The best online banks in Europe
The list of online banks available to residents of European countries is expanding every year. These companies have become an excellent replacement for traditional banks because they completely exclude bureaucracy and the human factor, thanks to electronic document management and the provision of services via the internet. However, a review of online banks shows that not all of them provide equally comfortable terms, and this creates the need for a potential client to compare as many online companies as possible to evaluate them objectively. Furthermore, many Europeans have never used online banks and have only heard of them. Such people would like to receive a brief overview of digital banks in Europe. This article was prepared by TU experts to achieve two goals: (i) to explain the concept of online banks and (ii) to review in detail the top 10 leading European neobanks.
Start Working with Digital Banks Now with the Wise Bank!What is an online bank?
The term “online bank” has several synonyms, including “digital bank,” “neobank,” “internet bank,” and “virtual bank.” In the UK, such companies are called “challenger banks”. However, because the phrase “online bank” is the most commonly applied, it will be used in this article.
So, an online bank is a commercial credit and financial company that has no physical branches and operates only via the internet. The client of such a bank receives the full range of services offered by traditional banks. The main point is that there is no need to visit the branch, wait in line, or even speak with the manager because all operations are performed via the website or mobile app.
The advantages of online banks in Europe seem obvious, but many people have doubts about them because it’s hard to imagine a bank that doesn’t have representative offices. However, these are the realities of today. Internet banking originated in the 1980s, and the first online bank was founded in 1994. As of 2022, more than half of Europeans use internet banking services, with young people accounting for 90% of the total. It is important to note that the best online banks in Europe operate under the license of financial regulators, for example, the UK Financial Regulation and Supervision Authority (FSA). In other words, these businesses have a state permit to operate legally and officially.
Examples of services offered by virtual banks in Europe:
transfers between accounts in different local and international banks;
microlending (overdrafts) and full-fledged loans;
current, savings, and investment accounts;
currency conversion, flexes, pots, and payment rounding;
bank card, smart card, financial statistics, and reporting.
👍 Advantages of online banks in Europe:
•Low service fees. Many neobanks offer their services for free; in this case, the client is only charged a fee for example, for international transfers and currency conversion. Even if an internet bank with a monthly plan, its services will still be less expensive than those of a traditional bank.
•Internet banking standard. A review of online banks shows that their key advantage in the opinion of users is the absence of the need to visit the branch and waste time by standing in long lines. A mobile app can be used to obtain any service, from opening an investment account to applying for a mortgage.
•Complete financial control. Apps of the best online banks in Europe continuously record user actions and provide aggregated and detailed reporting for any period. In other words, a client always knows where, when, and how much money he spent, as well as how much profit he made from a specific type of activity.
•Different methods for increasing savings. The standard rate on savings accounts at digital banks in Europe is higher than that of traditional banks. Many banks offer investment solutions, allowing clients to invest in stocks, commodities, and cryptocurrencies.
•Responsive customer support. Despite the absence of physical branches, virtual banks in Europe provide full-featured customer support. Some do it through call centers, others use live chats. It is always possible to contact the neobank via tickets on the website or in the app, as well as by email.
•Reliability and safety. As previously noted by the experts at the Traders Union, online banks are licensed by authorized bodies. They conduct their activities transparently, including tax reporting. Internet bank apps have several layers of security, including passwords, PIN codes, push notifications, and biometric recognition.
👎 Disadvantages of internet banks in Europe:
•Fees for standard operations. This applies primarily to fees for ATM withdrawals. Most traditional banks have their own ATMs, but neobanks do not, which explains the extra fees. However, some companies have a fairly loyal fee policy.
•Difficulties with depositing cash. The best online banks in Europe accept payments for goods and services both online and offline, but there are times when clients cannot deposit cash through an ATM. Some internet banks support scanning postal orders or checks. Many online accounts in Europe, however, can only be deposited with transfers from other accounts and wallets.
•Absence of physical branches. TU experts defined this aspect as an advantage above, but for some people, it is considered a drawback because they are used to communicating with bank specialists personally and consider this method of interaction to be the most effective. Of course, this is a subjective assessment, but it would be wrong to keep silent about it.
