There is no single best neobank in Europe; Revolut, N26, bunq, Trade Republic, Openbank, Lunar, Monzo and Starling are the best-known app-first banks, and the safest way to choose is by licence, home country and deposit guarantee scheme. Within the EU, deposit guarantee schemes protect at least €100,000 per depositor per bank, the UK uses £120,000, and Switzerland CHF 100,000. We do not rank providers or quote fees, which change often.
Last reviewed: October 2026.
Europe’s neobanks sit under different national regimes, even when they sell across borders. A bank licensed in Lithuania, the Netherlands, Germany or the UK follows different supervisors and deposit schemes, and a few well-known apps are not banks at all. This best neobank in Europe guide, current as of October 2026, summarises real providers, who licenses them, and what to check when choosing one. For single-country detail, see our guides to Germany and Switzerland.
The European rules that matter most
Three ideas explain most differences between best neobank in Europe candidates:
- Home-country licensing. A bank licensed in one EU country can serve customers in others, and its home deposit scheme usually applies.
- Deposit protection levels. EU schemes cover €100,000 per depositor, as the ECB explains. In the UK the FSCS limit rose to £120,000 from 1 December 2025, per the Bank of England.
- Bank versus non-bank. E-money or payment accounts do not carry deposit insurance, though funds are normally safeguarded.
Revolut: a best neobank in Europe contender
Revolut Bank UAB received its licence through the European Central Bank, with the Bank of Lithuania proposing the upgrade in December 2021, according to the Bank of Lithuania. In the UK, Revolut received authorisation with restrictions in July 2024, and the PRA has since removed them. New UK customers get FSCS-protected accounts, while some older accounts remain e-money accounts during migration, per Revolut. In August 2026 it announced a French licence for Revolut Bank S.A., with other markets to follow later, according to Biallo. Which entity holds your account depends on your country and when you joined, so check it in the app.
N26 and bunq
N26, based in Berlin, holds a German banking licence and says it operates in 24 markets. It belongs to the German deposit guarantee scheme with cover up to €100,000. BaFin ordered stricter oversight in December 2025, including higher capital and a special monitor, after a 2024 audit found serious deficiencies in risk and complaint management, as MarketScreener reported.
bunq is a Dutch bank. A secondary reference says DNB recorded its banking licence in 2014 and that deposits are covered by the Dutch scheme up to €100,000 for customers resident in roughly 27 EEA countries, with a €2.6 million DNB fine in May 2025 over customer due diligence that bunq disputed. Confirm details in bunq’s own terms.
Trade Republic and Openbank
Trade Republic holds a full banking licence from the ECB, awarded in December 2023. As of April 2025 it reported about 8 million customers in 17 countries and launched in Poland in September 2025, per Wikipedia. Investments and crypto sit outside deposit insurance.
Openbank is Santander’s digital bank, supervised by the Banco de España, and in Germany by BaFin through a German branch since early 2025, per Santander. Check its depositor information for the applicable scheme in your country.
Lunar, Monzo and Starling
Lunar, founded in 2015, announced a European banking licence in August 2019 and planned growth in Denmark, Sweden and Norway, according to Retail Banker International. Monzo (2016) and Starling (2014) are UK challenger banks, listed in the challenger bank overview; as UK-authorised banks their eligible deposits fall under the FSCS. Our guide to neobank vs challenger bank explains the UK term.
Best neobank in Europe candidates at a glance
| Provider | Licence base (as reported) | Deposit scheme |
|---|---|---|
| Revolut | Lithuania (ECB-licensed); UK bank; French licence announced Aug 2026 | Lithuanian or other scheme by entity; FSCS in UK |
| N26 | Germany (BaFin) | German scheme, €100,000 |
| bunq | Netherlands (DNB) | Dutch scheme, €100,000 |
| Trade Republic | ECB full banking licence (Dec 2023) | Cash covered per its notice; investments not |
| Openbank | Spain (Santander group) | Check provider notice |
| Lunar | Denmark | Danish scheme per its terms |
| Monzo, Starling | United Kingdom (PRA) | FSCS, £120,000 |
Providers not covered here, such as Wise, are generally e-money institutions and not banks, so they are not covered by deposit guarantee schemes. Read are neobanks regulated for details.
What changed recently
- 1 December 2025: the UK FSCS deposit limit rose from £85,000 to £120,000, and the temporary high-balance limit rose to £1.4 million.
- 15 December 2025: BaFin ordered stricter oversight of N26.
- 2025: Trade Republic expanded to Poland, its first market outside the eurozone.
- August 2026: Revolut announced a French banking licence for Revolut Bank S.A. and changed where new German savings accounts are held.
Changes like these are why we avoid permanent “best of” rankings. A provider’s structure in October 2026 may not match what a review written a year earlier described.
Best neobank in Europe for EU, UK and Swiss customers
The EU has a common minimum deposit guarantee, but each country runs its own scheme. The UK, outside the EU since Brexit, runs the FSCS and a separate authorisation regime, which is why N26 stopped its UK service in April 2020 and why Revolut needed a UK licence of its own. Switzerland has its own esisuisse scheme with a limit of CHF 100,000, covered in best neobank Switzerland. If you move countries, your protection may change even though the app looks the same.
Common mistakes when choosing the best neobank in Europe
- Assuming an IBAN prefix shows where deposits are protected.
- Counting investments, crypto or money market funds as insured savings.
- Keeping everything with one provider and having no backup if the account is frozen for a compliance review.
- Relying on a review that lists fees or rates without a date.
- Ignoring supervisory announcements about the provider.
