Top 8 Digital Banks In Europe.

The rise of digital banks and finance apps across Europe has reshaped the financial landscape, offering a modern alternative to traditional banking for tech-savvy consumers.

These innovative platforms often stand out for their minimal fees, straightforward account setup, and seamless user experiences through web and mobile applications.

As we enter 2024, online banks’ influence and European customer base continue to grow.

If you’re considering switching to one of these fintech options, you might be wondering which digital bank best meets your needs.

This guide highlights the best Digital Banks in Europe, helping you navigate the options to find the perfect fit for your financial goals.

Our Methodology for Evaluating Online Banks in Europe

In order to determine which online banks in the EU/EEA market are the best, we utilized a methodology for consumer-focused evaluation that gives priority to important criteria.

Fees and interest rates, user-friendliness, reliability, service accessibility, transparency, and general customer happiness were among the quantifiable factors we evaluated.

By using a thorough approach, we were able to develop a complete knowledge of which digital banks offer the greatest value to citizens of the EU.

We highlighted the salient characteristics of the top three digital banks by distilling the results of our investigation into important insights.

This synopsis is to provide you a concise, useful overview so you can make an educated decision.

Even though we’ve compiled a list of the best online banks, it’s important to keep in mind that the bank with the greatest rating might not be the best choice for your particular requirements.

Every digital bank has advantages and disadvantages that may influence how well-suited it is to your particular financial needs and preferences.

Read about: Online Banking Security: A Comprehensive Overview”

Best Digital Banks in Europe

Revolut

Revolut’s unique financial offerings and reasonable price structure have made it one of Europe’s leading digital banks.

Revolut’s exchange rates are especially alluring since they provide ordinary users with real-time interbank rates for currency transactions without any additional costs up to a monthly threshold.

A tiny percentage fee, which is still less expensive than traditional banks, is applied after this limit.

For regular travelers and expatriates, Revolut is also an affordable choice because to its inexpensive international transfers and free ATM withdrawals up to certain restrictions.

Here is the fee structure of Revolut:

1. Standard Plan (Free):

• 1. Currency Exchange: Fee-free exchanges up to €1,000 per month; a 0.5% fee applies beyond this limit.
  2. ATM Withdrawals: No fees for withdrawals up to €200 per month; subsequent withdrawals incur a 2% fee, with a minimum charge of €1.

2. Plus Plan (€2.99/month):

• 1. Currency Exchange: Similar to the Standard plan, with fee-free exchanges up to €1,000 per month; a 0.5% fee applies beyond this limit.
  2. ATM Withdrawals: Increased fee-free withdrawal limit compared to the Standard plan; specific limits can be checked within the app.

3. Premium Plan (€7.99/month):

• 1. Currency Exchange: Unlimited fee-free exchanges during weekdays.
  2. ATM Withdrawals: No fees for withdrawals up to €400 per month; a 2% fee applies thereafter, with a minimum charge of €1.

4. Metal Plan (€13.99/month):

• 1. Currency Exchange: Unlimited fee-free exchanges during weekdays.
  2. ATM Withdrawals: No fees for withdrawals up to €800 per month; subsequent withdrawals incur a 2% fee, with a minimum charge of €1.

5. Ultra Plan (€45/month):

• 1. Currency Exchange: Unlimited fee-free exchanges during weekdays.
  2. ATM Withdrawals: No fees for withdrawals up to €2,000 per month; a 2% fee applies thereafter, with a minimum charge of €1.

Additional Considerations:

1. Weekend Currency Exchange Fees: To account for market swings, a 1% charge is added to all currency transactions made over the weekend (Friday at 5 p.m. to Sunday at 6 p.m. Eastern Time).
2. International Transfers: The cost varies based on the destination and currency. For instance, sending £1,000 to USD can cost £1.50, yet doing the same to EUR might be free.
3. Card Delivery: The cost of physical card delivery varies according to the delivery method and area; particular prices are shown in the app while placing an order.

Read about: International Payment Fees | The Essential guide.

N26

One of the top digital banks in Europe, N26 is commended for providing a competitive and clear pricing structure that appeals to a diverse group of customers.

Here’s an overview of their account options and associated fees:

1. N26 Standard (Free):

• 1. Monthly Fee: €0
  2. ATM Withdrawals: Two free domestic withdrawals per month; additional withdrawals may incur fees.
  3. Foreign Transaction Fees: No fees for card payments in foreign currencies.

