Neon vs Revolut: Which is best for you in 2024?
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Neon and Revolut are both digital banks. Neon is a Swiss company, while Revolut is an international company.
Neon also offers free payments abroad with its cards. This feature makes it a direct competitor of Revolut, which everybody uses to save on currency exchange fees.
So, it is interesting to compare the two. Do you need Revolut now if you have a Neon account?
So, how can you choose between the two? This article helps you decide by comparing in detail Neon vs Revolut. The comparison will be made on many levels: fees, security, limits…
If you want to know which of Neon or Revolut is better for you, keep reading!
Note: I focus on the free Revolut account. They also have premium accounts, but they are outside the scope of this article.
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Best App to Pay, Save and Invest
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Good for travelers
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5.0
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3.0
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What is Neon?
Neon is a Swiss digital bank. Neon is one of the first banks in Switzerland to be entirely digital. It means they have no offices. You can only use Neon with its mobile application. Neon is growing very quickly. In 2021, they reached 80’000 customers already.
What makes them very interesting is that they are free. Currently, very few banks are still free in Switzerland. If you use Neon properly, you can use it entirely for free.
Neon also makes currency exchange free when paying with the card. Currency exchange was one of the things that were not free before. They are doing this to be more attractive to people who like digital banks. And this is a great move!
Neon is not a bank directly. But when you use Neon, your funds are held by a Swiss bank (Hypothekarbank Lenzburg). In practice, this is the same as if Neon was a bank. It means that they cannot offer banking services directly, only indirectly. For the final customer, this does not make any difference. The important thing is that your money is protected by law if Neon or the bank holding your assets fails.
If you want more information about Neon, you should read my complete review of Neon.
What is Revolut?
Revolut is a digital bank from the United Kingdom and one of the most famous neo-banks. It is entirely digital, so it does not have offices open for customers.
Their main feature is their very cheap currency conversion services. Many people use Revolut when they travel to avoid the hefty fees that traditional banks have. For instance, in Switzerland, most banks charge at least 1.5% on each currency conversion. Using Revolut can save you a lot of money!
They support many currencies, and you can use them in most countries. You can even hold money in different currencies in your account. It is excellent if you need to receive money in other currencies. Or if you want to bet on the exchange rates.
Now, Revolut is not a bank per see, either. They have a banking license, but they have not implemented it yet. And your assets are not held by a bank either, but directly by Revolut. It means that your money will not be protected by law, either. But they have been operating for several years, and it does not seem like they will collapse soon. But we never know!
For more information, you can read my complete review of Revolut.
Availability
We can compare the availability of both services.
Revolut is available to each country part of the European Economic Area (EEA). It means it is available in 31 countries. It is also available in Switzerland and the United States.
As for Neon, this is pretty simple. Neon is only available to Swiss residents. People from 19 countries can open accounts at Neon but must live in Switzerland. But this makes sense since Revolut is aimed at international transfers and not at being the primary bank account.
So, for availability, Revolut is the winner.
Support in Switzerland
Now, we will compare the support in Switzerland.
Revolut has good support in Switzerland. You can withdraw CHF (although very little for free). You can use a Revolut card in all shops that accept Mastercard. In Switzerland, most shops accept them. Also, Revolut has a Mastercard/Visa and a Maestro, which is sometimes quite valuable for Switzerland. You can also send money directly to your CHF account. Unfortunately, you do not have a personal Revolut IBAN.
Neon has excellent support in Switzerland. You can withdraw CHF at any ATM. And you can withdraw significantly more money per month. You can use the cards in the same shops as Revolut without issue. And you can also make transfers in CHF. Finally, you have a personal Neon IBAN so that you can use this for your salary. You do not need to top it up.
In Switzerland, Neon is the winner. Only the fact that it offers a personal IBAN in CHF is a great plus. It is necessary if you want to use it as your primary account. By that, I mean to use it to receive your salary in CHF. Some companies may be willing to use a reference number to pay to your Revolut account. But most companies will not do that.
Money Transfer Services
Neon is primarily a bank, but it recently started offering free currency exchange. So, I will start by comparing payments and transfers between currencies.
