For new arrivals: without a local account, you'll have a hard time renting a home or subscribing to utility services. Here are the basics on setting up and managing a French bank account.

The official French currency is, of course, the euro — the former franc is no longer legal tender although you do still see prices promoted sometimes in francs and many people still talk about the cost of things in francs, especially for larger sums like the price of a car or of re-plumbing a bathroom.

But overall, the French have adapted to the euro with ease. (The euro/franc conversion rate is one euro = 6.55957 French francs.)

There are 24-hour cash machines on nearly every high street in France

On arrival in France, you should have few problems in paying with your 'home' credit card if it is one of the major operators like Visa, MasterCard or American Express, although you will undoubtedly soon tire of paying conversion rates.
 
There are 24-hour cash dispensers, distributeurs automatiques de billets, easily accessible all over France, and in cities and towns there is a choice of several on almost every high street, usually on the premises of a bank or at large post offices. While some small shops may refuse credit cards or a minimum payment, but you could survive for quite a while with credit card payment alone.

Nonetheless, if you are resident in France, you will very soon need a French bank account, both to be paid your wages and to gain access to many essential services that require your bank details as a guarantee of payment. Without a local account, you won't be able to rent a home on the same terms as locals or subscribe to utility services.

The French also often pay with checks, even for small sums such as in restaurants. Having a French cheque book, chequier, will be a welcome practicality, especially in rural areas.

Opening a French bank account

It is best to choose a major bank with a widespread national network of branches (see below) to take full advantage of whatever needs may arise during your travels in France.

Société Générale is often less fussy than other banks in accepting newly-arrived foreigners. Don't hesitate to ask work colleagues, friends or even neighbours to recommend a bank. Having an introduction, however informal, from an existing client can reduce the paperwork demanded and time spent to a minimum. Banks near your workplace or home will also be more receptive.

You may also want to consider opening an account with La Poste, the post office but which also officially became a full-service bank as of January 1, 2006.

La Banque Postal now offers, in theory, the full array of banking services and many French people prefer to keep their money in a public institution. But the primary goal for becoming a bank was to facilitate granting home loans, not to make international transactions, and many rural La Poste employees may look at you blankly if you want to do a currency exchange. La Banque Postal website does feature helpful financial information in English, including translations for a list of French financial terms.

Online banking services are now widely available as well although the quality differs greatly and many banks charge a monthly fee for online access.

Banking service, or lack thereof, is routinely the subject of much complaining in France; the consumer-advocacy magazine 'Que Choisir' is a good source of information (in French) on banking services and how they compare.

Payment cards

All payment cards in France carry a chip, and whenever you use them you are required to type in a PIN.

A basic carte bleue (often called a carte de paiement nationale and used as a generic term for any plastic payment card) is cheaper but will not necessarily work abroad or on non-French internet sites. French bank accounts offer either immediate debit from the account for payment by card or at the end of the month, débit différé, for a small additional fee.

The typical annual fee for a card with a Visa or Mastercard facility useable outside of France is EUR 33, or around EUR 85 if you subscribe to a package of basic services, such as itemised statements.

(Note that if you lose a banking card or it is stolen, you may have to pay full fare for a new one even if you declare the loss or theft immediately to both the police and your bank.)

Credit cards as understood in the UK and US are not common, but most banks offer a form of card offering an agreed ‘reserve' of money, with a repayment plan and usually for a hefty annual fee.

Oney, a division of the Auchan supermarket chain, offers a credit card with no annual fee.

Checking accounts

Cheques take an average three working days to clear. When paying by cheque, you may be asked for proof of identity, such as a residence permit or a passport; French driving licences are sometimes accepted but less often than they used to be.

Some banks are starting to offer modest interest payments on checking accounts, but most do not.

Spanish bank La Caixa offers interest on checking accounts and a free payment card, but this is subject to a minimum quarterly spend of EUR 3,000 and the vast majority of branches are in the Paris region.
 
French cheque books contain a page referencing your bank account details, relevé d'identité bancaire, or RIB. You will be asked for a RIB, which can be cut out of the cheque book, for any ongoing commercial transaction, such as opening a mobile phone account or any kind of utility account.

Some banks charge a small service fee for setting up an automatic deduction for the same amount every month, such as paying your rent or mortgage. If you are engaged in such a contract requiring regular payments — such as utility bills — it is common practice to receive a bill that is paid by returning a signed detachable slip, TIP, already made out with your bank details. This doesn't carry extra service fees but reassures the company you're dealing with that they will be paid as they have your banking information.

Major Franch banks

These banks maintain branches across the country:

• Le Crédit Agricole
• La BNP Paribas
• Le Crédit Lyonnais
• La Société Générale
• La Caisse d'Epargne
• La Poste (Financial services)

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Updated September 2006

Copyright Expatica

Subject: Living in France, Survival Guide, banking in France