N26 has partnered with Raisin, a German startup also known as WeltSparen, to offer clients the chance to open a savings account for money they don’t need.
Raisin doesn’t build savings accounts itself. Instead, the company is partnering with financial institutions across the Eurozone. Raisin provides clients with saving bank accounts at banks across Europe.
Raisin also takes over the process of opening the account so that clients don’t have to deal with all the paperwork. Rates depend on the initial deposit and the chosen term. N26 considers that clients can expect up to 1.5% interest per year.
All deposits are guaranteed up to EUR 100,000 per bank by the National Deposit Guarantee Scheme as part of the EU.
N26 is only launching this feature in Germany for now, but Raisin accepts customers from other countries. So they can expect to see this feature in other countries later in 2017.
Raisin has built an API in order to facilitate the N26 integration. N26 wants to build a fintech hub for all its clients financial needs. This way, they don’t have to leave the app for most features.