2. N26 Smart (€4.90/month):

• 1. Monthly Fee: €4.90
  2. ATM Withdrawals: Up to five free withdrawals per month in the Eurozone; fees apply beyond this limit.
  3. Foreign Transaction Fees: No fees for card payments in foreign currencies.

3. N26 You (€9.90/month):

• 1. Monthly Fee: €9.90
  2. ATM Withdrawals: Unlimited free withdrawals in the Eurozone; free withdrawals worldwide.
  3. Foreign Transaction Fees: No fees for card payments in foreign currencies.

4. N26 Metal (€16.90/month):

1. 1. Monthly Fee: €16.90
   2. ATM Withdrawals: Unlimited free withdrawals in the Eurozone; free withdrawals worldwide.
   3. Foreign Transaction Fees: No fees for card payments in foreign currencies.

Bunq

Bunq has established itself as a leading digital bank in Europe, renowned for its user-centric approach, innovative features, and transparent fee structure. Here’s an overview of their current personal account offerings and associated fees:

1. Easy Bank (€3.99/month):

• 1. Monthly Fee: €3.99
  2. ATM Withdrawals: Up to 5 withdrawals per month, each costing €0.99; subsequent withdrawals are charged at €2.99 each.
  3. Card Payments: No additional fees for card payments in foreign currencies.

2. Easy Money (€8.99/month):

• 1. Monthly Fee: €8.99
  2. ATM Withdrawals: Up to 5 free withdrawals per month; additional withdrawals are charged at €2.99 each.
  3. Card Payments: No additional fees for card payments in foreign currencies.

3. Easy Green (€17.99/month):

1. 1. Monthly Fee: €17.99
   2. ATM Withdrawals: Up to 5 free withdrawals per month; additional withdrawals are charged at €2.99 each.
   3. Card Payments: No additional fees for card payments in foreign currencies.

Vivid

Vivid Money has emerged as a prominent digital banking platform in Europe, offering a range of features designed to meet diverse financial needs. Here’s an overview of their fee structure and associated costs:

1. Vivid Standard (Free):

• 1. Monthly Fee: €0
  2. ATM Withdrawals: Up to €200 per month without any fees; a 3% charge applies for withdrawals exceeding this limit.
  3. Card Maintenance: The first physical or virtual card is free; each additional card incurs a maintenance fee of €0.99 per month.

2. Vivid Prime (€9.90/month):

• 1. Monthly Fee: €9.90
  2. ATM Withdrawals: Cash withdrawals up to €1,000 per month are free of charge; a 3% fee applies for amounts exceeding this limit.
  3. Card Maintenance: The first physical or virtual card is included; additional cards may incur fees.

Additional Considerations:

1. Currency Exchange: Vivid allows spending in over 150 currencies, potentially saving users money on fees.
2. Cashback Program: Vivid offers attractive cashback rewards, enabling users to earn up to €300 per month, with up to 5% cashback per purchase, depending on the selected plan and spending category.

Vivid Money’s transparent fee structure, combined with its comprehensive range of services, positions it as a competitive option in the European digital banking landscape.

Read about: The Evolution of Banking in India: From Tradition to Digital

Wise

Wise is a standout option for individuals seeking a low-cost, feature-rich multi-currency account tailored for international use.

While it is not a bank but a licensed payment institution, Wise is widely recognized for offering some of the cheapest international transfers and an exceptional multi-currency account.

Its Multi-Currency Account provides local bank details in ten currencies, including Euros (Belgian IBAN), USD, GBP, and AUD, making it highly versatile for global transactions.

Key Features

1. Account Maintenance: Free (€0/month).
2. Currency Support: Send money to more than 80 countries and hold and exchange balances in more than 50 currencies.
3. Card Features: A multi-currency Visa debit card that eliminates foreign transaction fees, ideal for travel and international purchases.
4. ATM Withdrawals: Fee-free for the first €200 per month; subsequent withdrawals incur a fee.
5. Transfer Fees: Among the lowest in the market for international transfers.

Advantages:

• No setup or monthly maintenance fees.
• Ability to hold, exchange, and spend in multiple currencies.
• Easy access to local bank account information in the US, UK, Eurozone, and other areas, which facilitates payments to visitors and expatriates.
• Transparent and low-cost fee structure.

Disadvantages:

• No support for cash or cheque payments.
• Overdrafts and loans are unavailable.
• Fees for debit/credit card top-ups and tight limits on fee-free ATM withdrawals.
• Negative interest on large Euro balances.

