Review: Openbank's Current & Savings Accounts

Today, we're diving deep into Openbank, Spain's innovative digital bank that's making waves across Europe. With its roots firmly planted in Spanish soil, Openbank extends its branches to residents of Germany, the Netherlands, and Portugal, offering a fresh take on banking for the digital age.

In this review, we'll dissect everything Openbank has to offer—from its no-frills current and savings accounts designed for the everyday user, to its more complex offerings tailored for the smart spender. Our team of digital finance professionals, banking insiders, and quantitative finance experts has combed through every detail and got "hands on" with the banking product to bring you a comprehensive look at what sets Openbank apart in the crowded fintech landscape.

Structured for clarity and packed with insights, our review will navigate through the key features, user experience, fees, security measures, customer service, and, of course, the unique benefits and potential drawbacks of banking with Openbank. If Openbank is already on your radar, you're in the right place to learn everything you need to know. Let's get started!

Choosing the right bank goes beyond just looking at the perks; it's about weighing the convenience, features, and the overall user journey against the competition. As such, we’ll dissect the convenience of Openbank's banking product, its key features, account opening process, and user experience, not shying away from its shortcomings.

Openbank positions itself as a digital-first institution, promising easy access and management of finances along with high-interest savings accounts. However, the bank's digital savviness doesn't entirely eliminate friction points. The bank is present in multiple countries, but not available EU-wide, an aspect where globally-present neobanks have an edge.

Here are some of the points to consider about Openbank's offering:

• Account Diversity: While the bank does provide a range of account options, including bank accounts for companies, it may fall short in offering specialized accounts that cater to niche needs, an area where some competitors excel.

• Digital Tools: The bank’s digital tools for budgeting and spending analysis are useful, but they might not be as advanced or comprehensive as those offered by leading fintech competitors like Revolut or up-and-coming challengers , who leverage cutting-edge technology for personalized financial insights.

• Pricing Transparency: Openbank promotes transparency with its fees, but despite being easy to see, the offering might still be confusing to perceive (especially the mechanisms behind calculating the interest rate you're qualified for). For most customers (these who want a bank card, send and receive SEPA bank transfers and pay direct debits), there are banks and fintechs that offer more cost-effective structures. This is especially true for international transactions, although using supplementary purpose-made services for cross-border and currency transfers like Wise, might be a wise choice.

The account opening process in Openbank is marketed as straightforward, but potential customers should brace for possible hiccups. The online application, while generally user-friendly, frequently presents challenges such as document recognition errors or verification delays. Through the use of third party services, some other neobanks have streamlined the process to near perfection.

Luckily, you only need to complete this process once, so it's not the end of the world if it takes a little bit. And on a positive note, the documentation requirements are minimal, reducing the barriers to entry for new customers. Switching to Openbank can also be incredibly easy, thanks to Bank Switch Service provided at no cost.

Openbank’s user interface is designed to be intuitive, yet you might encounter occasional glitches or navigational complexities. Compared to the seamless experiences offered by some of the leading products, Openbank’s user journey can feel a step behind, particularly in app performance and transaction processing speeds. It also aims to keep the user-facing aspects neat and tidy, yet this has a drawback - you will not find any innovative and unique features in this banking app.

Customer support, while accessible, sometimes falls short in response times and resolution efficiency, especially when compared to the 24/7 support ethos of some competitors. And unlike with most French banks like Qonto, you do not get a dedicated account manager either - although you might call that a niche benefit. However, as the app functions very well overall, and the bank's technical infrastructure is very robust, you might not need to contact support at all - and that's better than having good CS.

Openbank prioritizes the security and reliability of its platform through multiple layers of protection. Firstly, there's a range of technological protective measures. Utilizing encryption protocols, such as SSL, ensures data confidentiality and your privacy during online transactions. Next to it, there's 3D Secure enabled for cards, providing additional authentication for enhanced payment security. On top of this, a series of automated transaction monitoring solutions is in place, ensuring anti-money laundering checks and fraud detection.

Beyond these, there is the legal-regulatory guarantee. The bank adheres to strict regulations enforced by European financial authorities. This includes deposit guarantees up to €100'000 per customer, as per the European Deposit Insurance Scheme.

Combined, these factors contribute to a secure and trustworthy banking environment, with as much legal protection for the customer as with a "big" bank like BBVA.

Openbank's Current account is also known as "Girokonto" in Germany, "Betaalrekening" in the Netherlands, "Cuenta Corriente Open" in Spain and "Conta à Ordem Open" in Portugal. It is a basic bank account without a monthly fee that also offers a free debit card and SEPA transfers.

These accounts get better if you use them as "Payroll Accounts", i.e. an account you get your salary, unemployment benefits or other recurring payments in. These benefits include (but are not limited to): 0,5% cashback on your bills, free debit and credit cards, all with discounts offered by select partners.