With Neon, your base currency is always CHF. And using your card, you can pay in other currencies for free abroad. You can make transfers in different currencies, but this will not be free. Also, you only have a base account in CHF and cannot hold EUR or USD in your account, for instance.
With Revolut, you have access to the same base services as Neon. However, you can get accounts in other currencies (EUR or GBP). It is convenient since you can receive incoming payments in EUR for free. I do not use this a lot. But it is good to have it.
You can also make bank transfers in other currencies with Revolut. I do it regularly for several EUR platforms.
The advantage of Neon is that you get a CHF IBAN. But with Revolut, you will get a personal EUR and GBP IBAN account. And this is helpful.
Finally, you can use Google Pay and Apple Pay with Revolut and Revolut. And you can even use Samsung Pay with Neon as well.
One cool thing about Revolut is that you can send money directly to other app users, and doing so is much faster than doing a bank transfer. This feature is convenient if you know other people using the app, but you can also do the same thing with Neon.
So, for money services, Revolut has more features than Neon. It is logical since they based their entire business upon that. And they have more years of experience than Neon.
Other Services
We can also look at other services the two companies provide.
For Neon, it is straightforward. They have no service other than their banking services.
As for Revolut, they have added many services to their offers.
For instance, with Revolut, you can trade cryptocurrencies directly from the application. They do not offer a real wallet, but it could still be useful for some people. And they also started offering free stock trading to people from some countries (not yet in Switzerland).
Revolut also supports the concept of vaults. You can use vaults to save some of your virtual spare changes. I do not think this is very useful. But many people seem to like it.
Another feature worth mentioning with Revolut is the use of virtual cards. You can create a new virtual card directly from the application. And then, you can use it on a website you do not trust. After paying, you can delete the card directly from your Revolut account. It is a great way to protect your payment cards.
So, overall, Revolut has many more features than Neon. However, you may not need so many features!
Neon vs Revolut – Who has higher limits?
It is also interesting to compare the limits of both services.
Revolut has high withdrawal limits. You can withdraw up to 3000 GBP daily (or the equivalent in other currencies). You can spend up to 5000 GBP per 96 hours with the card and up to 30’000 GBP per year.
You can also transfer a lot of money with Revolut. You can transfer up to 100’000 GBP each day and 250’000 GBP each week. The limits are pretty straightforward and very high. You also have a limit of 15 transfers per day and 80 transfers per 7 days.
With Neon, you can have up to 30’000 CHF in daily transactions. With your card, you can withdraw up to 1000 CHF each day. With the card, you can spend 5000 CHF online and 5000 CHF in stores daily. But there is a monthly limit of 10’000 CHF with the card.
Overall, Revolut has significantly higher limits than Neon. You can withdraw more money and spend more money each month.
Which is cheaper – Revolut or Neon?
Now, we delve into the fees of both services.
First, both services are free for general usage. You do not have to pay an account fee. It is a great thing!
We can start with withdrawals. With Neon, you can withdraw twice per month for free in Switzerland. After that, you will pay 2 CHF per withdrawal. Abroad, you will pay 1.5% with Neon. For Revolut, you can withdraw 200 EUR (or equivalent in another currency) per month for free. After this, you will pay a 2% fee on withdrawal.
For withdrawals, I feel like Neon is better than Revolut. The only advantage of Revolut is that you can withdraw 200 EUR per month for free. It can be helpful if you travel to Europe. But 200 EUR is not much unless you can avoid paying cash.
Now, we delve into currency transfer, which means using the cards to pay in currencies other than your base currency.
With Neon, all currency exchanges with the card are free with the Neon card! If you transfer money abroad from your account, these transfers will use Wise. So, you will pay 0.40% for Neon, and you will pay the Wise fee. Generally, it will account for about a 0.8% fee for international money transfers.
Unfortunately, the fees with Neon to receive money are still high. You will also pay a 1.5% fee when you receive payment in a currency other than CHF.
It is a bit more complicated with Revolut. Under some conditions, currency exchanges are free with Revolut. The same rules apply to both the card and the transfers from the app. First, there is a monthly limit of 1000 GBP. All amounts higher than this limit will incur a 1.0% fee. During the weekend, there is an extra 1.0% fee as well.
