Banking. Where would we be without it? That’s a potentially loaded question but we all need a bank account these days to pay our bills, get paid, share costs with friends etc. So, what do you need to do to open a bank account in The Netherlands? Can you use a foreign bank account? What banks are there in The Netherlands?
Other questions you may ask are: what card payment system do they use in NL? What about credit cards? How do online payments work in NL? What on earth is Tikkie? Are cheques still a thing?
Student accounts I cover here.
Can I use a foreign account?
The simple answer to this is: yes. But you have to ask yourself about convenience. If you have a Euro account already, it could be an option to start with but longer term you may wish to have a Dutch account, purely for the convenience but also because it makes it much easier for some financial services such as a loan or a mortgage.
What banks are there?
The biggest banks in The Netherlands are:
There are, of course, more banks than just those listed here. ABN Amro is the one most geared towards expats and offers most of its services in English as well as Dutch. For full disclosure I have banked with them since I first opened an account in The Netherlands.
Do Dutch banks charge?
Yes. Unlike in the UK where current accounts are free, in The Netherlands they all charge a monthly fee. A basic ABN Amro account costs €1,70 a month (debit card and online banking included), for example. There are then extra charges for having a credit card or an arranged overdraft.
What about online digital/mobile banks like Monzo?
They exist! But Monzo does not. You can use Monzo in The Netherlands, but you cannot open a Monzo account from The Netherlands.
Dutch mobile banks are:
- Bunq – I used to use this before they started charging €7,99 a month (correct as of December 2020). They offer different price tiers with different advantages. With the lowest tier you get up to 25 sub accounts. Helpful if you like to compartmentalise your money.
- N26 – A German based bank (so you will get a German IBAN) that does not charge for their basic package. They offer different price tiers, which come with different advantages especially for travelling. They also offer different sub-accounts, which you can share with other N26 users.
- Transferwise – The Transferwise Multi-currency account advertises itself on being beneficial for those who need to move money around. You can have an account in nine currencies in the one account (UK, Euro, USA, Australia, New Zealand, Singapore, Romania, Hungary, and Turkey) complete with bank details. You can also hold money in different currencies,such as Japanese Yen, which I found handy when saving for a holiday. Transferwise’s main selling point is offering lowest fees for international money transfer and it is cheaper than your bank would offer. The EURO account gives you a Belgian IBAN. They do not charge for the account. But even moving Euro-Euro incurs a fee.
- Openbank – a Spanish account (so a Spanish IBAN) from Santander. It advertises as free, but there do appear to be fees involved.
What do I need to open an account?
To open your account you will several documents that you should hopefully now have:
- Your BSN number (Burgerservicenummer)
- A valid form of ID (passport or identity card. N.B. your driving licence might not be enough)
- Proof of address (e.g. a rental contract)
- Residency permit if you come from outside of the EU
You can open the account by walking into a branch, but ideally you should make the appointment online. Some banks do allow you to open an account via their app. Naturally, this is the only way for the mobile banks.
What is the payment system in The Netherlands
In The Netherlands, the payment system was known as PIN. While the system stopped in 2012 you will still see the logo in many places. It has now been replaced by Maestro and VPay, although in my experience is Maestro the most ubiquitous.
Paying with your debit card (pinpas) is the most common in the country and you will often struggle to pay with a credit card in many shops, especially in supermarkets. It can be an incredible pain when you are going to pay to only find they do not take your Visa/Mastercard.
The good news is that Maestro is a very common payment system across Europe, so once you have it, you should not have too much difficulty paying across the Eurozone.
Contactless payment is widely used and up to €50 you do not need to enter your PIN. Otherwise you insert your chip into the terminal. Magnetic strips are not used.
What about online payments?
Dutch debit cards do not come a 16-digit card number. This means they are more difficult to use online. For Dutch websites you can use iDeal that allows you to pay easily through your bank.
For non-Dutch websites it is more difficult but you can link your account to PayPal and use that as a payment method.
The mobile banks do offer debit cards with a 16-digit card number with some of their packages.
Otherwise, the other way is to get a credit card.
Do the Dutch do Credit Cards?
Yes, they do. You can request a credit card from your bank, but there is no guarantee that you will be granted one. When I first started working I was on a temporary Job Agency contract and ABN Amro would not permit me one. This was a pain as I had to travel for work!
The most common card is Mastercard.
You can also apply for a card from other sources. For example, ANWB (Royal Dutch Driving Club) offer a Visa Credit Card, while you can also get an American Express, either from AMEX or from KLM and accrue miles.
You should be aware that while it is common in the UK and the USA to earn rewards with credit cards, this is not the case in The Netherlands (KLM AMEX excepted) where the credit card is simply a tool for paying.
Do the Dutch do cheques?
No. Not at all. In fact, you would struggle to cash a cheque here. It can be done but it comes at great cost. I once tried to cash a €100 cheque and my bank would have charged me €50 to do it!
Ok, what on Earth is Tikkie?
Tikkie is an app that allows you to request money from people. So, if you got the bill for dinner you pop it into Tikkie then send them the link via whatsapp (or other messaging services), or get them to scan the QR code. They then pay via iDeal to your account. It’s very simply and quick, especially if you need money from groups. It is widely used.
This all sounds a bit backwards.
Just be glad you don’t have to used ChipKnip to pay for parking anymore. You had to load money onto a chip on your card and this could only be done at a terminal. When I lived in Maastricht there was one that I knew, and it was far from my house. Now, that was backward!
Being Dutched 