N26 Instant Savings - FAQs
How and when is my interest paid?
The interest you earn is paid out automatically into your savings account on the first day of the following month.
How is my interest calculated?
Interest is calculated daily (30/365) and using the end of day balance. The applicable interest depends on your membership type. For example: If there are 30 days in a month, your balance is €10.000 for the whole month and you have an N26 Smart account with 1,0% annual interest you will earn €8,21 (10.000 x 1.0% x 30/365) at the end of the month.
Can N26 change the interest rate?
Yes, N26 may change your interest rate based on the market situation. If we increase your interest rate, we’ll send you a notification informing you of the change which will take immediate effect. In the case that we have to lower the interest rates we will inform you with 2 months notice.
How to interpret the interest rate "p.a."?
The abbreviation "p.a." stands for "per annum" and indicates that the applicable interest rate is calculated over a period of 12 months. For example, if the interest rate is 3.0% p.a. and you deposit €1,000 on your Instant Savings account, you'll have €1,030 after one year.
What are account limits?
There are no limits on deposits or withdrawals, and there is no limit on the amount that you can earn interest on. The more you save, the more you’ll earn.
What is my tax ID and why is it needed?
If you sign up for N26 Instant Savings with our German T&Cs and a German N26 IBAN (DE) you’ll also need a German tax ID to use N26 Instant Savings. We need your tax ID because income derived from capital is taxable in Germany and in accordance with the German tax code, we must pay your taxes on your behalf. You may have already provided your tax ID when opening your N26 account. If you just recently opened your N26 account it can take up to 5 working days until we’ve verified your tax ID.
When will I receive my tax certificate?
In March. We are sending you your tax certificate directly via N26 Messages (new tab) in the app. Simply tap the attached tax certificate to download it.
If you have a main account with a German IBAN (beginning with DE) you are entitled to request a physical copy to be sent to you via post. Please note it can take up to 3 weeks for us to process and send a physical copy via post. In addition, you will be required to provide consent to not using any previously issued version of the same tax certificate. Before requesting it, please ensure your shipping address in the app is up-to-date. Afterwards, you can open a live chat in the app with our customer service.
What is a Withholding Tax?
In Germany, you are required to pay taxes on the interest you earn on your savings. The German withholding tax rate is a flat 25% plus 5.5% solidarity surcharge thereon as well as church tax of 8% or 9%, if applicable. We’re automatically paying your taxes on your earned interest on your behalf.
Why am I asked about the source of the funds?
We ask this to get a better understanding of how you’d like to use your savings account.
Why am I asked how much I intend to deposit?
We ask for this to get a better understanding of how you’d like to use your savings account. If you’re unsure, or think it might change over time, don’t worry. It’s just for us to get an idea.
What is the risk level of the product?
The interest you earn depends on the amount of your deposits. Any earned interest is paid on your account on the first day of the following month. Further, your deposits at N26 are protected under the German Deposit Protection Scheme for up to €100,000. This refers to your total deposits on your N26 account.
Why can't I find Instant Savings in my app?
If you can’t find the option to sign up for N26 Instant Savings in the finances section of the app, you’re currently not eligible. Bear in mind that it can take up to 5 working days for us to verify your tax ID.
Am I eligible for N26 Instant Savings?
If you see the option to sign up for N26 Instant Savings in the mobile app, you’re eligible! You’ll need:
- The latest version of the N26 App
- An N26 personal account with a Standard or Premium membership.
- A german IBAN (beginning with DE)
- Once you have an N26 account, you may open a separate N26 Instant Savings account to earn interest alongside everyday banking. Please note that you’ll only be able to open an N26 Instant Savings account if you meet the eligibility requirements. Interest is earned only on funds held in your Instant Savings account.
- German T&Cs
- A valid legal address in Germany
- A valid tax ID. After opening your N26 account, it can take up to 5 working days until we’ve verified your tax ID and you can start using Instant Savings.
Please note: To benefit from this offer, you’ll need to open an N26 account. After that, you may open a separate N26 Instant Savings account to earn interest alongside everyday banking. Please note that you’ll only be able to open an N26 Instant Savings account if you meet the eligibility requirements. Interest is earned only on funds held in your Instant Savings account.
Can I sign-up for N26 Instant Savings if I'm tax-liable in the U.S.?
Yes, this product is now available also for all the customers who are liable for paying taxes in the United States. N26 will collect their data and report them to United States Department of Treasury and the Internal Revenue Service, as required by FATCA (new tab).