Banking · Decision Guide

Wise vs N26: How They Compare for Expats

Wise and N26 serve different primary purposes, though their features overlap. Wise started as an international transfer service and added account features. N26 is a licensed digital bank that happens to work well internationally. The distinction matters: N26 offers more traditional banking features, while Wise excels at moving money between currencies.

Understanding what each is designed for helps you decide whether you need one, the other, or both.

Last reviewed: January 2026

Decision-support content for research purposes. Not legal, tax, or financial advice. Verify with official sources.

This page helps you understand the differences between Wise and N26 for expat banking.

  • The fundamental difference: transfer service vs digital bank
  • How fees and features compare
  • Which banking needs each serves better
  • Where geographic availability differs
  • When using both makes sense

Compare provider options

These are examples, not recommendations. Compare options based on your specific needs.

Side-by-side comparison

High-level differences. Details vary by country.

What it is Wise: E-money/transfers | N26: Licensed bank Regulatory status differs
Primary strength Wise: Currency exchange | N26: Daily banking Each optimized differently
Deposit protection Wise: Safeguarded | N26: €100k insured (EU) N26 has traditional deposit insurance in EU
Account currency Wise: Multi-currency | N26: EUR (or local) Wise holds 50+ currencies; N26 is single-currency
Local account details Wise: 10+ currencies | N26: EUR (German IBAN) Wise more flexible for receiving international payments
Card spending abroad Both competitive Both use mid-market rates for card purchases
Available in Wise: 170+ countries | N26: ~25 countries N26 limited to specific markets

Key tradeoffs

Important considerations that affect most people in this situation.

Where Wise typically works better

  • International transfers and currency exchange
  • Receiving payments in multiple currencies
  • Available in more countries globally
  • Holding balances in many currencies
  • Transparent per-transaction pricing

Where N26 typically works better

  • Primary bank account with deposit insurance
  • Eurozone residents wanting a German IBAN
  • Spaces/sub-accounts for budgeting
  • Direct debits and standing orders
  • Building credit history in EU

Bank vs e-money institution

N26 holds a full banking license (German), meaning deposits up to €100,000 are protected by deposit insurance in the EU. Wise is an e-money institution—your funds are safeguarded but not covered by deposit insurance in most countries. For everyday spending this rarely matters, but for larger balances the protection difference is relevant.

Multi-currency vs single-currency

Wise lets you hold 50+ currencies in one account and convert between them. N26 is a single-currency account (EUR for most users). If you regularly deal with multiple currencies, Wise is more flexible. If you're settling in the Eurozone and want a straightforward EUR account, N26 is simpler.

Geographic availability differs significantly

Wise operates in 170+ countries. N26 is available in about 25 countries, primarily in Europe plus the US. If you move frequently or live outside N26's markets, Wise is the more portable option. If you're staying in an N26 country, both are available to you.

When Wise typically fits better

These scenarios favor Wise's international focus.

  • You receive payments in multiple currencies — Wise's local account details in 10+ currencies let you receive payments without conversion fees
  • You live outside N26's markets — Wise works in 170+ countries; N26 is limited to ~25
  • International transfers are frequent — Wise's core strength is moving money between countries with transparent fees
  • You want to hold multiple currencies — Keep USD, EUR, GBP, and others in one account without forced conversion
  • You already have a primary bank — Wise complements existing accounts for international needs

When N26 typically fits better

These scenarios favor N26's banking license.

  • You want a primary bank account — N26's banking license means deposit insurance and full banking features
  • You're based in the Eurozone — A German IBAN works across SEPA, and N26 integrates well with EU financial systems
  • Direct debits and standing orders matter — N26 handles recurring payments better than Wise
  • You want sub-accounts for budgeting — N26's Spaces feature lets you organize money into categories
  • Building EU credit history — as a licensed bank, N26 activity may contribute to credit profiles (varies by country)

Fee comparison

How costs compare for common scenarios.

