# Free banking, is it possibe?



## codex70 (Jun 24, 2012)

We're about to move to Mallorca, and going through the list of things to do I've come up against bank accounts and credit cards.

In the UK I'm used to a free current account where everything is done online or via the post. Now I'm finding it hard to see any banks without what seem like quite high charges for the account and all transactions.

The same pretty much goes for credit cards, but in the UK I'm used to actually earning cashback, so it pays to have a credit card.

Am I missing something (like a comparison site for banking), or do I just have to get on with paying for banking now?


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## elisa31bcn (Jan 23, 2013)

I have a free online account with La Caixa. No charges, or minimum balance as long as you do everything online. You have to be a resident too.


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## Trubrit (Nov 24, 2010)

I have a free current account with credit and debit cards with Sabadell but I need to pay 700e a month in to the account and I get cash back on my utility bills. Also great customer service in English.


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## codex70 (Jun 24, 2012)

Wow, that's brilliant information. It seems very difficult to find this information when sat here in the UK trying to sort stuff out. As usual really helpful replies on here though.


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## DunWorkin (Sep 2, 2010)

Trubrit said:


> I have a free current account with credit and debit cards with Sabadell but I need to pay 700e a month in to the account and I get cash back on my utility bills. Also great customer service in English.


What is the name of this account? Are you allowed direct debits?


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## Alcalaina (Aug 6, 2010)

elisa31bcn said:


> I have a free online account with La Caixa. No charges, or minimum balance as long as you do everything online. You have to be a resident too.


I thought I had one of those, but after two years they started charging for debit cards and "administration" with no prior warning and took €42 from my account!

Any bank can change their account terms and conditions at any time, apparently.


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## Otterly (Feb 28, 2014)

codex70 said:


> We're about to move to Mallorca, and going through the list of things to do I've come up against bank accounts and credit cards.
> 
> In the UK I'm used to a free current account where everything is done online or via the post. Now I'm finding it hard to see any banks without what seem like quite high charges for the account and all transactions.
> 
> ...


ING Direct have an excellent service without commissions. You can apply online and they have some bank branchs (in Malaga for example), there is also a branch in Mallorca) for a local visit. You do need to reside in Spain though, I don´t think they do non-resident accounts, but you could ask there.


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## snikpoh (Nov 19, 2007)

DunWorkin said:


> What is the name of this account? Are you allowed direct debits?


It's called an "expansion account" everything is free - debit and credit cards, no maintenance fee and you get money off direct debits for utilities (to a maximum). We were also give a repsol card which gives us 2% of fuel.

The amount you have to pay in for this type of account varies - we pay a random amount in randomly yet are allowed to have the account


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## Otterly (Feb 28, 2014)

snikpoh said:


> It's called an "expansion account" everything is free - debit and credit cards, no maintenance fee and you get money off direct debits for utilities (to a maximum). We were also give a repsol card which gives us 2% of fuel.
> 
> The amount you have to pay in for this type of account varies - we pay a random amount in randomly yet are allowed to have the account


I´m wondering if this account requires a "Nomina" as you have to put in 700e month, most banks now seem to require a fixed minimum of a nomina to open an account, maybe this is only for clients with "Residencia" though, not sure of that.


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## snikpoh (Nov 19, 2007)

Otterly said:


> I´m wondering if this account requires a "Nomina" as you have to put in 700e month, most banks now seem to require a fixed minimum of a nomina to open an account, maybe this is only for clients with "Residencia" though, not sure of that.


Please read my post again  I do NOT pay a regular amount in nor do I pay in regularly. 

Since arriving in Spain, I have had my 'residencia' and have also done my Spanish tax return every year.


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## Otterly (Feb 28, 2014)

snikpoh said:


> Please read my post again  I do NOT pay a regular amount in nor do I pay in regularly.
> 
> Since arriving in Spain, I have had my 'residencia' and have also done my Spanish tax return every year.


Sorry, my mistake. I confused your post with Trubrit who said they had a Sabadell account that required 700e per month. Apologies.


