Comparison of the Best Online Banks: Today we are going to review and compare the best digital banks in Europe which will allow you to create an account on your smartphone in less than 10 minutes.
Competing European banks differ from each other in terms of fees, security, as well as support for different investment assets and services.
We have reviewed pricing, products, design, benefits, safety, and more. We've installed and tested them so you don't have to. Let's dive into the list of the best European online banks, when it comes to digital challenges and explore them one by one for help you find the one that best meets your needs.
If you are looking for the best online bank which allows you to manage your bank accounts on the Internet simply and quickly, especially on mobile, then you are in the right place. In this guide, we present to you the comparison of the best online banks in 2020.
Guide: How to choose the best online bank?
International banks, traditional banks, mutual banks, online banks and more recently neobanks, even with a good comparator it becomes difficult to choose! More and more banks are launching on the Internet.
This can translate into better rates and lower commissions, but not all banks that offer products online do the same; here is what to check in order to start making your choice of digital bank.
Online banking has become a reality, in large part because they are so practical, absurd charges are also easy to avoid. It is not uncommon for the big banks to charge $ 30 or more per month, even if you are an exceptional customer, and even if they are already making money holding your money.
If this is driving you crazy, it might be time to find an online bank. But how do you choose the best?
Criterion # 1: Costs as low as possible
One of the main reasons for leaving the world of big banks is the service charges of all kinds : service fees, monthly fees, ATM fees, overdraft fees, etc.
So it makes sense that online banks want to be competitive by keeping fees as close to zero as possible. So it makes sense that online banks want to be competitive by keeping fees as close to zero as possible.
But some services may be chargeable, and if you're absolutely against the fees, see if the bank has minimum deposit requirements or standard fine print fees.
Criterion # 2: Strong security
The second criterion to take into consideration when choosing the best online banks is the security of your account / money. There hasn't been an online bank hack that has made headlines yet, but it has happened with bitcoin's websites and in an era where eBay and Target have both been victims of hijackings. data, it is useful to ask how your online banking stays at the forefront of hacking.
It is practically impossible to lose money, online banks are supported by organizations like the ECB. But there is always the possibility that your information will be exposed and shared.
It should be noted that cyberattacks against small businesses almost doubled between 2011 and 2013, from 18% to 31%, according to Damian Caracciolo, vice-president of CBIZ, a company that provides insurance advisory services and benefits.
Criterion # 3: Quality customer support
Just because a bank offers 24/24 customer support and live representatives over the phone doesn't mean that the service is impeccable.
It is always good to browse a bank's Facebook page or websites such as Trustpilot to find out about the bank's history. That said, access can also impact service, as you never know when you'll need to speak to someone.
Criterion # 4: Flexibility
You would think all online banks have a smartphone app, but that's not true. As we have seen, 24 hour customer service and live operators are not a given, and the ATM network can be small or large.
Language is also a criterion of flexibility to be considered when choosing the best online banks, during my research to write this article I saw online banks, in Serbia for example, having only one language so impossible to understand a sen word. as a foreigner, try to verify that the bank is present in French or English before registering!
Based on the most important amenities, shop around to find the bank that best fits your list of non-negotiable items.
Criterion # 5: Product diversity
How you get in touch with an online bank depends a lot on your primary needs.
Don't assume that an online bank offers check services, and don't get tricked when a bank claims to have the best returns on CDs and deposits, because in all banks those returns are tiny anyway, and never a smart alternative to investing.
Are you looking for a place where you can park and move your money easily, without deceiving yourself by doing a "killing blow" on an annual return of 1,15%.
Criterion # 6: Ease of opening an account
High technology is not synonymous with high speed. In some online banks, opening an account is easier said than done.
As you browse the web, you will find reviews of online banking, and chances are several customers have written that they are unhappy with their experience.
So if you see an avalanche of ridiculous forms and requirements creeping in, turn the tail and run to the nearest reasonable online bank.
In the best online banks, opening an account is as simple as communicating your personal data and the control and routing numbers of an existing bank account. It's done.