Openbank also offers savings accounts - and these too come at no cost. The terms on this account vary country by country, here are the key differences:

• ?? Germany: WILLKOMMENS-Tagesgeldkonto - 3,9% interest on amounts up to €1'000'000, paid monthly for 6 months; account converted to call money account with 2,8% interest after
• ?? Netherlands: Welkom Spaarrekening - 3,65% interest rate on amounts up to €1'000'000 (requires minimum balance of €20'000 in your account in the first year) for 6 months; 2,75% after, no "lock-in" - your funds are available at all times
• ?? Spain: Cuenta de Ahorro Bienvenida - 2,27% APR, 2,25% annual NIR for 12 months; 0,20% after if set up as salary or pension account receiving >€600 into your account monthly; or 0,05% otherwise
• ?? Portugal: Conta Poupança Boas-vindas Open - 2,75% APR on amounts up to €500'000 first 12 months; 2,00% after if receiving at least 1 transaction a month in your account

Regardless of the country you're in, you can rest safe knowing that your money is securely protected in accordance with European regulations. Protection is guaranteed by the Spanish Deposit Guarantee Fund, which covers savings and investments of up to €100'000 per depositor.

You will find all the details on fees, products available and rates applicable in the account comparison table below.

Openbank's Я42 Travel Card proposes an intriguing concept, blending the flexibility of a subscription model with the utility of a travel-focused financial tool. For a nominal fee of €4.99/month, users gain access to a suite of benefits designed to ease the financial aspects of travel. These include fee-free purchases abroad, 5 fee-free ATM withdrawals worldwide, and the assurance of travel assistance and accident insurance. The ability to link the card to an existing bank account, avoiding the need to switch banks, alongside perks like Card Control for customizable security settings, positions the Travel Card as a potentially valuable asset for frequent travelers.

However, the Travel Card is not without its drawbacks. The subscription model, while innovative, may not appeal to all users, particularly those who travel infrequently or prefer a more traditional banking product without monthly fees. The cost-benefit analysis becomes crucial here; the €4.99 monthly fee can quickly accumulate, potentially outweighing the savings on transaction fees and ATM withdrawals for some users. Additionally, while the card offers a range of discounts and benefits, the value of these perks is highly dependent on individual usage patterns. Competitors might offer similar benefits without a recurring fee, making it essential for potential users to carefully evaluate their options and travel habits before committing to the Я42 Travel Card.

Thanks to its traditional banking background, Openbank offers a variety of personal loans and mortgages, which is a domain many mobile banks have yet to develop into. In addition, you can easily make an investment through Openbank's Rabo advisor directly from the app.

Santander's digital native subsidiary also offers fixed-term deposits, offering a 6-month and a 12-month savings plan. Earn up to 2% APR and annual NIR over the 12 months, which can be boosted all the way to 3,05% if your recurring income is paid into your account. If you need to withdraw your funds from a fixed-term deposit account, you will get 0,20% APR as long as you hold your balance.

"Europe's biggest digital bank" (as the bank claims on their official website - though it's questionable given Revolut's gigantic user base) packs quite a few pleasant surprises for tech-savvy gadget-obsessed natives. The following payment methods are supported by Openbank: Apple Pay, Google Pay, Fitbit Pay, Garmin Pay and even bank's own Openbank Pay.

This list was recently expanded to include Samsung Pay (a rarity these days!) as well, making payments even easier. Smartwatch users are bound to appreciate the options available. And for Spanish users specifically, they'd be delighted to discover Openbank's implementation of Bizum directly in your bank app, making transfers to peers a breeze.

bunq is a Dutch mobile-first neobank that's enjoyed impressive popularity in the last few years, doubling the overall assets under its management every year and expanding all over the EU. Sub-accounts for easy budgeting, flashy bank cards by Mastercard, interbank exchange rate when paying in currency and a very modern mobile app - definitely worth an investigation if you're in the market!

Available all over the EU, Revolut's financial super-app is by far the most popular choice if you're looking for a digital bank in Europe. Flexible plan structure, wide range of products supported, joint accounts for shared banking and frequent updates with useful features added daily - you just can't go wrong with Revolut.

If you're looking for a way to send and receive payments all over the world, while getting local bank account details for dozens of countries available immediately at very low fees, Wise Multi-currency accounts might be exactly what you're looking for.

In conclusion, after getting hands-on and using the current and savings accounts for a few weeks each, our team's verdict is as follows. Openbank presents an "okay" banking option, particularly with features like the Я42 Travel Card offering specific benefits for frequent travelers at a relatively low monthly cost.

However, when placed side by side with the competition, Openbank seems outclassed in most areas, including innovation in financial products, user experience, and broader global accessibility. While the bank's effort to integrate with existing bank accounts and provide a range of security features is commendable, potential customers might find more compelling offerings elsewhere.

Before making a decision, we advise exploring other bank reviews available on our website. The vast array of fintech solutions means that what Openbank offers could be the perfect fit for some, depending on individual banking needs, preferences for digital integration, and the value placed on travel benefits.

Ultimately, whether Openbank is the right choice for you hinges on your unique banking requirements and how they align with the bank's services. And since it's free, you really can't lose if you give it a try!