Online banks in Ireland

What is an online bank account?

Online bank accounts, also called digital or challenger bank accounts, are bank accounts that are managed entirely online through your smartphone or computer.

These banks tend to have fewer fees than traditional Irish banks and also offer other useful features such as budgeting tools, smart money tracking and low-cost travel and money transfers.

Why should I use an online bank account in Ireland?

There are quite a few advantages to signing up with a digital bank:

• Fast sign-up. You can usually open an app-based account within minutes. You’ll need to reside in Ireland and provide proof of identity (a passport or driver’s licence will do).
• Banking access in your pocket. Your entire bank account is built to live on your smartphone. You can send money, budget and save all within the digital bank app.
• Fast and cheap international transfers and spending. A big advantage of app-based banks is they often have no fees for foreign currency transactions. This will help you save when online shopping from a site overseas, when you’re travelling and sending money across the border.
• 24/7 support. If you need help you don’t need to visit a bank branch to get support. Access online support within your app.
• Instant spending notifications. Know how much you’ve spent as you’re spending. Many apps tell you the time, place, location and amount of your transactions to help you keep track. You can also get notifications for your balance and other useful need-to-knows.
• Spending and saving features. Digital bank apps offer useful budget tracking features and tools designed to get you in control of your money. This includes automatically dividing your spending into categories, making sure you have enough money to pay bills and helping you save for your goals.
• Automatic savings. Some apps can look at your spending habits and income and identify how much you can reasonably save each month, then help you to set up a direct debit to a savings account for this amount.

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Are there any disadvantages to an online account?

If you’re planning to open a current account online, it’s important to be aware that there may be certain features which aren’t available to you. Many digital banks don’t offer mortgages or business accounts. By not being able to bundle together such financial products with your current account, you could miss out on lower rates of interest in the future. Be sure to check if there are any account restrictions, such as how many ATM withdrawals you can make a month. Cheque facilities are not usually offered with these types of accounts.

When comparing online bank accounts, be aware that your money might not have the same protection as it would with a traditional bank in Ireland. That’s because not every digital bank is licenced in the same way. A good starting point could be to check if a bank has been granted a European banking licence. If you’re unsure, look for information on the bank’s website or ask the bank directly about how your money will be protected.

6 things to know about digital banks

Here are a few things that you may not know about using your smartphone as your main point of contact with your bank, rather than having a traditional bank account:

1. There are fewer fees

Most of the big traditional banks in Ireland charge admin or transaction fees on current accounts that can range from €4-18 per quarter. There are sometimes ways to avoid these fees, such as maintaining a minimum balance in your account or lodging above a certain amount each month, but the fees may still be quite high. Traditional banks can also charge fees for ATM withdrawals, card transactions and direct debit/standing orders.

However, digital banks generally charge fewer fees. You will find that most will come with a “free” account option that charges €0 per month. Then, if you want to unlock more features you can upgrade and pay a monthly fee. There are sometimes ATM fees but you will not pay fees for card transactions and there are no annual fees. You can also avoid some of the smaller charges by switching to a paid account.

2. Cash and cheques usually aren’t supported

Unlike traditional banks, digital banks in Ireland usually have a limit on how many ATM withdrawals you can make a month. The number of free withdrawals will vary depending on the level of the account. Expect more free withdrawals with the top level accounts. Digital banks also tend not to offer cheque facilities. With prepaid cards, you have to load your account digitally through a bank transfer.

3. Managing multiple currencies is easier

Digital banks tend to have better services in terms of foreign currency. Some let you hold multiple currencies in your account while others let you make international transfers faster and cheaper than standard banks. No foreign currency fees also let you shop from websites abroad without paying too much for your purchase.

4. Your money may not be protected the same way it is with traditional banks

Not every digital bank is licenced in the same way. Revolut now operates as a fully licenced bank. Your funds will also be protected by the Lithuanian State Company “Deposit and Investment Insurance” up to €100,000. N26 holds a German banking licence, which means consumer deposits up to €100,000 are protected. Similarly, bunq is a fully licenced EU bank and money is covered by the Dutch National Bank guarantee scheme up to €100,000. Monese, however, does not have a banking licence. It operates as an e-money institution.

5. Everything is managed on your smartphone

Traditional banks in Ireland let you sign up for an account in a branch or online. With digital banks in Ireland, you can usually only sign up on your smartphone. You also might not get access to Internet banking on your computer with digital banks.

6. There are great security features

A benefit of an app-based bank is having full access to your account at all times through your digital banking smartphone app. Lots of digital banks allow temporary freezing of your account if you lose your card, so if you find it again it’s not as much hassle to get a replacement. If you forget your pin, digital banks also have access to a pin reminder after you complete a couple of security questions.

If you lose your phone or it’s stolen, you will still be able to secure your account. Just contact the digital bank (contact details will be on the website) and your account will be able to be locked from your smartphone. If you get your phone back, the bank will be able to set access back up again. If not, you can set up your app on your new phone.

What online banks are available in Ireland?

There are a number of online banks available in Ireland. These include:

• Revolut. Revolut is a global banking app with a full banking licence that offers budgeting tools, international currency exchange, travel insurance, cryptocurrency facilities, virtual cards and more.
• N26. N26 is a digital bank account with a full banking licence that lets you save and budget, transfer money to other N26 users, optional travel insurance and cashback.
• Wise (TransferWise). Wise, formerly known as TransferWise, offers a multi-currency account to let you bank like a local in multiple countries.
• bunq. bunq is a bank account designed for global citizen with a full banking licence. It lets you create up to 25 bank accounts with unique IBANs. You can also benefit from savings and budgeting tools, money transfers through TransferWise and no foreign exchange fees.
• Monese. Monese lets you open a UK current account and manage it from anywhere in the world and get a secondary IBAN account. But it doesn’t have a full banking licence and instead, operates as an e-money institution. You can use the app in multiple languages and make foreign transfers in up to eight currencies.
• Neteller. Neteller is a prepaid Mastercard that lets you load your own funds onto the card and spend securely online. You can also make international money transfers, earn rewards and buy and sell cryptocurrency with the card.
• Wirex. Wirex is a digital banking travel card that helps you spend more easily here and abroad. You can buy, sell and manage nine currencies and 11 cryptocurrencies using Wirex.
• VIALET. VIALET is a free IBAN account that lets you send free payments within Europe. You can also benefit from spending notifications, contactless payments and other useful security features.

How to get started with a digital bank

You can sign up with a digital bank in Ireland by downloading your chosen bank’s app onto your smartphone. You will need a few of your personal details to sign up, including your full name, date of birth, address and email address. You will need to confirm your identity and may need to deposit funds into your account to make it active. Then, your bank account will be created.

The bottom line

Digital bank accounts come with a number of useful features that can suit anyone banking in Ireland. If you’re looking for budgeting tools, a cheap way to access multiple currencies or a bank account to buy and manage cryptocurrencies, then you may want to consider a digital bank. Make sure you compare digital banks so you can find the right one for you.