N26 bank review

On 11 February 2020, N26 issued the following statement: “With the UK having left the EU, we will in due course be unable to operate in the UK with our EU banking licence, so we will be leaving the UK and closing all accounts. We’ve made careful plans to support customers, and we are sorry to have to leave.”

Alternatives to N26

Like most challengers, it’s good for people who are looking for a fresh, mobile first approach to banking.

We’ve highlighted the key features, pros and cons of N26, to help you decide whether it’s the option for you.

What is N26?

N26 launched in the UK in November 2018, entering the market to compete with British-born Monzo and Starling, as well as Revolut.

N26 is a digital-only current account, with a modern banking app that shows spending insights and gives you control your finances.

N26 is already operating in Ireland, France, Germany, Italy, Spain, Austria, Belgium and a wide range of other European countries. It has more than 3 million customers and has recently launched in the US, too.

How does N26 work?

When you sign up with N26 you will be sent a cool, clear, contactless Mastercard.

N26 offers a free basic current account, plus two premium options that are now also available in the UK. Read our reviews of N26 You and N26 Metal to find out more about them.

The three of them all operate on the same app, whose features include:

• UK account number and sort code. You’ll be able to set up direct debits and receive and make payments the way you would with a traditional bank like Barclays or Lloyds.
• Make transfers. Send, receive and even request money from friends instantly. N26 supports direct debits, but not standing orders.
• Google Pay and Apple Pay. N26 supports both Google Pay and Apple Pay, so no matter if you’re the iOs or the Android type, you can use your phone to make payments in stores.
• In-app security. Set and change daily spend/withdrawal limits, reset your PIN, lock or unlock your card and enable or disable online or foreign payments.
• Spending statistics. Get automatic categorisation and breakdowns of your purchases. You can also create your own personal tags to organise your transactions.
• Spaces. Saving up for a particular goal, like a bike or a holiday? Put money into small sub-accounts away from your main spending pot. Like they say – out of sight, out of mind. No interest will be paid on your savings though.
• MoneyBeam. Lets you send money to smartphone contacts, without even knowing their bank account details. Money is sent to fellow N26 users instantly, or within two days if they’re not with N26.

How does the app look?

Real-time info and alerts

See your spending in real-time, and get notifications for transactions. Even contactless payments show up instantly.

Spending insights

See where all your money goes. Breaking it down into categories like groceries or transport might help you budget.

Save smarter with 'Spaces'

N26's 'Spaces' feature lets you squirrel money away in sub-accounts. Away from your spending pot.

Widely accepted card

Your N26 Mastercard is accepted in over 200 countries. So make payments and withdraw money wherever you are.

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N26 fees and limits

N26 does have some rates and limits that you should be aware of.

• UK customers get fee-free cash withdrawals, up to the daily limit of £500.
• If you make foreign cash withdrawals with your debit card, you’ll be charged 1.7% of the amount taken out.
• The maximum daily limit for in-store or online payments is £5,000.
• The maximum monthly limit on card payments is £20,000.

Using N26 abroad

Travelling with N26 is cheaper than using most cards from traditional banks, as it doesn’t charge any fees for foreign currency transactions.

However, while cash withdrawals in pounds are free of charge, for ATM withdrawals in other currencies, N26 makes a surcharge of 1.7% of the withdrawal.

Also, be aware that at the moment N26 does not support international money transfers. You can only send and receive money from other UK accounts.

Is N26 safe?

Every N26 bank account has deposit protection: the compensation scheme of German banks guarantees up to €100,000 (about £85,000 – the same amount as the UK equivalent scheme).

N26 also offers a Bug Bounty programme. This means cash rewards to encourage security researchers to track down bugs or vulnerabilities.

The app itself has a three-tier security procedure protecting your account and transactions. Your account can only be paired to one smartphone at a time, you must log in to your account using your password or fingerprint, and you must verify all online and offline transactions with your PIN.

Pros and cons of N26

Our verdict

If compared to traditional banks, N26 is really competitive, especially for travelling abroad. You can use your card anywhere without being charged any fees, apply quickly online and enjoy a really slick banking app that’s packed with features.

However, it’s no longer operating in the UK. For a UK-based digital bank check out the likes of Starling.

Alternatives to N26

Frequently asked questions

• How do I top-up my account?

  With no physical branches you can’t actually pay cash into your account – unless you live in Germany. So it might be a good idea to have a traditional bank account alongside your N26 one. To top-up your account or receive money you simply need to provide your N26 account’s IBAN and your full name. So whether you’re putting money into your account or you’re receiving your salary from work, these details will do. However, the transfer can take up to one working day. This is where a top-up card like Revolut really comes into its own. Payments in are easy and instant.

• Are there any limits or fees on money going into my account? Whether I'm receiving a transfer or getting my salary paid in?

  N26 doesn’t charge any fees to receive transfers or salary payments, so you will receive 100% of whatever amount your employer sends.

• Am I eligible for a N26 account?

  You can open an N26 account if you are at least 18 years of age, own a smartphone and are a resident of Germany, Austria, Ireland, France, Spain, Italy, the Netherlands, Belgium, Portugal, Finland, Lithuania, Latvia, Luxembourg, Slovenia, Estonia, Greece or Slovakia.

• Can I apply for an overdraft?

  Not currently in the UK, but N26 says it’s planning to launch them soon. The result is calculated immediately and is dependant on your credit rating, as well as on the duration and value of regular payments into your N26 account. This is how N26 works in other European countries at the moment.

• How much do N26 charge for ATM withdrawals?

  UK customers aren’t charged for taking money out in GBP, but there is a maximum daily ATM limit of £500. When taking money out abroad, N26 charge its basic account holders a 1.7% fee.

• Is N26 a fully authorised bank?

  Yes. It is licensed by the European Central Bank, so your deposits up to €100,000 are guaranteed by the European deposit guarantee scheme.

• How long does it take for money transferred into my account to become available?

  N26 transfer transactions are completed within one banking day. However, due to the opening times of the participating banks, one banking day may stretch to two working days.

• What is the Swift/BIC code for paying to N26

  SWIFT/BIC code for N26 BANK GMBH, UK BRANCH is NTSBGB21 plus the XXX which is the bank code. You should verify the bank code from your financial institution.

• Will N26's expansion be affected by Brexit?

  N26 says that their banking license should be allowed to continue in the UK after Brexit – through a “passporting arrangement”.