A sensible approach, whichever best neobank in Europe you pick, is to treat it as one part of your finances: use it for what it does well, such as everyday spending or travel, and keep a second, clearly licensed account for savings and bills. Revisit the provider’s depositor information each year, because licences, partner banks and deposit schemes do change, and a provider can move your account to a different legal entity with notice.
How we judged the best neobank in Europe
Because fees and rates change often, we assessed providers on things that change slowly and matter most if something goes wrong. Each provider above was checked against the same five questions.
- Which entity holds the deposit, and in which country is it licensed?
- Which guarantee scheme applies, and does the depositor information sheet state it plainly?
- Supervisory record. Recent regulator actions and how the provider responded.
- Product boundaries. How clearly the app separates deposits from investments, crypto and money market funds.
- Cross-border fit. Local IBANs, support in your language, and what happens to your account if you move.
Consequently, the best neobank in Europe for you is the provider that passes all five and also wins on the current terms you compare yourself.
Best neobank in Europe by use case
| What you need | What to look for | Examples from this guide |
|---|---|---|
| A main account with a local IBAN | Licensed bank or branch issuing IBANs in your country | N26 in Germany, Openbank in Spain and Germany, Monzo or Starling in the UK |
| Travel and multi-currency spending | Multi-currency balances and clear conversion terms | Revolut, bunq |
| Banking plus investing | Clear separation of cash from securities | Trade Republic, Revolut |
| Savings above €100,000 | More than one licensed bank, or scheme-covered products at different entities | Any combination of two licensed banks |
| Nordic residents | A bank licensed in the region with local payments | Lunar |
In every case, the examples are illustrations of structure, not endorsements. Check the current product list before applying.
Worked example: three residents, three answers
- Sofia, who moved from Lisbon to Berlin, needs a German IBAN for payroll and rent. A German-licensed bank or a provider with a German branch suits her, and she keeps her Portuguese account open for a few months while direct debits migrate.
- Marc, a consultant working across France, Belgium and the UK, values multi-currency balances and cheap conversion. Revolut fits his spending, but he keeps his savings at a bank covered by his home scheme and checks which Revolut entity holds each balance.
- Elin in Stockholm wants local payments and Swedish-language support. A Nordic-licensed bank such as Lunar suits her better than a pan-European brand without local rails.
In each case, the choice followed from the person’s country and purpose rather than from a ranking, which is the whole point of this guide to the best neobank in Europe.
Opening an account across borders: what to expect
EU passporting lets a bank licensed in one member state serve residents of others, but each provider decides which countries it supports. Expect an identity check by video or automated document scan, proof of address in a supported country, and sometimes a tax identification number. Moreover, if you later move to another country, the provider may need to move you to a different legal entity or close the account, so read the residency terms before relying on an account long term. For a side-by-side view with branchless licensed banks, see neobank vs direct bank, and for the German market in detail, best neobank in Germany.
What this means for you
- Find the legal entity in the terms, then check it on your national supervisor’s register or the ECB list of supervised banks.
- Identify the deposit scheme and its limit in the depositor information sheet.
- Do not assume a local IBAN means a local licence; the bank may be licensed elsewhere.
- Spread large balances across banks.
- Keep an eye on supervisory news, such as the BaFin measures at N26, and read the provider’s response.
Sources and further reading
- ECB: how deposit guarantee schemes work
- Bank of England PRA: FSCS limit £120,000
- Bank of Lithuania: banking licence for Revolut Bank UAB
- Revolut: is Revolut a fully licensed bank in the UK
- Biallo: Revolut French licence
- MarketScreener: BaFin and N26
- Trade Republic (Wikipedia overview)
- Santander: Openbank in Germany
- Retail Banker International: Lunar banking licence
- Challenger bank (Wikipedia overview)
Frequently asked questions
What is the best neobank in Europe?
There is no single best. Compare licence country, supervisor, deposit scheme, features and current terms. Revolut, N26, bunq, Trade Republic, Openbank, Lunar, Monzo and Starling are widely used.
Are European neobanks covered by deposit insurance?
Licensed banks are covered by national schemes, at least €100,000 per depositor in the EU and £120,000 in the UK. E-money accounts are not insured.
Is Revolut a bank in Europe?
Revolut Bank UAB is licensed through the ECB and the Bank of Lithuania. The UK entity is a separate UK-authorised bank.
Is N26 safe?
N26 is a licensed German bank in a deposit guarantee scheme, but BaFin ordered stricter oversight in December 2025. Check current coverage.
Is Wise a neobank?
Wise is generally described as an e-money or payments provider rather than a bank, so deposit insurance does not apply. Check the entity in your country.
Which scheme protects my money if the bank is licensed abroad?
Normally the home country’s scheme. Read the depositor information sheet.
More questions about the best neobank in Europe
Can I use a neobank across the EU?
Often yes, within the licensing and eligibility limits of each provider, which may vary by residency.
Do neobanks charge fees in Europe?
Fees and plans change often. Review each provider’s current price list.
Which is the best neobank in Europe for travel?
Revolut and bunq are built around multi-currency balances and cross-border spending. Compare their current conversion terms and weekend markups, and confirm which legal entity holds your balance in your country.
Which is the best neobank in Europe for a local IBAN?
It depends on the country. N26 issues German IBANs as a German bank, Openbank offers Spanish and German IBANs, Monzo and Starling offer UK accounts, and bunq offers several local IBANs on some plans. Check the IBAN country before applying.
Can I keep my account if I move to another European country?
Often, but not always. Some providers move you to a different legal entity, which can change your deposit scheme, and others only serve residents of listed countries. Read the residency terms and update your address promptly.
This article is general information, not financial advice. Products, licences and availability change, so check the provider and the relevant regulator or deposit-protection scheme before you open an account or move money.