As for the exchange rates, Neon uses the Mastercard exchange rate, while Revolut uses the so-called Revolut Exchange Rate.
- On average, it is estimated that the spread of the Mastercard rate is 0.4% worse than the interbank rate. And it can be worse for currency pairs with high volatility.
- The Revolut Exchange Rate is all but transparent. Users have estimated that they have a surcharge of about 0.40% compared to the interbank rate.
Therefore, both Neon and Revolut will generally have an extra hidden fee of 0.4%. Since Neon is more transparent than Revolut, Neon has a slight advantage on fees.
Example of exchange fees
We should directly compare the prices for a few examples of conversions. I will consider the monthly amount and use 1000 CHF as the free threshold for Revolut. So, a 5000 conversion will be 1000 CHF free and 4000 CHF paying.
While it is not a direct fee, we also take into account Revolut’s and Neon’s 0.4% average surcharge, to be fair.
| Amount | From | To | Neon Card | Neon Transfer | Revolut | Revolut Weekend |
|---|---|---|---|---|---|---|
| 1000 | CHF | EUR | 4 CHF | 8.84 CHF | 4 CHF | 14 CHF |
| 5000 | CHF | EUR | 20 CHF | 41.97 CHF | 60 CHF | 110 CHF |
| 10000 | CHF | EUR | 40 CHF | 83.37 CHF | 130 CHF | 230 CHF |
From this table, we can draw two conclusions:
- For payments by card, Neon is better than Revolut. The base fee is the same (about 0.40% surcharge) and Revolut has extra fees for weekends and high amounts. With Neon, you do not have to worry about the kinds of currencies you use. It is more convenient to use Neon since it gives you better fees on average, regardless of how much you spend per month.
- For transfers, Revolut is better than Neon. However, Revolut is more expensive than Neon during the weekend or if you use more than 1000 GBP (1100 CHF).
Reputation
You do not want to put your money into a bank without knowing its reputation.
Neon has an excellent reputation in Switzerland. I have never heard of any controversy regarding their services. However, we need to keep in mind that it is relatively small. And also, it is relatively new. It was founded in 2017. Neon is significantly younger than Revolut.
On the other hand, Revolut does not have an excellent reputation. For instance, there have been several controversies with Revolut blocking user accounts without reason. They have also been accused of being too lax in preventing money laundering. Finally, some people think they have close ties to the Kremlin.
I never had any issues with Revolut. But taking into account what I hear, I would not keep a large amount of money in my Revolut account. But I am still using it. And I do not think my money is at risk.
So, from a Reputation point of view, Neon has a better reputation than Revolut. However, it is a relatively new service, so the reputation may change over time as they scale.
Which is more secure? Neon or Revolut?
We also need to examine the security of both systems. We will consider two forms of security: insurance in case of bankruptcy and technology security.
First, only Neon has any protection for insurance in case of bankruptcy. Neon is a Swiss bank. Your money is insured for up to 100’000 CHF if something terrible happens to Neon.
On the other hand, your money at Revolut is not insured. Revolut has a banking license, but it has not been implemented yet in Switzerland. In the European Union, they provide bankruptcy protection, but not in Switzerland. If Revolut fails, your money is most likely lost.
As for technical security, both banks are using MasterCard 3D Secure (3DS) technology. It means they will ask you a question (generally an SMS code or a password) to secure the transaction on some websites. It is to protect you from the lousy usage of your card. It is a great thing and is a must for each payment card.
From a technical point of view, both banks offer the same level of safety. However, there is more risk with Revolut since your money is not insured. If Revolut goes bust, you will lose your money. On the other hand, your cash at Neon is insured for up to 100’000 CHF.
Given that, I would say that Neon is safer than Revolut.
To improve your online security, learn about nine things you can do to secure your online personal finances.
Usage as a primary bank
It is essential to mention that I am not comparing Neon vs Revolut for their usage as your primary bank. I am focusing on features for using abroad and sending money in foreign currencies.
