Alex Manea
Several different services have come alive in the last few years in the banking world. Services like N26 and Revolut have revolutionized how we think of finance and personal banking. But besides having obvious common ground, there are some key differences between the two companies. Find out which is the better option between Revolut vs N26.
Revolut was created in 2015 in the UK. It started small but currently has more than 70 million customers worldwide. It now works as a fully functioning digital alternative to traditional banks.
You’re given an IBAN and BIC when you open an account, just as you would if you were to open a regular bank account in a conventional bank. Revolut is licensed as a Lithuanian bank, so expect your banking credentials to match that.
N26 is a german bank, the first one to be 100% digital. It currently operates in more than 20 European countries and the United States of America.
If you’re on the market for a complete banking option with all the functionalities of a digital bank, N26 is one of the best in the business. Whether you’re looking for a bank that supports large quantities of money or a few lower-sum operations, N26 has you covered.
The company, which is based in Berlin, offers you a fully working german bank account with a valid german IBAN and a balance in euro(€). However, please don’t count on having a physical location to report to in case you need it. All the banking structure was built to work online via a smartphone.
When it comes to deposits, each service has its policies regarding fees. N26 uses a feature called CASH26, which lets you deposit anywhere between 50€ and 999€ within 24 hours and charges a 1.5% fee. On the other hand, Revolut doesn’t charge fees when you deposit money into your account.
N26 and Revolut have different withdrawal fee policies as well. The first one doesn’t charge a fee for any euro withdrawal. If you want to get a different currency from an ATM, a 1.7% fee is applied. Revolut offers clients a few free ATM withdrawals each month as follows:
As far as payments, Revolut doesn't offer free international transfers. Fees are applied based on the countries involved, currencies transferred, and a few other factors. However, starting July 1st 2022, Premium plan owners get a 20% fee discount while Metal plan customers benefit from a 40% discount on fees. N26, however, has free payments worldwide. The only commission is used when converting between currencies. In that case, the fee ranges between 1% and 3%.
Another Revolut fee you must note is when transferring money after you’ve exceeded the £1000 mark. Once you’ve reached it, every transaction will have a 0.5% commission.
The main focus of every N26 and Revolut user is saving money in every way they can. These services allow just that.
When traveling abroad, exchanging money is one of the “hidden” costs most tourists don’t take into account. However, most exchanges charge high fees, and since there is no other convenient way to convert money, people resort to them.
With these new digital banking alternatives, travellers can save both time and money. The account converts your balance automatically whenever you need it.
Another of the main features of these banking services is the availability of a physical and virtual card since both options serve a purpose. You can use the virtual card for shopping online and the physical card to use in your everyday purchases in stores and restaurants.
Both services offer another great tool: the analytics tracker that allows you to assess how you’re spending your money. This way, you can become aware of your spendings and create and monthly budget, while your bank helps you stick to it along the way.
N26 has a strict security policy. The first digital bank with a full European banking license follows the same laws and regulations as any traditional bank. The German Deposit Protection Scheme protects your funds up to a limit of €100,000.
With Revolut, you won’t have a deposit guarantee. The banking service does not have a banking license. Instead, they’re using an e-money license from Lithuania that allows them to operate in other countries. However, if Revolut were to become insolvent, customers would have priority receiving their money back over any creditors.
In this category, there are no significant differences between N26 and Revolut. Both services pride themselves on being user-friendly, even for the most novice users.
The mobile apps are intuitive and easy to navigate, allowing you to comprehend how to top-up, transfer, make payments, and every other function, right from the get-go.
When choosing between one of the modern alternatives to conventional banking, you need to consider your specific needs. Both Revolut and N26 are solid companies that can make your life easier, whether you intend to use their services regularly or more sporadically when traveling.
Pondering the various features, fees, and all the specificities of both Revolut and N26 is the best way to ensure you’ll save time and money in the long run.
If you prioritize security, perhaps N26 offers more guarantees than Revolut. On the contrary, if you’re an avid traveller, Revolut is probably the best option between the two.
Your goal should be to use the service that better fits your preferences and personal needs. The best way to compare services is by checking out our free comparison tool that will help you find the best digital bank.