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## Williams2 (Sep 15, 2013)

snikpoh said:


> It's called an "expansion account" everything is free - debit and credit cards, no maintenance fee and you get money off direct debits for utilities (to a maximum). We were also give a repsol card which gives us 2% of fuel.
> 
> The amount you have to pay in for this type of account varies - we pay a random amount in randomly yet are allowed to have the account


Same here - so long as the bank sees at least 700 Euro's a month going in - then
you get all the above although bear in mind cash backs are taxable therefore
the Spanish tax man will take he's 21 per cent cut from the cashback ( but it's
a trifling amount ) so still worth the cashback.
What's included in the Utilities cashback ( so long as its paid by direct debit ) from
your Expansion account is Electricity, Gas, Phone and Internet but not the Water
bill.

As for the Repsol card at 2 per cent - Nah you get better cashback ( in the form
of a voucher ) from the Cortes Ingles Card credit card. Namely 4 per cent cash
back from Repsol food and fuel at most Repsol and Petronor filling stations and
the beauty with Discount Vouchers is the Spanish tax man cannot take he's
21 per cent cut from it. 
Cortes Ingles tot up the 4 per cent cashback every 3 months, post the voucher
to you - where you can spend it at any Supercor or Opencor supermarkets
The last quarter I got Euro's 19.65 voucher - you cannot spend it at the Repsol
stations, though.

I have also seen Bank Santander Spain offering 7 per cent cash back ( fuel only )
on their bank accounts although never enquired further on what their deal is.
Maybe they might have something for you - as you say you never put in money
regularly.

Although to tell you the truth - I've encountered a number of foreigners with
such accounts but no regular income who swap money in and out of their
savings accounts each month just to meet the banks 700 Euro's a month
rule. 700 in then 700 out - repeat and rinse. Lol.


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## DunWorkin (Sep 2, 2010)

snikpoh said:


> It's called an "expansion account" everything is free - debit and credit cards, no maintenance fee and you get money off direct debits for utilities (to a maximum). We were also give a repsol card which gives us 2% of fuel.
> 
> The amount you have to pay in for this type of account varies - we pay a random amount in randomly yet are allowed to have the account


Thanks for this info

We are with Sabadell but it sounds like this might be better for us than what we currently have. I will ask at the bank.


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## 213979 (Apr 11, 2013)

Alcalaina said:


> I thought I had one of those, but after two years they started charging for debit cards and "administration" with no prior warning and took &#128;42 from my account!
> 
> Any bank can change their account terms and conditions at any time, apparently.


Yup. I cut ties with La Caixa as well. I have found that they have a ton of fees. 

I use ING direct and Santander. I think ING is what you are looking for.


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## elisa31bcn (Jan 23, 2013)

Well, so far so good. No fees, exactly as advertised. going on 2 years. My husband has had his for over 4 years, same deal. So not jumping ship til there's a reason.But thanks for the heads up.


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## kimuyen (Aug 8, 2013)

elenetxu said:


> Yup. I cut ties with La Caixa as well. I have found that they have a ton of fees.
> 
> I use ING direct and Santander. I think ING is what you are looking for.


I loved ING. I could do lots of things on line and they paid a good interest rate on a savings account. Unfortunately, its American branch was bought out by Capital One. I would go with them again for an account in Spain.

Anyway, my husband has La Caixa to begin transferring money into the account to establish a record of income for residencia. My husband bears an Irish passport so things are much simpler for him. As his dependent (I'm an American citizen), *do I need to have my own bank account so that I too can prove that I have sufficient financial resource on my own term?* I was planning on opening a bank account under my own name in early June when we come over to look for housing before the move in July. If I don't need to open one yet, then I would rather wait until I get residencia and open a bank account then.

Thanks.


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## elisa31bcn (Jan 23, 2013)

You don't have to have your own bank account to prove financial resources. You are a dependant of en EU citizen, and are residency rests solely on that. It's much easier and cheaper if you wait to open an account after you go through the residency process.


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## codex70 (Jun 24, 2012)

Out of interest, is there any charge on the Sabadell account for foreign payments into the account? I've used services like transferwise for euro payments before and would probably use something like that when we move out to pay money across from the UK monthly.


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## snikpoh (Nov 19, 2007)

codex70 said:


> Out of interest, is there any charge on the Sabadell account for foreign payments into the account? I've used services like transferwise for euro payments before and would probably use something like that when we move out to pay money across from the UK monthly.


The only time that I've been charged is when I deposited a French cheque. All international transfers have been free (both ways).


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