Low fees, ease of use, and convenient web and mobile applications are the main reasons why neobanks have rapidly gained popularity in Europe in recent years. Such banks are aimed primarily at a new generation of users - those who are tech-savvy and value speed and mobility. In this article, you will learn about the best neobanks in Europe in 2023. If you are interested in money exchange - rates is what you need to track currency exchange rates in Ukrainian financial institutions.
N26 is The Best For Opening a Current Account
The well-known mobile bank N26 is widely used and the favorite German neobank of the European community. It has about 7000 thousand customers in the EU. N26 also partners with Wise, a money transfer service that allows you to make international money transfers via its mobile app at attractive exchange rates.
N26 offers several bank accounts with paid services and one free one - N26 Standard, which is quite profitable. It provides access to all online banking transactions and at the same time has no monthly fees. N26 Standard is a full-fledged current account for making any payments (online purchases of goods, including Aetna insurance or other important services), available online and in the N26 application. In addition to the account, the neobank provides the client with a Mastercard debit card, which will be delivered free of charge.
Although the N26 Standard account is very cheap to maintain, it is important to remember that some costs may apply. For example, only 3 expense transactions per month are free, after which each will cost 2 euros. Withdrawing cash from ATMs outside the eurozone (for example, Switzerland, Norway, UK, USA, etc.) is accompanied by a fairly high commission - 1.70% of the total amount.
N26 advantages:
- Integration with Wise for international money transfers.
- Current account in a reliable, licensed bank.
- Instant transfers to most SEPA bank accounts.
Disadvantages of N26:
- Commission 1.70% for withdrawing currency from ATMs.
- There is no balance accrual, overdraft, account sharing, or multi-currency feature.
- To avoid limits on cash withdrawals and non-cash transactions, you need to switch to a different tariff plan.
Revolut is a One-stop Financial Solution
Revolut is a full-fledged bank licensed by the Central Bank of Lithuania. It has the right to provide a full range of financial services, including insurance, deposits, loans, and credit cards. In 2023, Revolut has over 18 million users worldwide.
Opening a standard account with Revolut is completely free, but shipping your first debit card will cost you around €5. Although ATM withdrawals are also free, a 2% fee (minimum €1) will be charged on all withdrawals after the first €200 or after five ATM withdrawals each month.
Transferring money to other Revolut users is not only free but also instant. This makes the service a good choice if you send money to Revolut users.
Additionally, Revolut offers low fees for international money transfers, making the service attractive to those who frequently send money to others. The provider does not apply a markup on the exchange rate on weekdays and charges only a flat commission of 0.50% on all international money transfers.
Benefits:
- Wide selection of multi-currency bank accounts.
- Convenient mobile application with many functions.
- Debit card with competitive rates for international spending.
- Possibility of investing through a mobile application.
- The possibility to work with cryptocurrency (Bitcoin, Ethereum, etc), including using Binance or Coinbase.
International money transfers up to €1,000 (or equivalent) are exempt from currency conversion fees.
Disadvantages:
- Standard plan users have limited access to some bonuses and features.
- For currency transactions over €1000, a commission is charged.
- Currency conversion costs are twice as high on weekends.
Wise - The Best Multi-currency Account
Wise is a cross-border payment processor known for offering some of the cheapest international money transfer rates around the world. Wise is truly the best money transfer service on the market right now. However, cross-border payment transactions are not the provider’s only service. It also offers a Wise multi-currency account, a low-cost payment tool for foreign currency transactions, and a card that is the best in its segment on the market.
Applying for a Wise account is quick and easy. This can be done if you have something to prove your residence in the EU/EEA. Once you register, you will be able to take advantage of the following unique account features:
- Local bank details in the US, Eurozone, UK, Australia, New Zealand, Singapore, Romania, Canada, Hungary and Turkey.
- Multi-currency wallet for 56 currencies with the ability to replenish, convert, and make payments into any of these monetary units.
- Multi-currency Visa debit card. You can use it to pay for goods and services in foreign currency without hidden fees. Ordering and delivery of the card takes up to 2 weeks.
- The ability to make international money transfers directly from your Wise account balance just as simple as with traditional banks, including Bank of America.
Benefits:
- Possibility to store funds in 56 currencies.
- Transfers to more than 80 countries of the world directly from your account.
- In some directions, money transfer fees are the lowest of all offers on the market.
- Transparent tariffs.
- The ability to make international money transfers at the average market rate.
- The Wise card can be used to avoid double conversion when making payments in foreign currencies.
- Free account opening and maintenance.
Disadvantages:
- It is not possible to fund your account with cash or checks.
- Overdrafts and loans are not available.
- If you have a large balance in your Euro account, a negative interest rate is applied.
- Fees for topping up your account using a debit or credit card.
- Strict limits and conditions for free withdrawals from ATMs.
Final Thoughts
European neobanks are indeed reliable monetary institutions. First, they are licensed and regulated by central banks in their home countries. Secondly, European neobanks offer their clients deposit protection in accordance with EU directives. Along with using the services of neobanks, we recommend using the Rates service, which allows you to track current exchange rates in Ukrainian financial institutions. The service is available around the clock wherever you are - in Los Angeles or Brussels.