 The Bank of Spain (Banco de Espania) is the controlling body of all banking institutions in Spain, and they run a well established and extremely modern system which has its head office in Madrid and a branch in all the provincial capitals. Banks in Spain are categorized as clearing banks or savings banks and along with many national banks there a number of foreign banks who operate in Spain.
Clearing Banks
The biggest banks in Spain at the moment are the BSCH (Banco de Santander y Central Hispano) created after a merger of the Santander bank, the Central bank and the Hispano bank, and the BBVA (Banco Bilbao Vizcaya Argentaria) again a bank formed by joining of two other large banks including the once state owned Argentaria bank. There are branches of the main banks in most large towns throughout Spain with the large cities having two, three or more depending on its size. Smaller Spanish towns usually have a limited number of banks (maybe one) and you would be hard pushed to find a village which even has one.
Foreign Banks
Foreign banks, as is to be expected, are concentrated mainly in the coastal regions and the big cities of Spain as this is where the majority of their customers can be found. Some of these banks have recognisable British names, such as
Barclays, Halifax and the Royal Bank of Scotland, but are a totally separate entity from their British owners. Citibank and Chase Manhattan from America can also be found, as can various other foreign banks including Deusche Bank and several Arab and Scandinavian Banks.
Savings Banks
If you come across a bank displaying a ‘cajas de ahorro’ sign outside then you know that you are dealing with a savings bank. These are very common in Spain and apart from a few of the bigger ones tend to be local banks operating in one region or province. Part of the profits from savings banks are invested in social associates and, as popular as they are, they are no match for even the smaller clearing banks.
Opening Hours
Normal opening hours of banks in Spain are shown below but they can vary from bank to bank and from region to region:
Monday - Friday: 8:30 or 9:00 until between 13:30 and 14:30
Saturday: 8:30 or 9:30 until 12:00 or 13:00 during the winter months.
Banks are closed on Saturdays from June to September.
Internet Banking
More and more Spaniards are now doing their banking online as internet banking has gained in popularity in recent years. Almost all of the banks in Spain now offer online services which, once you join, allows you to carry out most of the banking operations you could do when you visit a branch.
ATMs
 Cash machines (or ATMs) are plentiful in Spain and can be found everywhere, even in some of the (larger) rural villages. These are very sophisticated machines which allow you to access your
bank account and conduct a number of different transactions such as checking your balance, paying in money or even making cinema ticket bookings.
ATM machines are operated on three networks by 4B, ServiRed and 6000 and you can usually withdraw cash from any of the machines on any network although if it isn’t linked to your bank, there may be a small charge.
Bank Charges
A large chunk of some banks operating in Spain is made up from the charges they levy on their customers. Most banks charge for just about everything and the charges in Spain are quite expensive when compared to bank charges in other countries. Some particularly high charges are for the paying of cheques into your account or for bank transfers; therefore, if you plan on making regular bank transfers, you should consider the additional costs incurred. It is not uncommon in Spain to get to know the local bank manager personally so sometimes treating them to lunch in the local café may be worth your while in negotiating more favourable bank charge terms!
Bank Transfers
If you have a holiday home covered by a mortgage and need to transfer money abroad on a regular basis, then it is worth leaving it to foreign currency brokers who generally get a much better currency rate and will charge you less (or sometimes nothing) to transfer money abroad than your bank will.
Opening an Account
Anyone over the age of 18, resident or not, can open a bank account in Spain. All that is needed is proof of ID such as a passport. Residents will also need to present their residence card details whereas non-resident property owners will be required to provide their NIE number, a number which all foreigners who own property must have in order to buy property.
Types of Accounts
Current accounts and savings accounts are the most popular types of account opened at banks in Spain. Current accounts in Spain operate much the same as in other countries where you are issued with a cheque book and an ATM / debit card although it must be remembered that cheques are not normally accepted in most shops. Interest is not normally paid on current accounts, although some banks do pay a nominal amount. You will receive a monthly statement of transactions on your account.
Saving Accounts
The main difference between current accounts and savings accounts is that the latter attract interest albeit, currently, this is rather low and is only just above the current account rate offered by some banks. Savings accounts holders are issued with a cash book in which to record transactions and although some banks give you the option of a debit card, a cheque book is not an option.
Investment Accounts
It is possible to invest your money in a long term savings account although there are normally limits imposed on how much money you can withdraw or even withdrawing money before the agreed time period has elapsed and interest rates vary from bank to bank.
Investment accounts are linked to the stock market and, as the risks are higher, then so is the interest offered, although because of these risks, there is always the chance that you could loose some or even all of you initial investment.
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