Banks in Portugal: which one to choose?

Traditional banks in Portugal

There are many traditional banks in Portugal and the choice will not be easy. I will try to show you which ones are the most popular in the country and give you a link to some Portuguese comparisons concerning the fees for opening and managing an account over the year. I have searched everywhere to find this information and unfortunately I don’t have a link to give you.

Please note that it is not mandatory to close all your accounts to open a bank account in Portugal. It is even preferable to keep one in case you still have direct debits in your country or use for example a Paypal account for payments on the internet in your country.

The most popular Portuguese banks and branches in Lisbon

There are many banks in Portugal. Below is a non-exhaustive list of the most popular banks in the country in 2017. You will also find a map of the different branches in Lisbon for the most represented banks in the capital (Feel free to move around on the Maps, some do not want to focus):

• Bank Santander and branches in Lisbon

• BPI Bank and branches in Lisbon

• Banco Millenium BCP (Banco Comercial Português) and branches in Lisbon

• Bank Banco CTT and branches in Lisbon

• Banco Popular Bank and branches in Lisbon

• BNI Europa Bank
• Bankinter Bank
• CGD Bank (Caixa Geral de Depósitos)

These are exclusively Portuguese banks, but you can also find other banks in Portugal. This may be an advantage to go and see them directly in your country before your expatriation to Lisbon to get information. However, they are generally not the cheapest:

• BNP Paribas Bank and branches in Lisbon

• Crédit Agricole Bank (Credito Agricola) and branches in Lisbon

Portuguese traditional bank charges

As I was saying, I went to get the fees from each of these banks so that you can get an idea of what a bank account in Portugal can cost. For information purposes only, bank charges may change from year to year (these are the 2018 figures) and this does not prevent you from visiting the websites of these different banks or contacting them to get a precise idea of the costs associated with opening your bank account.

Santander Bank: 

• Minimum account opening : 150€.
• Bank account management fee: 4,50€.
• Cost of the credit card: 17€/year

BPI Bank : 

• Minimum account opening : 100€.
• Bank account management fee: 5€.
• Cost of the credit card: 15€/year

Millenium BCP Bank : 

• Minimum account opening : 50€.
• Bank account management fee: 5,20€.
• Cost of the credit card: 0€/year

BNI Europa Bank : 

• Minimum account opening : 100€.
• Bank account management fee: 0€.
• Cost of the credit card: 0€/year

Bankinter Bank : 

• Minimum account opening : Not Communicated
• Bank account management fee: 5€.
• Cost of the credit card: 10€/year

CGD Bank : 

• Minimum account opening : 150€.
• Bank account management fee: 5€.
• Cost of the credit card: 18€/year

Bank Banco CTT : 

• Minimum account opening : 100€.
• Bank account management fee: 0€.
• Cost of the credit card: 0€/year

I did not find the figures for English banks in Portugal but as mentioned, you can contact the agencies directly by email for more information. We can see that some banks are distinguished by the exemption of management fees or blue card fees such as Banco CTT. This is the bank that I personally chose but it is also the case of BNI Europa, which however has fewer branches in Lisbon.

Online banks in Portugal

Names, Advantages and Disadvantages of Online Banking

An online bank in Portugal or elsewhere has advantages and disadvantages that I will detail below. It’s not really a long-term commitment and you can easily change it, but it’s better to make the right choice from the start, as the procedures for changing banks can be complicated (no command of the language, many documents to sign, long delays, transfer of large sums of money…).

In Portugal, there are not many banks that are totally online but you will be able to find your way around with these 3 below :

• ActivoBank
• Banco Best
• BIG – Banco de Investimento Global

The main advantage of e-banking lies in the competitiveness of prices and different services. You will be able to carry out various transactions at a lower cost, but you still need to be able to be independent. This means that you are perfectly capable of using a website to carry out your various transactions without the help of anyone: so if you are not comfortable with computers, the internet or mobile applications, I can only advise against choosing an online bank in Portugal.

Other different advantages include:

• Low bank charges
• Means of payment such as credit cards obtained free of charge
• Quick access to the bank account for operations (Payment, transfer, account consultation…)
• The possibility to credit yourself a cheque on your bank account online with an electronic slip
• A direct and fast telephone contact or chat
• Independence from the schedules of traditional banks
• Access to additional services such as an electronic safe for your documents
• Advantage specific to Portugal: avoid waiting sometimes two hours at the bank to see someone (No, this is not uncommon!).

