N26: German Online Bank
N26 is a mobile bank whose services are used via mobile devices and payment cards. Opening an account from Finland takes just minutes, after which you can manage your banking details on your phone in real time, wherever you are. Despite its modern concept, N26 is a registered bank in Germany, founded in 2013.
N26’s headquarters are in Berlin, and the bank serves countries within the SEPA area. In addition, you can open an account in the United States and Switzerland, and the bank is expanding to Brazil soon.
The bank offers everyday accounts for personal customers and a Mastercard linked to the account. The accounts also suit small-scale savings, but regular current accounts do not earn interest. Beyond banking services, N26 offers add-on benefits, including insurance at higher tiers.
Fee-Free Standard Account
Opening and using the Standard account is free. You get a euro-denominated account, and you can deposit money by regular bank transfer, from a payment card, via Google Pay, or through the MoneyBeam service. You can also create three separate savings pots within the account, which N26 calls a Space. You can easily move funds between these savings pots without fees.
Depositing money into an N26 account by bank transfer is free, but it must be in euros from a SEPA-area bank, such as from Finland. The first deposit by payment card or via Google Pay is also free, but after that, N26 charges a 3 per cent deposit fee. The most sensible option is to deposit by bank transfer because it’s fee-free, but the transfer takes about 1-2 banking days.
The Standard account includes a fee-free Mastercard debit. You can pay for purchases anywhere within your available balance, and currency conversions on purchases from outside the euro area are free. You can also use an ATM three times a month without fees, but outside the euro area, ATM withdrawals incur a 1.7per centt currency conversion fee.
Slightly Better Smart Account
The Smart account costs 4,95 €/month. It includes the same services as the Standard tier and a bit more. For example, you can open 10 savings pots and share them with other N26 users for joint accounts. There are five fee-free ATM withdrawals, and their currency conversions are free, too. The Smart tier also offers more perks from N26’s partners.
The Smart account suits a couple who occasionally travel outside the euro area. Shared savings pots make saving for a trip convenient, and personal funds stay neatly separate. The Smart tier also has an interesting feature that rounds purchase totals up to the next whole euro, automatically moving the difference into a chosen savings pot.
You-Tier Account
The You account costs 9,90 €/month. It naturally includes the Smart-level features, plus additional perks.
The biggest added benefit at the You level is travel insurance. Another useful feature is the option to preordered a spare card so that if your primary Mastercard is lost, you have a backup ready to use immediately.
Best Metal-Tier Account
The Metal account is N26’s best product for individuals. At this tier, the included Mastercard is made of metal.
Top-tier extras include, among others, rental vehicle insurance and phone insurance. Rental vehicle insurance covers, for example, rental car damage costs, and phone insurance covers costs from mobile phone theft. The top tier suits an active traveller who needs solid insurance protection and who can rent a car.
The rental car insurance deductible is 250 euros, and the phone insurance deductible is 50 euros. The full insurance terms are available to read just before opening an account.
Benefits of N26 Bank and Mastercard
N26 offers its users numerous benefits. The number and value of these benefits depend on the account tier. On the free tier, the perks are naturally smaller than on the top Metal tier.
Fee-Free Currency Conversions
Regardless of your N26 account tier, currency conversions to euros on card purchases are always free. Typically, banks charge nearly a 2per centt currency conversion fee, but N26 doesn’t have this service fee. The only exception is ATM withdrawals on the Standard tier, where you must pay 1 per cent currency conversion fees when the withdrawal is in a currency other than euros.
ATM Withdrawals
You can use N26 Mastercards at ATMs without fees. The number of free withdrawals ranges from 3 to 8 times per month, depending on the account tier. After that, you pay a 2€ € service fee per transaction.
Note that certain ATMs charge a usage fee regardless of the bankcard. This fee is shown before you confirm the withdrawal. If you see such a notice, it’s wise to cancel and find an ATM that doesn’t add a surcharge to the amount you withdraw. In our experience, you can find such an ATM easily in many destinations.
Insurance
At the higher You and Metal tiers, the N26 account includes insurance. Both tiers include travel insurance, and the Metal tier also adds rental car insurance and mobile phone insurance. These policies have deductibles, so it’s worth reading the terms carefully, as always when buying insurance.
Partner Benefits
N26 also provides perks through its partners. Under the Explore menu in the N26 app, you’ll find the Partner offers section. For example, on the Standard tier, N26 offers free Dropbox storage and 50% off the Busuu service. For the curious: Busuu is a language-learning platform.
N26 Bank Security
N26 is a real bank with the necessary licenses, so it has an obligation to safeguard funds appropriately. N26 uses numerous technical protection measures, as banks typically do. Additionally, depositors’ funds are protected up to 100,000 euros through the German Deposit Protection Scheme.
Our Experience Opening an N26 Standard Account
We opened a Standard-tier account with N26.
Registration
Opening an account using only a mobile phone was easy. We had to provide our personal details to N26 and download the N26 app. The app asked us to send a photo of both sides of our ID card and a selfie. After that, the account was available almost immediately.
Identity Verification
We verified our identity with N26 during account opening by sending photos of both sides of our ID card and a selfie. We also had to confirm our email address.
After opening the account, you can log in to the app with a fingerprint or a PIN code.
Ordering the Card
You don’t need to order the linked Mastercard separately, as it’s free. However, N26 does not send the card until at least 10 euros have been deposited into the account. After that, the card is dispatched quickly, and ours arrived within a few weeks. N26 communicated actively about the process's different stages via email. To receive the card as quickly as possible, it’s best to deposit at least 10 euros when opening the account.
Using the Card
You must activate the Mastercard before use by making a withdrawal at an ATM. You can check the card number in the app at any time, and you can also reset the PIN via the app. The app lets you set various restrictions for card use. You can also order a new card directly from the app..
The N26 Mastercard supports Google and Apple Pay.
Our Review of N26 Bank’s Mastercard
Every traveller should get at least the free Standard-tier Mastercard for its fee-free currency conversions. Frequent travellers would be wise to consider the Metal tier for its comprehensive, travel-friendly insurance. The in-between Smart and You tiers will also suit many.
N26’s accounts and cards don’t offer particularly innovative features, but as basic accounts and cards, they work very well. We rated the N26 Mastercard a 4-star payment card, even though the higher tiers are a bit pricey.
ERROR: FAQ data invalid.Bottom Line
N26 is a licensed, modern mobile bank. It offers four different account types for everyday use. Leisure travellers should start with the Standard account and upgrade to the next tier if needed. With the N26 Mastercard, you save money, especially outside the euro area.