Best Spanish Bank For English Speakers [2022 Guide]

If you have recently moved to Spain or plan on settling there in the near future, it is natural to worry about how you will manage your life here. The language barrier in particular can be a little daunting. Couple this with the formalities of the banking system, and it might seem like you have a mammoth task at hand.

But not to worry; there are numerous banks in Spain which are ideal for the needs of expats and which offer their service in English to make your transition to the new country seamless. This guide will help you choose the best bank for yourself when settling in Spain. 

Quick Comparison

You will need to open a bank account immediately to look after your money when you move to Spain. This is essential since you will need to begin paying rent and bills straightaway. Here is a quick comparison of the banks we recommend:

	N26	Santander	CaixaBank	BBVA	Banco Sabadell
English website and support	√	√	√	√	√
No monthly fee	√	16 euros per month	15 euros per month	√	√
Free payment card	Virtual MasterCard	Debit card	×	Debit and credit card (if you open an account with multiple holders)	Debit card
Credit card available	×	√	√	√	√
Investment options	×	√	√	√	√
Loan possible	√	√	√	√	√
Apple and Google Pay	√	√	√	√	√
Free cash withdrawals	3 free ATM withdrawals per month	√	√Charges applied on out-of-network ATMs	√4.5% at international withdrawals	√Hefty fees on out of network withdrawals
No foreign transfer fee	√	2.95%	3.8%	0 to 18 euros	√4% for non-SEPA regions
Overdraft possible	√	√	√	√	Unarranged only
Cash deposit possible	√	√	√	√	√
Available support	Chat bot and live chat	Online and on call	Online and on call	Online and in-person	Online and in-person
Online or bank branch	Online	Online and branch	Online and branch	Online and branch	Online and branch

6 Criteria To Choose The Best Bank In Spain

Security Level

The most important thing you should look at is whether your money is safe at the bank you are opting for. A good bank will have the necessary protection in place to prevent fraud or at least protect its customers in the rare instance that fraud does occur. It will also have insurance on your deposit up to a certain limit, which is provided by federal institutions. This is for protection either if the bank fails or if you are a victim of theft, e.g. if someone steals your debit card. While most banks and financial institutions are insured against such circumstances, some are not. You should confirm if your chosen bank offers you protection.

Online Banking Vs Branch Office In Spain

Some people prefer a bank with a physical branch for their needs. Others will prefer online options to pay their bills or transfer money if they cannot visit a branch because of other commitments. Whatever you find convenient will depend on how you are used to working.  If you make a lot of transactions using your account, an online option would probably be more convenient and end up saving a lot of your time.

If you are looking for a bank with physical locations, it will also matter if there are a number of locations which you can access easily whenever required. It might help to have a bank located close to your home or office (or any other place you frequent).

Some banks even combine online and physical branches in the form of digital services. These give you the convenience of online banking and the comfort of knowing you can visit the bank personally for bigger issues that you face.

Types Of Cards Offered In Spain

Banks offer a variety of cards to make your experience smoother and managing your expenses easier.

Credit Card

A credit card lets you take out credit or borrow money from the bank against your card. This can be done to make purchases or even pay deposits for bigger purchases like a car. You can then pay off the money over time, but will have to pay an interest rate on all your pending payments. There is an option to use credit cards as interest-free loans, but that can only happen if you continue to pay off the balance by the due date.

Your borrowing limit or credit limit will be decided by the bank. This will depend on your payment history, income and credit score. As long as you are paying off the minimum amount that is required monthly, your bank will allow you to continue spending up till your limit. You can also get cash back and rewards by spending using your credit card.

Debit Cards

Debit cards are also a popular choice. The most common types are the Visa and Mastercard. They allow you to make the same kind of purchases as on a credit card, with the only difference that the amount comes directly from your bank account. Therefore, the maximum limit you can spend does not depend on other factors or is decided by the bank, but it is limited by how much money you have in your account. It is also easier to qualify for a debit card, which has fewer requirements than a credit card.

Prepaid Credit Card

Prepaid cards differ from the above since they function as more of a cash alternative than anything else. You can load money onto the card in advance, and can only spend what you put into the card and not more. The money spent is directly deducted from your card balance and not your bank account. A major feature that makes them stand out is that you don’t need a bank account to get access to a prepaid credit card. It can therefore be used for budgeting and money management, and offer a safer alternative to cash.

Bank Account Fees in Spain

Each bank has its own fee structure, which can vary a lot. In some banks, you might be able to get an account that has no annual fees or charges for basic transactions. These can include monthly fees, fees per check and even for account assistance (like using customer service and talking to a representative in the branch). Your bank might even waive these fees as long as you meet certain criteria like maintaining a minimum balance.

Online banks usually offer lower rates. This is probably due to the fact that they have very few branches and hence lower operating costs overall.

Cash Withdrawals

If you use cash regularly in your everyday transactions, you probably visit the ATM to get it. Your bank might or might not charge fees for ATM usage. Some banks could even rebate your ATM fees up to a certain monthly limit. Moreover, if you are a frequent traveler, for business or otherwise, you should also consider if foreign withdrawals have an additional charge. In this case, a large network of your bank’s ATMs will be helpful since most banks do not charge any additional fees on own-network cash withdrawals. There’s also a lot less hassle if you don’t have to travel too far to withdraw money.

