Do you still want to go through a long and stressful process when you deal with banks? If not, then welcome to the club! Online and mobile banks like Revolut and N26 are becoming more popular among many people, especially travelers because of how convenient they have made banking tasks. They just brought banking to the next level.
Leading the pack as the best online banks are the already mentioned Revolut and N26. These two online banking apps have brought a lot of changes to the banking sector with a lot of features for convenient transactions. They offer similar features and benefits.
but of course, if you wish to get started with one app at a time, you might need to choose.
If you are reading this as a traveler, or as someone with an interest in making easy and convenient bank transactions, then this article is for you. We have been able to carry out extensive research on Revolut and N26, the two most used online banking apps. We discuss the similarities, differences, and features of these two online bank apps, to help you choose.
But first, let’s get an idea of what they are all about.
What is Revolut?
Revolut is a fintech startup that was founded by Vlad Yatsenko (former Credit Suisse and Deutsche Bank developer) and Nikolay Storonsky (a British-Russian entrepreneur) in 2015. Their headquarters is in London. They deliver a range of banking services that include systems for cheap exchange.
They also offer access to different stocks and cryptocurrencies which is reported to have more than 8 million users on the platform.
Just like the way N26 operates, they give you an IBAN and BIC when you open your account with them. This will enable you to do the normal day-to-day activities that you expect to do with a normal current account.
Because of Brexit, Revolut is currently using a Lithuanian banking license but currently processing to transfer the license to Ireland. It operates in Ireland under an e-money license at the moment for those based in the UK. It also offers unique UK bank account numbers and sort codes for seamless transactions.
Recently, Revolut has had a series of PR crises with reports of toxic law compliance and working culture. How things will eventually play out will be interesting to see.
What is N26?
N26 was founded by Valentin Stalf (also a former Deutsche Bank associate) and Maximilian Tayenthal (a profile with a long career in finance consulting)) who both shared a vision of a digital bank.
N26 began as a financial technology startup in the year 2013 and has its headquarters in Berlin, Germany. They currently operate in over 20 European countries and have also extended their trade to the US.
N26 services over 6 million customers worldwide and unlike Revolut, it is fully licensed by the Germany Central Bank. It operates in Ireland as well as other EU countries on a European passport or a residence permit.
Just like Revolut, N26 also gives IBAN and BIC so that you can use your bank account in the same manner as the normal conventional account. This will enable you to send and receive funds easily through your bank account.
Both Revolut and N26 don’t have physical branches as all banking activities are done via the app. This is a perfect platform for frequent travelers and digital nomads but for those who wish to cash in a cheque or make a lodgement in person, they will find themselves less flexible.
Revolut vs N26 Comparative Study
Revolut Pros
- The app is amazingly user-friendly with lots of value-added features.
- Can top up and hold up to 24 currencies.
- Free card payments in 150 currencies.
- Easily block and unblock bank cards just
- You can have a virtual card for more security paying online
- Up to 200€/month free ATM withdrawals. You get more with Premium.
- Instant top-up with both credit and debit charges.
- Easy payment and bill splitting. (perfect for group expenses)
- Great exchange rate.
- Very good security
- Online support 24/7
Revolut Cons
- Increased exchange rate during weekends
- Has no current accounts yet (direct debit only in Europe and has no standing order or deposit guarantee)
- You can only contact customer service through the in-app live chat.
- It has an e-money license which makes it a limited bank.
N26 Pros
- It is the most complete online bank app available in Europe.
- Easily block and unblock bank cards just
- Has full banking license both for direct deposit, deposit guarantee, and standing order.
- You can create up to 3 spaces (sub-accounts) to secure and divide your money
- It also has a web version for transactions.
- Free card payment in any currency
- It partners with TransferWise to aid customers to make international money transfers.
- Free ATM withdrawal for Eurozone holders in euros even for those on free options.
N26 Cons
- Does not offer 24/7 customer support.