Comparison of the Best Online Banks (2021)
Today, the majority of bank customers do their banking either online, on their smartphones, or a combination of the two, according to a recent PwC survey on digital banking.
In addition, massive bank branch closures, even temporary, during the COVID-19 crisis have exposed more consumers to the benefits of online banking, whether as part of their traditional banking relationship or with an online bank only.
Our comparison of the best online banks 2020 details the characteristics of the main offers of each online bank in Europe:
1. TransferWise: The best online bank with most currencies and borderless accounts
The main attraction of TransferWise lies in its cheap international money transfers and his free borderless multi-currency bank account.
Transferwise is available in no less than 144 countries worldwide, and its app supports 57 currencies at the time of writing our review of the best online banks.
With the borderless account, you will get your own bank details in the US, UK, Europe, New Zealand and Australia regardless of your current location among the supported countries.
This makes TransferWise a great choice for non-residents, investors, or small business owners looking to open a bank account on another continent, such as the United States.
In addition, TransferWise obtains a fairly high score on the fee scale, since there are no charges for opening an account, delivering the card or maintaining an account.
Most currencies supported by TransferWise offer one option: a bank transfer from one bank to another. For some currencies you can pay with debit and credit cards or use a transfer option SOFORT, Apple Pay or Android Pay is also available for some currencies through the TransferWise iOS and Android apps. In most cases, the recipient will receive the money within one to two working days.
TransferWise is a great choice for international money transfers, they are known for their excellent customer service, have great reviews on Trustpilot, and provide fast transfers. And the icing on the cake? They also offer a spectacular user experience, ranging from an easy registration process to efficient transfers.
Some users were so impressed that they thought it was too good to be true.
Main advantages of TransferWise:
- Free multi-currency bank account
- Personal bank details including UK account number and SORT code; EU SWIFT / BIC and IBAN number; U.S. Routing Number (ABA) and Account Number
- Hold and spend in over 57 currencies
- Available in 144 country
- No exchange rate surcharge
- Low and transparent fees (amount depends on currency pair)
- Free professional account
- Excellent rating on Trustpilot: 4,6 (82 reviews)
- Authorized electronic money institution, regulated by the Federal Supervisory Authority
- Time to open an account: 5 minutes
- The bank that holds the money: Barclays, Wells Fargo
What we don't like about TransferWise :
- You can only send to a bank account
- Not all countries and currencies are covered by the Borderless Account, but TransferWise always adds more.
- External transfers to a bank account are subject to a small fee, usually in the range of £ 0,50 / $ 1,30 / € 0,60.
- There are limits on how much you can receive into your borderless account.
TransferWise is a great way to transfer money internationally. online banking is distinguished by its simplicity and the fact that they are very direct on the fees and the amount you will receive when you make a transfer.
They also offer premium optional services like Borderless and their Mastercard prepaid card, which may interest you.
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2.N26: Best Online Banking for Travelers
German society N26 is the first choice for travelers and small business owners who wish to open a free bank account covered by the deposit insurance scheme.
N26 is one of the oldest digital banks in Europe, and over the years the bank has attracted millions of new customers. She currently serves 22 countries and you can send money to 19 different currencies. However, the account can only contain one currency: the euro.
N26 is a German neobank, headquartered in Berlin, Germany. N26 currently offers its services in several Member States of the Single Euro Payments Area and in the United States. Activities in the UK were suspended in April 2020 due to uncertainties over the Brexit process.
Wikipedia
Most N26 customers opt for one of the following two products: the normal N26 or N26 Black account. The standard N26 account has no monthly fees, while the N26 Black account costs 5,90 euros per month.
Both accounts entitle you to a MasterCard, which you can use at any vendor in the world that accepts MasterCard. While one in two banks and credit cards take a few percentage points when processing your foreign currency transfers, the N26 goes against the grain.
Thanks to N26's partnership with TransferWise, transfers are processed at the mid-market rate, with no exchange rate markup, and all foreign transactions are also processed at the mid-market rate.