List of online banks in Europe with the most favorable terms
Today, several dozen licensed internet banks operate on the territory of European countries. However, a license from an authorized body, used as a guarantee of reliability, cannot guarantee favorable terms of cooperation. In other words, not all virtual banks in Europe are equally practical and convenient in terms of the services they provide.
For a person who has never used neobank services, this can become a serious challenge. After all, he can only choose the best bank by examining them all; otherwise, he will be unable to compare the terms objectively. How long will it take? Weeks, maybe months. To solve this problem, the Traders Union experts have already done all the hard work. The following is a list of European online banks with the highest user ratings. Experts provide a brief description of each bank and thoroughly review its fees, functions, and features in the following comparative table.
| Online bank | Regulated in Europe? | Euro support | Loan rate | Fees | ||
|---|---|---|---|---|---|---|
Revolut |
Yes |
Yes |
4.8% per annum |
0-13.99 euros per month, depending on the plan |
||
Monese Bank |
Yes |
Yes |
Individually assessed |
0-14.95 euros per month, depending on the plan |
||
Bunq |
Yes |
Yes |
Individually assessed |
0-17.99 euros per month, depending on the plan |
||
Wise |
Yes |
Yes |
Individually assessed |
No |
||
Curve Bank |
Yes |
Yes |
Individually assessed |
No |
||
N26 |
Yes |
Yes |
1.99% per annum |
0-16.90 euros per month |
||
Monzo Bank |
Yes |
Yes |
8.9% or 23.9% depending on the loan amount |
0-15 euros per month, depending on the plan |
||
Starling Bank |
Yes |
Yes |
4.9% per annum |
No |
||
Fidor |
Yes |
Yes |
8.50% per annum |
5 euros per month |
||
Holvi |
Yes |
Yes |
8-17% per annum, depending on the credit score |
9-15 euros per month |
Note that most online banks in Europe offer floating loan rates. If the exact figure is shown in the table, you can use it; however, when applying for a loan, you may receive a slightly different rate (it is best to clarify this point on the bank’s website). Many of the neobanks listed by TU experts do not charge clients a monthly fee. Other banks offer multiple plans at once, as indicated by the price range in the “Fee” column. The first digit indicates the minimum payment; zero means the availability of a free plan. The second figure represents the cost of the premium level plan, which is the most expensive and offers the most options (objectively, not every client needs it).
Revolut
This is a British bank that operates under the supervision of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). It is present on all of the lists of top online banks in the European Economic Area. In fact, it is a nearly perfect neobank, providing various types of accounts, international transfers, overdrafts, and low-interest loans (including mortgages). There are several plans to choose from, including one without a subscription fee. This is one of Europe’s first internet banks, and experts consider it to be the most innovative.
👍 Pros:
•fast transfers and available currency conversion function;
•supports euros, pounds, and several dozen other currencies;
•funds can be withdrawn from ATMs without fees.
👎 Cons:
•the plan without a monthly fee has strict limits;
•currency conversions outside of business hours are subject to an additional fee;
•additional fee for operations with exotic currencies.
Monese Bank
Monese frequently appears in the top three on lists of online banks in Europe based on user ratings. This bank has more than 2 million clients and operates throughout the European Economic Area. For registration and verification, the user does not need to confirm his residential address, which greatly simplifies the process. The bank has loyal terms for checking the credit score, and, in general, it is distinguished by an unprecedented level of client-oriented approach.
👍 Pros:
•the fastest account opening without further verification;
•a favorable plan with almost no additional fees;
•support for contactless payments for all types of devices.
👎 Cons:
•it is impossible to install the bank’s mobile app on two or more devices at once;
•accounts in this online bank can only be opened by UK or EU residents.
Bunq
Bunq is one of the best online banks in Europe and is especially popular among young people. Bunq offers many unique solutions for those who regularly travel within the European Economic Area. In addition, it is one of the few European banks supporting environmental initiatives that are more typical of American virtual banks. For example, for every 100 euros spent by a client, the company undertakes to plant a tree.
