THE STUNNING BEACHES OF LA SAFOR, VALENCIA - EARLY MORMING
I had to grimace recently when I saw an article in El Pais (‘conservative’ national Spanish newspaper) which reported that the economy ministry in Spain is about to issue an order for banks in Spain to clarify their charges to customers. Evidently, along with Italy, Spanish banks are the most costly banks in the EU. This, I am afraid, comes as little surprise.
Certainly, my own experience of banks in Spain (and that of many friends) is that it can be very difficult to know quite what you are being charged for – whilst finding that Spanish banks can be very arbitrary about what they do, what they charge and when they charge it!
The key, of course, before opening an account with a Spanish bank, is to ‘nail down’ all your intended Spanish bank’s charges with one of their assistants and to then get this confirmed in writing. Be too trusting and naive and you may well be in for a shock at some stage.
On the plus side, appreciate that in Spain you can negotiate pretty much everything and this is as true for Spanish banks and their charges as it is for vegetables in a marketplace over here. This is quite unlike the UK, for example, where the tendency of many Britons is to believe that UK bank charges are set in rock and that you do not (and cannot!) negotiate any ‘standard’ bank charges.
Spain is different and you should take advantage (and enjoy!) bargaining hard with your intended Spanish bank – and this should happen even long after you have had an account with the bank, if there is something new that you want them to undertake.
In fact, often as a foreigner, you have far more bargaining power with a Spanish bank than you may recognize. Often you are their ideal customer and this is particularly true at the moment when the Spanish banks are desperate for liquidity and recognise that you will probably be bringing to the bank significant cash and probably an on-going pension or investment income. In short, Spanish banks want your business – so be aggressive about getting the best deal possible!
There are also many banks to choose from in Spain, albeit rather less now than before the boom. However, you are still spoilt for choice and you really can go from one to another to get the best deal. That said, make sure that you look for a bank that is properly liquid and unlikely to have future problems, so be wary of some of the Spanish Cajas (the savings banks in Spain). At present, the Spanish government banking guarantee is a maximum of 100,000 Euros per depositor in each credit institution.
Finally, if you are thinking of banking in Spain (or already have a bank account in Spain) then may I suggest that you follow the guidelines that I have set out in this article about banking in Spain.
Incidentally, in case you think that I am exaggerating about negotiating with Spanish banks – I should, provide a personal example of how effective negotiation with Spanish banks can be:
Some years ago I was appalled by a huge fee that was being asked by my Spanish bank (at the time!) for a banker’s draft (some 500 Euros!). I decided to ‘dig my heels’ in and then spent over an hour and a half negotiating with a lady manager. Finally, we came to an agreement (subsequently honoured by the bank and myself) that the 500 Euro charge for the banker’s draft would be reduced to 30 Euros – and a decent bunch of flowers!
Nick Snelling - Culture Spain
RELEVANT ADDITIONAL INFORMATION
Banking in Spain - the four secrets to banking in Spain
The Spanish property crash and the Banks
Banks in Spain – how safe are they?
I agree Nick, almost everything is negotiable in this life.
As far as UK banks are concerned, even they will use a modicum of ‘discretion’ in setting a charge. With the boot on the other foot, I have submitted invoices to banks and Scottish Wids for letter writing and telephone calls in pursuit of incompet service and always been paid in full. In fact Scot Wids threw in an ‘ex gratia’ £250 once, for aggro caused.
But my best reduction in charges to date was not with a bank but the company constructing the motorway interchange M4/M25. A the time it was the biggest single civil engineering project in Europe. Not only was an 8 x 8 lane m/way interchange being built but it involved re-routing a railway line and re-routing a river.
I rocked up one day, got to see the project manager and asked him if my client [Ford UK] could use the site for a print-ad shoot for a cement mixer vehicle. After convincing him that we would be as little bother to the project as an ant on an elephant he agreed – but wanted £2500 for the day.
I explained that we were not talking Hollywood here but something like “What Cement Mixer” magazine and not even a colour shot but soot and white-wash.
He asked what figure I had in mind. I suggested £250. He said that £250 was a sum so small that to him it was invisible but that it would make a useful addition to the men’s Christmas beano fund.
So from £2500 we shook hands on £250.