Fee Structure and Exact Fees

1. Account Maintenance Fee:
   1. €0/month: No hidden fees or monthly maintenance charges.
2. Currency Exchange Fees:
   1. Conversion Fee: Around 0.35% to 1% depending on the currency pair.
   2. Example: If you convert £1,000 to Euros, you might pay just £3.50 (0.35%).
3. ATM Withdrawals:
   1. Free for the first €200 per month.
   2. After that, a fee of 1.75% applies for additional withdrawals.
4. Wise Debit Card Fees:
   1. Card Issuance Fee: €7 (one-time).
   2. Foreign Transaction Fees: None when spending in a supported currency.
   3. Card Top-Up Fees: Fees vary depending on the funding method (e.g., credit card top-ups might incur a 0.24%-2.5% fee based on the card issuer).
5. International Money Transfers:
   1. Flat transaction fee plus a small percentage based on the amount.
   2. Example: Sending €1,000 from GBP might cost £3.69.
6. Negative Interest on Large Euro Balances:
   1. Balances above €100,000 are subject to negative interest rates (a rarity for typical users).

Use Case Example:

Imagine moving from the UK to Portugal.

With a Wise Multi-Currency Account, you can transfer British pounds to your Wise Euro account, convert to Euros at a low fee (0.35%), and start spending immediately using your Wise debit card—even before obtaining proof of residence.

Additionally, the Belgian IBAN allows seamless salary deposits from European employers.

Wise’s unique combination of transparent fees, multi-currency capabilities, and ease of use make it an excellent choice for expats, frequent travelers, and anyone managing finances across borders.

It is particularly well-suited for online shoppers, holidaymakers, and remote workers, providing significant cost savings and convenience compared to traditional banks.

Zing

Zing, a mobile finance app backed by HSBC, is an excellent option for UK-based users seeking multi-currency flexibility with a focus on low fees and high usability.

Though it is an e-money institution rather than a bank, Zing delivers many features typically associated with modern fintech and Open Banking.

Here’s why Zing stands out, especially for expats, travelers, and individuals dealing with multiple currencies.

Fee Structure and Exact Fees

1. Account Maintenance Fee:
   1. £0/month: No monthly charges for maintaining your Zing account.
2. Currency Conversion Fees:
   1. Fee-Free Allowance: The first £500 per month of currency conversion is fee-free.
   2. Beyond £500: A 0.2% conversion fee applies to any additional amount.
3. ATM Withdrawal Fees:
   1. UK ATM Withdrawals: Always fee-free.
   2. International ATM Withdrawals: The first withdrawal each month is free, followed by a £2 charge per withdrawal.
4. FX Sweeping Debit Card:
   1. Offers great exchange rates and no hidden markups when spending in foreign currencies.

Noteworthy Features

1. Multi-Currency Account: Supports balances in over 20 currencies, including USD, CAD, AUD, EUR, JPY, and GBP.
2. Lock-in Exchange Rates: Allows users to secure preferred rates before traveling or transferring funds.
3. 24/7 Customer Service: Always available for account assistance and issue resolution.
4. Trackable Payments: Easily monitor incoming and outgoing transactions.
5. No HSBC Requirement: It is not necessary to be an HSBC customer to register for Zing.

What Makes Zing Unique?

Compared to other fintech competitors like Revolut, Zing’s ability to lock in exchange rates provides greater control over international spending.

For tourists and expats who wish to safeguard themselves against exchange rate changes, this option is quite helpful.

Additionally, Zing’s transparent fee structure, lack of monthly charges, and low currency conversion rates make it a budget-friendly alternative for those managing money across different countries.

Zing is a well-rounded option for British users looking for a multi-currency finance solution.

Its no-monthly-fee policy, competitive conversion rates, and ability to lock in FX rates make it particularly appealing for international travelers, expats, and anyone with cross-border financial needs.

Backed by the reputation and stability of HSBC, Zing provides a reliable and user-friendly digital banking experience.

7. Starling Bank:

Starling Bank has established itself as a leading digital bank in Europe, renowned for its user-friendly interface, transparent fee structure, and comprehensive range of services tailored to both personal and business customers.

