N26 Launch Savings Account Paying 1.30% to 2.50% less fees

Hi has anyone's application for n26 been rejected?

I've received this email from them:
"We couldn’t confirm your application to open a new account, since your user information could not be validated."

Tried contacting them thru live chat multiple times and couldn't do anything about it.
I've sent them an email to support and still waiting on reply.

Irish tax payer with Croatian passport.

Help would be much appreciated.
Thanks
 
Hey
Did you know you can manage all your money in one place at N26, including your shared money?

Introducing N26 joint accounts — the shared account with a dedicated IBAN and simple features that make managing shared finances easier than ever.
Click to expand...

Received the above by email this morning. N26 now offering Joint Accounts

More here
 
Pmc365 said:
I'm interested in upgrading to metal and paying annual membership upfront to get a 20% discount. I then hope to get 4% on my savings.
I was worried that they might reduce the 4% mid way through the year and I'd be at a loss but apparently they will give a pro rata refund of the metal membership fee if you want to cancel membership during the year.
So you will be paying tax at 33% on interest and possibly PRSI at 4% yet this costing you €162 metal membership fee which I presume can't be written off against that tax.
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Correct. 4% interest, 33% DIRT and 4% PRSI and €162pa if paid in advance. Assuming that the 4% remains in place for the year, the breakeven point for Metal is €22k deposited (@tax_moron did the calculations in a post on the first page of this thread)

Pmc365 said:
On a separate matter I have a chargeback pending with N26 as a customer for €60. I wonder if I upgraded to Metal would they be more inclined to award me the chargeback or is this decided by Mastercard.
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Not sure if it would increase the chances of the chargeback being approved, but one of the advantages of Metal is that you can phone N26 and talk to an advisor. Beats trying to deal with them by e-mail.
 
N26 appear to be doing some fine tuning of the interest offer, with the free plan losing some of the interest benefit.

“Interest rates vary based on ‌membership: 4% p.a. for Metal, 2.26% p.a. for You and Smart, and 1.26% p.a. for Standard accounts.”
 
Freelance said:
Received the above by email this morning. N26 now offering Joint Accounts

More here
Click to expand...
I also got this email and was interested as my partner and I are going to be renting a property together soon, so a joint account would be useful. Does anyone know if the N26 joint account would prove problematic for household bills in terms of a non-Irish IBAN? Is there any other alternatives that offer fee-free joint accounts?
 
For anyone wanting to compare if it’s worth paying for N26 Metal vs other interest rates, here’s the formula I’ve made:

N26 subscription amount * 100 / net interest difference

Here’s an example. N26 subscription paid yearly costs 162.20€ to get 4% gross interest. AIB offers 3.02% gross at 2y-fixed-term deposit. These will be taxed DIRT at 33% in this example. So net interest are 2.68% and 2.0234% respectively. The difference of the two is 0.6566%. Now in the formula:

162.20 * 100 / 0.6566 = 24,703.01

In order to outperform AIB, you need to deposit at N26 Metal at least 24,703.01€.

Another example. Now let’s say you are comparing N26 Metal with Standard, and you are also paying PRSI at 4%. This means gross interests are 4% and 2.8%, minus 33% + 4% taxes, equals to 2.52% and 1.764% net interest respectively. Difference being 0.756%. In the formula:

162.20 * 100 / 0.756 = 21,455.02

If you also pay PRSI and compared Metal to Standard, you need to deposit 21,455.02€ to justify subscribing to Metal.
 
Last edited:
deskter said:
If you also pay PRSI and compared Metal to Standard, you need to deposit 19,504.57€ to justify subscribing to Metal.
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User @tax_moron compared these I post #18 of this thread and his calculation was that you needed €22,000 to justify paying for N26 Metal vs Standard.

deskter said:
In order to outperform AIB, you need to deposit at N26 Metal at least 24,703.01€.
Click to expand...
This is a very odd comparison as you have a two year fixed term product where your savings are locked up for the duration compared to a demand product where there is no certainty around the rate remaining where it is currently.
 
Freelance said:
User @tax_moron compared these I post #18 of this thread and his calculation was that you needed €22,000 to justify paying for N26 Metal vs Standard.


This is a very odd comparison as you have a two year fixed term product where your savings are locked up for the duration compared to a demand product where there is no certainty around the rate remaining where it is currently.
Click to expand...
I actually mistakenly used Standard rate 2.68% instead of 2.8%. The total amount needed is 21,455.02 €:

Metal (21,455.02 x 4%) - (33% DIRT + 4% PRSI) = 540.66€
Stantard (21,455.02 x 2.8%) - (33% DIRT + 4% PRSI) = 378.46€
Difference 540.66 - 378.46 = 162.20 € (Metal plan pays itself)

--
I was just showing the formula, which is simple and can be applied to any case you want:
N26 subscription * 100 / (bigger interest - lower interest) - (taxes)

If you think the AIB example is not valid, use the formula to compare other cases you want. I used that comparison to make personal decisions.
 
