Banks in Portugal

If you are an expatriate looking to purchase property or do business in Portugal, choosing a bank can prove challenging. This is especially true if you have just moved to the country and are not yet familiar with all available options or how the Portuguese banking system works. In this complete and updated guide, we will provide advice to help you make the best decision for your financial situation by choosing a bank suited to your needs, as well as guidance on opening a bank account and assessing banking institutions’ viability. Follow our guide!

Complete Guide to Banks in Portugal

Portugal offers a range of banking solutions, from traditional institutions to modern digital banks. There are over 150 banking institutions in the country. Let’s examine the main banks available in Portugal, allowing you to choose the one that best meets your financial needs.

Portuguese Private Banks

At the heart of the Portuguese economy, national private banks play a crucial role in the financial landscape. These institutions represent not only a pillar of economic stability but also a source of innovation and financial services adapted to diverse client needs. In an ever-evolving financial world, these private banks combine local expertise with international perspectives to offer tailored solutions.

Private banks distinguish themselves through their personalized approach, emphasizing close and lasting relationships with their clients. Whether for everyday banking services, investment solutions, or wealth management advice, these institutions adapt to the specific requirements of each client, whether resident, expatriate, or international investor.

1. Santander Totta: A subsidiary of the global Santander banking group, Santander Totta is renowned for its financial stability and international banking solutions, making it attractive for clients with transnational needs.
2. Banco BPI: Among the most reputable institutions, Banco BPI is valued for its comprehensive range of financial services. Its dense network of branches and ATMs ensures easy access to banking services throughout the country.
3. Millennium BCP: As Portugal’s leading private banking player, Millennium BCP distinguishes itself through its comprehensive range of financial services, including offerings for both individuals and businesses. Its strength lies in its extensive branch network, cutting-edge digital platform, and English-language customer service, meeting the expectations of an international clientele.
4. Novobanco: Recognized for its innovative financial products and robust online platform, Novobanco also stands out with its program specially designed for expatriates, offering banking solutions tailored to this specific clientele.
5. BancoBIC: BancoBIC is acclaimed for its personalized approach, prioritizing traditional and customized customer service.
6. Banco Best: This institution specializes in digital banking services, featuring an award-winning online platform and diverse range of accounts, investment solutions, and insurance offerings.

Caixa Geral de Depósitos, the National Public Bank

Caixa Geral de Depósitos (CGD) stands as an emblematic financial institution in Portugal. As a public bank, it plays an essential role in the country’s financial system. With a rich history dating back to its foundation in 1876, CGD has established itself as a pillar of trust and reliability, offering a vast range of financial services to both individuals and businesses.

CGD distinguishes itself through its extensive network of branches, covering the entire Portuguese territory and beyond, with significant presence in Portuguese-speaking countries and other regions worldwide. This international scope makes CGD a preferred choice for clients seeking banking solutions with global reach.

Online Banks

The emergence of digital banks and neo-banks in Portugal represents a true revolution in the banking sector. These modern institutions are redefining traditional financial management paradigms, offering innovative services, increased flexibility, and unprecedented accessibility. In the context of Europe’s flourishing digital economy, these banks position themselves as key players, responding to the needs of a connected and mobile clientele.

N26: This German online bank has successfully attracted technology-savvy customers through its user-friendly mobile application, modest fees, and simplified registration process.

Revolut: A British fintech company, Revolut offers digital debit cards, currency exchange and cryptocurrency operations, peer-to-peer payments, and budgeting tools, all integrated into a mobile application.

ActivoBank: A subsidiary of Millennium BCP, ActivoBank excels in free mobile banking services and offers a streamlined account opening process.

Monzo: This British digital bank, operating without physical branches, is recognized for its intuitive user interface, making management from Portugal particularly straightforward.

Openbank: Belonging to the Santander group, Openbank is appreciated for its comprehensive digital banking services and fee-free options.

TransferWise (Wise): Although not a traditional bank, TransferWise offers a multi-currency account, ideal for frequent travelers, those working abroad, or those making international transfers.