On the other hand, online banking in Portugal or elsewhere has disadvantages that are important to note:

• Authorization to overdraw a bank account may be limited in time (sometimes 30 days) or else it may be refused afterwards.
• The reduction of banking costs may be subject to the condition that a minimum amount be added to the account each month.
• No physical access to your banker and to a dedicated person who advises you and manages your accounts, which can be a hindrance for some people.

You have to weigh up the pros and cons of choosing an online or traditional bank depending on your situation and your comfort with new technologies. Whether it’s an online or branch contract, it’s best to read and understand it well to know what you’re getting into.

Portuguese online banking management fees

As mentioned in the advantages of online banking, they have the particularity of having lower management fees but may require a larger deposit to open an account. In Portugal, you will certainly be able to find physical addresses for these online banks in shopping malls and other locations. These are not bank branches as such, but you will be able to find all the necessary information there. As these online banks are mainly dedicated to young people, the agents will most likely speak English.  Below you will find the different fees associated with the 3 Portuguese online banks mentioned above.

ActivoBank

• Minimum account opening : 250€.
• Bank account management fee: 0€.
• Cost of the credit card: 0€/year

Bank Banco Best

• Minimum account opening : 500€.
• Bank account management fee: 0€.
• Cost of the credit card: 18€/year

Banque BIG – Banco de Investimento Global

• Minimum account opening : 500€.
• Bank account management fee: 0€.
• Cost of the credit card: 7,5€/year

The best Portuguese banks for loans

The different credits you might need after your move to Portugal is an element that can be taken into account in the choice of your Portuguese bank. You will therefore find below the APRs for the month of April or May 2018 for the 10 most interesting banks. The APR is not the only element to be taken into account, so I invite you here again to contact the banks directly or to use an intermediary such as Essencial Portugal to select the best bank according to your situation and your projects. Whether it is a personal, car or real estate loan requested from the banks, be aware that these APRs vary slightly each month and this may have an impact on your choice. You can therefore consult this website whose figures are updated regularly.

APR May 2018 Portuguese personal credit (Crédito pessoal)

• Activobank : 7,1%
• New Bank : 8,5%
• Credito Agricola : 8,934%.
• BCP : 9.4%
• Credibom : 10.07%
• Cofidis : 10,2%
• CTT Bank : 10,5%
• Cetelem : 10,5%
• Santander : 10,7%

APR April 2018 Portuguese car loan (Crédito automóvel)

• BPI: 6% new and used cars
• BCP: 6.3% new cars
• Credito Agricola: 6.36% new cars and 8.816% used cars
• Novobanco: 7.2% new cars 7.7% used cars
• Cetelem: 7.2% new cars and 9.5% used cars
• Santander: 7.4% new and used cars
• Banco CTT: 7.8% new cars%.
• Deutsche Bank: 7.971% new cars
• Credibom: 9.05% new cars and 9.47% used cars

APR May 2018 crédit habitation portugais (Housing Credit)

• Santander : 1,70%
• Banco CTT : 1,80%
• BIC : 1,90%
• Abanca : 2%
• Novobanco : 2,10%
• BCP : 2,20%
• Bankinter : 2,30%
• BancoBest : 2,50%
• CGD : 2,50%

Opening a bank account in Portugal

Opening a bank account in Portugal can be done very easily and even directly online for some banks like Novo Banco. If you go to their website, you can theoretically open an account in 4 steps very quickly. This does not exclude having official documents that you will have to send during the registration form. The documents requested by this bank (and probably for many other banks whose accounts can be opened online):

• A valid citizen card or identity card
• A Tax Identification Number (TIN or Contribuinte Number)
• Proof of residence (Internet, electricity, water contract, etc.) less than 12 months old, the most recent being the best.
• Proof of your activity (company manager, employee, etc.) less than 12 months old, again, the most recent being the best.

The condition to open your Portuguese bank account online is of course to fill in a long and very precise form so that the bank can have as much information as possible. Not having done this online myself, I can’t tell you if the bank will contact you for verification afterwards or if you actually have your bank account ready.

In the case of a traditional bank, the documents are more or less the same. You don’t see it often on the web but at Banco CTT, I didn’t have the opportunity to open my bank account until I had proof of my professional situation, a company manager in my case. This may be due to the fact that the bank is one of the cheapest in Portugal. Therefore, in some cases you will have to be registered at the “Centro de Emprego” (Employment Centre), employee, student or entrepreneur in Portugal or elsewhere to open an account. For the others, you will mainly need :

• Your Contribuinte Number
• Your identity card
• Your proof of address