2. Which French Bank?
- 2.1. French Banks
2.2. International Banking
2.3. Online Banks
2.4. Which Bank?
2.2. International Banking & Offshore Banking
If you wish to run your banking affairs from the UK, then you will find that all of the major UK banks offer an international bank account facility. These accounts may be either Sterling or Euro based.
Whilst the rules do vary, many require a high minimum balance and fees can mount. You will also find that interest rates are generally better with a Sterling account.
If you need to have access to a branch office in France, then both Barclays and HSBC have a presence in most of the major cities.
However, although Barclays Bank offers an international banking service, the branch network in France is very limited.
Barclays is one of the few banks to offer reasonable interest on current accounts, but their bank charges seem to be higher than most.
The branch network at HSBC is higher, with about 700 branches in the country, but they have tough conditions on minimum balances.
Top Tip!
You may well find that your existing UK bank is prepared to let you retain your account when you relocate overseas. Whilst you may not have branch facilities abroad, you can still use it as an internet bank.
If you do so, you can probably open a Euro account alongside your existing home bank account. On this basis, you should be able to withdraw cash from French ATMs using a Euro debit card, without incurring a foreign exchange charge. However, expect to pay a cash withdrawal fee.
Most of the larger UK building societies also offer internet based international bank accounts, with generally attractive rates of interest and lower fees. Nevertheless, their focus is on savings, rather than day to day banking, so not all will offer a cheque book or international debit/credit card. With some building societies you need a UK postal address before you opened an account, but you would be allowed to keep it when you relocated abroad.
Finally, you may want to consider an offshore bank account, where there is the possibility of being granted a higher degree of privacy over your financial affairs.
However, particularly in the case of offshore accounts in the UK (Isle of Man, Jersey, Guernsey) you will need to provide plenty of supporting evidence about yourself and your place of residence, banking charges may not be inconsiderable, and interest rates on savings are often less attractive.
Be aware also that, with the growth in Tax Information Exchange Agreements between France and some tax havens, if you are subject to a tax investigation in France, there are limits as to how much you will be able to protect your privacy. There are increasingly, 'no hiding places'.
Indeed, you are legally required by the French tax authorities to declare all foreign bank accounts held by you on your tax declaration (you only need to do it once, unless it changes). If you fail to declare an account, you can be fined, and with the growth in bilateral tax agreements with offshore countries, there is every prospect that you will eventually be found out.
One of the best offshore accounts we have found is the on-line account held through a building society. Thus,
Halifax International look to offer fairly attractive terms for such an account.
One advantage of banking offshore is that it is possible to escape the reporting requirements of the
European Tax Directive, through the payment of a 'witholding tax' on interest earned on savings. However, as we state above, if you are legally required to declare foreign bank accounts to the French tax authority, there may be little benefit in this approach.
There is also less consumer protection offshore than there is available on the mainland, so if you you do take this route, you may want to stick to a subsiduary of one of the larger banks.
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Finance & Taxation