All banks around the world are just businesses trying to make the most out of you and your money so what can you do to get deals from them?
Below I show what I have done to get the best out of them.
Not many Spanish banks now offer free banking. Even though there is now very intense competition in the Spanish banking market, bank charges and commissions in Spain are high compared to other countries. You can expect to pay account opening and maintenance fees, as well as charges for specific transactions.
These tariffs do vary significantly between different banks, so before opening an account, you should do a comparison of the tariffs.
These charges and tariffs applicable on your account can be negotiated with the bank manager in your main branch.
Davids Top Tip.
17 years ago when i first moved to Spain i was friendly with the bank manager of my bank as he was living in my building at the time, back then i was paying throw the nose as do most Brits when they first move here.
After a few years i asked why i was paying so much for curtain charges and he told me they could reduce it there and then. It was easy i just had to ask him. He told me that the charges i was paying where negotiable to some extent. He also said that banks want new business so offer deals to new accounts if you ask and if you put all your house bills direct debits and payments through that bank, this is how they earn their money.
I moved house here after a few years and wanted a mortgage so after speaking to my own bank and seeing what they offered me i went to a new bank and got them to offer me a better deal and then did even better with another bank a few days latter.
The only inconvenience is that you have to change all your direct debits house bills and mortgage over to the new bank. They bend over backwards to help if you already have a mortgage and change it to their bank. They can see that you are paying it and its all set up so changing it over to the new bank is in their interest.
Yes theres loads of papers to sign and it is some work.
I have bought several properties here in Spain and always do this now. At the moment i have a new mortgage with Bankia as they gave the best mortgage when i bought my land here but as soon as the house is finished later this year i will be straight out to find a better deal.
Remember every few years banks change their deals and charges so always ask and stay up to date with what they are offering.
Ok so it is a little stress if you dont speak Spanish but it saves me a lot of money over the years. Also you must speak to the bank manager in person and NOT his assistant. When i go into the bank for the first time i ask to see the manager and if he is busy i come back another day. The first meeting with him should be friendly and just asking about what they can do for you if you change everything over to them. Tell him what you have and are paying now ie mortgage and money you have Then go back a week later after you have really thought about it.
You also need to ask then about the bank charges and how you can get them down. Only the manager can do deals for this so only speak to him. I was offered a new car the last time i moved banks and they started from 149 a month over 4 years all maintenance and servicing and insurance included.Then after 4 years start all over again with a new car. I didnt need one at the time but will do this the next time i change banks.
Dont waste time with the bank assistant speak to the manager always.
So remember to get to see the bank manager and not the assistant as he is the one that will get you the best deals.
What Bank do you use and are you happy with them?
If these tips have helped please leave a comment.
Check out our new Expats podcast below…