Which is the best bank in Luxembourg?
Find the best bank account
In Luxembourg, most banks have similar offers. Standard current accounts cost a few euros per month and usually include :
- One to two bank cards per account (Classic, Gold, Premier)
- Unlimited withdrawals from the same bank's ATMs
- Unlimited SEPA transfers to the accounts of the same bank
- One or more free cash withdrawals per month from other banks' ATMs (note: some banks do not offer free cash withdrawals) no free external withdrawal !)
- Some free transfers to external banks
- Possibly, preferential rates on credits, loans and discounts on subscriptions to additional banking products (housing savings plan, pension plan...).
The best bank accounts will cost between €3.50 and €9 per month, including the card. The price will mainly vary depending on the card you choose (Classic, Premier, Gold).
On the other hand, if you open an account in Luxembourg, you can expect to pay additional fees for payments and withdrawals abroad. A little advice: ask your banker if they offer a travel option. This will reduce your international bank charges (especially if you travel often!).
The cheapest online banks in Luxembourg
Some Luxembourg banks offer current accounts at €0 per month. However, pay attention to the conditions:
- These accounts generally do not include no traditional bank card They offer "the best of the best" cards.VPay". These cards will allow you to pay in shops and withdraw money from ATMs. However, the VPay card is not accepted in all shops and online. It is often not accepted at toll booths, car parks or when making purchases on the Internet. If you can, we advise you to take an additional classic card.
- Some free online accounts do not include no possibility of bank overdraft If you have no money left in your account, you will not be able to pay. Make sure you get the right information before you open your account at the bank of your choice.
If you have no problems with any of these points, please see the section "EcoYou can use the "Top" or "Premium" selection from our selection above to find the best online bank account. Alternatively, turn to our "Top" or "Premium" selection, which offer accounts with credit cards.
Reducing bank charges: the guide
Read the guide
Account fees, card fees, withdrawal fees, transfer fees... Here's how to reduce them easily!
Should I open a bank account in Luxembourg?
If you come from a foreign or border country (France, Belgium, Germany), you may wonder whether it is really necessary to open a bank account in Luxembourg. The short answer is: yes.
By having an account here, you can do several things:
- Get a free LuxTrust certificate. LuxTrust is a digital identity certificate that allows you to access all your online procedures (Myguichet.lu, file a complaint online...). A LuxTrust certificate is also necessary to authorise online payments (it is the equivalent of 3D Secure in Luxembourg). This is why banks offer you a free LuxTrust in your name. If you do not open a bank account, you will have to pay to get one.
- Deduct bank fees and investments from your tax return : if you open a home savings plan or a pension plan in Luxembourg, you can deduct part of your investments and get the money back.
- Benefit from precise and advantageous tax adviceThis will allow you to save even more on your taxes. Luxembourg regulations are complex: a Luxembourg banker will be able to give you the best advice and help you make the best decisions for your finances.
How to open a bank account in Luxembourg?
Opening a current account for a resident
If you are a Luxembourg resident, opening a bank account will be very simple:
- Make an appointment with the bank branch of your choice (you can apply online at the bank's website or call the branch)
- Bring the necessary documents to open the account: your identity card or passport, your residence certificate (or proof of address) and your employment contract or pay slip.
- The bank advisor will take care of opening your bank account and creating your Luxtrust certificateif you do not already have one.
Once the documents have been signed and the account has been officially opened, you will receive your bank card by post within 1 to 2 weeks. You will immediately be able to access your online banking interface by authenticating yourself with your LuxTrust token.
Find the right bank account for you
Compare current accounts in Luxembourg and find the best offer!
Opening a bank account for a non-resident (border worker, expatriate, student, trainee...)
If you work in Luxembourg but live in an EU country, it is possible to open a bank account there. You may need it to receive your salary, for example.
Note that depending on your country of residence, you may be obliged to declare this account to the tax authorities. This account may therefore be taxed in your country (only a few euros per year, in most cases). Your Luxembourg bank advisor will be able to tell you what documents you need to provide.
You ask yourself which bank to choose for a cross-border commuter? Do not hesitate to consult this selection of bank accounts to find the right one for you. You can choose a free 100% online account, or a Premium account with a credit card that has many insurances (travel, car rental, etc).
Opening a joint account in Luxembourg
To open a joint account, all you have to do is come in as a couple after making an appointment with the bank of your choice.
