What are the pros and cons of mobile banking

C24-Bank from Check24: test, advantages & disadvantages!

Updated on 05/11/2021

Banking offer at C24 Bank: Several account models and Check24 comparisons on top

Check24 has been offering its own banking service under the name "C24" since October 2020. C24 Bank has had its own full banking license since mid-May 2020 - issued by the financial supervisory authority Bafin around one year after the application was submitted.

The Check24-Bank offer should initially be designed rather puristically. Consumers can choose from several checking account models. A current account with a Mastercard debit card is offered completely free of charge. The free card can be used free of charge at practically all ATMs in Germany. However, the number of free withdrawals is limited depending on the account model. The deliberately narrow portfolio is supplemented by other finance & banking products such as construction loans, installment loans, and investments such as overnight and fixed-term deposits. However, these are not marketed directly by C24 Bank itself, but rather mediated via the Check24 comparison portal. Specifically, that means: In addition to the C24 Bank account, customers can also take out construction financing, for example from the Sparkasse or a call money account at Commerzbank.

Current accounts at the Check24 bank

As part of an initial beta test, which the specialist editorial team at Finanzszene.de drew attention to in the run-up to the launch of the C24 Banking App, a total of five C24 current account models were tested: the free "C24 basic account", the "C24 flex account", the "C24 smart account", The chargeable"C24 plus account"And the premium offer"C24 max account". At the market launch of the C24 banking offer, however, the five c24 current accounts were reduced to three. This means that the customer can currently open the following current accounts at C24 Bank: the free "C24 smart account", The chargeable"C24 plus account"And the premium current account"C24 max account". It is not clear whether the C24 current accounts that have already been tested will be introduced at a later point in time.

COST STRUCTURE FOR THE OFFERING OF THE C24 BANK:

 

C24 smart account

C24 plus account

C24 max account

Price / month

0 euros

5.90 euros

9.90 euros

Sub-accounts / pockets

4

6

8

Immediate overdraft facility

400 euros

600 euros

800 euros

Withdrawals free of charge

in Euro

worldwide

worldwide

Use of foreign currency

1.75 percent

1.75 percent

No

map

Free Mastercard

Mastercard with cashback function as well as account and buyer protection from ARAG Insurance

Metal card with cashback as well as account and buyer protection from ARAG Versicherung

Overdraft facility

6.99 percent

6.99 percent

6.99 percent

Cashback

 

10 percent

30 percent

miscellaneous

 

 

preferred customer service,

Free membership in the CHECK24 Reise-GoldClub with extensive insurance benefits

CHECK24 COMPARISON CALCULATOR ALSO INTEGRATED IN THE C24 BANKING APP

In the future, the C24 banking app will also contain the extensive Check24 comparison calculator. And not only as a comparison for banking, but also for the areas of “DSL and mobile communications”, “Electricity and gas”, “Insurance”, “Credit” and “Investment”. Thus, the creators of the new C24 app seem not only to have the sale of current accounts and banking offers in mind, but are also striving to act as an intermediary for other products with the usual Check24 comparisons.

C24 current account with overdraft facility

The new Check24-Bank does not only want to earn money by marketing additional products from other companies. The free current accounts are also supposed to flush money into the till in the form of commissions. Income should also be generated with overdraft interest for the account. At the start of the C24 account model, the overdraft interest is 6.99 percent - which in a Germany-wide comparison rather represents the lower end of the overdraft interest.

USE CREDIT CARD WITH APPLE / GOOGLE PAY IMMEDIATELY

A credit card (Mastercard) is also included in all C24 account models. Apple Pay and Google Pay can also be used for contactless payments with the C24 Banking App.

Since March 2021, C24 customers have been able to use the digital credit card immediately after opening an account. This means that bank customers can deposit their digital card directly with Apple or Google Pay and shop online immediately. You no longer have to wait for the physical card to be sent. However, there must be a credit on the account or the overdraft facility must be activated. In addition, C24 customers can now call up their data such as the number or the Card Validation Code (CVC) in the app.

THAT'S WHY C24 BANK COULD BECOME SUCCESSFUL

The concept of the C24 Bank is not new. In addition, there is great competition with N26 and Co. Nevertheless, Check24's banking services have a good chance of gaining a permanent place in the highly competitive market. There are several reasons for this:

  • Check24 already has a very large customer base.
  • Check24 is an established, well-known and also popular brand.
  • The Munich company has great financial strength. The C24 Bank is therefore not dependent on outside capital, but can be financed by the parent company. This can be particularly beneficial in the corona crisis.
  • According to its own information, the price comparison portal Check24 has around 15 million customers. For these customers, Check24 not only compares prices, but also concludes contracts as an intermediary. Likewise, contracts in various areas of Check24 are managed and monitored for consumers. The Check 24 account manager, which can also be booked at Check24, also connects all bank accounts and offers a full overview of the finances. This means that Check24 already has a multibanking app today. Check24 has long been much more than just a price comparison portal. The company already manages relevant financial and contractual matters for its customers in the areas of insurance, finance, electricity and gas, cell phones, travel, shopping and other life and leisure segments. And now there is a banking app with C24.

Consumer advocates see disadvantages for customers and criticize the new C24 bank

Because the new C24-Bank not only offers advantages for customers, but can also quickly turn out to be a "data octopus" and turn consumers into "transparent customers", the new banking app has been criticized by consumer protection officials. Because all those customers who use the C24 app as a multi-banking app - however, this function is not preset and must be actively clicked on - give the C24 app - and thus the Check24 Group - the option of all their other banks Accounts. This means that the C24 app can then recognize the monthly debits from the mobile phone provider, can read from the data how much the consumer pays for his electricity and which insurance is debited from the account when and at what price.

A customer who gives Check24 the opportunity to track incoming and outgoing payments on their accounts via the C24 banking app will receive suggestions on the one hand with which provider they can conclude cheaper electricity contracts and which insurance they can take out in addition to their further protection could, but on the other hand you have to be aware that in the end you don't keep your account with a company that sees itself primarily as a bank or banking platform, but is much more of a "broker" and sees its core business in the mediation of offers. And if the core business is the brokering of attractive partner offers, then the C24 app, filled to the brim with current accounts and banking gimmicks, could only be understood as a tool with which the offers of the Check24 partners can be better distributed.

Niels Nauhauser from the consumer association Baden-Württemberg also criticizes the fact that the C24-Bank on the one hand offers current accounts and on the other hand Check24 compares the market for current accounts at the same time. According to Nauhauser, an absurd situation arises in which the company becomes the supplier of a product that it compares at the same time.