What is a flexible cash fund?

Our flexible cash fund is a money market fund that invests in stable, short-term instruments like government bonds and high-quality corporate debt. The goal is to generate steady returns that closely follow current central bank interest rates. Returns come from the interest earned on the fund’s underlying assets. The yield is variable and can change over time based on market conditions and European Central Bank (ECB) interest rates.

Because our flexible cash fund is not classified as a deposit, your invested capital will not be covered by the 'Compensation Scheme of German Private Banks (new tab)' which protects all deposits up to €100.000 held in the member states of the European Union.

Flexible Cash Funds are available across all N26 membership plans (Standard, Smart, Go, and Metal) in the following countries: Austria, Germany, Spain, Finland, France, Ireland, Luxembourg, Netherlands, Portugal, Slovakia.

To get started:

• Open the Investments tab in your N26 app.
• Select Flexible Cash Fund.
• Choose the amount you want to invest (you can start with as little as €1).
• Review your order and confirm.

Your investment order is processed on a daily basis. Depending on the time you place your order, your funds will typically be invested and start earning returns within 1-2 business daysYou can add more money or withdraw your funds at any time with no lock-in periods or penalty fees.

Your earnings depend on the fund’s performance and your N26 membership:

• Membership-based returns: Because N26 Metal account holders pay no N26 service fee, they receive the highest net yield. For all other plans, your return is the fund’s yield (after fund management costs) minus the N26 service fee for your tier
• Transparent in-app rate: The expected annualized return rate shown directly in your N26 app is already calculated net of fees for your specific plan.
• Daily accumulation, monthly payout: Your returns accumulate on a daily basis and are distributed once a month, automatically reinvesting into your fund to help your money grow over time.

Investing in a Flexible Cash Fund involves two types of costs:

• Fund management fee (TER): 0.05% per year. This is charged directly by the fund manager (Fidelity) and is already included in the fund’s overall value.
• N26 service fee: Depending on your membership plan, a service fee may apply:
  • N26 Metal: 0% (no N26 service fee).
  • N26 Standard, Smart, and Go: A fixed service fee applies depending on your plan:* 0,85% for Standard, 0,7% for Smart and 0,25% for Go memberships

Please note: As part of our launch promotion, the N26 service fee is waived for all membership plans until 1 Jan 2027.

How is the fee deducted?

You never have to pay anything out of pocket. The N26 service fee is calculated daily based on your balance and automatically deducted from your monthly earnings before they are reinvested back into your fund. Furthermore, our service fee is capped to ensure your net return never falls below 0.01 EUR (after fees and any applicable tax withholdings). If your return after costs is 0.01 EUR or less, no N26 service fee will apply.

*Note for customers in Spain: If your N26 account is set as a primary account, preferential fee terms may apply.

No. A flexible cash fund is an investment product. Your money is invested in a fund rather than held in a bank account. A flexible cash fund isn’t covered by deposit protection schemes, and the value of your investment can go up or down.

A flexible cash fund is considered lower risk than many other investment products, but all investments carry some level of risk. The value of your investment can fluctuate, and past performance doesn’t predict future results.

You can find detailed information about the fund, including the Key Information Document (new tab) (KID) linked in the disclaimer below, as well as the full prospectus (new tab) directly on the funds manager's website.

There’s no lock-in period, so you can withdraw your money at any time. Keep in mind that sale proceeds may take up to two business days to reach your account.

In Germany, taxes on realized capital gains are automatically withheld and transferred to the tax authorities. Tax is only calculated on realized gains. You can exempt a portion of your capital gains from automatic tax withholding by submitting an exemption order (Freistellungsauftrag).

For more information, read our German taxation FAQ (new tab).

In other markets, N26 doesn’t withhold or deduct taxes on your behalf. You’re responsible for declaring any relevant investment income in your local tax return.

What is a flexible cash fund? A flexible cash fund is a type of money market fund. It invests in stable, short-term instruments like government bonds and high-quality corporate debt. The goal is to generate steady returns that closely follow current central bank interest rates.

Is this a savings account? No. A flexible cash fund is an investment product. It aims to offer similar returns to a savings account, but your money is invested in a fund rather than held in a bank account.

Can I lose money? Yes. As with any investment, your capital is at risk (1/7) and is exposed to market fluctuations. Flexible Cash Funds aim to keep fluctuations low by investing in highly rated, short-term debt.

How are returns calculated? Returns come from the interest earned on the fund's underlying assets. This is reflected in the fund's value, which typically increases daily. The yield is variable and changes based on European Central Bank (ECB) interest rates.

What is withholding tax and how is it calculated? In Germany, the tax rate is automatically deducted from your realized capital gains. It is only calculated on the profit you make, and you can reduce this by using your 1,000 € annual tax-free allowance (Freistellungsauftrag).

How long do I need to keep my money invested? There's no lock-in period, so you can withdraw your money at any time. Keep in mind that returns aren't guaranteed and may vary over time. The typically recommended holding period is of 6 months.

How does the reinvestment work? When the distribution is sent by the fund issuer, we receive the net amount and reinvest it directly and automatically into the same fund.

Are there any costs for the Flexible Cash Fund? Yes, an N26 service fee applies based on your total invested balance and is deducted from your monthly earnings. The fee depends on your N26 tier. The remaining amount is automatically reinvested into your fund. There are no fees to add or withdraw money.

All investments carry a risk of capital loss. A flexible cash fund is not a guaranteed investment, and a total loss of your investment is possible at any time. The risk of loss of principal is borne entirely by the investor. Investing in a flexible cash fund differs from an investment in deposits. The capital invested may fluctuate. The flexible cash fund does not rely on external support to guarantee its liquidity or to stabilize its net asset value per share. Before investing, please assess your financial situation carefully and consider seeking independent advice, review as well the Key Information Document (new tab) (KID) and our full Terms & Conditions (new tab).
These statements do not constitute financial advice. Service of reception and transmission service for financial instruments by N26 Bank SE (Voltairestr. 8, 10179 Berlin, Germany; CR Berlin Charlottenburg, HRB 271697 B). Execution and securities custody by Upvest Securities GmbH (Prenzlauer Allee 242 - 247, 10405 Berlin, Germany; CR Berlin Charlottenburg, HRB 232445 B). Fund issued, and managed by FIL Investment Management (Luxembourg) S.à r.l. (RCS Luxembourg B88635).

A flexible cash fund is a regulated investment product managed by Fidelity. The fund carries a low risk rating of 1 out of 7 and has a suggested minimum holding period of six months. As with all money market funds and other investments, there are inherent risks, including market, liquidity, and volatility risks.