04 August 2016Product & Services

N26 Invest: Let’s break the ice

We introduced N26 Invest to offer an investment product that’s easy to use and is accessible for all of us, not just financial experts. This kind of accessibility lies at the heart of the N26 financial hub. Investment today, along with savings, insurance and credit in the future, complements our free core bank account. It’s all part of our mission to create a sustainable and healthy business that helps you run your entire financial life from your phone. With N26 Invest, we considered the following options:

  • Offer N26 Invest with a high minimum investment
  • Or offer N26 Invest with a low minimum investment and a minimum monthly fee which would cover our out-of-pocket costs for offering the service

We went with the second option because of our commitment to maximizing user choice and accessibility. With N26 Invest you have the choice to get started and grow your investment with incremental contributions over time. Friends have already mentioned that a lower initial minimum gives them the opportunity to break the ice and get into the habit of investing - something they’ve never been able to do previously on their own. Continually making only minimum contributions to your plan each month would result in a high percentage fee (since the minimum fee is €1,90/month). So it makes sense to quickly continue contributing towards higher investment amounts, at which point the percentage fee declines substantially and is very competitive (<1% annually for balances of at least € 2.300). We want to provide maximum choice for every user. That’s why we decided to allow smaller investments with a minimum fee, rather than requiring a high fixed minimum investment. We also know that anything related to fees should be transparent and easy to understand. That’s why we clearly list N26 Invest fees on our site and in the app. We’re also working on a visual update to the plan projection feature in the app so it takes into account any influence of minimum fees on your chosen plan. We’ve already seen a lot of interest in N26 Invest, and we’re inspired by the influence we hope it will have on people’s attitudes towards investing.  

Disclaimer: N26 Invest is an investment product with the risk of capital loss, including initial principal. This means that your invested capital might not always be available in its entirety due to fluctuations on the capital markets as well as the fees connected to this product. Bear this in mind when you choose your portfolio strategy and the amount you want to invest. N26 Bank GmbH is merely acting as an investment intermediary and does not execute an assessment of suitability and appropriateness with regard to a user's investment decision.

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