The reason is simple: Revolut is not suited to be your primary bank account. Revolut does not offer you a Swiss IBAN, so you cannot get your salary there. Also, they do not have support for e-bills or QR Bills.
This is not to say that Revolut is bad, but it is best suited as a companion bank account.
Neon vs Revolut Summary
We can now summarize the different points of our comparison in this table:
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Best Digital Bank
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Good for travelers
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5.0
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3.0
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Free
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Free
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yes
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yes
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no
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yes
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- Great support in Switzerland
- Pay abroad for free
- Free withdrawals
- Money is insured
- International transfers are not free
- Cannot hold several currencies
- Great worldwide support
- Great transfer fees
- Hold many currencies
- Not transparent exchange rate
- Very limited withdrawals
- Expensive during the weekend
- Poor customer service
- Poor reputation
- Money is not insured
Overall, we can see that both services have strengths and weaknesses.
Neon is a perfect candidate for spending money abroad with a card. Making payments with other currencies with Mastercard is always free, but you also have to take the Mastercard exchange rate into account.
However, Neon does not let you hold other currencies or transfer money for free in currencies other than CHF. For this, Revolut is much better.
Here are the main differences between Neon and Revolut:
- Neon currency exchanges are cheaper when paying with a card!
- Your money on Neon is insured for up to 100’000 CHF!
- Bank transfers in other currencies are generally cheaper with Revolut.
- Neon uses a more transparent exchange rate.
- Revolut lets you hold money in many currencies.
- Revolut has more features.
- Revolut has higher limits than Neon.
- Revolut has a web application, while Neon only has a mobile application.
Neon vs Revolut Conclusion
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- Pay abroad for free
- Invest with great fees
Neon and Revolut are quite different. However, there are many advantages to Neon. Since it is a real bank, you can keep your money there and use your single debit card directly. It means you will not need a bank or travel card.
For most people in Switzerland, Neon is better than Revolut. Your money will be insured, and you can use it as your primary bank account in Switzerland. Then, you only need to take your usual card abroad. It is a great thing! But you need to remember that the limits are lower than Revolut.
But there are still some cases when Revolut is better than Neon. First, if you want to hold different currencies, you will need Revolut. Neon only lets you hold CHF. Second, if you want to receive money in other currencies (EUR or GDB, for instance), you will need Revolut.
For instance, I sometimes receive some money in GBP and EUR from various services on the internet.
Regardless of Neon vs Revolut, having a card for travel can save you a lot of money. And this should be an essential part of your credit card strategy. It is likely what can save you the most money with your card usage.
And finally, if you use Neon or Revolut, you will not get any cashback in Switzerland. If you want cash back, you still need a second (or third) payment card. You can read about my credit cards to see what you could use.
What about you? Do you use Neon or Revolu? Or both?
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Just for me to understand, if I have a credit suisse account and I am planning to send some money to an italian bank account, should I transfer first to Revolut or Neon and from there transfer to the italian account?
Hi Fra,
It depends on how much money. For a small account, it does not matter enough I think.
For a medium amount, Revolut can be interesting.
For a large amount, Neon will be better than Revolut and will save you some significant money.
Hello! Great summary, however I’m not clear about one thing. If I want to pay abroad with either neon Mastercard or Revolut Mastercard, which one is cheaper?
Assuming I don’t have any funds in the currency that’s being used abroad.
Hi Raj,
During the week, they will both be the same price, free!
During the weekend, Neon will cheaper since Revolut has a weekend charge.
Nice comparison! One question – when I top up my Revolut Card from my Swiss bank credit card (for example, Postfinance), does that amount count for cash back by the bank? With that, all purchases by Revolut card would be indirectly subjected to cash back, which would be nice.
Hi Ilya,
It used to be the case with the Mastercard from Cumulus, it should be the case for the credit card from PostFinance as well.
I do not know if it changed though. I have not used my Revolut in a while now.
Thanks for stopping by!
Ok that means you are giving up on cash back from all your purchases abroad (also over internet – Amazon etc) as you are using your Neon card for that.
Hi Ilya,
Yes, that is correct. I know it’s not optimal, but I would generate maybe 20-25 CHF per year in bonus by doing so. It’s not worth my time filling my Revolut, checking the cashback, checking the fees and use my Revolut for all purchases with foreign currencies.
