N26 Review: Checking

Chanelle BessetteApril 1, 2021
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Overall bank rating

N26

    4.0

    NerdWallet rating 

    The bottom line:

    N26 is a nonbank financial institution that provides an account with checking-like services. N26 accounts are serviced by Axos Bank behind the scenes, so customers can receive FDIC insurance on their deposits. N26 is part of the Allpoint ATM network, so customers can withdraw cash for free at more than 55,000 ATMs, plus two additional out-of-network ATM fees are covered per month. The account doesn’t offer interest, but customers can earn cash-back rewards with certain retailers with their N26 debit card.

     

    What to know about neobanks: Neobanks can be solid options for consumers who prefer online-only banking. Funds deposited in these accounts are usually FDIC-insured through partner banks, which will also typically receive customers’ money if a neobank closes, so customer funds are safe. Neobank accounts often have low monthly fees and earn strong rates. However, they may also lack traditional banking features, including in-person customer service and access to personal or cashier’s checks (often required for large purchases, such as buying a home) or wire transfers. Consider these details before opening an account.

     

    Best for: Consumers who want the perks of a widespread ATM network, don’t care about having branch access and don’t mind staying on top of where they can get cash back on purchases.

     

    » Want a higher interest rate? Check out NerdWallet's favorite high-yield online savings accounts

    Pros

    • No monthly service fee or minimum balance.

    • Access to more than 55,000 Allpoint ATMs.

    • Cash back offered for purchases at certain retail locations.

    • Get your paycheck up to two days early via direct deposit.

    • Option to use “Spaces” subaccounts to manage your money.

    Cons

    • No overdraft program.

    • No branch access.

    • No interest rate.

    RATING METHODOLOGY

    NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, banking experience and overdraft fees. Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation. The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.