The banking system in Belgium
If you plan to live in Belgium long-term, opening a bank account is a good idea. Not only will you need a bank account to deposit your cheques, but it will also come in handy for saving money for big purchases and specific emergencies.
Why open a bank account in Belgium?
If you wish to stay long-term in Belgium, it's better to open a bank account. Not only do you need a bank account to put your paychecks in, but you also need it to save up money to save for big purchases and emergencies. It can also help you avoid transaction fees and exchange rates that'll hit you if you stick to just your foreign bank account. Plus, it'll be easier to handle your bills since you can just set up direct debits. Should you want to purchase a house in Belgium (either now or shortly), it can be easier to get a mortgage, too.
You should also know that Belgium has been a relatively cash-free society for years. So, having somewhere to store your cash and having a credit and/or debit card will make it much easier to make daily transactions.
The process of opening a bank account in Belgium is pretty straightforward. You only need an ID paper with a legal postal address on it.
When opening a bank account in Belgium:
- there's no issue of language for French-speaking nationals as each bank has French-speaking bank advisors;
- you won't need to go to the same bank where you opened your bank account to make transactions;
- you can open a bank account in Belgium even if you're banned from doing so in your home country.
The different bank accounts in Belgium
You can open a current account (zichtrekening in Dutch) and a savings account (spaarrekening). Some banks will also offer packaged and offshore accounts. Of course, many subtleties exist depending on the type of bank account and the bank (interest rate, payment limit, overdraft). It's better to discuss all of this with your bank advisor, but here are some basic details about each type of bank account.
Current account
You can sign up for two types of current accounts: basic or premium. A basic account won't come with monthly fees, but the things you can do are very limited. You'll be able to use basic banking features online and in person. And while there aren't monthly fees, you'll be charged for simple transactions. You also won't be able to sign up for credit cards, which you might need for some transactions, like buying things online or booking hotels and flights.
For this reason, it's better to get a premium current account. There will be monthly fees, but they'll be worth paying if you need to use your bank account often. You won't be charged for withdrawals at the ATM. If you're lucky, the bank you choose will also allow you to add another cardholder, as well as make transfers in other currencies, which is quite handy as an expat. Some select banks will also allow you to add a credit for a small fee.
Savings account
If you want to save up a nest egg, then it's worth exploring opening a savings account in addition to your current account. Many banks tailor their savings accounts to help you accomplish specific goals, such as purchasing a house or car.
There are specific terms and conditions tied to savings accounts, though. For example, while some will let you withdraw your money whenever you wish, others won't allow you to touch that money for a few years. The former is an instant-access account, while the latter is a fixed account. Make sure you read the fine print about each one to figure out which is better for your situation.
Packaged account
If you need extras on top of your current and/or savings account, look into packaged accounts, which many banks have. Admittedly, these will cost even more than premium current accounts do. But you'll get extra features like insurance, credit cards, and more.
Offshore account
Having an offshore account can be beneficial if you're often hopping from country to country. You'll be able to hold multiple currencies in your account. Not only that, but you'll get special features you won't get with the other accounts, such as fixing currency prices for a certain period of time. You might even enjoy lower taxes on your account holdings.
How to open a bank account in Belgium
The following documents are necessary:
- Proof of address with a legal address (electricity or water bills, for example);
- The form to open a bank account, duly filled and signed;
- ID documentation.
Good to know:
- You can pre-open the bank account before moving to Belgium (some banks offer this service).
- No deposit is necessary when opening a bank account.
Online banking is starting to grow in Belgium, too.
How to open a bank account before you move to Belgium
While some banks require you to be a Belgian resident to open a bank account, more and more are becoming accommodating to expats. So it's straightforward to get started, even if you're not in the country yet.
Just go online to the bank's website. You can sign up, open an account, and then make an appointment to show your proof of ID and legal address once you arrive in Belgium. You can also open a bank account online when you're already in Belgium.
If you're lucky to have international branches in your country of origin, you can also go to a unit in your local area so you have an account before you move.
How to open a bank account in Belgium in person
Opening a bank account in person is as simple as it gets. Many banks will take walk-ins, but to avoid delays and long wait times, we suggest you make an appointment before heading in.
Once you're at the bank, you can ask for an English-speaking agent. They'll then ask what your banking needs are and then set you up with the right accounts.
Methods of payment in Belgium
Belgian banks don't have checkbooks. If you use a check for any reason, there will probably be fees associated. Credit and debit cards are more widely used in Belgium.
