- Nov 17, 2020
- 3 min read
Chances are Portuguese is not your first language, opening a bank account in a foreign country is right up there with a trip to the dentist. How long and how painful will it be? Portugal is likely to not be the only foreign country you will be visiting to either. If you have not looked too closely at your current bank's exchange fees, you could be charged exorbitant fees and giving you a terrible exchange rate if you are moving money over to Europe from overseas. 3 - 5% in fees may not be an issue for one or two weeks abroad but if you are a frequent traveller, these fees will soon pile up. Who wants to be lining the pockets of your bank by hundreds of euros in donations?
Are you aware that there are banks that charge:
No monthly fees
0% markup on foreign exchange
0% ATM withdrawals
and the best part - you can open an account from anywhere in the world in the time it takes to brew a cup of coffee.
You can open an account from anywhere in the world in the time it takes to brew a cup of coffee
Sounds dubious? Welcome to the world of 'digital banks'. These provide on-line only banking, with no branches or physical location providing an alternative to the “old school” bricks and mortar banks (and the old-school way of thinking).
How did digital banks grow so quickly?
- access to your funds 24/7
- instant updates to your banking data showing spending analytics
- options to safely invest surplus funds
- control at the touch of your smartphone with features to freeze and unfreeze your card instantly, in case of loss or possible fraud
In a nutshell, forget about waiting on hold whilst your call is transferred to various calls centres around the world . You just need your smartphone, your ID and an internet connection. A delivery address however is needed in Europe.
How safe are digital banks?
Digital banking has proliferated how we conduct our banking and there are no signs of it slowing down soon. Made popular by millennials, that are already comfortable using their smartphone to shop online and pay bills, digital banking is a natural step. The level of security in digital banking is highly personalised although like anything it is not 100% foolproof. Common sense prevails to not use public WiFi networks when you are banking online and easy to guess passwords.
Which digital bank to choose?
With the rise of fintech and the demand for online banking through mobile apps, there will be more and more choice for banking in the future. There is no harm opening accounts with several and you can see which app, service and fees feels right for you. Some banks that should be on your short list are:
Highly successful with over 10million customers in Europe. The app includes free features such as: no fees for currency exchange, multi-currency accounts, free international transfers, and free investing for stock, gold, and crypto.
The first digital bank on the scene from Germany offers free retail and business accounts and no hidden fees.
A good choice for multi-currency accounts, this trusted European bank has free business accounts and is known all around the world.
Ideal for residents in the UK and Europe offering a free account and debit card with no proof of address required.
Opening an account with a digital bank is an efficient way to get a Euro bank account fast
Opening an account with a digital bank is an efficient way to get a Euro bank account fast. If you plan to stay in Portugal you should also look at getting an account that uses the Portuguese banking network, Multibanco which is the most widely accepted payment system. Although to do this you will have to bite the bullet and go to your local bank's branch. The waiting lines and monthly service fees are not over just yet.
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