Overview: Open a Bank Account in the Netherlands
Opening a new Dutch bank account is an important step as soon as an individual shifts or resides in the Netherlands. If you are considering opening a business in the Netherlands, then opening a bank account is beneficial as it will help separate your business finances from your personal finances.
Prior to opening a bank account in the Netherlands, you must check the type of bank where you wish to open your account. You must consider various factors before you open a business bank account in the Netherlands such as the availability of ATMs, ease of international transfers, account maintenance charges and other factors.
Through this article, we will be covering the procedure to open a bank account in the Netherlands. Additionally, we will be covering other topics such as the types of bank accounts, the best banks and the documents required to open a corporate bank account in the Netherlands.
Few terms to understand
SEPA– It stands for Single Euro Payments Area. It neglected any kind of difference between cross-border and domestic euro payments. It came into existence on February 1, 2014, and is led by the European Union.
IBAN- It stands for International Bank Account Number. It is a unique bank account identification number that helps in the easy functioning of your bank processes and is accepted worldwide.
Now that you are familiar with these terms, the next step should be to check the banks where you can open your bank account.
How can a business in the Netherland open their Dutch bank account?
The process to open a business account in the Netherlands is the same as it is to open a private bank account. Along with the required documents, you should have other necessary documents as well such as the KVK number, turnover record.
With the record turnover, it is decided which category of the bank account you will be holding. You can always get a guide on how to open a business bank account in Netherlands.
Types of banks in the Netherlands
In the Netherlands, there are various types of banks catering to different needs and functions.
Some of the main types include:
- Commercial Banks: In the Netherlands, individuals as well as companies can choose from a variety of financial services provided by commercial banks. They offer investment banking, treasury services, corporate loans, and trade finance, among other services.
- Savings Banks: Savings accounts, term deposits, and various investment choices meant to assist clients in increasing their savings are the main offerings of savings banks.
- Cooperative Banks: Members of cooperative banks, who are frequently also the bank’s clients, own and run the institution. In addition to providing a variety of banking services, they frequently place a high priority on social responsibility and community involvement.
- Online Banks: Since digital banking has become more popular, online banks in the Netherlands provide all banking services through digital platforms; these banks frequently offer savings account interest rates that are higher and fees that are cheaper than those of traditional brick-and-mortar banks.
Types of bank account available in the Netherlands
Solo Bank Accounts
If you wish to open your bank account in the Netherlands, with the required documents you can have your Dutch bank account.
Joint Bank Accounts
If someone wishes to open a bank account with another person, there is an option to open a joint bank account provided by the Dutch government. You can connect to get the details regarding the opening of a joint bank account in the Netherlands.
Children saving account
There are a lot of similarities in the functioning of a children’s savings account and a regular savings account. Usually, the children saving account in Dutch have an interest rate of 0.15% per annum. This account does not work with a minimum monthly deposit but has more strict rules as compared to other accounts. The age criteria to have children saving account is between 11-17 years old and is converted to a saving account as soon as the child turns 18 age limit.
To open a children’s bank account, parent involvement is highly expected. Parents can use the services to should go with which children bank account. Also to avoid the extra expenditure of money by their ward there is a spending limit set by the bank. As soon as the limit is reached, parents have to approve the bank for further transactions from the account.
Netherlands current account
Netherlands current account or checking account is the sum of the balance of trade, total income, and total transactions. Individuals who open a bank account in the Netherlands will generally open checking accounts for immediate transactions.
As per the eligibility and with required documents an individual opens a bank account. Thus, feel free to contact us regarding any query to open a bank account.
Few Banks in the Netherlands for bank account opening
- ING– It is the largest retail Dutch bank since 1991 after taking over the old Post Office bank. It offers options to opt for different bank accounts and different categories such as children, entrepreneurs, and couples.
- SNS Bank– Its special feature is that it offers an EU payment option. With the help of it, an individual can open a bank account anywhere in the EU and there is no requirement of a BSN.
- Rabobank– It offers bank accounts of three types- the Direct Pakket, the Basis Pakket, and the Totaal Pakket. To open an account, you can carry both out online and offline both processes.
- ABN-AMRO– It offers both the type of account that is the saving and current account. Internet banking is also available by their services.