Fee Structure and Exact Fees

1. Account Maintenance Fees:
   1. Personal and Joint Accounts: No monthly maintenance fees.
   2. Business Accounts: No monthly maintenance fees.
2. Domestic Transactions:
   1. UK Payments: Free for domestic transfers and Direct Debits.
   2. Cash Deposits: Deposits at the Post Office incur a fee of 0.7% of the deposit amount, with a minimum fee of £3.
3. International Transactions:
   1. Card Purchases Abroad: No fees for using the Starling debit card for purchases worldwide.
   2. ATM Withdrawals Abroad: No fees for ATM withdrawals abroad.
   3. International Money Transfers: Transfers involve a SWIFT/Local network fee plus a 0.4% Starling fee, with currency conversion at the interbank exchange rate.
4. Additional Services:
   1. Card Replacement Abroad: A £10 fee applies if you lose your card or it’s stolen while you’re abroad.
   2. Certified Bank Statements: Certified statements in the app are free; other certification methods may incur a £20 fee.

Key Features and Benefits

1. User-Friendly App: Starling’s app offers real-time notifications, spending insights, and budgeting tools, enhancing financial management.
2. Savings Spaces: Customers can create multiple ‘Spaces’ within their account to set aside funds for specific goals, aiding in effective budgeting.
3. Overdrafts and Loans: Competitive rates are available for overdraft facilities and personal loans, subject to approval.
4. Business Banking: Tailored business services, including integration with accounting tools like Xero, Free Agent, or QuickBooks, and features such as online banking, mobile cheque deposits, and bill management.

Customer Feedback

Starling Bank has received positive reviews for its customer service and security features. Users appreciate the seamless integration with personal finance management apps and the convenience of features like fingerprint login.

Monzo

Monzo has emerged as a leading digital bank in Europe, celebrated for its user-centric approach, transparent fee structure, and innovative features that cater to modern banking needs.

Here’s an overview of why Monzo stands out, with a focus on its fee structure and exact fees.

Fee Structure and Exact Fees

1. Account Maintenance Fees:
   1. Monzo Free Account: No monthly maintenance fees.
   2. Monzo Plus: £5 per month, with a minimum term of 3 months.
   3. Monzo Premium: £15 per month, offering additional benefits such as travel insurance and higher interest rates.
2. ATM Withdrawal Fees:
   1. UK Withdrawals: Fee-free up to £250 every 30 days; a 3% fee applies thereafter.
   2. International Withdrawals:
      • Monzo Free Account: Fee-free up to £200 every 30 days; a 3% fee applies thereafter.
      • Monzo Plus: Fee-free up to £400 every 30 days; a 3% fee applies thereafter.
      • Monzo Premium: Fee-free up to £600 every 30 days; a 3% fee applies thereafter.
3. Foreign Transactions:
   1. No fees for card payments abroad; Monzo uses the Mastercard exchange rate without additional charges.
4. Cash Deposits:
   1. £1 fee per cash deposit at PayPoint locations, with a maximum deposit limit of £1,000 every six months.
5. International Transfers:
   1. Monzo partners with Wise for international transfers, offering competitive rates with fees varying depending on the currency and amount.
6. Overdrafts and Loans:
   1. Overdrafts are available with interest charged at 19%, 29%, or 39% EAR, depending on your credit score.
   2. Unplanned overdrafts are fee-free, however, transactions may be rejected if there is not enough money.

Key Features and Benefits

1. Real-Time Notifications: Instant alerts for all transactions, helping users keep track of their spending.
2. Budgeting Tools: Features like spending categories, targets, and the ability to set budgets aid in financial management.
3. Savings Pots: Allows users to segregate funds for specific goals, with the option to earn interest on savings.
4. Salary Sorter: Automatically divides income into different pots or categories upon receipt, streamlining budgeting.
5. Bill Splitting: Easily split bills with friends or family directly through the app.
6. Travel Reports: Provides summaries of spending while abroad, categorized by country and currency.
7. 24/7 Customer Support: Access to round-the-clock assistance via in-app chat or phone.

Monzo’s commitment to transparency, minimal fees, and a suite of innovative features tailored to user needs positions it as one of the best digital banks in Europe.

Its focus on customer experience and a clear and fair fee structure make it a preferred choice for many seeking a modern banking solution.

Many people looking for a contemporary banking solution choose it because of its emphasis on the client experience and its transparent and equitable pricing structure.

Conclusion:

Digital banking’s spread throughout Europe has revolutionized the financial sector by offering innovative and user-friendly banking solutions.

Nearly all needs could be met by a platform, from Revolut’s competitive exchange rates to N26’s simplicity, Bunq’s emphasis on sustainability, and Wise’s multi-currency adaptability.

These online banks offer tools to make banking simpler and more effective, with an emphasis on accessibility and openness.

In the end, the best choice is determined by how well a bank’s products fit your unique financial preferences and objectives.

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