- Some app features such as overdraft and cash26 are available for Germany and Austria only.
- You can only hold currencies in EUR or GBP.
- It is not the best option when you intend to receive money in different currencies from abroad.
- Very good security
Source: Lean Vietnam
User Experience Comparison
Opening an account
Opening an account for both Revolut and N26 is done from your phone in minutes. The procedure requires that you download the app, fill in your personal details in the space provided, upload a photo of your passport, take a selfie, and submit it via the app.
Once it has been submitted successfully, your IBAN and BIC will be issued to you almost immediately while you will need to wait for about a week for your physical card to get to you.
Opening an account is free for both Revolut and N26. However, Revolut might ask you to pay a delivery fee for your first card. (The physical card is optional)
Secret Tip: if you choose not to have a physical card, Revolut might send you one anyway and for free 😉
Topping up your account
Revolut
With Revolut, topping up your account is free. You can achieve this by linking your regular bank’s debit card with your Revolut account. Transferring money can be done instantly within the app.
However, these transactions may attract certain fees from your main bank depending on their own charges. You can send money from your regular bank account into your Revolut account using your Revolut IBAN and BIC.
N26
Topping your N26 account is completely free when you lodge money through regular bank transfer and again you may still get charged an additional fee by your main bank.
You can also top up your account within the N26 app which is free for only your first top-up.
Day-to-day banking
Revolut
In terms of day-to-day activities, Revolut offers free banking services. There is no maintenance fee monthly or yearly and there are equally no additional charges for contactless transactions.
As for withdrawal, Revolut allows customers to withdraw up to 200€ per month free of charge but then charge a 2% fee per withdrawal once the threshold is passed.
Transferring money to other accounts is free only in Ireland while a 50 cent charge fee is added for non-euro transfers.
N26
N26 also does not charge any additional fee for your day-to-day banking experience. There is also no additional fee for direct debit payments or standing orders too.
However, N26 offers only 5 free ATM withdrawals in a month when you use your main bank account. After that, there is an additional fee of 2€ added to each ATM withdrawal.
Revolut vs N26 for frequent travelers
Revolut
Revolut is a very good choice for anyone who travels a lot. This is because Revolut will not charge you on foreign exchange on all the major currencies for transactions not up to 1,000€ a month. For transactions more than 1,000€, a small 0.5% fee is charged.
Revolut applies the interbank exchange rate with only a 1% markup at weekends when converting your spending back into Euro. Sometimes, Revolut rates can be dependent on currency and time as certain conversions charge a higher fee when transactions are done outside the foreign exchange market hour.
You can also get travel insurance starting from 1€ per day. Revolut partners with White Horse Insurance authorized by the Central Bank of Ireland to offer travel insurance to their users.
You just need to tap on the “More” menu on the app, tap “Insurance”; then select “get help” to get started. With this simple step, your travel insurance is sorted out with Revolut.
N26
Those who travel a lot can also never go wrong when they make N26 their choice for online banking because they apply the Mastercard exchange rate at all times when converting your spend into Euro.
There is also no foreign exchange rate or processing fee. But N26 will charge 1.7% on all transactions when it comes to taking out cash abroad and an additional 3.40€ will be charged when you withdraw from an ATM.
With N26, you can get travel insurance when traveling abroad. This insurance is provided by CLARK insurance which is based in the Netherlands and it is only valid for trips with 90 days duration.
All insurance-related questions are answered by the insurance company and not N26 so it is also important that you read their insurance policy to understand the insurance package better.
Mobile Banking Security for Revolut and N26
Revolut Security
Revolut operates a high level of security for both your account and card. You can temporarily freeze your card when you feel that it is no longer safe or missing, then unfreeze back when everything becomes normal. This is better than canceling the card.
In terms of financial security, you can rest easy because the company is valued at $5.5 billion. Over the past few years, Revolut has raised $836 million in total.
You can disable online transactions while you continue making payments or withdrawals with your physical card. Your ATM card can also be disabled if you want to, while you continue making transactions online.
