Where does N26 invest my money?

When you deposit money with N26, we don't simply store it in a vault. Like all banks, we use customer funds as part of our bank's treasury to manage risk and ensure a strong and healthy financial position, allowing us to provide all the services you rely on. It’s a core banking principle that ensures the financial system works efficiently.

At N26, customer funds are managed carefully, conservatively, and responsibly.

We believe that a resilient bank must be a responsible one, ensuring that your money contributes to a stable financial system and a sustainable future. We consciously avoid speculative markets, and instead focus only on high-quality assets while maintaining strong liquidity – so you can trust that your money is handled with the highest level of care.

Any investments N26 makes follow strict risk management rules and are designed to prioritize safety over growth. Customer funds in our treasury are allocated only to assets that maintain at least a high Investment Grade rating, ensuring that every Euro is backed by institutional-level security. All investments are subject to robust controls, professional oversight, and regulatory requirements.

To reduce risk, funds are diversified across sectors and regions. This helps ensure that no single market event can significantly impact the overall portfolio. 

N26 also follows a conservative lending policy, focusing on borrowers with exceptional creditworthiness. Where applicable, this includes high-quality, mortgage-backed loans, which provide an additional layer of security.

To protect your funds, N26 does not engage in short-term trading or speculative activities. This means we avoid areas such as commodity trading, cryptocurrency exposure, and high-frequency foreign exchange speculation.

We also apply strict Environmental, Social and Governance (ESG) criteria to all investment decisions. We maintain an exclusion policy, ensuring that we do not directly invest in companies from certain industries that cause harm to people or the environment. This includes a complete exclusion of weapons and tobacco industries, as well as fossil fuels, or any activities that are illegal or internationally prohibited.

Beyond capital market investments, N26 maintains a strong liquidity position, so you can always be assured that you can access all your funds whenever you may need to. A significant portion of our cash reserves is held directly with the Deutsche Bundesbank, ensuring immediate access, maximum security, and strong protection for our N26 customers, even in times of market stress.