These are a few banks that offer services to open a bank account. But there are certain factors that you need to consider while selecting the bank. Check out these factors below.
How to select a bank to open an account?
When an individual chooses to open a bank account in the Netherlands, the best way to select a bank is to understand the advantages and disadvantages of the options that are available.
The bank you choose depends on various factors and also on individual circumstances. Below factors are taken into consideration when choosing a bank to open an account in the Netherlands –
Costs- The less a bank charges for its fees, the more the chance of banks to get selected by the customer. Fees taken by the bank can be included in any type of format. You can consult Odint Consulting to get more details regarding the costs of various banks.
Services offered by the bank– Banks in the Netherlands offer loan services to their customer. You might want to know more different types of an offer by the banks.
Accessibility– Easily availability of the banks, increase the customer base of the banks. Internet banking also increases the number of customers of the bank.
English speaking services– Living in Dutch creates a barrier in language. So, banks that offer English-speaking services have a higher customer base.
Now that you have decided the bank, the next step is to know the details and method to open a bank account.
Methods to open a Dutch bank account
There are both online and offline ways to open a bank account in the Netherlands. You can either book an appointment online or you can go directly to your nearest bank branch.
When you book an appointment online the bank employee may visit you at home or at your work to fulfill all the requirements needed to open a bank account. Contact us, to know the details regarding the opening of a bank account in Dutch.
Documents required for a Dutch bank account
You need the following documents to open a bank account in the Netherlands-
- Your unique Burgerservicenummer or BSN
- A valid identity card including a passport. Often in this case driving license is not accepted
- Address proof
- Permit of approval of your residency if you are a foreign visitor
Once you have applied for the opening of a bank account either online or offline, you have to wait for your turn to get your account approved.
Internet Banking
In the Netherlands individuals easily organize their financial accounts through an online medium via internet banking. Online medium in the country is safe, secure, user friendly, and convenient to carry out all the forms of transactions that are possible face to face to through offline medium.
But there is a restriction to use online banking in the Netherlands as the internet banking services are limited to a few places in Dutch.
Later on, to log in to your internet banking account you need your E-Identifier.
What is an E-Identifier?
The E-identifier helps you log in to your internet banking account and finish all the online transactions. E-identifier is unique for each bank. When you open your bank account for internet banking and the process of bank account getting verified, you will get your e-identifier.
For maintaining the security of your bank account, some banks often communicate with the phone number of their clients to get security codes. So mobile phones often ease your process to carry out many different online transactions.
Use of e-identifier
The method of online payment through the debit card rather than the credit card is termed as I-Deal. So, an individual can use an e-identifier and the pin-code to carry the online transactions for the payment of your goods.
Credit card services in the Netherlands
Due to the services provided by the ideal system, there is not much usage of credit cards in the Netherlands. But credit card also helps in a few processes.
Banks will check your income status and earnings per month to rectify whether you are eligible to get a credit card or not. The minimum amount range set by the bank varies from bank to bank. Also, credit card differs in the limit they provide.
To pay for the amount that you spent through the credit card, you will be charged an amount from your debit card on a monthly basis. This will be a regular process. Any delay in the payment of the amount to be paid for the credit card services you will be charged a higher interest rate.
How an individual applies for loan service in the Netherlands?
To lend money in the Netherlands, banks provide loans to individuals. To provide loan services there are many credit agencies in the Netherlands and the usage of a credit card depends on the amount you borrow. To get a loan from the bank, they check various details such as age, income status, and address proof.
There are ways to know how to get a loan in the Netherlands and what documents are needed. The service will help an individual to get the best loan service.
Read More: What is the minimum wage in Netherlands, Bank holidays in Netherlands
FAQ’s
Before you open a bank account in the Netherlands, you should keep some cash handy as well or take it out from an ATM because most of the Netherlands markets don’t accept credit or debit cards.
You have two choices to choose from. They are savings bank account and current account.
You cannot open a bank account online and therefore not from sitting Abroad; you need to physically go and verify all the details.
Yes, Netherland banks offer some countries the advantage to open an offshore bank account for business or investment purposes to operate it even from outside the country; however the investor/individual needs to go and physically verify the documents.