N26 spreads 4% interest savings accounts to 13 European markets

Berlin-based banking startup N26 is set to broaden its financial services across Europe with the introduction of its Instant Savings accounts to an additional 13 European countries.

Customers in Austria, Belgium, Estonia, Finland, Greece, Ireland, Latvia, Lithuania, Luxembourg, the Netherlands, Portugal, Slovakia, and Slovenia will now have the opportunity to earn up to 4% interest per annum on their savings. This offer comes with no deposit limits and incurs no additional fees, making it an attractive option for savers looking for flexible and high-yield savings accounts.

Interest rates for the Instant Savings accounts are tiered, depending on the type of N26 account held by the customer. N26 Metal customers will benefit from a 4% annual interest rate, while N26 Smart, You, or the standard free account holders will receive a 2.8% interest rate on their savings. These competitive interest rates are available to both new and existing customers without any restrictions on the maximum deposit amount.

The expansion of the Instant Savings account is part of N26’s strategy to go beyond conventional banking services. The product is designed to offer more than just everyday banking solutions, with a focus on providing tools and services that help users grow their financial assets.

Setting up an Instant Savings account with N26 is straightforward and can be done directly through the N26 app in just a few steps. One of the key features of this account is its flexibility; customers can transfer funds between their Instant Savings and main accounts at any time. Interest on the Instant Savings accounts is calculated daily, based on the account balance, and paid out at the start of the following month.

In addition to these benefits, N26 ensures that all funds, including those within the Instant Savings accounts, are safeguarded up to EUR 100,000 per customer through the German Deposit Protection Scheme. This level of security provides peace of mind to customers, knowing their savings are protected.

N26, which began as a challenger bank offering account and card management through a mobile app, has attracted millions of customers with its user-friendly approach. The company’s expansion into additional markets and product diversification came alongside decent funding rounds and hiring sprees. However, N26 has recently narrowed its focus to key European markets, specifically Germany, France, Spain, and Italy.

This consolidation is partly driven by regulatory scrutiny from Germany’s financial watchdog BaFin, which currently restricts N26 to accepting only 60,000 new clients per month.