These institutions distinguish themselves through their technology-centered approach, offering services entirely online or via mobile applications. This complete digitalization allows users to manage their finances intuitively and instantly, a major advantage in our fast-paced, connected world. Furthermore, with the evolution of financial regulations within the European Union, these digital banks offer security and regulatory compliance equivalent to traditional banks.

International Banks in Portugal

Portugal welcomes numerous international banks from various European countries as well as from Brazil, China, Angola, and other nations. If you are a resident or citizen of one of these countries and a branch is present in Portugal, using your local branch’s services can be convenient.

Among the well-regarded international banks in Portugal, some of the most notable include:

Banco do Brasil Brazil’s oldest bank and one of the oldest continuously operating banks in the world, Banco do Brasil has expanded its activities in the Portuguese market due to the growing Brazilian community in Portugal.

Citibank Founded in 1812, Citibank, officially known as Citibank, N.A., is the consumer banking division of Citigroup Inc. and one of the world’s largest and most recognized financial service conglomerates. This international bank maintains a presence in Portugal with a branch in Lisbon.

ABANCA A Spanish bank focused on traditional banking and lending, ABANCA primarily operates in Spain’s autonomous community of Galicia but has also established a presence in other countries, including Portugal.

Deutsche Bank Deutsche Bank AG is a German multinational investment bank with an extensive network covering 58 countries and a significant presence in Europe (including Portugal), America, and Asia. Today, it operates through two segments, Investment and Corporate Banking, offering services to corporate and institutional clients.

These establishments offer a range of international banking services, facilitating financial management for residents and businesses with connections to these countries or requiring international banking services.

Comparing Major Portuguese Banks

When selecting a bank in Portugal, several essential elements must be considered to effectively compare banks and their offerings:

• Banking Fees and Charges Banking fees vary between institutions. It is crucial to research fees related to account opening, regular transactions, and specific operations such as international transfers or direct debits. Consulting the comprehensive fee comparison table for Portuguese banks can provide detailed insights into these costs.
• Service Accessibility Ensure that the bank has easily accessible branches near your home or workplace, or offers convenient online services for conducting your banking operations. A well-designed mobile application can also be a valuable asset for managing your finances effectively.
• Customer Service Customer service quality is a critical factor when choosing a bank. Consider aspects such as wait times for reaching an advisor, operating hours, and efficiency in problem resolution. The availability of service in languages other than Portuguese may also be an important consideration for expatriates.
• Non-Resident Account Opening If you are not yet a resident in Portugal, verify that the bank offers non-resident account opening services, as not all institutions provide this option. Opening conditions and associated fees can vary significantly between banks.

Types of Accounts

Types of Accounts Suited to Your Needs In Portugal, several types of bank accounts are available, each designed to meet different financial requirements:

Current Account This is the most common account type, allowing for deposits, transfers, and regular payments such as bills. Banks typically provide a debit card linked to this account, facilitating daily transactions.

Savings Account Savings accounts are designed for setting aside funds to earn interest. Their operation varies by bank and savings type, including term deposits and retirement savings plans.

Joint Account This account type is shared between multiple holders (couples, family members, roommates), enabling common banking operations such as rent payments or utility bills. Each account holder receives their own debit card.

Additional Services

Based on your financial needs, you may consider subscribing to complementary services:

• Loans and Credit Your Portuguese bank can offer various types of credit and loans, such as personal loans, mortgages, or car loans. The quality of conditions varies between institutions, so it’s important to compare these aspects as well.
• The Bank of Portugal does not provide a credit comparison tool. While policies vary between banks, it’s important to note that interest rates are primarily variable and linked to EURIBOR. In Portugal, the key negotiating element is the “spread,” which represents the commission percentage charged by the bank.
• Insurance and Guarantees Portuguese banks can offer a range of insurance products, such as home insurance, health insurance, or auto insurance. It is essential to thoroughly research the different options before making a decision.
• Services for Children If you have children, banks can offer accounts adapted to young people with advantageous conditions, particularly helping them learn personal financial management.

