Does A Bank Accout Have Tk Be Setup In The Same State As The Registered Office

Last checked: 20/01/2022

Bank accounts in the EU

Right to a bones depository financial institution business relationship

You may want or need to open a depository financial institution account in your home country or in some other EU country.

If you lot are legally resident in an EU country you are entitled to open up a "basic payment account". Banks cannot refuse your application for a basic payment account just because you don't alive in the land where the bank is established.

This right does not apply to other types of bank business relationship, such as savings accounts.

When banks can refuse you a basic payment account

Yous can exist refused an account if you do not comply with EU rules on money laundering and terrorist financing Open as an external link .

In some Eu countries, yous may exist refused a basic bank account if you already have a similar business relationship with another bank in the same country.

If you lot're applying for a basic payment account outside the land where yous live, banks in some EU countries may too want you to prove a genuine interest for doing so – for example if you live in i country but work in another.

Features of a basic account

A "basic payment account" is an account that covers standard transactions that you lot use in daily life, such equally:

making deposits
withdrawing cash
receiving and carrying out payments (for example direct debits and card purchases)

It should besides include a payment card that you tin employ to withdraw cash and make purchases - both online and in shops.

Where available, the bank should include access to online banking services with your business relationship. Nevertheless, they do not ever have to include an overdraft or credit facility.

In some EU countries, your bank might still accuse you an almanac fee for this bones payment business relationship. This fee should remain reasonable.

Sample story

Yous don't need to live in an EU land to have an account there

Sándor started to work for a company based in Slovenia while continuing to live in Hungary. He decided he would like a bank business relationship in Slovenia to use for 24-hour interval-to-twenty-four hour period expenses, in add-on to his Hungarian bank account.

He plant a Slovenian bank near his piece of work and asked to open up a basic account. The bank allow him open an business relationship even though he was non living in Slovenia.

Banks cannot simply turn down you a bones account considering you don't live in the country.

Fee information

Earlier you open up your account, the banking company should requite y'all a document showing the virtually important services offered on the account and whatsoever related fees that you might have to pay. This is known as a "fee data document". You can use it to compare the cost of accounts at different banks.

Your bank must also give you lot a statement explaining the fees incurred on your banking company account at least one time a yr. This "statement of fees" certificate should likewise requite information on the interest rates applied to your business relationship.

Switching bank accounts

You can switch your bank account to another bank account in the same EU land. Your new bank should help y'all with this.

If you want to switch to a new account in the same country, tell your new depository financial institution that you want to switch and transfer your recurring payments to the new account.

The new bank will then ensure that your sometime banking concern transfers data and cancels any continuing orders. The new bank must likewise:

inform tertiary parties – such equally your employer, social security provider and utilities providers – that you are changing your account
set upwards your new standing orders
take relevant straight debits on the new account

You may all the same be charged a fee if you lot decide to shut your one-time account.

If you incur costs during the switching procedure considering the bank misses a deadline (to cancel a payment for case) or makes mistakes, they have to refund these costs. If you lot have whatever difficulties, you tin take the issue to the out-of-court dispute resolution scheme.

Sample story

Switching banking company accounts doesn't always go smoothly

When Suzanne moved from Toulouse to Paris, she decided to move her bank business relationship to her local banking concern in Paris. She asked her new bank in Paris to transfer all her payments to the new account and close her former business relationship in Toulouse.

The bank in Paris told the bank in Toulouse to cancel her standing orders and close Suzanne's business relationship. They then set standing orders from her new account. However, they forgot to tell her mobile telephone provider, and Suzanne was fined when the standing society for her mobile telephone contract didn't go through on time.

Suzanne complained to the bank in Paris. They agreed to refund her the price of the fine and correct the standing order payment for the mobile phone contract.

Your money protected in the European union

EU rules ensure that the coin in your bank account (savings business relationship and/or and current account) is protected if the bank holding your account fails. Your money is protected up to a limit of EUR 100 000 or the equivalent in local currency. This limit applies per person and per bank, meaning that if you have several accounts at the same banking company, the limit of EUR 100 000 applies to your aggregated accounts.

There are some exceptions to this rule. If you have a joint account with your partner, for example, the limit of EUR 100 000 applies to each of you, meaning up to a maximum of EUR 200 000 for your articulation account. In addition, your money will also exist protected above EUR 100 000 in sure other cases for a limited time, such as:

money you receive from selling a private residential property
money you receive linked to a detail event in your life such equally wedlock, divorce, retirement, dismissal, redundancy, invalidity or death of a family fellow member
coin you lot receive from the payment of insurance benefits or compensation for criminal injuries or a wrongful conviction

In these cases, amounts over EUR 100 000 are protected for at least three months and no more than than 12 months after the coin has been credited, or from the moment when the coin became legally transferable, depending on the weather and thresholds fix past each European union country.