Each will then have to provide the following supporting documents:
- An identity document (identity card, passport)
- A certificate of residence (issued by the local authority at the time of arrival or removal) or proof of address
- An employment contract (the bank may ask for a direct debit) or the latest pay slips
The bank will be able to create two Luxtrust certificates (one for each member of the couple) and open the joint account. You will receive your joint bank card by mail within 1 to 2 weeks. Each will be able to access their online banking interface using their LuxTrust certificate.
However, the opening of a joint account must usually be accompanied by the opening of an individual account for each person (to receive their salary and pay their personal expenses). You will therefore need to choose the best current accountThis is to avoid paying too many bank charges.
Which bank account for a young person? (student, teenager, child)
In Luxembourg, banks offer very attractive current accounts for young people. Most banks offer account maintenance fees and one or more bank cards. However, you do not have to be older than a certain age to take advantage of this:
- up to the age of 18 for a teenager
- up to the age of 25 for a student
- up to 30 years for a young worker
To find the best account for a young person, check out the "Youth" section of the comparison at the top of this page.
Steps to change banks
Read the article
Direct debit transfers, card updates, account closure... We explain it all to you!
Why compare banks in Luxembourg?
Find a current account that suits your needs
In Luxembourg, there are as many banking offers as there are situations. Some are aimed at young professionals, others at European civil servants, or at those looking to save on their bank charges. Here are some tips:
- If you want good value for moneyChoose an account for €3.5 per month (or more). You will have a good card, good insurance, and the possibility to make withdrawals and transfers in Luxembourg, as well as abroad (but be careful, there will be limits that you must not exceed).
- If you like to travel and move around Choose a Premium account. You will have a card with very good insurance abroad. Be sure to check the charges for payments and withdrawals abroad by checking the bank's price list. If you travel all the time, you can also opt for a neo-bank that offers limited fees abroad, such as Revolut or N26.
- If you want to save on your bank charges: opt for an account between 0€ and 3€ per month. However, at this price, you will not be able to pay for your purchases online (you will only have a VPay card). However, you will be able to carry out all other daily operations: contactless payment in shops, cash withdrawals and transfers.
- If you are a young worker or a studentIf you are a young person, you can get a free account with a good credit card and preferential rates for your personal loans. Most banks offer special accounts with favourable conditions for young people.
You can easily compare the offers and find the one that suits you in the table at the top of this page.
Reducing bank charges and saving money
By comparing banks in Luxembourg, you can easily save on your banking fees. Here are all the fees you need to know:
- Card fees : Some accounts include a VISA Classic or Premier card. Other banks charge €20 to €60 per year for these cards. Make sure you include the price of the card in your fee calculation.
- Withdrawal fees : all withdrawals from ATMs of the same bank are free. However, most banks charge a fee for each withdrawal from another bank's ATM beyond a certain number of withdrawals per month. Be careful to choose a bank that offers a sufficient number of external withdrawals for you. If not, check the amount of fees for withdrawals from third-party ATMs.
- Transfer fees : you can make transfers to accounts at the same bank for free. However, some banks charge for SEPA transfers to other banks' accounts (this is rare, but it happens). Check the number of external transfers allowed each month and the charges that apply to each additional transfer.
- Bank overdraft fees : Some banks charge a fee every time your account balance is negative. This can be a flat fee (€50 commission for each overdraft), or a percentage of the amount owed to the bank (e.g. 1%). If you have already experienced this situation, you know that this is an important point in choosing your future bank account. We advise you to choose a bank that does not charge an overdraft fee. You can check these points by comparing the price brochures of different banks.
- Bank overdraft interest : When you are overdrawn, all banks charge a fee on the money you owe. These are the so-called 'agios'. In Luxembourg, this interest varies between 7% and 9%. If you are used to being in the red, look for the account that suits you best, and has the lowest rate.
Getting the best bank card
Here are some tips on how to choose the right card for your spending:
- To shop in Luxembourg or on the InternetFor example, if you have a VISA Classic or VISA Premier card (you will have better travel and cancellation insurance with a Premier card). You can also choose equivalent cards from Mastercard.
- If you spend more than €3000 per month on card paymentsIf you have a Platinum card, you may want to consider a Platinum card. The payment limits will be much higher, and you will have excellent insurance for your travels and trips abroad. Some policies even cover travel delays or cancellations. In addition, all your purchases will be covered. In some cases, you'll even have a personal concierge who can take care of complicated purchases for you! (like getting a bouquet of flowers delivered in a hurry for Valentine's Day, or finding two concert tickets for an event that is already sold out).
