Banking in France
Posted by Admin 21.07.2010 | 0 Comments
Banking in France is quite different to what you are used to in the UK. There are plenty of banks in France so choose one that suits you best and offers the facilities you most want to use. For instance, if you are used to doing a lot of your banking online, then pick a bank which offers this service, although you may be charged a monthly subscription.
Current accounts do not generally offer an interest facility but some banks are beginning to apply a small interest rate. Other types of accounts pay interest and you could choose a bank with a facility to automatically transfer excess funds over an agreed amount in a current account to a savings account. Some tax-free accounts are also available.
Unless you are fluent in French you will want an English speaking bank, which are more easily found in large towns rather than rural areas.Your main branch could be in a major town with you conducting regular transactions online or through a savings account that is connected to a bank. The French post office, La Poste, now has a banking subsidiary, La Banque Postale, whereby most day-to-day transactions can be made through local post offices.
Residents
If you are planning to become tax resident in France you may decide to close your British account in case it becomes necessary to prove you have cut ties with the UK. Many expatriates open an offshore account in the Isle of Man or Channel Islands instead. If you do retain a UK bank account or remain living in the UK, you could look for a French bank that ‘corresponds’ with your UK bank, making bank transfers easier, helping to avoid delays and keeping costs down. Some UK banks have an arrangement with chosen French banks and some French banks have departments for British expats.
You will need a French bank account to make mortgage repayments and to pay utility bills as well as other bills that need to be paid in euros such as house repairs, property agents, local taxes etc. A French bank account also allows you to place monies locally and you can limit damage from currency exchange rates by not making a deposit in sterling every time a bill needs to be paid.
If you plan to stay three months or more and become a French resident you can open a current account (compte courant). You will need to show certain documents, which varies slightly from bank to bank, but it is usually proof of your identity such as passport or residency permit and proof of address such as a utility bill or rental/sales contract.You may also be asked for written proof of income for an overdraft to be set if you should wish one.
Non-residents
A non-resident of France can open a non-resident account (compte non-résident). For this you need a credit card or bank statement and utility bill, all showing your address and no longer than three months old.
Resident and non-resident accounts are similar. As a nonresident you may not be allowed a credit card or overdraft. Joint accounts can be set up; the two holders will have the word ‘et’ or ‘ou’ between the two names on cheques. Where the names are joined by et i.e. M et Mme, both account holders must sign. If the names on an account are separated by ou i.e. M ou Mme, either holder may sign.
Debit cards
Once you have opened an account you will be offered a carte bleue (CB), a debit card with which you will be able to pay for many purchases in France. Most supermarkets, restaurants, shops, train and petrol stations, autoroute tolls (péages) and many other outlets accept them. You will be able to withdraw cash from any French ATM cash machine and if you have an international carte bleue it can be used in most countries.You will be charged an annual fee for these cards, around €30 or more. The carte bleue can only be used with a PIN (personal identity number) and not a signature.
Your bank account will be debited immediately (débit immédiat) when you use the carte bleue to withdraw cash, but with most other transactions you can choose to have the amount debited at the time of the transaction or at the end of the month (débit différé). Remember that the carte bleue is a debit card so you need sufficient funds in your account to make payments whenever they are taken.
Cheques
There are no cheque guarantee cards although you may be asked for proof of identity when paying by cheque which is treated like a cash transaction in France. It is illegal in France to issue a cheque or post-date a cheque if your account is overdrawn. If a cheque bounces you will be blacklisted immediately by the Bank of France, which can make it difficult to obtain credit or open another bank account in France.
Value dating system You also need to be aware of the French banks’ value dating system whereby the balance you are given on one day may be different to the actual balance. If you transfer money from abroad into your French account the bank will consider that it has been received one day later than it actually was. When you issue a cheque from your account the bank usually considers that it was received two days prior to it being cashed. Be careful when transferring money and making out cheques or you could find your account momentarily overdrawn and you may be charged interest accordingly.
RIBs and TIPs
Your RIB (Relevé d'Identité Bancaire) contains details of your bank account such as bank code, sort code and account number. It can be found in your cheque book and you will be given it on a separate slip of paper.You will be asked for your RIB when setting up monthly payments to a utility provider or to receive regular amounts into your bank. A RIB ensures against your account details being entered incorrectly.
A RIB is also needed when setting up regular payments using a TIP (titre interbancaire de paiement). This is a way of making monthly payments in that when you receive a bill from a service provider you can pay it by signing and returning a detachable slip called a TIP. This is already made out with your bank details, and authorises the provider to debit your account with the relevant amount due.
Opening hours
French banks usually open from 8.30-9.00 until 16.00-17.30. Smaller branches may close during the middle of the day. Some banks open on Saturday mornings and if so, will usually remain closed on Mondays.
Bill Blevins is the financial correspondent with Blevins Franks Tel: 020 7018 2126 www.blevinsfranksinternational.com