Irish customers of the German online bank can now get up to 4% interest on their savings.
Over the past year savings rates in Ireland have thankfully begun to creep up. However the best rates have generally been reserved for customers who are happy to lock their money away for a fixed period of time, which may not suit everyone.
The interest rates on offer to those who would like instant access to their money have generally been much lower.
However N26 has shaken up the savings market by launching its new Instant Savings accounts which have among the best rates for savers in Ireland right now as well as the flexibility of instant access to your money.
Before we look at the new savings accounts in detail, a reminder about who N26 is...
Who is N26?
N26 is a German digital bank that’s headquartered in Berlin. It operates in over 20 countries across Europe and has over 8 million customers in total, around 200,000 of whom are in Ireland.
It’s often referred to as an online-only bank as it has no branches or high-street presence. Instead customers carry out all their transactions online or through the bank's modern mobile app.
N26 has been operating in Ireland for around eight years and has a similar offering to Revolut.
What’s on offer?
N26 has launched its 'Instant Savings' accounts which offer customers a highly competitive rate of interest.
Customers who hold a Standard, Smart, or You account with N26 will get 2.8% interest.
Those with a Metal account will receive 4% interest. This account is packed with extra features and benefits and of course a higher rate of interest on savings. However it also has a very hefty €16.90 monthly maintenance fee so you’ll need to weigh up the benefits against the costs.
There’s no minimum deposit amount or any set-up fees. And you can access your money or top up your savings whenever you like quickly and easily within the N26 app.
Interest is calculated daily and paid out monthly. This is different from many banks, which only pay interest on a quarterly or yearly basis, and allows you to grow your savings faster.
There’s no limit to the amount you can deposit. So whether you have €1,000, €10,000 or €100,000 in savings, you’ll receive interest on the full amount.
And as a fully licensed bank, all savings up to €100,000 in N26 are protected by the German deposit guarantee scheme.
How do you open a savings account?
If you’re already an N26 customer then opening an account is quick and easy.
- Log into the app
- Select the ‘Finances’ tab
- Tap on ‘Instant Savings’
- Answer a few simple questions
- Then add some money - this can be done by moving money from your main N26 account or by lodging money directly into your new savings account by way of a bank transfer - the IBAN and BIC details associated with your new savings account are available at the click of a button within the app
Compelling proposition
N26 isn’t the only provider offering good instant-access rates of interest right now.
Trade Republic, a German digital investment platform, is offering customers 4% interest on any uninvested cash on amounts up to €50,000.
And Raisin, an online marketplace for savings account providers across Europe, currently has a rate of just over 3% on offer from Norway's Morrow Bank.
And Bunq, the Dutch online-only bank, offers customers a rate of 2.46%.
However N26’s competitive interest rate as well as the ease with which people can open an account, top up their savings, and access their money as and when they need it will be a big selling point. As will the fact N26 is a fully licensed bank that’s covered by the German deposit guarantee scheme.
N26's slick app also makes keeping track of your money super easy.
And the fact that there’s no maximum deposit limit will appeal to the lucky few with very big savings.
Compare savings accounts on bonkers.ie
You can easily compare savings accounts across all providers right here on bonkers.ie.
Use our comparison tool here to compare savings rates from the likes of AIB, Bank of Ireland, PTSB, Trade Republic, Raisin, Bunq and more!
