TL;DR: Top 3 digital banks for expats in Europe
Bunq: Best overall for expats and mobile European residents. Flexible and feature-rich
N26: Strong for stable residency setups, good UI, but less friendly for frequent movers.
Wise: Excellent for transfers, but not a proper banking solution.
Traditional banks vs neo banks: what expats need to know
Imagine arriving in a new European country, ready to settle in, only to find that opening a bank account can be more challenging than expected. Traditional banks often have processes in place that cater primarily to local residents. While useful to residents it can be a hurdle for newcomers. The account opening process typically involves meeting strict eligibility criteria, submitting various documents like a local address, utility bills, or official letters that you haven’t received yet, and waiting for account approval. The process can take some time, requiring paperwork and visits to a branch. All of which might feel overwhelming when you’re adjusting to a new life.
While traditional banks provide reliable services, their structure and requirements may not always align with the needs of expats. This is especially true if you often prioritize speed and accessibility. That is where neo banks come in. They are offering a more flexible and user-friendly solution. Let’s explore why finding the right bank as an expat can make all the difference.
Why choosing the right bank matters for expats
If you’re moving across borders often for work, study or as a digital nomad, you know how challenging it can be to manage your finances. The last thing you want is to open and close a new bank account every time you relocate. Managing your bank account in a foreign country can present additional challenges, such as limited access to services or unexpected restrictions. What you need is a solution that stays with you no matter where the next chapter of your journey takes you. Something stable, flexible, and borderless. Ideally, you want a bank that doesn’t care if you’re sipping coffee in Paris today and exploring the streets of Prague tomorrow. Your money should move as freely as you do.
This means choosing the right bank is of great importance. A poor choice can mean endless headaches and maybe even higher international fees that will eat into your savings. Transfers might also takes days to process. On the flip side the right banking solution offers financial freedom from day one. Low fees, instant access to transfers, and global accessibility. All to allow you to focus on what matters to you.
Luckily you can avoid these clunky issues and reap the benefits by signing up to a bank before even arriving into your new country of residence.
Why neo banks are the smart choice for EU expats
Digital-first “neo banks” have changed the game for international banking. Built with global users in mind. These banks usually offer mobile-first apps, multi-language support and instant account setups. The setup can often be done without requiring proof of address or even tax IDs upfront. Being given the ability to supply those documents upwards of three months later after settling in.
And these neo-banks come with with a few pros:
Convenience and easy access
No need to visit a branch, ever
Low or no foreign exchange fees
Usually faster international transfers
English-friendly interfaces and 24/7 support
Multi currency account options
There are more benefits but not all neo banks are equal. Some, like Wise and Revolut, are great for specific tasks like cheap international transfers. But fall short as your main bank. Others, like Bunq, are built specifically for expats and borderless lifestyles.
Let’s break down the big four.
Already know which bank to sign up for? But need help for the move? Get your free quotes today!
Wise: Fast, cheap transfers, but not a full checking account bank
Wise is not actually a proper bank. It doesn’t have the required licensing and is not regulated like a bank. Wise does offer many features banks would and it is a trusted way to transfer and receive money. It’s transparent with fees and offers good exchange rates. It also is incredibly simple to transfer different types of currency and you can hold balances in different currencies. Wise accounts can receive direct deposits from employers or clients, making it convenient for expats to manage payments and income remotely.
Pros:
Excellent for currency exchange
Transparent fee structure
Good for freelancers paid in multiple currencies
Can receive direct deposits from employers or clients which is useful for expats
Cons:
Not a licensed bank in the EU (no deposit protection)
No savings interest or full-service banking
Limited support and no credit or joint accounts
Verdict: Wise is a solid sidekick but not ideal as your primary EU bank. Good for transfers, not for everything else.
Revolut: Packed with features, but inconsistent
Revolut has grown rapidly by offering a sleek app packed with perks: metal debit cards, stock trading, crypto, and budgeting tools. It’s licensed in Lithuania and available across the EU. You can hold multiple currencies, and they offer some travel perks like insurance. Revolut's premium plans also include other features such as credit score tracking, airport lounge access, and additional travel insurance. Adding more value for users.