Belgian banks offer debit cards. These cards allow you to make payments only if the account has funds. If there are no funds, the amount will be rejected. You can ask for a Cirrus, Maestro, or Mister Cash/Bancontact cards. The most popular one is the last one.
Credit cards are also available, with some conditions. We recommend that you ask for more information directly at the bank.
Using ATMs in Belgium
In the past, you could only use your debit card at your bank's ATMs. Otherwise, you'd be charged if you used another bank's ATM.
Today, this isn't the case at all. You can insert your debit card into any ATM you find, and you can withdraw money without any extra fees. The exception is the ATMs you'll find in convenience stores with no bank logo. You should avoid using these ATMs, as their fees are quite expensive.
Bank account management and fees in Belgium
Managing your account online is entirely free. You can receive your printed bank statements once or twice a month by paying a monthly fee.
Banking fees vary depending on the type of benefit you ask for. If you receive most of your benefits online, the amount is between €40 and €70 a year.
Finally, as for online banking, once your bank account is open, you have to wait two weeks to get the login information (user ID, password.)
International money transfers in Belgium
As an expat, you'll probably need to transfer money in different currencies from different countries.
For transactions with Single Euro Payment Area (SEPA) countries, they'll usually be free, or you'll be charged at the same rate as with a local transfer. These transfers are also quick; they should only take a few days. If you travel to SEPA countries, you can also use your debit card in those countries.
International money transfers are usually cheaper with a bank than at a currency exchange. However, they don't offer the lowest rates around. Instead, many online sites can compare rates for you and transfer money with minimal fees. So you should try that instead of using your bank for international money transfers if you can help it.
Direct debits and standing orders in Belgium
Most Belgians pay their bills through direct debit transactions ("domiciliation" in French and "domiciliering" in Dutch). This is thanks to the fact that their society doesn't use checkbooks anymore. All you have to do is give a company permission to debit money from your account every month, and you won't have to worry about a thing besides checking your statements.
You can also set up standing orders ("ordre permanent" in French and "bestendige opdracht" in Dutch). This can be used for anything from paying rent to building up your savings account.
Main banks in Belgium
There are over 100 banks in Belgium so you won't have a lack of choices. However, the most popular ones are ING, Belfius Banque & Assurances, Beobank, and BNP Paribas Fortis. If you're looking for expat-friendly banks, they include Bank of America, Citibank Europe, HSBC, Santander, ABN AMRO, Rabobank, and Deutsche Bank.
The biggest banks have at least one agency in each town. They are usually open from 9:00 am to 4:00 pm or 4:30 pm from Monday to Friday. Some are open on Saturdays. In small towns, banks are usually closed at lunch, between 1:00 pm and 2:00 pm.
ING Bank
ING is a pretty popular bank used by expats. There are around 700 branches in Belgium, and their website is in Dutch, French, and English.
Their basic current account is the Green Account, which will cost you €40 a year. Their premium account is called the Lion Account, and there are several savings account options available, so make sure to inquire if you're interested.
Belfius Banque & Assurances
There are 590 local branches and over 2,000 specialists who work for Belfius Banque & Assurances. You'll also find 2,400 ATMs of their ATMs in Belgium. Their website is in Dutch and French.
Their basic account is called Beats Pulse, which is free. There are two tiers above it: Beats New and Beats Star. There's only one option for savings accounts.
Beobank
If you're familiar with Citibank Belgium, you might notice it's not around anymore. This is because they've now become Beobanks. They have 192 branches across Belgium, and their website is in Dutch and French.
Beobank has four types of checking accounts: Go, Jongeren (Youth), Plus, and Basic. Those who are looking for savings account options will be happy with Beobank. They've got four different account types to choose from.
BNP Paribas Fortis
This bank's website is in Dutch, French, and German, as well as English. You'll find over 700 branches and 3,700 ATMs in the nation.
If you or a family member are under 18, you can take advantage of the bank's free Welcome Pack. Otherwise, choose from the Comfort Pack (three accounts total) or the Premium Pack (waive the monthly charge if conditions are met).
KBC
If you're looking for a fully automated bank, KBC might be right. Sixty-six of its branches are self-service ones, so you won't have to interact with employees to transfer your money in person. This bank's website is in Dutch, French, German, and English.
Like all the other banks, you have two choices for bank accounts. The Basic Account is free, and the Plus Account will cost you just €2 per month. For those 24 or under, you can get a free young person's account.
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