Among the internet banks in Europe, Bunq has the most flexible terms for opening sub-accounts. These are additional accounts that offer advanced possibilities, such as the ability to hold funds in currencies that are not supported by the main account. A sub-account can be used in the following situations: the client can only store euros on the main account, but it is possible to convert euros into pounds sterling and transfer them to a sub-account. Bunq clients can open any number of sub-accounts, which conceptually expands the financial capabilities of private clients.
👍 Pros:
•many functions for private and corporate clients;
•accounts of different types, flexible configurations of additional options;
•stable, convenient, and error-free mobile app;
•responsive customer support.
👎 Cons:
•the free plan is very limited in features;
•unconventional fees;
•UK residents are unable to open an account.
Wise
Wise offers the lowest fee for international transfers. The other fee types are average or below the market average. Overall, this is a standard neobank with modern services such as a multi-currency account, a conversion option, and the issuance of virtual and physical bank cards. The ATM withdrawal fee is quite low – 1.75% – and there is a free withdrawal within the limit.
👍 Pros:
•the bank supports 56 currencies and transfers to 80 countries;
•all transfers in base currencies are free;
•functions for automating business processes.
👎 Cons:
•the bank does not offer lending services or overdrafts;
•no savings or accumulation accounts, only current accounts.
Curve Bank
A review of online banks in Europe shows that few neobanks offer to open a smart account. Such an account allows the client to combine accounts from different banks and link virtual and physical bank cards, or virtual payment wallets. Curve clients have this option, so they can manage any number of accounts from a mobile app. Among other things, the user can get full statistics on all operations and generate automated reports.
There is no subscription fee, and the commissions are average to below market average. There are 26 currencies supported by this digital bank, as well as cash back and a flexible alert system. In combination with the simple and intuitive interface of the mobile app, all of this makes Curve the best option for the absolute majority of users. Unfortunately, the bank does not offer investment solutions or capital-increasing solutions.
👍 Pros:
•the user can order a physical card for free;
•no limits on linking cards from other banks;
•cash back for standard operations;
•no additional fees for purchases in other countries.
👎 Cons:
•All transactions on Standard and Black tariffs are subject to a 1.5% fee.
•additional 0.5% fee if the user converts to euros, pounds, or dollars.
•no savings, investment accounts, or other opportunities for passive earnings.
N26
This is a German online bank operating under the license of a local regulator. The website, app, and customer support are available in German, English, French, Spanish, and Italian. The bank offers a very favorable loan rate (1.99%) and a free plan. 3D Secure technology protects user data, and funds are insured for 100,000 euros. N26 holds a special place on the list of the best online banks in Europe due to the abundance of available functions and the user-friendly interface of the mobile app, which is considered one of the most convenient in the segment.
👍 Pros:
•a free account, which can be opened within 10 minutes;
•a virtual MasterCard bank card; if necessary, the client can order a physical debit card;
•many options for increasing capital.
👎 Cons:
•2 euros for ATM withdrawals outside of the Allpoint network;
•the client cannot apply for a credit card; only a debit card is available.
Monzo Bank
Monzo is widely known for its low fees, responsive customer support, and convenient mobile app. This bank is registered in the United Kingdom and is overseen by the PRA, which regulates all banks in the country. In the countries of the European Economic Area, this online bank supports several options for depositing into the account, as well as cash withdrawals under favorable terms, plus low ATM withdrawal fees.
👍 Pros:
•as in the case of Monese, new Monzo Bank clients do not need to provide information about their place of residence;
•there is no credit score check, and most transactions are approved quickly;
•Monzo Bank is known for fairly low fees and complete transparency in its activities;
•Clients can use the bank’s app to make contactless payments on any device.
👎 Cons:
•You will be unable to open an account if you are not a resident of the United Kingdom or a country in the European Union;
•the installation of the bank’s app is limited to one user account per device.
Starling Bank
Starling is another online bank registered in the UK. Registration in the United Kingdom is a great advantage for users, as the company is controlled by FCA, one of the leading international regulators. Starling offers several account types, and clients can use all of the functions right after registration because there is no monthly fee, only standard commissions. There are accounts for teenagers and pensioners with preferential terms. The mobile app aggregates details on income and expenses in a convenient visual format. Also, there is an overdraft and flex accounts.