During the tests for the comparison of the best online banks, we have that N26 offers the following:
- Has an EU banking license: Guarantee of deposits up to 100 euros (for individuals and companies)
- Free business account with cash back on all purchases
- 5 free withdrawals per month from an ATM machine
- Free payments in any foreign currency
- Insurance options included in premium versions (travel and medical)
- Secure 3D Mastercard
- No minimum deposit
- Separate sub-accounts for managing your expenses and savings
- Regulated by BaFin
- Deposit guarantee: 100 euros
- Time to open an account: About 8 minutes
- The bank that holds the money: Bank N26
But this is not an average 'these guys are awesome' type review - delving into real customer reviews (especially negative reviews) we find out the reality of using the N26.
The disadvantages of N26:
- Unexpectedly out of the UK
- 24/24 phone support not available
- Limited to Europe and the United States
- Potential reverification issues
Overall, we can say that N26 is one of the best European online banks, for travelers and small business owners, the bank offers most of the usual functions of a regular bank, but in a completely digital way.
Review: All you need to know about Skrill to send money abroad in 2020
From cash withdrawals at ATMs to international money transfers at super low exchange rates, they have a lot to offer.
3. Revolut: A great digital bank with free currency and investment tools
Third on our comparison list of the best online banks is Revolut, this UK-based tech company offers banking services, such as prepaid debit cards, free stock trading, free currency exchange, as well as encryption service and P2P payments.
Revolut was started in July 2015 by Nikolay Storonsky, a former trader who worked at Lehman Brothers and Credit Suisse, and Vlad Yatsenko, who previously built financial systems in investment banks.
Revolut started out as a prepaid card and app that allowed travelers to switch from one currency to another inexpensively. It arose out of the difficulties encountered by Storonsky with existing foreign exchange products. Since then, the company has expanded its range of products and services.
The mobile application has many advantages, including an overview of spending for each currency, budgeting tools, smart savings, separate savings accounts, while the accompanying Mastercard comes with 3D Secure online payments and a number of features of security.
Read also: All about Revolut, bank card and account used by millions of people
Revolut offers three types of accounts for individuals - one free account and two paid accounts - and supports around 24 different currencies. There is no limit to the amount of your deposit, and it is available in over 30 countries.
Main advantages of Revolut:
- Possibility to hold up to 29 currencies for free
- 0% fees on currency exchanges
- Free spending and ATM withdrawals in over 140 currencies (weekdays only)
- Free international transfers
- Free share exchange: Up to 8 traders per month
- Instant card top-ups from your daily account
- Minimum deposit: None
- Integrated crypto trading options
- Free travel insurance for Premium and Metal customers
- License: Electronic money, banking; regulated by the FCA
- Rating on TrustPilot: 4.5
- Application rating: 4.8
- The bank that holds your money: Barclays, Lloyds
Monthly withdrawal limits at ATMs is a nominal charge, especially if you are traveling to a country where you need to carry cash.
In this case, you must ask yourself whether the fees you will have to pay exceed the savings you can make on the underlying exchange rate.
Perhaps the biggest downside of Revolut is that it is not an approved bank, which means that its customers are not protected by the FSCS.
Conclusion: Opt for an online bank
As mentioned above, the possibility ofeasily and quickly open a bank account online is one of greatest advantages of online banking. Although we focus on competing European banks, many of them remain capable of provide services to non-European residents.
Read also : Everything you need to know about Paysera Bank, to transfer money online & 20 Best Free Real Estate Listing Sites to Buy, Rent & Sell Online
Traditional banks and online banks both have their advantages. Essentially, it is about determining whether the services and personal touch of a brick and mortar establishment outweigh the often higher costs, in terms of lower interest rates and more fees, of the services. banking services offered there.
It is also worth considering divide your activity between the two. It is true that this arrangement may not be practical for you, and the cost of maintaining multiple accounts can be a problem.
But having accounts at both a traditional bank and an online bank can give you the best of both worlds - higher interest rates and access to in-person help. for your transactions and problems when you need them.
If you have any other online banks to add to our comparison list of the best online banks, please drop us a line in the comments section. Thanks for stopping by, and don't forget to share the article!