Revolut allows you to order up to five virtual cards at a time. Virtual cards can do everything physical bank cards can, except cash withdrawals. They are great for security and let you better control transactions on your account.
The fingerprint login feature is an added security measure used by the app.
N26 Security
N26 also offers the fingerprint login feature, and they allow you to temporarily freeze and unfreeze your card. This does not affect your online transactions at all. You also have the option of getting a virtual card for enhanced security.
With N26, you can disable online transactions while you continue using your bank card for physical transactions. You can also continue making online transactions while your ATM card is disabled by just clicking the app.
Currently, N26 has raised almost $800M, maintaining its valuation at $3.5B. It is one of the highest valued and most well-funded FinTech companies in the world. This means you do not have to worry about the bank folding up with your money.
Ways to send money
Revolut
There are two options for sending money via the Revolut bank app. The first option is sending money from the Revolut app to a bank. This can be done in the following steps below.
- Tap “Payment” in the app
- Choose a Bank Transfer
- Add the bank account information of the recipient
- Enter the amount and currency you wish to transfer
- Select Send
You can choose the option of an express transfer which costs a small fee.
The second option is sending money from one Revolut account to another. Transferring from one Revolut account to another is instant and free. This can be done following the steps below.
- Tap “Send Money” in the app
- Select the contact you wish to send the money to. You will see a blue R next to the name of the contacts with
- Revolut accounts.
- Enter the amount
- Select send
N26
N26 also has two options for transferring money but unlike the Revolut app, it actually requires that you make use of two other apps into their international; transfer process namely: TransferWise and MoneyBeam.
You can transfer money via TransferWise using the following steps below.
- Click on the Menu button
- Select Transfer
- Add the recipient
- Select the amount and currency you wish to send
- Select Send
The transfer process initiated takes 1-2 days to complete.
The second option of sending money via MoneyBeam. Sending money via MoneyBeam is a good option when you don’t know the recipient’s banking information.
- Click on the Menu button
- Select MoneyBeam
- Select the contact you wish to send the money to. You will see a blue dot next to the name of the N26 user’s account.
- Enter the amount and currency
- Confirm you transfer
Those with N26 accounts will receive money instantly into their account while it takes 1-2 business days for non-users to receive their money.
When I was gathering information about this topic, I came across this good Youtube video, which sums up the topic pretty well:
What to consider when deciding between Revolut and N26
While it will be very difficult to pick one of the bank apps over the other due to their similar features, individual preferences and your need can be a determining factor.
With the recent limit of 1,000€ a month foreign exchange, the Revolut app may not really appeal to heavy travelers. Travelers can still consider Revolut since you can withdraw 200€ cash outside the Eurozone at no extra cost.
Using N26 allows you to make up to five free ATM withdrawals which may sometimes be more appealing than just a free 200€ withdrawal. This often depends on how an individual can manage his/her spending or how much they expect from their financial provider.
My Personal Opinion
Being an online-oriented guy, I have been using Revolut for many years. I am very satisfied with its user experience and customer support. Besides, I always feel safe using the app and trusting it with my money.
What I loved the most about Revolut is having a multi-currency account with a very competitive exchange rate. I can pay in more than 24 currencies and never had some “hidden fees”.
Last year, I wanted to also try N26 as I was curious about it. To my opinion, the app is less user-friendly than Revolut. I was sometimes struggling to find things. But overall, it provided a good user experience and I also felt safe using it.
What I found best about N26 is creating different spaces (sub-accounts) to divide my money. This made the tracking of my expenses really easy.
Honestly, I recommend using both. It doesn’t cost anything having them and you never know when you should use one over the other, depending on what can happen during the day.
Just give it a try, you can sign up to N26 and try Revolut right now.
One thing is sure and that is both Revolut and N26 have revolutionized the banking sector over the last few years. This will really make traditional banks up their games to meet up.
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