Read news from:
Austria
SHARE
COPY LINK

BANKING

What you need to know about opening a bank account in Austria

Opening a bank account is an essential task when moving to a new country. Here's how to open a bank account in Austria.

Published: 15 March 2021 17:46 CET
Updated: 16 October 2021 09:24 CEST
What you need to know about opening a bank account in Austria
Photo by cottonbro from Pexels

After all, you need to be able to get paid and access your money without paying international bank charges.

Thankfully, in Austria, it’s relatively easy and there are many options available, from long-standing traditional financial institutions to new digital banks.

Some banks even have accounts in English. This makes the process much easier for people that have recently moved to Austria and might not have strong German skills yet.

What documents are needed to open a bank account?

To open a bank account in Austria applicants need to show proof of identity – just like in most countries around the world. This is usually done with a passport. 

Next, banks want to see proof of residency, like a residency registration form or utility bills, and proof of employment, self-employment or student status.

Once the documents have been provided, the process of setting up an account is quick and new bank cards are usually received within a few days.

A less secure but probably cuter version of a bank account in Austria. Photo by Paweł Czerwiński on Unsplash

Traditional vs digital banks

Digital banking has been gaining in popularity in recent years, and it’s no different in Austria. Although some of the more traditional banks have been slower to adopt digital banking tools.

As a foreign resident, opening a bank account with a digital bank is usually the easier option. Especially for people with limited German language skills.

This is because the application form and identity verification can be completed online or via the bank’s app. Plus, in most cases, it can be done in English (or another language).

N26 Bank is a prime example of this. The bank has branches in several EU countries, which means their services can be accessed in English, German, French, Spanish and Italian.

For international customers, N26 also has a partnership with Wise (formerly TransferWise). This makes sending money overseas, or back home, even easier and cheaper.

Erste bank is another bank that is regularly recommended by international residents in Austria because accounts can be opened online and in English.

However, opening an account online is not for everyone. 

For people that prefer to visit a bank in person to open an account, a more traditional bank is probably the best option. And in most cases an appointment will have to be made in advance.

If you want to go down this route, it’s important to remember that Austria is a German-speaking country.

This means it can’t be guaranteed that people working at the bank will speak English – particularly in more rural areas. 

If you’re still learning German, or not feeling confident about opening an account in another language, it could be worth taking someone you trust with good German skills with you to the appointment. 

Having someone to translate can make the process much easier. And it means there is less chance of missing some important information that could impact your finances.

Just make sure to take all of the required identity documents with you to the appointment.

Opening a bank account as a non-resident in Austria

For non-residents in Austria, opening a bank account can be a bit more complicated. But it’s not impossible, and mostly depends on the bank you approach.

For example, Bank Austria offers a service for non-residents, with services for private customers, diplomats and those working for an international organisation in Austria.

Extra information about Austrian bank accounts

Many banks in Austria charge a monthly or annual fee to use their services.

There are some exceptions though, like N26 and DKB – a German bank that is also available for Austrian residents. Both banks offer free accounts regardless of how much (or how little) is deposited into an account each month.

Cash withdrawals at ATMs are mostly free in Austria. But if travelling overseas check with your bank to find out more about international withdrawal fees.

And finally, Austrian banks are covered by EU law, which means deposits up to €100,000 are protected.

Essential bank-related terms in German

  • Kostenlos/ Gratis – free
  • Gratiskonto – free account
  • Girokonto – current account
  • Weltweit – worldwide
  • Bankomatkarte – ATM card
  • Bargeld – cash
  • Bargeldabhebug – cash withdrawal

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

LIVING IN AUSTRIA

‘Haushaltsversicherung’: How does Austria’s home insurance work?

'Haushaltsversicherung' is one of Austria's most popular types of insurance. It is not mandatory, but it is certainly worth evaluating, especially as it comes with many possible add-ons.

Published: 2 May 2024 15:22 CEST
'Haushaltsversicherung': How does Austria's home insurance work?

Austrians are certainly obsessed with insurance coverage, and one of the most popular and common ones is known as the “Haushaltsversicherung”—if you don’t have it already, you have certainly heard of it. Here’s what you need to know about household insurance.

Firstly, this insurance covers damages to “all movable objects within your own four walls,” as Austria’s Chamber of Labour (AK) explains. This includes furniture, carpets, and electrical appliances. It would also cover damages caused by fire, storms, water, burglary, and glass breakage. 

Certain types of insurance, such as private liability insurance or mandatory dog liability insurance, are almost always combined with household insurance—another reason why the Haushaltsversicherung is so popular in Austria.

READ ALSO: What kind of insurance do I need to have in Austria?

However, there are enormous differences in premiums and benefits, so experts suggest you check precisely what you need before taking out insurance. The AK also says you should talk to an insurance advisor to learn more about your specific case and needs, particularly if you have any valuables in your home. 

Additionally, they said: “It makes sense to check your policy every few years to ensure that you are properly insured. This guarantees that the sums insured and the risks included are up-to-date and sufficient”.

What should I keep an eye on when reviewing policies?

Of course, different companies have their own offers, and they are often highly customisable to fit your apartment and lifestyle—some things you need to be aware of, though.

Certain policies are tied to the size of your apartment, while others will have a lump sum regardless of the size of your place. Policies also usually differ depending on whether you live in an apartment or a house. 

While most insurance will cover glass breakage (such as when a hail storm breaks your window, for example), some might have it as an add-on (wahlweise mit Glasbruch). 

You may also add other types of insurance to your household insurance, the most common being mandatory dog liability insurance (Hunde-Haftpflicht), legal insurance (Straf-Rechtsschutz), and sports insurance.

READ ALSO: Should I take out insurance before skiing in Austria?

It’s worth it to read each policy, but you should know some common clauses beforehand. For example, insurance often won’t cover burglary costs if your house has not been properly secured and locked. This might seem obvious, but since door knobs don’t open from the outside without the key, people often leave their homes, especially for short errands, and don’t lock the doors all the way. Insurance and safety experts recommend you get in the habit of locking your home doors.

It’s also important to check if your insurance will pay you “Neuwert” or “Zeitwert” in case of damage. 

A Neuwert means the insurance will pay for a replacement object, regardless of how old the stolen or broken one was. However, many insurance policies still contain the so-called “Zeitwert”, something like “current value”, so you wouldn’t receive an amount that could pay for a new product. Instead, a loss of value of around 10 percent per year could be expected for most objects.

What should I do if there is damage to my home?

If you see any damage to your home from burglary, accident or other types, you need to notify your insurer immediately and report the damage you have suffered. 

The insurance conditions usually stipulate a maximum period of three days for reporting a claim in property insurance. The Chamber of Labour also recommends that you send a written notification of the claim (preferably by registered mail, they add).

“Make a list of all items that have been destroyed or lost and enclose it with your report to both the insurer and the security authorities”, they said. And, of course, in the event of fire burglary or robbery, always inform the fire department or police authorities.

READ ALSO: EXPLAINED: The Austrian insurance for if you get sued – or want to sue someone

How long does the insurance last, and how much does it cost?

The insurance term is usually specified in the counteract. In general, though, you can terminate it after the third year with one month’s notice if the contract has not already expired.

If you move house or move abroad, you can terminate your household insurance contract. You can cancel the insurance the day before the move begins (preferably by registered letter).

If you do not exercise your right of termination, the insurance will remain valid during the move and in the new home.

Regarding prices, they can be as low as a few euros a month (such as insurance specifically tailored to students living in shared flats) to several hundred a month if you have a large place with plenty of valuables or include several add-ons. 

SHOW COMMENTS