3. Opening a French Bank Account - Compte Bancaire

1. 3.1. Eligibility
   3.2. Types of Account
   3.3. Bank Charges
   3.4. Applying for a French Bank Account

3.3. French Bank Charges

Banking charges are on the increase across Europe and France is no exception. Indeed, those items for which a charge is made is also on the increase.

Nevertheless, the costs of maintaining a bank account in France compares well with many other countries, in large measure due to consumer and (some) government pressure to keep down charges.

In their World Retail Banking Survey 2009, EFMA/Cap Gemini found that the average price of holding a bank account in France was €65.80 a year, compared to a Eurozone average of €71.10.

A survey carried out in 2008 by the consumer's organisation CLCV also found that basic banking services (including a debit card) could be obtained for around €45 per year.

The main problem you are likely to find is getting a clear explanation or communication of the tariffs. You will find that banks have their own vocabulary, not always accessible to ordinary mortals. Do not be intimidated by the presentation - get them to explain it to you.

Moreover, because of the complexity of the tariffs and the numerous offers that exist, you are likely to find that it is 'mission impossible' to obtain a clear comparison of tariffs between different banks.

What you will also find is that within the regional bank structure of the mutual banks (Credit Agricole, Credit Mutuel, Banque Populaire) different charges will operate. In th recent CLCV consumer study, Credit Agricole was found to have the greatest disparity in the level of their charges.

As a general rule, French banks have not, hitherto, provided a detailed statement of charges to their clients on a periodic basis. So it has often been difficult to easily establish the charges and their origin on bank statements.

A law passed in January 2008 now requires that banks provide a regular (at least annual) summary statement to their customers of the charges incurred on their account(s). These charges include interest incurred on overdrawn accounts. The new statements are required to be in operation from January 2009.

Items for which there MAY be a fee, will include:

• Package Service
• Supply of Cheque Book
• Bankers Draft
• Credit/Debit Card
• Cash Withdrawls outside of Branch
• Internet Transactions
• Statements
• Stopping a Cheque/Card/Direct Debit
• Foreign Currency Transactions
• Standing Orders
• Direct Debits
• Overdrawn Account

You may also find there are charges for minor items such as re-issuing your PIN number if you lose it, sending a cheque book by registered post, overdrawn letter etc.

The banks are obliged to give you three months' notice in writing of any increase in their tariffs.

Within certain limits banks are free to charge their own fees for unpaid cheques. The law limits to €30 the fee for an unpaid cheque under €50 and a limit of €50 is set for an unpaid cheque over €50. The maximum amount they can charge for an unpaid standing order is €20.