Banking Guide
N26: What It Is and How It Works
N26 is a digital bank based in Germany that offers mobile-first banking services, primarily in European markets. It is commonly used by expats and residents who want app-based banking with a local account in supported countries. This page explains how N26 works and where it fits in the expat setup process.
Last reviewed: January 2026
Research summary for planning purposes. Not legal, tax, or financial advice. Verify with official sources.
This page helps you understand what N26 is and whether it fits your situation.
- What N26 is and how it differs from other digital services
- How the German IBAN works across Europe
- Common reasons expats use it
- Tradeoffs and limitations to consider
- How it connects to local banking needs
Key tradeoffs
Important considerations that affect most people in this situation.
What N26 Offers
- • Licensed European bank status
- • German IBAN for SEPA payments
- • Mobile-first banking app
- • Direct debit and salary receipt
- • Deposit protection (within limits)
What It Does Not Cover
- • Available in select countries only
- • Limited international transfer options
- • No cash deposit in most markets
- • No physical branches
- • Features vary by market
What N26 is
N26 is a licensed bank, which distinguishes it from some other financial technology services. It holds a full European banking license and operates under banking regulations, meaning deposits are typically protected by deposit guarantee schemes up to applicable limits in its operating regions.
The service is app-first, meaning most banking happens through the mobile application. N26 provides a German IBAN for its European customers, which can be used for SEPA transfers, direct debits, and receiving salary across the eurozone and other SEPA countries. This makes it function as a local bank account for many purposes in Europe.
N26 is available in select European countries and the United States (with different features). Availability and features vary by market. For context on how digital banks compare to traditional options, see international money transfers.
Key features
N26 offers banking features centered around a European account with app-based management.
- German IBAN: European customers receive a German bank account number, usable across SEPA countries for transfers and direct debits
- Mobile banking app: Full account management through smartphone app, including transfers, card controls, and spending insights
- Debit card: Mastercard debit card for spending and ATM withdrawals, with virtual cards available for immediate use
- Subscription tiers: Free basic account and paid tiers with additional features like insurance coverage, higher withdrawal limits, and partner benefits
- Spaces: Sub-accounts within the main account for organizing money by purpose (available on some tiers)
Where it fits in expat setup
People typically consider N26 when they need a local European bank account and prefer digital banking. For expats in Europe, N26 can serve as a primary bank account, providing the IBAN needed for salary payments, rent transfers, and utility direct debits.
Unlike some multi-currency tools that focus on transfers between countries, N26 functions more like a local bank that happens to be digital. This makes it useful for establishing local banking presence, though it may be less suited for people who primarily need to move money internationally. For more on multi-currency options, see multi-currency accounts.
Common timing patterns
How people use N26 varies depending on their stage in the relocation process.
- Before arrival: Depending on eligibility requirements, some people open N26 accounts before arriving in Europe to have an IBAN for early setup tasks
- During transition: N26 is often set up as part of establishing local banking in the first weeks or months after arrival
- After establishing residency: Many users continue with N26 as their primary or secondary bank for ongoing daily banking needs
How it works
Getting started involves downloading the N26 app, providing personal information, verifying your identity through a video call or other method, and providing proof of address if required. Once approved, you receive your German IBAN immediately and can order a physical card. Approval times vary from minutes to days.
N26 is primarily managed through the mobile app, with a web interface for some functions. Transfers within SEPA are straightforward using the German IBAN. Sending money to non-SEPA countries involves different processes and may have fees. N26 partners with third-party services for some international transfers.
Costs depend on your account tier. A free tier is available with basic features. Paid tiers (monthly fee) include additional benefits like insurance, higher ATM limits, and partner offers. ATM withdrawal limits vary by plan and country. Current pricing is available in the app and on N26's website.
Common reasons people use it
People use N26 for various situations involving local European banking.
- Establishing local banking in Europe: Expats use N26 to get a German IBAN for receiving salary, setting up direct debits, and handling local transactions
- Digital-first banking preference: People who prefer managing everything through an app choose N26 for its mobile-first design
- Avoiding traditional bank bureaucracy: Opening an account through an app can be simpler than visiting branches and dealing with paperwork
- Spending in euros: For people living primarily in the eurozone, N26 provides straightforward euro banking
- Organizing money: The Spaces feature allows separating funds for different purposes within one account
Tradeoffs to consider
N26 works well for getting a functional European bank account through a digital process, daily banking needs in SEPA countries (salary, rent, bills, spending), people comfortable managing finances through an app, and situations where a German IBAN is accepted and useful.
N26 may not fit frequent international transfers outside SEPA (other services may be more suited), people who prefer or need physical branch access, cash-heavy lifestyles since depositing cash is limited, or countries where N26 is not available.
How it connects to other decisions
N26 connects to cost of living through its role in daily spending—having a local account can simplify rent payments, utility bills, and everyday expenses. The spending insights feature can help with understanding costs in a new location.
For visa and residency purposes, a bank account is often needed for proof of funds or setting up local finances. Whether N26 is accepted for official purposes varies—some processes may prefer traditional banks or require accounts open for a certain period. Verify acceptance for specific visa or residency requirements.
N26 requires residence in a supported country, valid ID, and a smartphone. It unlocks a German IBAN usable across SEPA, ability to set up direct debits, and a local bank account for salary payments.
What to verify before using
Before relying on N26 for your situation, verify directly with the provider: availability in your country of residence, account opening requirements (ID type, proof of address, residency status), current features available in your market, ATM withdrawal limits and fees for your plan, whether your employer can pay to a German IBAN, and acceptance for any specific official purposes you need.
Common pitfalls
Issues that frequently catch people off guard in this area.
Next steps
Continue your research with these related guides.
Sources & references
Provider Information
- N26 official documentation – Features and availability by market
- European banking regulations – Licensing and deposit protection
Context
- Digital banking patterns – How app-first banks typically work
- SEPA payment systems – How European transfers function
Information gathered from these sources as of January 2026. Requirements and procedures may change.