Luxembourg is among the smallest countries in Europe, bordered by Germany, France, and Belgium. The country is majorly rural with incredible sceneries, and rich culture, and is the official European Union (EU) capital. Regardless of its geographical footprint, Luxembourg has a well-established and efficient banking system.
Benefits of having a bank account in Luxembourg
All banks in Luxembourg offer an International Banking Account Number (IBAN) which allows the user to access and operate his/her account from anywhere in the Single Euro Payment Area (SEPA). While most accounts don’t charge for maintenance and operations; some accounts do charge a monthly fee of up to 10 Euros, subject to the services offered to the client. It is important to mention here, that majority of the transactions that take place are cash-based. Hence one must gather information on the charges their bank of choice applies on cash transactions before opening the account.
Most of the banks in the country offer services and support in English, French, German, and other regional languages.
Who is eligible to open a bank account?
A person above the age of 18 is legally considered to be an adult, thus eligible to own a bank account, subject to the conditions that he/she is living in the country, or plans to live in the near future, has either gainful employment or a student at a local university.
What are the requirements for account opening?
The requirements may vary from bank to bank, however, some of the most basic requirements are:
- National Identity Document (passport/driver’s license/ID Card)
- Proof of residence in Luxembourg
- Proof of address (rental contract, sales deed, utility bill, etc.)
- Verified source of income, if applicable
- Verified enrollment in a school, if applicable
- Credit card score, if available
- A national tax number, either from Luxembourg or the home country of the applicant
Process of opening a bank account
Almost all banks in the country offer online account opening options from anywhere in the world. As long as the applicant has the necessary documents, an applicant can either post the paperwork, submit it online, or in person at the bank, the banks remain indifferent to the fact.
Usually, the process follows as below:
- Copies of all required documents.
- Identity verification – either by meeting the bank manager or online through various tools.
- Maintain a postal communication channel if documents are submitted online or through the post.
- The confirmation, PIN, card, etc. will arrive at the client’s given address via post.
- The account can then be activated online.
Online banks
Though having a bank account at a reputed bank that has a history to boast is surely a safe thing to have, however, modern online banks offer more services at the fingertips of a user. You just need to download the application, follow the registration process, provide the necessary details, upload the compulsory identification documents, and voila! You’re all set to go.
Top-performing banks
Luxembourg has more than 120 banks, and all of them offer more or the same services with similar delivery protocols. However, based on the basis of trade volume, and deposits, here are Luxembourg’s top-performing banks.
- Deutsche Bank SA
- Banque et Caisse d’Epargne de l’Etat (BCCE)
- Societe General Bank & Trust
- BGL BNP Paribas
- UniCredit Luxembourg
- Banque Internationale a Luxembourg (BIL)
What are N26 banks and what is their importance?
In Europe, a financial servicing institution is considered to be a bank only if it has a banking license such as the N26. A bank license authenticates, approves, and verifies that the bank has a sound financial, social, and economic standing. People dealing with a licensed bank feel safer and secure.
Following a simple online 4-step process a person can establish an account at an N26 licensed bank.
- Confirm email and other personal details such as an address, financial statement, employment, etc. via the online application of the bank.
- The type of account you want to operate, such as current, standard, saving, etc.
- Your identity is verified through various tools, such as a picture of you holding your ID card, etc.
- Once your identity has been verified you may operate the account.