Pros:
Great multi-currency wallet and card
Crypto and stock options
Strong app UI
Cons:
Tiered pricing with key features locked behind paywalls
Typically less competitive rates
Account freezes or compliance reviews are common complaints
Verdict: Great for digital-savvy travellers, but too unpredictable to rely on as your main account. Especially for incoming salaries or rent payments.
N26: Simple, sleek, but limited for movers
N26 was one of the first neo banks in Europe and remains a strong option, especially for people living in Germany or France long-term. It offers a clean app, standard euro accounts, and a handful of paid plans with premium perks. Some N26 accounts have a monthly service fee but this is often lower than traditional banks. Maintaining certain balances or meeting specific criteria can even help you avoid or reduce this fee.
Pros:
Licensed German bank with €100k deposit protection
User-friendly app
Available in English and several other languages
Cons:
Some passports are not supported.
Limited flexibility if you frequently change countries
Verdict: Ideal for expats who plan to stay in one country, particularly Germany. If you’re mobile, it’s less convenient than it should be.
Bunq: The most expat-friendly bank in Europe
Founded in the Netherlands, Bunq is designed for people on the move. Whether you’re a student studying abroad, a digital nomad exploring new destinations or a professional relocating frequently. Bunq offers the flexibility you need. As one of the most adaptable neo banks in Europe, Bunq makes managing your finances effortless, no matter where life takes you.
Pros:
Built specifically for international users
Smart budgeting tools
Fully insured up to €100k
Green bank with trees planted for regular usage.
Access to multiple linked accounts
Cons:
Can only withdraw twice per month on the free plan.
Premium plans go up to €18.99/month
Some may find the app interface slightly overwhelming at first
Verdict: The best choice for anyone who moves within the EU frequently. Bunq combines flexibility, security, and travel-ready features into one account. It’s the most complete solution for modern European expats.
Side by side comparison
Feature | Wise | Revolut | N26 | Bunq |
EU bank license | ❌ | ✅ | ✅ | ✅ |
Deposit protection | ❌ | ✅ | ✅ | ✅ |
Free tier available | ✅ | ✅ | ✅ | ✅ |
Residency required | Yes | Yes | Yes | Yes* |
Multi-currency support | ✅ | ✅ | ✅** | ✅ |
ATM access | Limited | Good | Limited | Excellent |
Best for… | Transfers | Travel | One-country expats | Frequent movers |
*Proof of address is required, but it doesn’t have to be local or permanent.
**In partnership with Wise
Even digital banks can surprise you with unexpected costs. Before you open your account, it’s smart to look past the flashy ads and check the fine print. Here’s what you should know at least about some of the other fees.
Wise: You’ll pay a small, transparent fee for every transfer and currency conversion. ATM withdrawals are free up to €200 per month, with a 1.75% fee after.
Revolut: The free plan has limited free ATM withdrawals at €200/month, after that you'll see an atm fee. Currency exchange is free up to €1,000/month. After that a fee of 1% kicks in. Premium plans increase these limits, but come at a cost.
N26: Free ATM withdrawals are limited, especially outside the Eurozone. Expect fees if you travel often. Foreign currency withdrawals come with a markup of 1.7%. Only premium accounts get more flexibility.
Bunq: ATM withdrawals are capped based on your plan. Free plans costing €2.99 per transaction. Premium plans offering 6 free transactions per month. Further withdrawals or non-euro transactions trigger extra fees.
If you’re making lots of overseas payments or withdrawing cash often these small charges add up quickly. Keep an eye on your account’s terms or you might be surprised at month’s end. Remember, the best way to save money is to understand exactly what you’ll pay and choose the plan that fits the way you live.
Thinking of moving to Europe? Be sure to get some free quotes to get the best mover for you!
What type of expat are you? Find the best bank for your unique needs
Newcomer or non-resident?
Bunq is your best bet if you're moving to Europe for the first time. You can sign up for an account before you even arrive. No need to wait until you have local documents like proof of address or a job contract. It's perfect for getting started quickly and hassle-free.
Frequent traveller or digital nomad?
For those always on the move, Bunq is also a great choice. It allows you to easily manage your finances across borders without unnecessary delays or complications. It doesn't matter if you’re exploring different countries each month or working remotely from anywhere, Bunq's mobile app lets you manage your finances from anywhere in Europe. Bunq is designed to adapt to your lifestyle so you can focus on your travels.
