Is Your Money Safe in a Neobank? EU Deposit Protection Explained (2026)

The two types of neobank (and why it matters)

Not all neobanks have the same legal status. This affects what happens to your money if the company runs into financial difficulty.

1. Full banking licence

A neobank with a full EU banking licence is regulated exactly like Deutsche Bank or BNP Paribas. It is supervised by a national banking authority (BaFin, DNB, Bank of Lithuania, etc.) and is a member of the national Deposit Guarantee Scheme.

This means: if the bank goes bust, your deposits up to €100,000 per bank per person are paid out by the government-backed guarantee scheme, typically within 7 working days.

2. E-money institution (EMI)

An e-money institution is authorised to issue electronic money and process payments, but it is not a bank. The key difference: it cannot use your funds to lend money (which is how banks make money and how risks arise).

EMIs must "safeguard" your funds — hold them in a segregated account at a licensed bank, separate from the company's own operational funds. If the EMI goes bust, your money is protected from creditors and should be returned. However, this process is not governed by the fast 7-day guarantee scheme — it goes through standard insolvency proceedings, which can take months.

Which EU neobanks have deposit protection?

What does €100,000 protection actually mean?

• It covers €100,000 per person, per bank — not per account
• If you have €50K at N26 and €50K at Revolut, both are fully covered
• If you have €150K at N26, only €100K is guaranteed — the remaining €50K depends on what assets the bank has
• Joint accounts are covered up to €200K (€100K per person)
• The protection covers deposits (current accounts, savings accounts) — not investments

What about investments held at a neobank?

Stocks, ETFs, and crypto held through neobank investment platforms are not covered by deposit guarantee schemes. They are covered by investor protection schemes (up to €20,000 in the EU) and securities segregation rules — your securities are held separately from the bank's assets. If Trade Republic or Revolut went bust, your investments should be transferred to another broker, not lost.

Should you worry about neobank safety?

For amounts under €100,000 at a fully licensed neobank, the risk is not meaningfully different from a traditional bank. The key risk to understand is this: neobanks are younger companies that may face funding pressures, regulatory sanctions, or market challenges. This is why checking the regulatory status before depositing large amounts matters.

Our recommendation: use a neobank with a full EU banking licence for your primary account. For amounts over €100K, spread deposits across multiple licensed banks.