Client Reviews and Bank Reputation When choosing a bank in Portugal, it’s wise to consider not only the services and rates offered but also client opinions and the institution’s overall reputation. Current clients’ feedback can provide valuable insight into service quality, product reliability, and bank responsiveness to issues. These reviews, often shared on evaluation websites, specialized forums, or social media, are key indicators of customer satisfaction.

Moreover, recommendations from your network, whether colleagues, friends, or family members residing in Portugal, can prove extremely useful. This advice, based on personal experience, can help you understand each bank’s advantages and disadvantages in a real context. They can also illuminate less visible aspects such as the ease of using online banking applications, customer service efficiency, or transaction speed.

It is also recommended to consult rankings and analyses published by independent financial institutions or consumer organizations. These sources, often more objective, provide evaluations based on rigorous criteria such as the bank’s financial stability, fee transparency, and overall service quality.

Banking Sector in Portugal: An Overview of Stress Tests and System Stability

Portugal has become a popular destination for expatriates, tourists, and investors, thanks to its quality of life, pleasant climate, and business opportunities. Among the many aspects drawing attention to this country, the Portuguese banking sector stands as one of the most discussed topics. This section examines the current state of Portugal’s banking sector, specifically focusing on stress test results conducted by the Bank of Portugal and the European Banking Authority (EBA).

Stress Tests: Evaluating Banks’ Capacity to Face Economic and Financial Crises

Stress tests are essential for determining banks’ robustness and stability in the context of economic and financial crises. The primary objective of these tests is to measure banks’ capital strength, asset quality, and liquidity levels. In other words, they verify whether a bank has a solid and stable foundation on which it can rely to continue operations even in cases of external or internal shock.

The methodology used for stress tests relies on a set of hypothetical scenarios developed jointly by the Bank of Portugal and the European Banking Authority. These scenarios include:

• A baseline scenario evaluating bank performance under normal circumstances
• An adverse scenario considering various unfavorable economic shocks, such as sudden exchange rate variations, rapid euro appreciation, or global economic slowdown

Overview of the Stress Test Evaluation Process

The stress test evaluation process proceeds through several stages:

1. Development of hypothetical scenarios and test parameters
2. Sensitivity analyses and adjustments to account for local specificities
3. In-depth examination of balance sheet components and risks faced by each institution
4. Calculations and simulations to compare different scenarios and determine potential effects on the banking sector
5. Publication of results and comparative analysis with other European Union countries

Expected Results and Market Response

The stress test results are highly anticipated by investors and financial markets, as they provide a concrete measure of risk level associated with the Portuguese banking sector. Particular attention is paid to institutions that have recently faced liquidity issues or experienced past difficulties.

Enhanced Resilience of Portuguese Banks in 2020

2020 marked a positive turning point for Portuguese banks. Stress test results conducted that year demonstrated that Portugal’s banking system is solid and robust, with increased capacity to absorb economic and financial shocks. Notable improvements include:

• A significant increase in equity capital, averaging 16.7% of risk-weighted assets
• Notable improvement in asset quality, particularly through depreciation of non-performing assets and diversification of financing activities
• High liquidity levels measured against international standards, ensuring banks have sufficient margin to face potential stress situations

Investor Confidence in Portuguese Banking Sector

These encouraging performance results provide reassuring signals for investors interested in placing capital in Portuguese banks. While risks remain present, particularly considering current and future global economic challenges, these results attest to the remarkable work accomplished by the Bank of Portugal and the European Banking Authority in ensuring a solid and resilient banking sector in Portugal.

General Information about Banks in Portugal

Currency and Account Options

Official Currency Since 1999, the euro (€) has been Portugal’s official currency as a member of the European Union and the eurozone. This monetary uniformity facilitates banking transactions for both residents and foreign investors.