Settling long-term in one European country?
If you’re planning to settle down and build a life in a specific EU country like Germany or France, N26 is a great option. It’s user-friendly, reliable, and tailored for expats who want a simple banking solution. N26 also offers various savings accounts to help expats build savings over time. Perfect for managing day-to-day expenses, building savings, and getting comfortable in your new home.
Just need transfers?
If your primary focus is sending money internationally Wise is the way to go. It’s fast, affordable, and designed specifically for international transfers. Funds sent with Wise are often credited to the recipient's account quickly after the transfer. This makes it a reliable choice for timely payments. While it’s not ideal as your main bank account, Wise is excellent for quick and cost-effective money transfers wherever you need.
Can your digital bank help you grow your money?
When you’re living abroad, simply having a checking account isn’t always enough. You want your money to work for you no matter where you are. Many digital banks now offer a range of investment products designed to help expats reach their savings goals and build wealth internationally. From brokerage accounts to retirement accounts, these options can be managed entirely through online banking or a mobile banking app. Giving you full and secure access to your investments from anywhere in the world.
It’s also important to look for banks that don’t charge foreign transaction fees on your investment activities, as these can quickly eat into your returns. Before you open an account, take the time to compare the investment options, minimum balance requirements, and fee structures offered by different digital banks. The right choice will help you grow your money and achieve your savings goals.
Do you need a traditional bank?
While digital banks offer speed, flexibility, and convenience, traditional banks still play an important role. Especially if you’re planning to settle down for the long term. You might wonder if you truly need a “bricks and mortar” account when everything feels possible through your phone. The answer depends on your situation.
If you’re starting a new life in an EU country and plan to stay for several years, opening a local bank account can be a smart move to help with other services. Traditional banks offer access to services like mortgages, personal loans, or even specific employer payment systems that some digital-only banks can’t provide. For products like mortgages or loans, a traditional bank can help you with the required down payment. Which is often necessary to qualify for certain rates or discounts. In certain situations landlords or government offices may also ask for an established local account to set up utilities or manage official paperwork.
Pairing a digital bank account with a traditional bank can give you the best of both worlds. the simplicity and global reach of neo banking, and the long-term security and full-service support from a local provider. So as you settle down and put down roots, consider opening a traditional bank account to support your long-term plans and future opportunities. If you want to make the most of your new life abroad having both types of accounts ensures you’re always prepared for whatever comes next.
All that being said, the best banking setup depends on how you live. If you plan to move and stay in your new country of residence, a traditional bank will be of help to you alongside your digital banking option. But if you’re moving around Europe regularly or just don’t want to be locked into one country’s financial system, then a neo bank is the clear winner. It’s built for mobility. It works across borders. It doesn’t demand paperwork most other banks do. And it gives you powerful tools to manage your finances on the go.
FAQ
1. Do I need a local address to open a bank in Europe?
Yes, although it can be delayed in some cases you do need to supply a proof of address at some point, usually within 3 months.
2. Are these banks safe?
Yes. Bunq, N26, and Revolut are licensed and insured under EU rules. Wise is not a bank but very well trusted and regulated. Many banks are 'Member FDIC' or 'FDIC insured' in the US, which means your deposit products like checking accounts and savings accounts are protected up to certain limits by the Federal Deposit Insurance Corporation, a federal government agency. Always check if your financial institution is FDIC insured for deposit protection.
3. Can I use these accounts to get paid in euros?
Yes, all offer euro IBANs. Bunq even lets you choose which country’s IBAN you want. These are considered deposit products, which include business checking accounts and savings accounts, and are typically insured if the bank is a member of a deposit insurance scheme.
4. What if I need to switch countries mid-year?
Bunq, Wise and Revolut supports that directly. With N26, you may need to reapply. Limitations apply to some features and services, so check the terms for each provider.
5. What’s the best for getting started before I move?
Every option allows you to quickly open an account from your phone so you can be ready for when you arrive. To access mobile banking, you will need a valid mobile number for account security and verification. Banking apps may only work on select mobile devices, so check compatibility before downloading.
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