EU Neobank Deposit Protection Guide 2026
The most important question to ask about any neobank is: what happens to your money if it goes bust? The answer depends entirely on the neobank's regulatory status — and most comparison sites bury this information. We put it first.
The Three Regulatory Tiers
What it means: The neobank holds a full banking licence from an EU/EEA national regulator (e.g. BaFin, Bank of Lithuania, DNB). Your deposits are protected up to €100,000 per person per institution under the EU Deposit Guarantee Scheme (Directive 2014/49/EU). If the bank fails, you are paid back within 7 working days.
What it means: The institution is authorised to issue e-money and payment services, but does not hold a banking licence. Your funds must be safeguarded — kept separate from the company's own funds in a ring-fenced account at a regulated bank. This provides meaningful protection, but is not covered by deposit guarantee schemes. Recovery in insolvency can take months.
What it means: Authorised to initiate payments and hold funds temporarily, with basic safeguarding requirements. No deposit guarantee. Suitable for business payment flows, but not for holding significant balances.
Regulatory Tier by Neobank
🟢 Full Banking Licence — €100,000 DGS Protected
| Bank | Regulator | DGS Country |
|---|---|---|
| Revolut | Full EU banking license via Bank of Lithuania (ECB supervised) | United Kingdom |
| N26 | Full German banking license (BaFin regulated) | Germany |
| bunq | Full Dutch banking license (DNB regulated, ECB supervised since 2015) | Netherlands |
| Wise | Electronic Money Institution (EMI) licensed | United Kingdom |
| Qonto | Payment institution license (France, 2018) | France |
| Trade Republic | Full German banking license (BaFin regulated, Bundesbank supervised) | Germany |
| Monzo | Full UK banking license (FCA/PRA regulated) | United Kingdom |
| Lunar | Full Danish banking license (Finanstilsynet regulated, 2019) | Denmark |
| Starling Bank | Full UK banking license (FCA/PRA authorised) | United Kingdom |
🟡 E-Money Institutions — Safeguarded, Not DGS Protected
| Bank | Status |
|---|---|
| Vivid Money | Electronic money institution authorisation in Luxembourg |
Frequently Asked Questions
Do neobanks have deposit protection in Europe? +
Some do, some don't. Neobanks with a full EU banking licence — like Revolut, N26, bunq, and Trade Republic — are covered by the EU Deposit Guarantee Scheme (DGS) up to €100,000. E-money institutions like Wise safeguard your funds separately from company assets, but are not covered by the DGS.
What happens to my money if a neobank goes bankrupt? +
For fully licensed EU banks, up to €100,000 per person per institution is guaranteed by the national Deposit Guarantee Scheme and paid out within 7 working days. For e-money institutions, your safeguarded funds should be returned, but the process is less defined and can take longer.
Is Wise deposit protected? +
No. Wise is an e-money institution, not a bank. Your funds are safeguarded (ring-fenced in segregated accounts), but they are not covered by the EU Deposit Guarantee Scheme. This means no €100,000 guarantee in case of insolvency.
Is Revolut deposit protected? +
Yes. Revolut holds a full banking licence from the Bank of Lithuania (ECB supervised). EU/EEA customers' deposits are protected up to €100,000 by the Lithuanian Deposit and Investment Insurance fund.
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