Account Types Portugal offers accounts primarily denominated in euros, simplifying routine financial operations. Additionally, banks provide foreign currency accounts in various denominations, including:

• US Dollar (USD)
• Canadian Dollar (CAD)
• Australian Dollar (AUD)
• British Pound Sterling (GBP)
• Swiss Franc (CHF)
• Japanese Yen (JPY)
• And various other major currencies

Portuguese bank IBAN structure follows the format: PT50002700000001234567833

Banking Regulators in Portugal

The Portuguese banking system operates under the supervision of two primary authorities: the Bank of Portugal and the European Central Bank. These institutions ensure stability and regulatory compliance within the country’s banking practices.

Banking Security and Transactions

Security Protocols Portugal implements strict protocols for securing banking transactions in accordance with EU Regulation 2016/679 (April 27, 2016) and Law 58/2019 (August 8, 2019). These measures encompass comprehensive data protection systems and mandatory reporting of any breaches.

Banking Security Portuguese banks maintain high confidentiality standards for their services. The country reports one of the EU’s lowest bank card fraud rates, with only 0.009% of transactions identified as fraudulent.

Banking Hours and Operations

Banking Hours Most Portuguese banks operate from 8:30 AM to 3:00 PM, Monday through Friday. While branches are typically closed on Saturdays, ATMs remain accessible for withdrawals and payments at all times.

Bank Holidays Portuguese banks observe the national holiday calendar, closing on:

• New Year’s Day (January 1)
• Good Friday
• Easter Sunday
• Freedom Day (April 25)
• Labor Day (May 1)
• Portugal Day (June 10)
• Corpus Christi
• Assumption Day (August 15)
• Republic Day (October 5)
• All Saints’ Day (November 1)
• Restoration of Independence (December 1)
• Immaculate Conception (December 8)
• Christmas Day (December 25)

Types of Financial Institutions

The Portuguese financial sector encompasses more than 150 financial institutions, representing a diverse range of banking services. This includes public and private retail banks, cooperative banks, investment banks, and mobile banking institutions. International bank branches also maintain a significant presence in the country, contributing to a comprehensive and competitive banking environment.

Summary: Navigating the Portuguese Banking Landscape

Selecting a bank in Portugal requires careful consideration, particularly for expatriates, investors, and those planning to purchase real estate in this sunny country. The Portuguese banking sector demonstrates remarkable diversity and sophistication, ranging from traditional institutions to innovative digital solutions. Whether choosing a local bank or an online institution, the key lies in finding an establishment that meets your specific needs while offering security, accessibility, and appropriate services.

Portugal, with its robust and continuously evolving banking sector, offers a multitude of banking options. Portuguese private banks, Caixa Geral de Depósitos, online banks such as N26 or Revolut, and even the option to maintain a French bank account each present unique advantages. The key to making an informed choice lies in carefully evaluating your personal and professional needs, comparing fees and services, considering bank reputations, and taking into account existing client feedback.

The Portuguese banking sector serves not only as a reflection of the country’s economic stability but also as an indicator of its international openness. The stress tests and overall strength of the Portuguese banking system provide reassurance to investors and residents regarding the reliability and sustainability of their banking choices.

For both long-term residents and newcomers, Portugal offers a welcoming banking environment conducive to achieving financial goals. The combination of traditional banking values and modern financial solutions creates a balanced ecosystem that caters to diverse needs. The sector’s commitment to security, coupled with its adaptation to digital transformation, positions Portuguese banks well to serve an increasingly international clientele.

Important considerations for potential clients include:

• The extensive network of physical branches for traditional banking services
• Advanced digital platforms for remote banking operations
• Robust regulatory framework ensuring financial security
• Competitive fee structures across various banking institutions
• Comprehensive range of financial products and services
• Strong integration with European banking standards
• Multiple options for both residents and non-residents

This comprehensive banking infrastructure, supported by strong regulatory oversight and demonstrated financial stability, makes Portugal an attractive destination for personal and business banking needs in the modern European context.