The German neobank with a Spanish IBAN has informed its clients of this second cut in remuneration, after the one in August, due to the reductions in interest rates by the European Central Bank (ECB). The organization has already accumulated three reductions so far this year, each of 25 basis points.
With the decrease, the N26 ‘Metal’ account, the one that offers the highest interest, goes from 2.8% APR (3% TIN) to 2.3% APR (2.5% TIN). In the case of the most economical payment accounts ‘You’ and ‘Smart’ and the free ‘Standard’, the remuneration will be 1.5% APR and annual TIN in the three cases, when the previous reference was 2% TIN and APR.
For those customers who change accounts, The new interest rate will be applied immediately and not from January 8.
Furthermore, the bank has decided reduce free monthly ATM withdrawals in all eurozone countries for ‘Standard’ and ‘Smart’ account customers, so that the former will have two free withdrawals per month and the latter will have three, starting January 15, 2025. For the rest of the accounts there are no changes.
It is worth remembering that the digital bank announced in May an increase in the remuneration of 2.26% to 4% TIN (3.8% APR) only for its ‘Metal’ clients, which has a monthly cost of 16.90 euros, while for the rest it remained at 2.26% without conditions.
At the time, N26 highlighted that no one was doing anything similar, in reference to raising remuneration, at a time when which the first rate cut since 2019 was anticipated, while maintaining the cost of the account in order to publicize subscription banking in Spain.
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