TL;DR: Europe is home to six of the world's ten most valuable neobanks: Revolut, Wise, N26, Monzo, Starling Bank, and bunq. In 2025, Revolut was named World's Best Digital Bank by Euromoney, the first time a neobank has claimed this global title. For everyday low-cost banking and travel spending across the EU, Revolut's Standard plan is the top-rated all-rounder. For a clean current account with full EU banking licence and deposit protection up to 100,000 euros, N26 is the leading recommendation. For international transfers at the mid-market rate, Wise is the benchmark. For sustainability-focused banking, Tomorrow is the leading option. For premium features and the highest savings rates, bunq and Revolut's paid tiers are competitive. All providers listed in this guide are licensed and regulated within the EU or EEA with deposit protection or mandatory fund safeguarding as applicable.
Europe's Online Banking Landscape in 2025
Europe's online banking market is the most developed and competitive digital banking environment in the world, shaped by three structural forces that distinguish it from other regions. First, the EU's PSD2 open banking directive has mandated that traditional banks share customer account data with licensed third parties through standardised APIs, enabling fintech companies to build competitive products on top of existing banking infrastructure. Second, the European Banking Authority has created accessible e-money institution and banking licence pathways that allowed digital-first companies to achieve regulatory approval faster than in most other jurisdictions. Third, the SEPA payment area has standardised euro bank transfers across 41 countries, meaning an N26 account in Germany processes domestic German transfers and cross-border transfers to France, Spain, or Portugal with identical speed and cost. Revolut's recognition as Euromoney's World's Best Digital Bank 2025 marks the first time this globally prestigious award has been given to a neobank rather than a traditional bank, confirming that digital banking has reached institutional maturity in Europe. Among the world's ten most valuable neobanks, six are European: Revolut, Wise, Monzo, Starling Bank, N26, and bunq.
Regulatory Framework: EU Banking Licences and Deposit Protection
Understanding the regulatory structure of European online banks is essential for evaluating how your money is protected. Fully licensed EU banks, including N26 with its German BaFin licence and bunq with its Dutch De Nederlandsche Bank licence, provide deposit protection up to 100,000 euros per depositor under the EU Deposit Guarantee Scheme. Revolut holds a banking licence from the Bank of Lithuania and provides deposit protection up to 100,000 euros for its bank account product customers through the Lithuanian Deposit Guarantee Scheme. E-money institutions, including Wise in its EU operations, are required to safeguard customer funds in segregated accounts at licensed banks, providing strong practical protection but without formal deposit guarantee scheme coverage. When comparing European online banks, verifying whether the specific account product you are considering is covered by an EU deposit guarantee scheme or merely by e-money safeguarding rules will determine the appropriate balance level you should maintain.
Revolut: Best All-Rounder and Euromoney's World's Best Digital Bank 2025
Revolut was founded in London in 2015 and now serves over 65 million customers across 48 countries, making it the most geographically expansive neobank in the world. In 2025, Euromoney named Revolut the World's Best Digital Bank, the first neobank ever to receive this globally prestigious award. Revolut's Standard plan carries no monthly fee and includes a Visa or Mastercard debit card, fee-free currency exchange up to a monthly limit at the interbank mid-market rate, fee-free SEPA transfers, 24-hour in-app customer support, spending analytics, cryptocurrency access, and instant P2P transfers. Paid plans from 3.99 euros to 45 euros per month progressively unlock unlimited currency exchange without weekend surcharges, global ATM fee reimbursements, travel insurance, lounge access, and metal card options. Revolut's Lithuanian banking licence provides deposit protection up to 100,000 euros for bank account product customers. Monito rates Revolut as the best all-rounder online bank in Europe for everyday spending, particularly for users who travel internationally and want to keep fee-free spending in multiple currencies. A 0.5% weekend surcharge applies to currency conversions on major pairs when forex markets are closed, an operational detail that cost-conscious users should note when planning currency conversions.
N26: Best Fully Licensed EU Digital Bank
N26 was founded in Vienna in 2013 by Valentin Stalf and Maximilian Tayenthal, making it the oldest of the major European neobanks in commercial terms. It holds a full German banking licence from BaFin and operates through the EU banking passport across 24 European markets, serving approximately 8 to 10 million customers. Deposit protection is provided up to 100,000 euros through the German Deposit Protection Fund. The free Standard account requires no monthly fee, no minimum balance, and provides a German IBAN, a virtual Mastercard, and a Wise-powered international money transfer service accessible directly within the N26 app. Physical cards are available from paid tiers starting at 4.90 euros per month with N26 Smart. N26's Spaces feature provides sub-account savings goals for Premium customers. In Austria, Germany, and Italy, the Cash26 service allows N26 customers to deposit and withdraw cash at over 2,000 partner retail locations including Billa and Penny without visiting an ATM or bank. N26's full banking licence provides the most complete deposit protection among European neobanks and makes it the preferred recommendation for users who prioritise regulatory certainty alongside digital convenience. For most EU residents seeking a simple, fee-free primary account with maximum deposit protection, N26 is the benchmark choice.