Overdraft, withdrawals, transfers: these bank charges are essential to know
Here is a summary of the fees that you should consider when comparing banking offers in Luxembourg.
Bank overdraft fees and commissions
- Overdraft fees are charged every time your account balance goes into the red. Some fees are fixed (e.g. €50 when you go into the red). Others are variable (1% of the amount overdrawn in fees). However, not all banks charge an overdraft fee.
- Overdraft interest (or 'agios') are charged on amounts owed to the bank. All banks charge interest on overdrafts. The average rate is 7% to 9%. In Luxembourg, all banks apply these fees. To calculate the amounts due, the formula is as follows: overdraft fee = (amount of overdraft x duration of overdraft x bank rate) / number of days in the year.
Once you have selected the bank of your choice, it is important to read the bank's price list on its website. Check the interest rates and the presence (or not) of overdraft fees.
Fees for withdrawals from third-party ATMs
Here are some particularities to know when opening an account in Luxembourg:
- All withdrawals from your bank's ATMs are free and unlimited. Depending on the bank, you can also withdraw free of charge from ATMs in a partner network.
- Withdrawals from other banks' ATMs are often charged, between 1.5€ and 2.5€. On the other hand, you can have a certain number of external withdrawals offered each month. If you often withdraw cash, be sure to check how many external withdrawals you can make each month before opening an account.
- All banks charge a fee for withdrawals made abroad in currencies other than the euro. These charges are in addition to the prevailing exchange rate. However, some banks include a limited number of free foreign withdrawals in their offers.
These elements can be compared by consulting the tariff brochures of Luxembourg banks. These are usually publicly available on their website.
Charges for SEPA transfers to other banks' accounts
Here is what you need to know about transfers to Luxembourg:
- Transfers to accounts within the same bank are always free and unlimited.
- Transfers to accounts at other banks are sometimes paying (0.75€ per transfer). However, banks offer a few external transfers each month.
- Some banks offer unlimited transfers to all bank accounts.
- All banks will charge a fee if you make transfers in another currency.
VISA or Mastercard fees
Luxembourg banks are divided on this point:
- Some banks include a bank card in their current account offer. Some banks even include several cards! You can choose to have a VISA Classic and a VISA Premier for example. Or a debit card and a credit card.
- Other banks charge the bank card as an option. Be sure to include the cost of this card (€20 to €60 per year for a Classic or Premier) in your comparison of banks.
In our selections, we indicate the presence of a card in the offer by the mention "Card included".
VISA or Mastercard fees
Banks may charge a number of administrative fees for each exceptional transaction carried out. These include, for example
- Charges for overdue letters or remindersThese letters are charged when you have exceeded your authorised overdraft limit, for example. These letters can be charged at €20 per unit!
- Card blocking or replacement fees In the event of fraud on your bank account, or if your card is lost or stolen, some banks will charge you a fee for stopping your card and issuing a new one. Make sure you check these fees before committing yourself to a bank.
- The cost of urgently ordering a new card These are among the highest fees. Some banks charge €75 for express delivery of a new payment card with a new PIN code.
However, some Luxembourg banks limit these fees. For example, they offer to replace your bank card after you have stopped payment. We advise you to compare the tariff brochures of the different banks before making your final choice.
The best online banks for travelling abroad
Knowing your bank charges abroad
There's nothing worse than returning from a trip to find that you have to pay tens of euros in fees to your bank! To protect yourself from this risk, here's what you can do:
- Opt for a bank that offers free withdrawals abroad. The bank will only charge you the exchange fee.
- Remember to ask the lifting of foreign exchange commissions abroad to your advisor before you go on holiday. In most cases, bankers agree to offer you the fee for a short stay. This means that you will not pay any commission on your withdrawals or payments.
- Choose a card that offers good travel and repatriation insurancesuch as a VISA Premier or MasterCard Gold. Remember to make your payments and travel reservations (plane, hotel, Airbnb, car rental) with this card. Your purchases will be covered in case of cancellation or unforeseen circumstances.
However, most "traditional" banks still charge fees when you go abroad. That's why we recommend an online neo-bank for your travels.
Choosing a neo-bank for international business
Neo-banks are 100% online banks which allow you to manage your account in real time from a web and mobile interface. These banks do not have a physical branch. They are accessible in all countries, and have developed thanks to their aggressive pricing policy on payments and withdrawals abroad. Depending on the formula chosen, they offer :
- No charges for card payments abroad (within the limit defined by the chosen account)
- No foreign withdrawal fees below a certain number of withdrawals.
