The banks in the City are usually open from 9am to 4pm Mondays through Fridays. Some banks open till 6pm. Luxembourg is home to more than 200 international and local banking institutions, and expatriates in search for a bank will not have difficulties finding one, but rather, deciding on which bank that suits their needs best. For a list of the banks operating in Luxembourg, try the Luxembourg Banker's Association member's list. Boulevard Royal is known commonly as Luxembourg's banking mile. The major local banks in Luxembourg City are BCEE (Banque et Cassie d'Epargne de I'Etat or Spuerkeess in Luxembourgish), the Banque du Luxembourg and the Banque Generale du Luxembourg.

Current accounts (compte a vue) are the most common type of bank accounts most expatriates will have. Instead of checks, most expatriates settle their bills via bank transfers from their current accounts. In addition to a current account, there are various savings accounts that you can set up. There are some income tax exempts from interest earned from certain amount of savings in a savings account. Banks typically charge for different services, such as the use of debit cards, or transactions like remittance services or telegraphic transfers. These charges are higher than those imposes by banks operating in the UK or US.

Luxembourg is a cashless society. In Luxembourg, debit cards have three functions – Minicash, Bancomat and Maestro. Minicash is a rechargeable payment facility in debit cards that allows shoppers to make small payments at grocery stores, pay and display parking machines, telephone booths and so on. The maximum payment amount is 125 Euros. Bancomat allows withdrawals of up to 1,250 Euros per week, while Maestro permits withdrawals from countries other than Luxembourg. In some countries, the use of your Maestro card is via your Personal Identification Number (PIN), while in other countries, your signature is also required. The Maestro function is especially useful for expatriates who travel and need access to their cash.

Credit Cards are also widely accepted and used throughout the City. Mastercard and Visa credit cards are available via the banks in conjunction with a current account. American Express and Diners Club are issued by the credit companies themselves.

Increasingly, more banks in Luxembourg are offering e banking to their customers, and this service is particularly popular with expatriates who would like to have access to their accounts that are based in Luxembourg. The range of e-banking services range from bank to bank, but in general, customers can access bank statements, make payment transfers, leave instructions to the bank and even make stock market investments online.

Cost of Living

While Luxembourg is well known as a tax haven, it may be useful to note that the reputation comes about mainly due to the lower indirect taxes in the country as compared to other European countries (e.g. consumables like petrol/gas are the lowest in Europe because of low excise duties, and the maximum VAT for goods bought is 15% - the lowest in the EU). Income taxes are high – although the maximum tax rates are more favorable than other European cities like Belgium or France.