👍 Pros:
•a convenient dashboard in the app with detailed reports;
•joint accounts shared by several bank clients;
•minimum ATM withdrawal fees;
•quite loyal account verification requirements.
👎 Cons:
•additional fee for transfers exceeding 300 euros per day;
•international transfers cover only 38 countries; a small list of currencies is available for conversion.
Fidor
In TU’s list of online banks in Europe, this is the second company registered in Germany and supervised by the German financial regulator. Fidor has a simple and transparent fee structure, a MasterCard standard credit card, and a mobile app that meets advanced standards and supports contactless payments, which can be synchronized with a smartwatch. From the point of view of the security system, Fidor implements several innovative solutions at once, for example, geo-blocking. This function allows the user to completely restrict access to the user’s account from the territory of the selected countries.
Fidor is currently the only digital bank in Europe that allows users to link cryptocurrency wallets from leading crypto exchanges such as Kraken to their accounts. This function’s potential is difficult to overestimate. Bank clients can use it to buy, sell, and convert cryptocurrencies, transfer them to accounts opened with brokers, and withdraw them directly to a bank account. The bank offers several options for investing in cryptocurrencies. Given these opportunities, it is not surprising that Fidor is now represented in every review of the most popular online banks in the Eurozone.
👍 Pros:
•single plan with a simple fee system, without “pitfalls” and extra fees;
•an extensive list of features for protecting user funds and data;
•a user-friendly mobile app with flexible settings, and aggregation of data from multiple accounts;
•the ability to link a cryptocurrency wallet, and access to cryptocurrency markets for trading, and conversions.
👎 Cons:
•a corporate account has fewer possibilities when compared with its competitors;
•contactless payments are available only through Apple Pay and its proprietary Fidor Pay system.
•cash withdrawals from ATMs are charged a fixed fee of 3 euros (2 free withdrawals using a smart card).
Holvi
Holvi is considered the best online bank in Europe for freelancers, self-employed persons, and small businesses. Opening an account is quick and easy, with a standard verification procedure. After registration, the client receives an international IBAN and 500 free transfers per month. Among European online banks, no other company offers similar terms. Payment for goods and services is accepted worldwide, and the bank has its own debit card.
Holvi provides integrated accounting automation functions, such as automatically calculating income, expenses, taxes, and bonus payments. Among other useful functions, there is a VAT calculator and balance forecasting, which facilitate financial decision-making. Also, this neobank has clear pricing, which allows the client to get a full set of basic services for 6 euros per month. However, for employees with standard service terms, Holvi may be less profitable than other companies on TU’s list of online banks in Europe.
👍 Pros:
•many options for automating financial reports, calculations, invoicing, and sending invoices;
•simple pricing and basic functions are more affordable than almost any of its competitors;
•a simple interface of the mobile app, full aggregation of financial flows, and fine customization.
👎 Cons:
•only one type of account is available: a current account for a self-employed person or a representative of a small or medium-sized business.
•no standard neobank consumer options like overdrafts, flexes, and POTs.
Best online banks in Europe with low fees
Virtual banks in Europe can differ quite a lot in terms of providing certain services. For example, there are differences in fees for international transfers, currency conversion, and ATM withdrawals. Even banks that charge a monthly subscription fee have commissions, but it is usually lower than the commission charged by banks that provide their services without a subscription fee. The table below provides a visual comparison of the banks from the Traders Union rating, as well as an indication of the main fees.
