There are different types of banks in Spain. The general banks which are used for everyday accounts are known as ‘bancos’. Savings banks are known as ‘cajas de ahorros’. Both of these do offer similar services but the savings banks tend to be much more regional than the general banks. There are branches of different banks in all of the larger towns and even most smaller villages will have one bank, although it should be noted that not all banks have English language services. The banking system in Spain is considered to be very reliable and there have been many measures taken in recent years to introduce state of the art methods such as online banking and prevent crimes such as identity theft.

There are several different types of accounts available at banks in Spain and these are similar to those available in the UK and the US. A current account (cuenta corriente) is the one that is used most frequently. Most will pay no interest. The savings account (cuenta de ahorro) will offer a higher rate of interest although there will normally be restrictions on the number of withdrawals which can be made in a year. A deposit account (cuenta de deposito) offers high interest rates but cannot be used for day to day banking. Savings accounts are normally opened with a savings book and it is rare to get an ATM card that is linked to a savings account. It is possible with most banks to open an account in a currency other than the Euro. It is common for expats to have accounts in pounds sterling or the US dollar.

Accounts are available to both residents and non-residents, but there are limited services at some banks for non-residents. They may also find that they get lower interest rates on savings. In order to open an account in Spain the applicant must be at least 18 years of age and have a photographic form of ID, such as a passport. Proof of employment status is required and this can include a contract or a payslip. An expat will also have a foreigner’s identification number (numero de identificacion de extranjeros) and confirmation of address. If you have all the required documentation the account can normally be opened immediately although it takes a few days for a debit card to be issued. Most banks operate a temporary pass book system in this instance. There are some banks which will allow you to open an account by post although you may not be able to use it until you have visited the branch in person.

Banks in Spain do not offer free banking. There are charges applied for opening and maintaining an account and there will also be charges for different transactions, such as transferring funds from one account to another. Charges vary from bank to bank but it is occasionally possible to negotiate with the bank manager.

Debit and credit cards are widely used and in Spain the ATMs can also be used to top up credit on a mobile phone and to purchase tickets for the cinema and other events. ATMs of a different bank to your own will often charge for withdrawing cash there. Most shops do accept both debit and credit cards. Cheques are also accepted but a cheque guarantee card is required. When using a credit or debit card you will also need to present another form of ID.

A credit card can be applied for when an account is opened with a bank but customers also have the option of going to another bank for a credit card. When applying for a credit card you must have a current account so that the bank knows that payments can be made. There are some banks which will only offer credit cards to residents.

Banks in some areas of Spain are only open in the mornings, from 8.30 am to 1.30 pm. In busy urban areas branches may offer longer opening hours. These opening hours are generally only from Monday to Friday.

If applying for a loan or overdraft you will need to prove that you have a good credit history. Some banks may accept a credit report from your home country but this is not always the case. Some banks will not consider this type of credit for a non-resident and those who are not working or who cannot prove their income will be rejected. Banks will need documentation such as proof of ID, residency status, employment status and bank statements.

There are several local banks in Spain which are very popular but some of these, particularly in rural areas, are less likely to offer English language services. International banks are well-represented in the country with Citibank and the Halifax group among the most popular but local banks such as Solbank and Grupo Banco Popular do offer a good range of services.

Useful Resources

Grupo Banco Popular
www.bancopopular.es
Tel: 902 301 000

Citibank Spain
www.citibank.com/spain
Tel: 902 180 516

Banco Halifax Hispania SA
www.halifax.es
Tel: 902 310 100

Solbank
www.solbank.com
Tel: 902 261 271 / 902 343 999