Banking
Banking in France a guide for UK citizens
A guide to using a bank account , banks and general money matters in France
English banks versus French banks
Once you have made the decision to live in France, whether full-time or part-time, sooner or later you will need to address the question of how to organise your finances. If you only spend a little time in France, it may be possible for you to continue to bank in the UK, using travellers’ cheques and withdrawing money from hole in the wall machines with your English credit/debit card, but if you plan to spend any considerable time in France it makes sense to open a French bank account. This can be daunting, if your command of the language is not up to the complexities of organising your finances in French, and if you are not familiar with the system.
Using an English bank account in France
If you continue with an English account you may find certain difficulties. Charges for withdrawing cash or buying goods on an English credit card in France are high. You can use a debit card, paying the going rate for exchange of currency from pounds to Euros, or you can choose an account/card with the Nationwide Building Society, which has a system which allows currency swap without penalty, and at very good exchange rates. (See also “Comments” section below.)
French bank cards
However, there is another potential problem which occurs when you want to fill up your car with petrol. If the garage has an attendant, and your visit is during the hours the attendant is on duty, then you will be fine, but if you need to fill up your car in the evening, early morning or on Sundays and holidays, when there is no attendant, you will need a French bank card. English ones are not acceptable to the automised system! This difficulty can also occur at the payment tills on autoroutes, where French cards only are acceptable. (Since this article was written, this situation does not now seem to be an issue, as related in our “your comments” section at the bottom of this page.)
French banks
In France, the banks are usually one of two types: co-operatives or commercial. Commercial banks, which have branches in most good sized towns, include Crédit Lyonnaise, Banque Nationale de Paris (BNP Paribas) and Société Générale. The co-operatives include Crédit Agricole, Crédit Mutuel and Banque Populaire. The key difference between the two types is that the co-operatives are independent, and originated not as banks in the sense that we are used to in Britain, but as community institutions in separate localities. Crédit Agricole is now the largest co-operative bank in France.
Banking with the French Post Office
It is also possible, as in the UK, to bank with the Post Office. The Post Office in France, or La Poste, offers an economical and practical alternative, particularly for those living in rural areas where there is access to a village post office, saving the long trip into town to reach a bank.
Crédit Agricole’s Britline
There is a third possibility for English speakers who need to bank in France. Crédit Agricole have set up a service known as Britline, which although based in Normandy, provides English speaking banking services for the whole of the country. They can be contacted by telephone on 00 33 (0)2 31 55 67 89, by fax on 00 33 (0)2 31 55 63 99, by email – Britline@ca-calvados.fr, and have a website which is www.britline.com. It can be reassuring to know that you can sort out any banking worries over the phone with a friendly English speaker, and many British ex-pats have found this service to be invaluable.
Opening a French bank account by post
Opening a bank account, like almost anything else you do in France, requires more paperwork than you would ever have thought possible. You can, theoretically, open an account by correspondence, but this is quite complicated and requires first an application form from the bank of your choice, a letter of recommendation from your current bank (if written in English expect complications!), a photocopy of your passport, a certificate of your signature witnessed and signed by a solicitor, and a euro draft to open the account.
Opening a French bank account in person
If you are in France, you simply make an appointment and turn up, armed with a passport, utility bill showing you have a French residence (or letter from your notaire) and from there on it is a fairly straightforward process. You will probably find that the bank wants you to take out at least basic insurance policies with them, such as household insurance and school insurance for children. It is also useful to set up an online banking facility at this point.
Accounts requiring a husband’s permission
There is one thing which ladies should be aware of, and which can come as something of a shock to those of us who have moved from the UK. If you are married, and ask to open a separate account in your own name, it is likely that you will be asked to obtain proof of your husband’s permission!
French bank cards
When you open your account, you should ask for a bank card as well. This is known as a carte bancaire, or carte bleue. The French tend to use bank cards or cheques to pay for most things, rather than cash. Once more, ladies, you will need to make a specific request for a card in your own name, as if not there will be one card only, issued to your husband, although in practice you will be able to use it without question. All cards are chip and pin, so learn the numbers! The French do not widely use credit cards, most cards are debit only. There are charges for cards, but they are fairly minimal and there are frequently “promos” running which allow you to have a new card free of charge for a year. Individual charges for cards and current accounts are best discussed with your bank, as they can vary.
French Ribs
When you open your account you will be given a bundle of these slips, known as Ribs (Relevé d’Indentité Bancaire), pronounced “reebs”. They are simply slips of paper with your account information on, and you will need them to open utility accounts, pay bills by post, pay your social charges, apply for your carte vitale and many other things. When your cheque book arrives, usually about two weeks after opening the account, you will find that there are some ribs in the back of this, too.
How to write a cheque in France
When you first receive your cheque book it is a wise idea to familiarise yourself with the form of the cheques before you need to use them, as it is a little different from in the UK. The first line of the cheque (marked “payez contre ce cheque”) is where you write the amount, in words (and in French!), which corresponds with the amount in figures in the box on the right hand side. The name of the payee goes on the line below, marked “A”. The other major difference from the writing of a UK cheque is that you need to detail the name of the town in which the cheque was written, as well, as the date. The place for this is in the lower right hand corner, just above the dateline and your signature.