Last edited:
deskter said:
I actually mistakenly used Standard rate 2.68% instead of 2.8%. The total amount needed is 21,455.02 €:

Metal (21,455.02 x 4%) - (33% DIRT + 4% PRSI) = 540.66€
Stantard (21,455.02 x 2.8%) - (33% DIRT + 4% PRSI) = 378.46€
Difference 540.66 - 378.46 = 162.20 € (Metal plan pays itself)

--
I was just showing the formula, which is simple and can be applied to any case you want:
N26 subscription * 100 / (bigger interest - lower interest) - (taxes)

If you think the AIB example is not valid, use the formula to compare other cases you want. I used that comparison to make personal decisions.
Click to expand...
As someone really bad at maths, I really appreciated these type of posts. Thank you.
 
liam bourke said:
i thought you only pay dirt tax....where does it say you have to pay prsi?
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Section 3 of the Social Welfare and Pensions Act 2013 provides that unearned income of chargeable persons will become liable to PRSI at 4% from 1 January 2014.

In the main this impacts those who are required to complete Form 11 for whatever reason and their unearned income in its entirety including deposit interest becomes liable to PRSI at 4%.
 
Freelance said:
Section 3 of the Social Welfare and Pensions Act 2013 provides that unearned income of chargeable persons will become liable to PRSI at 4% from 1 January 2014.

In the main this impacts those who are required to complete Form 11 for whatever reason and their unearned income in its entirety including deposit interest becomes liable to PRSI at 4%.
Click to expand...
PRSI was chargeable at 4% on deposit interest prior to 2014.
I think this was in the case where ones income was exclusively unearned income over a certain threshold.
 
liam bourke said:
i thought you only pay dirt tax....where does it say you have to pay prsi?
Click to expand...

The rules for PAYE tax-payers allow for exemptions if unearned income (non-PAYE) is over 5,000e

Social insurance

Social insurance contributions entitle you to a range of benefits administered by the Department of Social Protection.
www.citizensinformation.ie www.citizensinformation.ie

"Anyone with unearned income of over €5,000 is considered to be a 'chargeable person' and is liable to pay the PRSI charge at 4% on all their unearned income. They pay the charge under Revenue's self-assessment system (Pay and File). The new PRSI charge is paid at Class K and does not entitle the person to any social insurance benefits.

PAYE tax payers who are not considered 'chargeable persons' by Revenue are not liable for the new PRSI charge. A person is not a 'chargeable person' if their income from non-PAYE sources is less than €5,000 and this income is taxed under the PAYE system. "
 
redstar said:
The rules for PAYE tax-payers allow for exemptions if unearned income (non-PAYE) is over 5,000e

Social insurance

Social insurance contributions entitle you to a range of benefits administered by the Department of Social Protection.
www.citizensinformation.ie www.citizensinformation.ie

"Anyone with unearned income of over €5,000 is considered to be a 'chargeable person' and is liable to pay the PRSI charge at 4% on all their unearned income. They pay the charge under Revenue's self-assessment system (Pay and File). The new PRSI charge is paid at Class K and does not entitle the person to any social insurance benefits.

PAYE tax payers who are not considered 'chargeable persons' by Revenue are not liable for the new PRSI charge. A person is not a 'chargeable person' if their income from non-PAYE sources is less than €5,000 and this income is taxed under the PAYE system. "
Click to expand...
So do I understand it correctly, in layman's terms most people will not have to pay the PRSI on the interest earned unless they have non-PAYE income above 5k Euro?

Most commonly from:
being a landlord (and hitting the 5k yearly limit)
or
having a huge amount of dividends / interest savings accounts getting you over the 5k per year limit

If I am someone who files a form 11 but doesn't hit this 5k limit I don't have to pay the 4% PRSI right?
 
Well, I guess it depends. I submitted my form 11 for 2023 a number of weeks ago, as I had sold ETF units, and was required to as a result.
I also had EU deposit interest to declare too.

Despite my total unearned income being under 5K, the form11 calculation still applied 4% PRSI to the deposit income.

Not sure how you can avoid paying it. Form 11 does allow you do "disagree" with one of the calculations and put in your own numbers - with an explanation - so possibly I could have done it there.
 
Innisfree said:
Well, I guess it depends. I submitted my form 11 for 2023 a number of weeks ago, as I had sold ETF units, and was required to as a result.
I also had EU deposit interest to declare too.

Despite my total unearned income being under 5K, the form11 calculation still applied 4% PRSI to the deposit income.

Not sure how you can avoid paying it. Form 11 does allow you do "disagree" with one of the calculations and put in your own numbers - with an explanation - so possibly I could have done it there.
Click to expand...

@Innisfree, perhaps your PRSI was applied incorrectly, it has been well documented recently that Revenue are making mistakes:
https://www.askaboutmoney.com/threads/eu-deposit-interest-revenue-reporting.234901/
 
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