A digital bank is not simply a normal bank with a better app. The good ones are built around a different cost structure, and that changes what they are cheap at. Wise is cheap at moving money between currencies. Chime is cheap at everyday spending in the United States. N26 is cheap at being a straightforward euro account.
That means “best” depends entirely on what you need. This guide sets out what each account is genuinely good at, what it costs, and who should skip it.
The six accounts at a glance
| Bank | Best for | Main fees | Availability | Deposit protection |
|---|---|---|---|---|
| Wise | International transfers, holding multiple currencies | Conversion from about 0.4–0.6%; low fixed fee | Widely available globally | Varies by country — check local safeguarding |
| Revolut | Everyday spending, travel, spending in many currencies | Free plan has weekday limits; paid plans from a few euros a month | EEA, UK, and several other markets | Licensed as a bank in the EEA; varies elsewhere |
| N26 | A simple euro current account | Free standard plan; paid tiers add perks | EEA and selected countries | German deposit guarantee scheme |
| Monzo | Budgeting and spending insight | Free account; fees for cash deposits and some features | UK | UK deposit protection scheme |
| Chime | US everyday account, early pay access | No monthly fee; out-of-network ATM fees apply | United States | Deposits held at partner banks, insured |
| SoFi | Combining banking with saving and investing | No account fee; requires direct deposit for top rates | United States | US federal insurance via partner structure |
Availability and terms change. Digital banks add and remove countries regularly and adjust fee schedules several times a year. Treat the table above as a map of the landscape, then confirm current terms on the provider's own site before you rely on any figure.
There is no single best account. There is a best account for a specific job.
Wise — the cheapest way to move money between currencies
Wise is not really a bank in the traditional sense, although in several countries it now offers account-like services with local bank details. Its core strength is currency conversion at the mid-market rate — the rate you see on a search engine, not a marked-up tourist rate.
Instead of hiding its margin in the exchange rate, Wise charges an explicit conversion fee, usually somewhere around 0.4% to 0.6% on major currency pairs, plus a small fixed fee. You can see the exact cost before you confirm, which is the part most traditional banks avoid.
Choose Wise if
- You send or receive money across borders regularly.
- You want to hold several currencies at once without separate accounts.
- You value seeing the actual fee rather than a hidden margin.
- You are paid in a currency different from the one you spend in.
Where Wise is weaker: it is not designed as a full retail bank with overdrafts and credit lines, and in some countries it does not offer deposit protection in the way a licensed bank does. Check the safeguarding arrangement that applies in your country before treating it as your main place to keep money.
Revolut — best for spending and travel
Revolut combines a multi-currency account with cards, budgeting tools, currency exchange and, depending on your country, savings and investment features. It is licensed as a bank in some markets and operates as an e-money institution in others — a distinction that matters for deposit protection.
The free plan includes weekday currency exchange up to a monthly allowance, above which a fee applies. Weekend exchanges carry a markup because currency markets are closed. Paid tiers lift the allowance and add benefits such as higher limits and travel perks.
The weekend markup catches people out. If you regularly exchange currency on Saturdays and Sundays, the free plan's markup can exceed the cost of a paid plan. Work out which is cheaper for your actual pattern of use rather than assuming free is free.
N26 — the straightforward euro account
N26 is a German bank offering euro current accounts primarily across the European Economic Area. The standard account is free and comes with a debit card and app-based controls. Paid tiers add features such as higher cash withdrawal limits, insurance bundles and additional sub-accounts.
It is licensed in Germany, which means deposits are covered by the German statutory deposit guarantee scheme up to the applicable limit. For someone living in the eurozone who wants a clean, functional account with no monthly fee, N26 is often the least complicated option.
Monzo, Chime and SoFi — strong but national
These three are excellent accounts within their home markets, and largely unavailable outside them. That is not a defect; it reflects the fact that retail banking is still regulated country by country.
| Account | Market | Signature strength | Watch out for |
|---|---|---|---|
| Monzo | UK | Spending categorisation and budgeting that is genuinely useful | Cash deposit fees; no full branch network |
| Chime | US | No monthly fee and access to pay up to two days early | Out-of-network ATM fees; fewer lending products |
| SoFi | US | Banking, saving and investing in one app | Best rates usually require direct deposit |
Deposit protection: the thing to check first
This is the single most important line on any provider's website, and the one most people skip. Deposit protection determines whether you get your money back if the institution fails.
| Licence type | What it usually means |
|---|---|
| Full banking licence | Deposits typically covered by a statutory guarantee scheme up to a set limit |
| E-money institution | Funds must be safeguarded but are not usually covered by deposit insurance |
| Partner-bank arrangement | Protection depends on the partner bank, not the app you see |
| Investment platform | Covered by investor compensation rules, not deposit insurance — and investments are not guaranteed |
Two banks, one limit. Deposit protection is generally applied per institution, not per account. If two brands you use share the same underlying banking licence, your combined balance counts against a single limit. This catches out people who spread money across several apps that are all powered by the same bank.
Work out your own numbersFees and rates only mean something against your actual balances. Run the figures before you move accounts.
Open the loan calculatorHow to choose in five minutes
- 1Name the main jobReceiving salary? Sending money abroad? Spending while travelling? Each points to a different account.
- 2Check availability in your countryMost digital banks operate under country-specific licences. If they cannot serve your country, the rest is irrelevant.
- 3Read the deposit protection lineFind out whether you are covered and up to what amount. If it is unclear, treat that as a signal.
- 4Add up the real feesMonthly fee, ATM fee, currency conversion markup, and any charges for receiving money in.
- 5Test with a small amount firstOpen the account, move a small sum, make a normal payment, and see how it behaves before you rely on it.
Using two accounts is normal, not indecisive. Many people keep a traditional bank for salary, direct debits and deposit protection, and a digital account for travel and currency. That combination is often cheaper than forcing one account to do everything.
Frequently asked questions
Are digital banks safe?
Usually yes, if the provider holds a full banking licence and your deposits fall under a guarantee scheme. Check which licence applies in your country and what the protection limit is.
Which is cheapest for international transfers?
Wise is generally cheapest for straightforward transfers because it uses the mid-market rate with a transparent percentage fee. Revolut is competitive within its free allowance, then charges more.
Can I use a digital bank as my main account?
Many people do. The deciding factors are whether your salary can be paid in, whether you need branch-only services, and whether the account carries deposit protection.
Do digital banks check credit?
Opening a standard current account usually involves identity verification rather than a full credit check. A credit check is more likely if you apply for an overdraft, card or loan.
What if my bank is not on this list?
This guide covers globally available providers. Many strong digital banks operate in a single country and are not included; the same five checks apply to any of them.