Penalties for bouncing a cheque in France
A note of caution, here, with regard to writing cheques. It is illegal to bounce a cheque in France. Known as “wooden cheques” (chèques en bois) rather than rubber, an accidental overdrawing on a cheque will set in motion the following chain of events. First, you will receive a registered letter from your bank, requesting you to put in place the necessary funds within a certain time limit. (You may also be fined at this point.) If this is not done or if you overdraw your account twice within any single year, your account will be withdrawn by the bank. You will then be on a blacklist for three years, and unable to open any account in France for the first twelve months of this period. A bouncing cheque in France is not something taken lightly!
Clearance of cheques
It is also worth noting that cheques can clear much faster in France than in the UK. A cheque drawn on the same bank that it is paid into can clear the same day.
Cash withdrawals made at French banks
Most cash transactions in French banks are automated, negating the need for long queues at the counter. Cash withdrawals are made in the same way as in the UK, via hole in the wall cash dispensers. These are found inside and outside banks, and often in supermarkets and other shopping areas too.
Cash payments made at French banks
Cash payments can also be made via a hole in the wall machine, located inside the bank. To operate this you first enter and validate your card, then place your cash (notes only) on a drawer. The machine takes in the cash, usually counts it and asks you to verify the amount and the account number. You then receive a receipt detailing the transaction. Please note that with some banks, as in the UK, cash can be deposited in envelopes which is not counted or verified at the time of deposit.
Cheque payments made at French banks
To pay in a cheque you will need to fill in a self-duplicating slip, tear off one leaf for your own records, place the other pages and the cheques in the envelope provided and drop it into a box inside your bank.
Statements obtained from French banks
Statements are also obtained via a machine in your bank. You simply insert your card, and an up to date statement appears, detailing all transactions since your last statement. Take care of this, however, as no other records may be available.
Paying bills by direct debit – Prélèvement Automatique
As in the UK, you will find that most utilities providers prefer you to pay by direct debit, known as Prélèvement Automatique in France. This is simple to arrange with your bank, or directly with the company, using a Rib.
Essential differences
You will see, then, that the French banking system has some essential differences from the English system. If you speak French well, your banking life (as every other aspect of your life!) will be much easier, but there is always the Britline option if you find the whole thing too daunting. In my experience, however, there is usually someone in the local bank who is able to speak a little English (as ever, they only discover this ability after you have attempted to speak French) and everyone has been very helpful, showing us how to use the machines, open accounts for our children, and generally sort out our financial affairs. Best advice? Consider the options carefully, arm yourself with all the information you can find, and keep the paperwork in order!
About the author
Joanna Simm moved to the Languedoc area of south-west France in October 2004 having found her property through French Property Links.
your questions…
1. A visitor to the site has asked about carte bancaires (added 11/5/07)…
Having recently been caught out without petrol at night, with a considerable journey in front of me, I discovered the limitations of an English credit card in France! I was very interested to find your site while trying to discover whether it was possible for me to acquire a carte bancaire and so avoid the possibility of any repetition. The information on your website was very interesting in many ways, but I remain unclear as to whether I can get a carte bancaire without opening an account with a French Bank.
Not being resident in France, but rather a visitor once or twice a year, opening an account specially for this would seem a little “over the top”. I would be most grateful if you could let me have the definitive answer… I am sure I have read somewhere that some English banks can and do issue cards compatible with the French system. Many thanks for your kind attention.
Joanna Simm, author of the above article, replies…
My feeling would be no, that you can’t get a carte bancaire without opening a French bank account, as the carte bancaire issued by the banks is a direct debit card not a credit card. But, there are cards such as Geant cards which may work as a debit or credit card. Geant is a big supermarket and whether it only does the cards for its own use, ie: to use in store only, or whether you can use them elsewhere like a credit card I am not sure.
I don’t know about other cards. Of course, you can use an English card in many contexts in France, but after hours petrol stations are notorious for rejecting anything other than French cards, as are unmanned auto route toll booths.
2. A question about inactive or dormant French bank accounts (added 1/8/07)…
Can you please explain to me how and when a non-resident current account is classified as inactive or dormant, and what this implies, and how to avoid it if possible.
Our reply…
Thanks for contacting us, though I’m afraid as all banks vary with their regulations and rules and have their own policies, I am unable to help you. I would suggest you contact the bank concerned. If you don’t yet know which bank you will be using, you may want check with Britline who may be able to offer you advice. As mentioned above:
“Crédit Agricole have set up a service known as Britline, which although based in Normandy, provides English speaking banking services for the whole of the country. They can be contacted by telephone on 00 33 (0)2 31 55 67 89, by fax on 00 33 (0)2 31 55 63 99, by email – Britline@ca-calvados.fr, and have a website which is www.britline.com.”