While NLP models significantly impact our lives, there are rising concerns about privacy invasion. Although federated learning enhances privacy, attackers may recover private training data by exploiting model parameters and gradients. Therefore, protecting against such embedding attacks remains an open challenge. To address this, we propose Subword Embedding from Bytes (SEB) and encode subwords to byte sequences using deep neural networks, making input text recovery harder. Importantly, our method requires a smaller memory with $256$ bytes of vocabulary while keeping efficiency with the same input length. Thus, our solution outperforms conventional approaches by preserving privacy without sacrificing efficiency or accuracy. Our experiments show SEB can effectively protect against embedding-based attacks from recovering original sentences in federated learning. Meanwhile, we verify that SEB obtains comparable and even better results over standard subword embedding methods in machine translation, sentiment analysis, and language modeling with even lower time and space complexity.