The number of online banks is increasing by the day. Some of the leading virtual banks are Revolut, Bunq, Monese, Payoneer and N26. In this Bunq vs Revolut article, we will look at Revolut Bunq similarities and differences.
The banking industry is one of the most important in the world. We save money in banks and borrow from them as well. However, nothing has changed in the banking sector. Most people still do their banking in a brick and mortar store. The biggest change has been that most banks have started to adopt the concept of online banking. These banks have developed online apps where people can check their balances, deposit, borrow, and send money.
The online-only banks that are coming up aim to change how banks are run. Their target market is young people who want to do things differently. This is because many young people want to do things in a different way from how their parents did.
An online-only bank is a company that allows its customers to do all their banking transactions from a mobile application or a web platform.
Online only banks offer a number of benefits compared to the traditional banks. Some of these benefits are:
- Free transactions – Most online-only banks offer a number of free transactions such as ATM withdrawals.
- Discounts – Most of these companies partner with other companies with the goal of offering discounts to them.
- Money management – These banks offer tools that enable users to track their spending.
- No paperwork – There is no paperwork to get a bank account.
- Convenience – One can register and do transactions using their smartphones.
- Low interest rates – These banks don’t pay a lot of money to staff and offices. They can transfer these savings to their clients.
Banks make money using a very simple strategy. They take customer deposits, lend them to borrowers, and earn interest from them. They also make money from ATM withdrawals and other money transfer processes. Also, they make money by investing in safe government bonds.
Virtual banks, on the other hand, make money by subscription. Customers pay a small fee every month to access these services. They also make money from referrals. These referrals come from partnering organizations. Most importantly, they make money from investing money in safe bonds and lending it out to customers.
Revolut bank is an online-only bank that was started in the UK. It was started by Nikolay Storonsky and Vlad Yatsenko in 2015. The bank operates through just its mobile applications. It has more than 10 million customers and more than 40 billion pounds in assets. Data from Crunchbase show that the company has raised more than $336 million from venture capitalists.
Read: Revolut: Banking App for Crypto and Fiat Money
Bunq bank is an Amsterdam-based fintech company that was started in 2012 by Ali Niknam. The company has received a banking license from the Dutch Central Bank. It operates throughout the European Union. The bank has more than 9 million customers and has raised more than €44 million from investors. Its latest funding round valued the company at more than $1.7 billion.
Revolut offers three accounts. It offers a standard, premium, and metal account.
- Standard – This has no monthly charges. It offers a free IBAN account and free money exchange of up to 5,000 pounds. It has no ATM fees up to 200 pounds.
- Premium – This account charges 6.99 pounds every month. It has similar features to the standard package. Its free ATM withdrawal limit is 400 pounds. Other services are overseas medical cover, disposable virtual cards, and a premium card.
- Metal – This account charges 12.99 pounds per month. It increases free ATM withdrawal limit to 60 pounds.
In general, the free account package is okay if you just want to do normal banking. All these accounts have a number of features:
- Sending money abroad – You can send money abroad using the interbank exchange rate. You can also set recurring payments.
- Saving vault – This helps you to save for your life goals. You can earn interest from these vaults. Also, it has a roundup feature that invests your spare change.
- Budgeting – It has tools that help you budget your spending.
- Cryptocurrency – Revolut crypto banking enables you to buy cryptocurrency like Bitcoin easily.
- Generous Perks – The company has partnered with leading brands. It provides many discounts to its customers.
The main challenge we find with Revolut is that it does offer a web application. This means that you can only use it on the mobile application.
With Revolut, you can apply for Revolut credit card, Revolut debit card and Revolut virtual card. Your Revolut virtual card can be used to spend online or in-store. You can also link your card to your Google Pay or Apple Pay. Revolut card limit for its credit card is twice the value of your monthly salary, up to €6,000.
Revolut card fees vary depending on your plan. For example, There is a 2% fee for ATM withdrawals for Revolut’s Standard plan after you reach Revolut card limit for Revolut card free monthly withdrawals of £200 (or its equivalent). for Plus, Premium and Metal customers, free ATM withdrawals limit is at £200, £400 and £800 respectively and the fee after reaching the limit is 2%
Generally, most online-only banks are the same. You can get an account and start transacting within minutes. Bunq has three accounts:
- Personal account – This account charges EUR 7.99 per month. You can deposit and spend money instantly.
- Bunq joint account – This charges EUR 9.99 per month. The difference with the previous account is that you can share this one with a friend or family member.
- Business account – This is an account that is tailored towards businesses. It charges EUR 9.99 per month.
Bunq card comes in two types:
- Bunq travel card – Bunq Travel Mastercard is a card that gives you discounts and insurance cover whenever you are travelling. It is accepted worldwide where Mastercard is accepted.
- Bunq green card – This is a card that helps you to plant trees indirectly. The bank plants a tree whenever you spend EUR 100.
- Bunq virtual card – You can create Bunq virtual card for online transactions. Bunq bank allows you to create a maximum of 20 cards per 12 months. Active, frozen and deleted cards will count towards this limit.
This is how to create Bunq virtual card:
- On Home tab, go to Cards section
- Tap on MENU
- Select Virtual Card and tap on Let’s activate it
- Tap on Continue
- Choose the sub-account to link your Online card to and you card is created
Note that the bank offers both Bunq credit card and Bunq debits card.
- Bunq cards work the same for you and the money is directly taken from your account without any credit line offered. But for the merchant they might be different (for example a car rental might only accept credit cards, or some other store might only accept debit cards).
The features offered by Bunq are similar to those offered by Revolut. For example, the bank offers instant cash remittances, interest, and travel coverage. The only perk is that it offers automated stocks investing.
Generally, Revolut and Bunq bank account offer similar services and the price is almost the same. There is a debit card delivery fee difference. Online bank Revolut charges 5 pounds for the card delivery. It also offers a free virtual card. Bunq bank, on the other hand, charges 10 pounds for Bunq card.
However, if you want an online bank, you can go with either bank, Bunq or Revolut. However, since these companies are relatively new, we recommend that you use them as secondary accounts. You should have your main account in the traditional bank accounts like Barclays and Standard Chartered. These have been around for many years and have minimal chances of failing.