Interest Rates

There are two kinds of interest rates which are relevant for a customer. One is the rate charged when you borrow a loan or credit from the bank. The other is the rate paid out to you on the money deposited in the deposit account. In an ideal world, you should be able to get higher than average rates on your savings account and lower than average rates on loans, both in the same bank. The best rates are often offered by online banks or credit unions. 

Most savings accounts will not charge you very high fees otherwise, so interest rates can be a determining factor for which bank to choose. A strong interest rate can give you a degree of protection against inflation.

What Is The Best Spanish Bank For English Speakers?

N26

N26 is a leading neobank with its headquarters in Germany. It is a recent financial technology setup and was founded in 2013. It is completely online with no physical branch, and currently serves more than seven million customers. Its huge variety of services can be accessed through the mobile app, which includes performing assets and managing assets. If you are an expat or a frequent traveler, this is an ideal choice for you.

Pros

• You can open a bank account online in just 10 minutes
• N26 has the license to give you a Spanish IBAN (even though some other online banks might face limitations)
• No maintenance fee, and a free virtual MasterCard debit
• Customer support in multiple languages including English, Spanish, German and French
• International transfers can be made at very low rates
• The app provides insights and statistics to help with budgeting and money management
• Advanced security features

Cons

• No physical branches for the bank
• To get a physical MasterCard you need to pay a 10 euros fee
• 1.7% fee on ATM withdrawals in foreign currencies
• You cannot pay your taxes through this bank
• Insurance is available only on some accounts but not the Standard one
• Chat support can be a bit slow at times

Santander

Banco Santander is a multinational financial services company based out of Spain. Although it is primarily known for its European operations, it also has a presence in America and Asia. It is a well-established global giant in the industry and offers online banking services for the convenience of its customers too.

Pros

• Opening an account is a quick and easy process
• ATM withdrawals are free of cost in Spain, and in 30,000 other ATM machines globally
• The mobile app makes money management convenient
• Overdraft fee is only charged if overdraft amount is more than 100 euros

Cons

• Overdraft fees when charged, can be very high
• Low rates offered on savings account
• The basic checking account earns no interest

CaixaBank

Though this is not a very large bank in terms of its revenue and assets, CaixaBank currently has the largest number of branches in Spain. It is also a recently set up bank, founded in 2011. It serves more than 15 million customers, who have access to both online services and physical branches.

Pros

• Customer service in five languages including English
• Customer support helps out expats in issues like utility connections, and legal and administrative issues too
• Offers 24 free SEPA transfers in a year
• Up to 3 free document translations in a year
• Exchange rate is predictable and the bank has a standard margin, which makes it easy to calculate the expected expense even before the transaction

Cons

• Maintenance fee of the HolaBank Account is a hefty 140 euros
• Customer support is known to be slow and not streamlined, with the result that not all queries are answered timely
• High fees for international transfers
• Payout options are limited, that is, customers can only send money to bank accounts and not for cash pickup or as mobile money

BBVA

The Banco Bilbao Vizcaya Argentaria or the BBVA is one of the oldest banks in the country. It currently operates in more than 30 countries globally (including South America) and is Spain’s second largest bank. Its services are easy to use and can be accessed either at one of its many branches or online in the app. There might be some restrictions for Asian or American clients, so look into that before you consider this bank.

Pros

• Multiple options for commission-free accounts
• No requirements of a minimum deposit if you want to maintain your fee-free status
• The latest Aqua debit card offers greater security by not printing the account number on the card
• My Conversations tool lets you stay in touch with bank staff and advisors whenever needed
• Possibility of opening an account with multiple holders (in which case you can also get a free debit card)
• Online and in-person customer service

Cons

• Currency conversion fees
• Fees for withdrawals in foreign currency, and at non-BBVA ATMs
• High overdraft fees: fee of 4.5% with a minimum amount of 15 euros. There is also a 30 euros charge if the overdraft exceeds 18 euros
• Saving interest rates are very low

Banco Sabadell

This is the fifth largest bank in Spain, and founded in 1881. It has a global presence including the UK, US and South America. In Spain too, it is a well-known bank and has a great reputation. It also has a large network of branches and expat friendly policies. Its Key Account is targeted exclusively towards the needs of their foreign clients.

Pros

• Account opening is quick and easy
• Option for a free account if you are under 30 years of age
• Free credit and debit cards
• Reliable customer support available in English and Spanish
• Free transfers within the EU region
• Free translation for 10 documents in a year for foreign clients

Cons

• Currency exchange rate will cost a 4% margin, much higher than other currency brokers
• Arranged overdraft is not available. But unarranged overdraft will have a 4.5% fee

Conclusion

Choosing a bank is not an easy decision, and it is likely to change over the course of your life. This is because your financial needs might be evolving and investment and saving goals could change. You can even have multiple accounts in different banks depending on which suits your needs the best.