On Thursday 13th October JCC members discussed their banking headaches and challenges. Here are some of the things we talked about.
Local bank accounts: Most members had a Spanish bank account with La Caixa, Sabadell, BBVA and Santander topping the list. It was noted that a Spanish bank account seems necessary for house sales….(and it seems many other things besides https://www.barcelona-metropolitan.com/living/business/do-you-need-a-spanish-bank-account/ ).. Experience with local banks varied with some people deciding to move banks because of poor service and bank charges.
It was noted that bank staff were “primed” to sell you the bank’s services ..in exchange for no bank charges for example. Sometimes you have to read the small print and demand your rights!
Members did most of their banking on-line
Overseas banks: Most members had overseas accounts. Barclays bank was closing accounts for Brits who are resident in Spain post-Brexit, which was a major problem for people who had their pensions paid directly into their Barclays account. NatWest still supports customers resident in Spain and allows them to do all their UK banking online using two-step security (e.g. verification code via SMS to a mobile phone, use of a card reader. There’s also a phone app with fingerprint log in. (According to a report from France, Nat West’s s long term policy for British Nationals resident in Europe is not clear – CBJ ) Note: Two-step security is a European requirement. HSBC seems to function as before.
Some members use ING – an Internet bank based in the Netherlands: https://www.ing.com/Home.htm
Other use N26 – an Internet bank with a Spanish Iban https://n26.com/en-es
This article describes a number of digital banking options for people resident overseas: https://www.william-russell.com/blog/how-to-open-a-bank-account-in-the-uk-as-an-expat/
Shopping: Many members use PayPal for their online shopping. https://www.paypal.com/us/webapps/mpp/home There was some discussion as to whether you needed (or could even have) separate Sterling and European Paypal accounts. Chris has one PayPal account and can choose a UK or a Spanish debit/credit card for purchases. PayPal used to have very good exchange rates, but they have gradually worsened (this is relevant if you are selling overseas)
Others use Bizum https://bizum.es/en/ which is a phone app enabling you to pay your contacts, businesses and charities that themselves have Bizum on their phone. The app is linked to your bank account and seems to work like a virtual debit card. The good thing is that you can pay small amounts to individuals (e.g. family members). To get Bizum, check out the banking app on your phone and you should find it as an optional install.
One member uses a smartwatch linked to three credit cards for contactless payments. Another member held a sterling account in Spain.
As regards money transfers from overseas most pensioners receive their pension paid directly into their Spanish account from the UK DHSS. No fees are involved. Regular Bank to Bank transfers cost around €18. Many people use Wise (previously called Transferwise) https://wise.com Wise has accounts all over the world. When you want to send money abroad, you actually pay with your local currency into Wise’s local account. Then the Wise account in the overseas country you want to send money to will send local currency to the recipient. The money you pay never actually crosses borders. Wise also has multicurrency accounts and debit cards which are very useful for travellers.
Other people use Currencies Direct: https://www.currenciesdirect.com/en which works in a similar way.
…and why not use Revolut? https://www.revolut.com/cards/ This is an enterprise created by a Ukrainian and a Russian! Revolut is a digital banking app that lets you hold multiple currencies, buy crypto and spend globally at a minimal cost. Here’s an article about Revolut in Spain: https://www.finder.com/es/en/digital-banks/revolut-review
Clearing cheques is very expensive!
Many people had experienced fraud of one kind or another, including unauthorised withdrawals from bank accounts, misuse of credit/debit cards (the card number and security code may have been stolen) and being mugged.
Beware of phishing ! (beware of astronauts who need £27,000 to get back to earth from space!)
Chris Betterton-Jones – Knowledge junkie!