The big questions when looking at opening a bank account:
- Which card offers the lowest fees or best exchange rates to transfer money back home?
- What about travelling and multiple currencies?
- Managing and security of your money digitally?
In the last few years there has been a number of digital banks that are making a big name for themselves and are revolutionising the banking sector. Here is what they all have in common and why I highly recommend switching to a digital bank rather than leaving your money with a traditional bank that is too slow to keep up with the technology changes.
These companies are classed as digital banks as they do not have physical branches like traditional banks. This means that they can become more competitive as they have lower operating costs, therefore, can offer next to market currency exchange rates and low fees.
They are also very transparent when it comes to ensuring that fees and exchange rates are presented in the banking-app prior to confirming a transfer or payment. This is different from traditional banks which usually provides a few surprises when you look at the bank statement later – a fee of 2-5% on ATM withdrawal in foreign currencies, the spread between the market currency exchange rate and the rate used by the banks (not in your favour), they don’t disclaim these prior to the transaction because this is how they make money.
All offer instant notifications of spending, ability to freeze card, budgeting, financial planning, money transfers, offers with partners, offer contactless, Apple Pay and Google Pay, insurance and several other services.
Downloading the app and the sign-up process is super easy and only takes 10 mins from start to finish.
Note, that fees for services may vary between countries and all information shared here is for the EU.
Choosing the right card bottles down to your personal preferences so when reading the comparison below keep in mind the following questions:
How regularly and how much do I withdraw cash?
What country do I spend most of my time in?
What salary currency am I getting paid in?
How often am I transferring money?
Do I need any additional insurances?
What features of the banking-app am I most likely going to use?
Sign up here:
N26 -> Sign up here
Revolut -> Sign up here
Transferwise -> Sign up here
Not affiliate links
Reading this from your phone? The below table is not as visually appealing as I would like so for now it would be best to continue using a computer/tablet
Sign up here:
N26 -> Sign up here
Revolut -> Sign up here
Transferwise -> Sign up here
Not affiliate links
In summary, N26 and Revolut provide generous features in their free plans, so for most users, the free debit card will be sufficient. If you travel a lot to countries where you need a higher amount of cash, the premium accounts might be worth looking into. TransferWise is a great alternative if you cannot access N26 or Revolut or get paid in USD$.
Revolut functions more as a prepaid, multi-currency card rather than a full bank account but is great for exchanging between different currencies and has competitive exchange rates and allows withdrawal of high-value limit before charging a currency exchange fee.
N26 is the most complete digital bank account available in Europe. They offer a better deal while travelling abroad and have the most comprehensive digital banking experience and security at home.
From a currency exchange and travel perspective, I think that N26 has a competitive advantage - no commission on spending abroad, not paying additional withdrawal fees in foreign currencies (unless there is a local ATM fee) and a partnership with TransferWise means that you can tap into the low fees for sending money to other countries. For myself, I have N26 You as my primary bank account as I get paid in EUR's, spend majority of my work and travel time in Europe and the other benefits are suited to my preferences.
Information provided by goBuoyant is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute formal financial advice. Remember, the value of any investment can go down as well as up.
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