N26 reducing interest rates starting 1st October

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Bradipo

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Your Instant Savings interest rate is changing​


We’re writing to let you know that starting October 1, 2024, your Instant Savings account’s interest rate will change.
From this date, the new Instant Savings interest rates will be 3% p.a. for N26 Metal customers, 2% for N26 You customers, and 1.7% for N26 Smart and Standard customers.
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Just got this message from N26 and looks like new customers will receive this rates starting immediately.
cc: @Lightning
 
I literally paid for metal for a year only a month ago to get the higher savings rate.
 
I've quite a bit there with them, come Oct it won't be.

Paid for the deluxe card as well.
 
Yeah while it’s disappointing to see such a big drop, especially as the ECB have only had 1 rate cut of .25 since the product launched, the metal account I upgraded to maybe 3 months ago to avail of the higher rate has already paid for itself and more.
 
Raisin is offering fixed term rates of between 3.09% and 3.65% AER, got an email from them today too.
 
Very dishonest for N26 to post the reason for the decline as "Due to recent changes in the interest rates set by the European Central Bank, we're changing our interest rates".

As other posters have said, there is no relationship between the % decline and the ECB rate.

I suspect that the true reason is that the original rate was just an introductory promo to get people to sign up.

Not sure why anyone would pay to get access to a 3.00% savings account when Trading212, Trade Republic, Advanzia (3 months or maybe more), Plum (but higher tax rate), Bunq (new money until 31 Dec), Nordax (via Raisin), Morrow (via Raisin), Klarna (via Raisin) and Lightyear will give you at least 3.00% instant access with no fees whatsoever. Plus you can obviously get multiple term deposit products without fees that pay over 3.00%.
 
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I have a term deposit maturing next week, was waiting till then to pay for metal.
That's a huge drop, and a strange decision in one go.
 
Ontheborder said:
That's a huge drop, and a strange decision in one go.
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The 4% always felt like it was a promo to attract funds and build out the premium client base. It was above almost every one of its competitors and so a scaling back was to be expected. Not the size of the cut, and the fact it's going to happen in one bite is indeed strange, and could loose them a good number of the clients paying for Metal. Surprising and possibly short-sited of them.
 
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ACER10 said:
.. the same. About 2 weeks with metal. Still waiting for the card.
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It may be worth trawling the terms and see if canceling is viable. Even if they charge x for the card or similar, you may be better off. I suspect if they dropped to 3 percent this time, it will happen again at a multiple of an ECB cut..
 
Stationfire said:
It may be worth trawling the terms and see if canceling is viable. Even if they charge x for the card or similar, you may be better off. I suspect if they dropped to 3 percent this time, it will happen again at a multiple of an ECB cut..
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Will do.. someone here made a very useful excel sheet with the interests rates for 4% etc.. must find it..I have until Oct 1st with 4% and I think you can cancel and pay pro rata for the time.
 
N26 informed me if you pay for metal upfront in an annual membership and cancel mid-year you are entitled to a pro-rata refund.
I find customer support via human not bot quite mediocre with N26. I saved with them as I felt secure that they were German backed. However, I think having my banking apps and Gmail app on my smartphone makes me very uneasy as regards security. I think I will use this as an excuse to buy a good tablet and put my banking apps on it.
 
Etoro appears to be offering 5.3%, 5% over 50k

Not sure if it's comparable metric or what small print is ? Seems large
 
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