| Overdraft fee | ATM withdrawal fee | International transfer fee | International exchange fee | |
|---|---|---|---|---|
Revolut |
No |
No up to six withdrawals, then 1.5 pounds |
From 0.5% |
From 2.5% |
Monese Bank |
No |
No |
No |
No |
N26 |
8.9% higher than the current ECB rate |
2 euros + 1.7%, depending on the plan and the number of withdrawals |
Free in the European Economic Area |
At the average market rate with a fee of 1-2% |
Monzo Bank |
No |
No up to 200 pounds per month, then 0.5 pounds |
No |
Individually |
Starling Bank |
No |
No up to twice a month, then 0.5 pounds |
0.26% or 3.49 pounds |
Depends on the currency |
Bunq |
No |
No up to 250 euros per month, then 3% |
No |
3% |
Fidor |
Service is not provided |
3 euros (2 free withdrawals) |
No |
1.5% |
Wise |
No |
0.99 pounds in the UK, 2.25 pounds +4% abroad |
0.3-3.5% |
0.3-4% |
Curve Bank |
15%, 25%, and 35% |
No for UK ATMs |
0.4%, local fees are possible |
0.4% |
Holvi |
Service is not provided |
2.5% |
0.25 euros per transfer, up to 500 free transactions per month |
2% |
Best online banks in Europe with savings accounts
Bunq
Bunq offers favorable terms for savings accounts. The standard rate is 0.27% per year, with no fees. However, if the balance on the account exceeds 10,000 euros, the rate can be raised. Clients’ savings are insured for up to 100,000 euros. Opening an account usually takes no more than five minutes. There is no requirement for a minimum deposit, funds on the account are not blocked, and the client can withdraw the amount in full or in part at any time.
Wise
Wise also provides very favorable terms in the segment of savings accounts. The bank provides seven accounts of this type, where the rate varies from 0.10% to 2.75%, as well as accounts with a floating rate. Conditions are flexible, and funds on accounts are not blocked (does not apply to all accounts). Fees do not exceed 0.55% per month. Teenagers can open special savings accounts. Since the bank is regulated by the FCA and protected by the FSCS, all deposits are insured for up to 85,000 pounds. Furthermore, the bank provides an Assets investment program with both individually customizable and ready-made funds. For ready-made funds, the annual growth is about 13% (as of 2022).
Best Digital Savings AccountsBest online banks in Europe for investing
Revolut
Revolut is the undisputed leader of the Traders Union list of online banks in Europe in the investment program segment. Revolut allows its clients to invest with a budget of as little as $1. Among the assets offered are stocks, commodities, and cryptocurrencies. The fees are transparent, and the app provides detailed statistics on the current investment portfolio and assets selected. The user can configure a notification to be sent when the asset reaches the specified price. Third-party risks are excluded thanks to FCA regulation. Profits can be saved for special savings POTs.
Fidor
The bank has a Fidor Sparbrief savings certificate, in which one can invest starting at 100 euros per month, with a limit of 100,000 euros. Interest is calculated individually depending on the amount and term. The income is paid monthly, but the deposited funds are blocked in the account and cannot be withdrawn at any time. It is also one of the few digital banks in Europe that allows trading in Forex and cryptocurrencies. Fees are significantly lower than the average for the segment. For example, if the client uses the express trading function, the total fee will be 0.1% of the transaction amount.
FAQ
What is an online bank?
An online bank is a viable alternative to traditional banking. Its main difference is the absence of physical branches; all services are ordered and provided online. A smartphone is all that is required to become a neobank client, obtain a bank card, and access the full range of modern online banking possibilities.
Can digital banks in Europe be trusted?
All the online banks that TU experts have reviewed in this article operate legally. They are subject to local and international legislation and have the necessary financial activities licenses, such as those issued by the FCA. This refers to full-fledged credit and financial companies that simply cannot fail to meet their client obligations.
How are online banks better than traditional banks?
According to a review of online banks in Europe, nearly all clients who used them refuse to return to traditional banks. The reason for this is the efficiency, high level of automation, and functionality of neobank mobile apps. Any service can be obtained in a matter of minutes: no paperwork, but favorable interest rates.
Are there disadvantages of the best online banks in Europe?
The first drawback is that cash withdrawals from ATMs are charged a fee. Many neobanks have a free withdrawal limit, but then the client must pay every time he needs cash (the fee is quite high, usually around 2 euros). The second disadvantage is that it is not always possible to deposit funds into an account using an ATM. Some online accounts in Europe cannot be deposited even by postal order or check.
Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!