operate the same way as Neighbors Bank.
Another source of confusion is that Neighbors Bank does not advertise heavily or have a recognizable brand name like Chase or Bank of America. Smaller banks and online-only banks typically spend less on marketing, which can make them seem less established. However, lack of brand recognition does not indicate illegitimacy—it reflects a different business model focused on lower costs rather than branch networks and advertising.
Some people also worry because Neighbors Bank is owned by Axos Financial rather than operating independently. Ownership by a larger company is actually a sign of stability; Axos is a publicly traded company with billions in assets and is itself regulated by the Federal Reserve and the SEC.
When Neighbors Bank might not be the right choice
If you need to deposit cash regularly, Neighbors Bank is not a good fit because it has no branches and does not accept cash deposits through retailers. You would need to use a traditional bank or credit union for cash deposits, or find a way to convert cash to a check or electronic transfer.
If you need customer service by phone, Neighbors Bank offers phone support during business hours, but response times may be slower than at larger banks with dedicated call centers. If you prefer in-person banking or need to speak to someone face-to-face, an online-only bank will not meet that need.
If you need loans, credit cards, or investment services, you will need to use a different institution because Neighbors Bank does not offer these products. Some people maintain accounts at multiple banks to cover different needs—for example, a Neighbors Bank account for savings and a traditional bank account for checking and cash deposits.
Frequently Asked Questions
Can I lose my money if Neighbors Bank fails?
No. Your deposits are protected by FDIC insurance up to $250,000 per account holder. If the bank fails, the FDIC will transfer your insured deposits to another bank or send you a check. This protection applies to all account types at Neighbors Bank, including checking and savings accounts.
Does Neighbors Bank report to credit bureaus?
Neighbors Bank reports account activity to credit bureaus, but only if you have a negative history such as overdrafts or closed accounts due to non-payment. Positive account history (on-time payments, good standing) is typically not reported because bank accounts are not credit products. This is standard practice across all banks.
What happens if I need to deposit cash?
You cannot deposit cash directly at Neighbors Bank. You would need to deposit cash at another bank or ATM, then transfer the funds to your Neighbors Bank account via ACH. Alternatively, you could ask someone to write you a check, which you could deposit through the mobile app.
Is Neighbors Bank safe from hackers?
Neighbors Bank uses standard security measures including encryption and multi-factor authentication. No bank is completely immune to fraud, but your liability for unauthorized transactions is limited by federal law. Report suspicious activity immediately to minimize your risk.
Can I use Neighbors Bank as my main bank?
Yes, if you do not need to deposit cash or visit a physical branch. Many people use online-only banks as their primary account because of lower fees and higher interest rates on savings. However, some people prefer to maintain a secondary account at a traditional bank for cash deposits and in-person services.