For me, using the Neon card with foreign currencies is simply easier for everything.
But again, that’s a decision I made. If you want the optimal way, you could charge your revolut, makes some cashback and use your Revolut more.
Thanks for stopping by!
Yeah but the currency exchange fee on a Cashback card is 1.5% for example, and the Cashback (with the AMEX) is 1%. So you don’t really earn Cashback when you use Cashback cards on foreign transactions, you lose 0.5%.
So it is better to use either neon or Revolut when the transactions are free because you won’t lose any money.
Hi All,
Love reading these, they are a big help!
I have a theoretical question regarding money transfers since reading here about Neon and Revolut. If I (1) get my monthly salary paid to a Neon account and then transfer a portion of it to Revolut (CHF, circa 3500CHF) followed by (2) transferring my salary that is now in Revolut (CHF) to Revolut (EUR) (3) transferring my salary that is now in Revolut (EUR) to an established ‘bricks and mortor’ bank in EUR, would this be the most cost effective way to transfer money?
Hi Conor,
Thanks, I am glad you like them.
1) Would be free indeed
2) Would not be free because there is a monthly limit for free conversions in Revolut. 1250 CHF will be for free and the rest will be charged 0.5%.
3) Should be free if the two are using a standard EUR transfer
Either Revolut or TransferWise in this case would be effective in this case for transferring money.
I think you should explore the DKB account possibility and compare Neon against it. Based in Germany, but you can be a client from Switzerland, it offers a free online banking account in EUR, with a credit card and a Maestro card.
I personally started using because … when is a bank giving money for free :) ? But I did not yet use any of its services.
Hi wandering,
I will take a look at DKB. But for French-speaking people, it’s not great that their entire website is only in German. But it’s good that there are more options!
Cheers
Hi, i really glad for this article. I like it. But i still can’t decide which bank i choose.. And for me it’s a little more complicated bc now i have an L permit and i dont know if for Neon its ok or not. Can u tell me your opinion or idea?
Thank you
Hi Diana,
If you are looking for a bank to get your salary in, you should not consider Revolut. This article is here to choose between Neon vs Revolut as a travel card. But for a bank account in CH, only Neon would work. They have a personal CH IBAN and protection for your assets which Revolut does not have.
Regarding the L Permit, I would think it’s enough with Neon, but I am not sure, you can try the registration and see if it works.
Thanks for stopping by!
One thing to consider: Revolut has a wider range of accepted citizenships than Neon does. Most notably, those who are stricken with US citizenship cannot use Neon, whereas Revolut is fine.
Hi Bill,
That’s a great point. Neon has limited availability to Swiss Residents and only a few nationalities (getting better though).
Thanks for stopping by!
Is there any limitations to transfer money from Neon to a Swiss account?
Hi Ren,
Yes, there is a daily limit of 30’000 CHF transferred from your Neon acount.
Thanks for stopping by!
Got it. Thank you!
Hi Mr. thanks for your great Blog. :-)
I want to transfer 80’000 CHF from my UBS to my EUR N26 account. What would you do? with Transferwise or Revolut way?
Hi Myfri,
Thanks for your kind words :)
I would definitely not use Revolut for such an amount.
I have much more trust in TW, but I am still not sure I would use it on such an amount.
I think I would make the transfer directly from USB to N26. I would first check the fees of UBS. But it should be relatively cheap to make a EUR transfer from UBS.
You can also check on Monito which way is cheaper.
Thanks for stopping by!
Very good, many thanks, with one thing missing I gess and it is the P2P transfer: Revolut has it for Revolut people only though, Neon doesn’t have it.
Another thing is that Neon doesn’t have .csv (Excel) transactions export for the statements, only .pdf (to import in personnal finance app for example).
This said and like you, I have and use both alternatively.
Hi Guy,
That’s a good point. You can transfer money directly to other users with Revolut and you can’t with Neon (I believe it’s coming though). I will mention that in the article.
I did not know about the difference in file export. I am not using any export feature.
Thanks for stopping by!