  • Monthly fee — Wise: free. N26: free Standard plan, or €5-17/month for premium tiers
  • Currency conversion — Wise: 0.4-1% depending on currencies. N26: free for card spending, fees for transfers
  • International transfers — Wise: transparent percentage fee. N26: uses Wise for transfers (so similar fees)
  • ATM withdrawals — Wise: 2 free/month, then 1.75%. N26: 3-8 free/month depending on plan, then €2
  • Card spending abroad — Both use mid-market rates, both competitive for travel spending

N26 uses Wise for transfers

An important detail about how these services connect.

N26 partners with Wise for international transfers. When you send money internationally through N26, it's actually processed by Wise. This means transfer fees and rates are similar.

The practical implication: if international transfers are your main need, using Wise directly gives you the same rates with more currency features. If you want N26 as your primary bank and only occasionally transfer internationally, the built-in Wise integration is convenient.

Using both together

A common setup for expats in N26 markets.

  • N26 as primary account — Use for salary, rent, direct debits, and daily spending in EUR
  • Wise for international receiving — Give clients your Wise USD/GBP details to avoid conversion fees
  • Wise for currency holding — Keep non-EUR earnings in Wise until you need them
  • Transfer between them — Move money from Wise to N26 when you need EUR for local expenses
  • Backup card — Two cards from different providers means backup if one is blocked or lost

Limitations of each

What each doesn't do well.

  • Wise limitations — Not a bank (no deposit insurance in most places), no credit products, no direct debits in most currencies, limited as a primary account
  • N26 limitations — Single currency only, limited geographic availability (~25 countries), no multi-currency holding, customer support complaints in some markets
  • Neither offers — Cash deposits, physical branches, traditional credit cards (N26 has debit only), loans in most markets

Common pitfalls

Issues that frequently catch people off guard in this area.

Treating Wise as a full bank replacement when you need deposit insurance
Opening N26 if you live outside their supported countries
Not realizing N26 uses Wise for international transfers anyway
Expecting N26 to hold multiple currencies like Wise does
Assuming either works for visa proof-of-funds without checking requirements
Overlooking that N26 availability has changed—they've exited some markets

Common questions

Is my money safer in N26 or Wise?

N26 offers deposit insurance up to €100,000 in the EU as a licensed bank. Wise safeguards funds but doesn't offer traditional deposit insurance in most countries. For large balances, N26's deposit protection is a meaningful difference. For everyday amounts, both are well-regulated and safe in practice.

Can I use N26 outside Europe?

N26 is available in about 25 countries, primarily in Europe plus the US (though N26 US has limitations). If you live outside these markets, you can't open an N26 account. The card works for travel, but residency must be in a supported country.

Which is better for freelancers receiving international payments?

Wise is typically better for this. You can give clients local bank details in their currency (USD, GBP, EUR, etc.), and they pay as if to a local account. The money arrives in your Wise balance without conversion fees. N26 only gives you EUR account details.

Should I close one if I have both?

Not necessarily. They serve different purposes well. Wise for international/multi-currency needs, N26 for Eurozone banking with deposit insurance. Many expats maintain both. If you're simplifying, keep whichever matches your primary use case.

Examples

These are examples of providers in this space, not endorsements. Options, features, and pricing change. Research current offerings before making decisions.

  • Wise — Multi-currency accounts and international transfers
  • N26 — Licensed digital bank with German IBAN

Next steps

Continue your research with these related guides.

Sources & references

Official Sources

  • Wise website – Features and pricing
  • N26 website – Features and pricing
  • BaFin (German regulator) – N26 banking license status

General References

  • European deposit insurance information – Deposit Guarantee Schemes Directive
  • User reviews and forums – Real-world usage experiences

Information gathered from these sources as of January 2026. Requirements and procedures may change.

Important: This content provides decision-support information, not advice. Requirements, procedures, and costs can change. Always verify current information with official sources and consult qualified professionals for guidance specific to your circumstances.

Some pages may include example providers. This site does not recommend or rank options.