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Neon vs N26 – April 2024 Comparison

Philippe

July 13, 2023

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If you compare Neon with N26, you are probably looking for an online bank with credit card for traveling and for your payments in EUR.

It is indeed very interesting to consider these neobanks compared to traditional banks such as UBS or Credit Suisse because they generally offer better exchange rates with very little transaction fees.

Neon is a Swiss neobank that offers a free bank account in CHF with a CH IBAN and allows you to have a Mastercard debit card. The account also allows you to make transfers abroad in partnership with Wise.

N26 is a German-based mobile bank that offers a range of services including an account free banking in EUR, international money transfers and a Mastercard debit card. N26 offers different types of accounts with varying features, including premium options that provide additional benefits such as travel insurance, partner discounts, and access to exclusive events.

Although both Neon and N26 offer mobile banking services, there are differences in terms of specific features, fees and availability in different countries.

Let’s take a closer look at what each neobank offers.

Neon vs N26 Switzerland – Which neobank to choose

If you do not have time to read this article, here is which neobank to choose according to your use:

To find out how each criterion is judged, read on: we review important options for Switzerland (IBAN CH, transfers in CHF, TWINT) and abroad (withdrawals with the card, SEPA transfer fees, transfers in currencies).

Neon vs N26 Switzerland – Coupon Code

By opening an account with Neon you receive a welcome cash gift on your account, which is always appreciated.

On the other hand at N26, you get zero, zip, nada, zilch!

1 point for Neon

Neon vs N26 Switzerland: The account

Here is a comparison of the features available from Neon and N26:

Neon therefore has a better offer in a Swiss context : IBAN CH, payments by QR and BVR, eBill and TWINT.

N26 offers a EUR account with very attractive rates for the EURO zone and foreign exchange transactions.

Keep reading to see the details and examples.

1 point for Neon

Neon vs N26 Switzerland: IBAN CH

As a Swiss neobank, Neon allows you to obtain a free bank account with personal IBAN CH.

On the other hand N26 is a neobank based in Germany and with a German banking license (DE). Your IBAN will therefore start with DE.

1 point for Neon

Neon vs N26 Switzerland: TWINT and eBill

Neon offers eBill and TWINT (UBS TWINT and TWINT Prepaid)

eBill and TWINT are not available at N26 because it is a German neobank without a license in Switzerland.

1 point for Neon

Neon vs N26 Switzerland: The debit card

At Neon, the debit card is in CHF, while at N26 it is in EUR.

This means that if you are traveling in the EURO zone with the Neon card, the exchange rate and fees will be calculated each time you use it.

At N26 the debit card is in EUR. You will therefore have charges for all other currencies, including CHF.

The fees linked to the card which are different at Neon and N26:

For withdrawals in Switzerland the carte Neon is therefore much more advantageous because N26 applies a fee of 1.7%.

For withdrawals in EUR, N26 clearly has the advantage, with 3 free withdrawals per month in Switzerland and the EURO zone.

For foreign withdrawals – outside the EURO zone – it depends on the amount withdrawn.

Let’s take the example of a withdrawal of 1,000 EUR in 5 installments, during the week:

N26 is therefore cheaper on multiple withdrawals in EUR because Neon is penalized by the 1.50% fee .

Another example with 1 single withdrawal in GBP

With 1.50% fee instead of 1.70% Neon is cheaper than N26 for currencies other than EUR.

1 dot everywhere

Neon vs N26 Switzerland: Transfer fees

Both Neon and N26 Standard accounts are free.

N26 allows you to make SEPA transfers in EUR free of charge, it However, there are fees for currency exchange:

At Neon, there is a 0.90% fee on the CHF/EUR conversion, so SEPA transfers are not free!

For international transfers, N26 and Neon use the services of WISE, but the fees differ slightly.

For comparison, here are the fees for international transfers:

Unlike N26, Neon applies a 0.40% surcharge on WISE’s exchange fees, so if you make a transfer, Neon will always be more expensive than N26 for international payments.

But to find out which is the cheapest between Neon and N26, you have to compare all the costs:

Example 1: Transfer of 5,000 EUR in Switzerland, from your CHF account

As Switzerland is part of the SEPA system, N26 does not charge any transfer fees on payments in EUR in Switzerland and in the SEPA zone. On the other hand, you must first fund against N26 account in EUR. Here we go through WISE.

(*) Tests carried out during the week

Neon and N26 use the same service for international transfers (WISE) but N26 is cheaper than Neon for EUR transfers[/wpsm_highlight ] because Neon applies a “convenience fee” of 0.40%

Example 2: Transferring 5,000 GBP to the UK

So let’s take the example of a transfer in GBP, from EUR at N26 and from CHF at Neon.

N26 (with its partner WISE) is again cheaper than Neon, but only if you already have EUR available in your N26 account.

If the issue of changing CHF to EUR is important to you, see our article How to Change Swiss Francs in Euros at the Best Rate.

1 point for N26

Neon vs N26 Switzerland: Trading Fees

Neon now provides the capability to trade stocks and ETFs.

N26 only offers crypto-currency trading and applies higher fees than Yuh for example: you can read our Yuh vs N26 comarison to go more in details.

If you are looking for a neobank to do Trading, also see our opinion on Flowbank which offers lower rates than Neon and N26.

0 dots everywhere

Conclusion

In conclusion, Neon and N26 are complementary because the Neon account offers features that are not available with N26 (IBAN CH, eBill, invoices QR and soon TWINT) and is cheaper than N26 in some situations.

Our recommendation is to open a free account with each neobank and to have the 2 debit cards in your wallet. which will allow you to always benefit from the better conditions and to have a “back-up” if necessary.