Wise: Best for Multi-Currency Accounts and International Transfers
Wise, formerly TransferWise, is an FCA-authorised payment institution in the UK and holds equivalent authorisations across EU markets. It is not a licensed bank and its customer balances are safeguarded in segregated accounts rather than being covered by deposit guarantee schemes. Wise's defining proposition is the mid-market exchange rate applied to all currency conversions, both for account transfers and card spending, with a transparent percentage fee typically between 0.41% and 1.0% for major currency pairs. The Wise multi-currency account supports balances in over 50 currencies with local account details including a European IBAN, UK sort code and account number, US routing number, and equivalents in other major currency zones. The Wise debit card spends in 150-plus currencies at the mid-market rate. For European residents who regularly send money internationally, receive payments in foreign currencies, or travel extensively, Wise provides better exchange rate economics than any fully licensed bank or neobank alternative for international transactions. Its recent partnership with Google enables Wise as a search result feature for currency conversion, extending its reach to users who might not otherwise discover the platform.
bunq: Best for Savings Rates and Sustainability
bunq, founded in Amsterdam in 2012 and holding a full Dutch banking licence from De Nederlandsche Bank, provides deposit protection up to 100,000 euros and targets consumers who want competitive savings rates, sustainability credentials, and the widest account customisation features available in the European neobank market. Its Easy Money plan and Easy Bank accounts earn interest linked to ECB policy, with rates that have been competitive against European savings benchmarks. bunq's joint account features are among the best in the European market. Its sustainability credentials include planting trees for every 100 euros spent and ensuring customer deposits are not invested in fossil fuel projects. bunq supports account holders in choosing between a German, French, Spanish, or Dutch IBAN. The Easy Bank account at 2.99 euros per month is its lowest-cost offering that includes a debit Mastercard. ATM withdrawals are priced relatively expensively across all plans, making bunq better suited for customers who primarily spend by card rather than frequently withdrawing cash.
Frequently Asked Questions
Which is the best online bank in Europe for everyday banking?
For everyday banking with no monthly fees, fee-free card spending in euros and other currencies, and the broadest feature set, Revolut's Standard plan is the most widely recommended all-round choice for European residents. N26's Standard account is the preferred alternative for users who prioritise a full EU banking licence with 100,000 euro deposit protection from a German-regulated institution, and who want a primary account with SEPA IBAN and Wise-powered international transfers. The optimal choice depends on whether deposit protection certainty, multi-currency features, or international transfer quality is your primary priority.
Do European online banks provide deposit protection?
It depends on the specific provider and account type. Fully licensed EU banks including N26 and bunq provide EU Deposit Guarantee Scheme protection up to 100,000 euros per depositor. Revolut's bank account product, licensed through its Lithuanian banking entity, provides equivalent 100,000 euro protection through the Lithuanian deposit guarantee scheme. E-money institutions such as Wise are required to safeguard funds but do not provide deposit guarantee scheme coverage. Always verify the specific deposit protection applicable to your account before depositing significant balances.
Can non-EU residents open an online bank account in Europe?
It depends on the provider. N26 typically requires residency in one of its supported countries and a local address to receive a physical card. Revolut is generally more flexible in its onboarding, accepting customers across its 48-country footprint. Wise accepts customers from many countries including non-EU residents for its multi-currency account. For expats and new EU residents, Revolut and N26 are the two recommended first accounts due to their digital onboarding processes that do not require proof of local address for account creation, only for physical card delivery.
Is Revolut a licensed bank in Europe?
Yes. Revolut Bank UAB holds a banking licence from the Bank of Lithuania and is regulated by the European Central Bank for its banking operations across the EU. This licence enables Revolut to offer deposit-protected bank accounts with 100,000 euro deposit guarantee scheme coverage for customers using its bank account product in the EU. Revolut also holds separate e-money institution licences in the UK and other markets outside the EU where it operates under different regulatory frameworks.
What is the best European online bank for international transfers?
Wise is the benchmark for lowest total cost on currency-converting international transfers from any European account, applying the mid-market interbank exchange rate with a transparent fee of 0.41% to 1.0% for major currency pairs. N26 partners with Wise for in-app international transfers, giving N26 customers access to Wise's rates without leaving the N26 app. Revolut offers competitive exchange rates for currency conversion within its platform up to monthly plan limits. For large international transfers where exchange rate quality represents the greatest cost, Wise's standalone transfer service consistently delivers the best recipient amount across most currency pairs.
Sources
Euromoney World's Best Digital Bank 2025: https://www.euromoney.com
N26 Official Website: https://n26.com
Revolut Official Website: https://www.revolut.com
FinTech Magazine: Top 10 Neobanks 2025: https://fintechmagazine.com/top10/top-10-neobanks
