Different Types of Bank in Spain
In Spain there are two types of bank. There are regular clearing/commercial banks and also savings banks known as “Cajas”. Cajas operate in a similar way to how Building Societies operate in the UK.
Both types of bank provide the normal bank services and products you would expect,such as credit/debits cards and cheque books.
Different Types of Bank Account in Spain
- Non Resident Bank account: If you’re from another country and spend or plan to spend less than 6 months of the year in Spain you are considered a non resident and as such you will open a non resident bank account. To open the account in the branch you will need to supply identification such as passport and or NIE numbers. You may also be required prove your non resident status because as a non resident the bank does not withhold a percentage of the interest earned for tax. If you become resident at point in the future, you will need to tell the bank and give them your NIE Certificate.
- Resident Bank Account: Really,the main difference between the non resident and resident is there are less fees to pay on a resident account. If you plan to be in Spain for more than 6 months of the year you will be required to open a residents account once you are living here.
Credit and Debit Cards in Spain
Once you have opened an account and signed the forms, you will typically be issued with a debit card. This card can also be used to obtain cash from the ATM’s. If you have a regular amount coming in to the account you may also be able to apply for a credit card. If you plan on making any online purchases try to use your credit credit card rather than debit card as often the Spanish debit card offers no protection, should your details ever be used fraudulently. Some banks will not consider applications for credit cards from non residents.
The Direct Debit system in Spain
All of your bills such as water, electricity, telephone, internet, etc will be paid by direct debit. If you ever need to cancel a direct debit, you will need to go to the branch in person and ask them to remove the direct debit from your list.
Direct Debits can be set up easily by supplying your bank account details. It is very important that you check your statements regularly as there is a time limit for reclaiming any money you feel has been debited incorrectly.
Bank charges in Spain
Most banks will charge you between €10 and €25 per year for “Maintenance” of your account. Non resident charges also often total around €160 per year. There may also be other charges applied for certain transactions. Check with your bank in Spain for a list of these charges when you open the account.
Using cash points in Spain
Wherever possible use your own banks cash point to to avoid paying a commission on your withdrawal. Your bank debit card may also be part of a network of ATM’s such as Servi-Red or Euro 6000. Using cash points with these symbols with ensure you do not pay any commission for withdrawing money while in Spain.
Internet banking in Spain
Internet Banking is widely available and make sure you register for it when you open your account, as it’s the easiest and quickest way to keep track of your account in Spain.