Two neo-banks are particularly used in Europe: these are Revolut and N26. They offer an online account and different card packages. However, read the comparison between their different offers carefully before choosing an account: certain limits apply to international payments and withdrawals depending on the package you choose.
Attention Tax: As these banks are based abroad, you will have to declare the accounts opened to the tax authorities in your country of residence every year. Depending on the country, the laws require you to pay taxes on money held in foreign accounts. However, in most cases these taxes amount to only a few euros per year.
Overview of banks in the Grand Duchy
What banks are in Luxembourg?
The country has a handful of banks. These include BIL, BGL, ING, Raiffeisen, Spuerkeess (the state bank) and POST (the incumbent telecom operator).
Find all these banks and their current account and credit offers (car, consumer, renovation) by clicking on this link.
How to choose your bank in Luxembourg?
If you are moving to Luxembourg to work, you may be able to take advantage of a promotional offer on a current account. Most banks have partnerships with local companies.
If you can't benefit from any special promotions, check out the comparison at the top of this page: you'll find the right bank for you!
Which bank to choose?
Read the guide
Not sure which bank to choose? Here is a guide to help you make your choice.
Frequently Asked Questions (FAQ)
Which is the best bank in Luxembourg?
The best bank in Luxembourg is the one that offers a current account with at least 1 bank card, a savings account, unlimited euro transfers, free withdrawals in the widest possible area, and a web and mobile interface. All this with the lowest possible bank charges. We list a selection of bank account offers in our comparison table at the top of this page.
Which is the best online bank?
In Luxembourg, all banks allow you to manage your daily banking operations online (transfer, adding a beneficiary, account statement). However, some banks are known for having a particularly intuitive mobile application and interface (e.g. Spuerkeess, BIL).
Which is the cheapest online bank?
ING, BIL and BGL BNP Paribas are the three banks that offer free and 100% online bank accounts. These minimal offers will cost you very little, and will include a VPay card for making purchases and payments. However, you will not have a dedicated bank advisor and in-branch operations: these accounts will have to be managed exclusively on the Internet.
Which online bank to choose in 2022?
It all depends on your needs and your budget: if you want a Premium account with very good cards (VISA Gold, Mastercard Gold), then you can opt for accounts such as Spuerkees, Raiffeisen or BIL. If you want a cheap online 100% bank account, ING, BGL BNP Paribas, BIL and POST have attractive offers. Finally, for a good compromise between price and quality, you can consult the "Top" section of our selection of bank accounts and compare the offers.
How to switch to the best online bank?
To change banks, make an appointment with your advisor and explain the reasons for your choice. You can then send them a letter of cancellation requesting the closure of the bank account and associated services. You will then have to transfer the money to your new account by simple transfer.
Why choose an internet bank?
An online bank allows you to manage your day-to-day operations easily, from your computer or phone. It also allows you to avoid extra charges: most banks charge for over-the-counter transactions (such as bank transfers).
How to choose your bank in Luxembourg?
To choose your bank, analyse the account maintenance fees, card fees, withdrawal and transfer fees and overdraft commissions. Finally, give the advantage to a bank that allows you to manage all your transactions online.
Online banking and charges abroad: which is the best online bank for travelling?
For travel, choose a Luxembourg bank that offers unlimited withdrawals and a VISA Premier or Platinum card. You won't pay any withdrawal fees, and you'll have very good travel and cancellation insurance. If you travel a lot, choose a neo-bank like N26 or Revolut, so you don't have to pay exchange fees between currencies.
How to open a current account in Luxembourg?
To open a current account in Luxembourg, all you need to do is contact the bank of your choice, present a few documents (identity document, certificate of registration with your local authority, employment contract), and sign the account opening contracts. However, remember to compare the offers before choosing your bank.
How to choose your bank in Luxembourg?
To choose the ideal bank, compare offers on an online comparison tool like this one. Look in detail at the price of the current account, the price of the card and the limits on withdrawals and transfers. Also consider the commissions and overdraft charges. When you have made your choice, contact the bank by visiting their website.
How to open a bank account for a minor?
Many Luxembourg banks offer current accounts for minors and adolescents. These accounts are free. They can be used to pay, withdraw money and make transfers. However, minors cannot make online purchases or take out loans. To open an account for a minor, you just need to contact the bank of your choice. The bank advisor will ask you for some information and documents, and then he or she can proceed to open the account.
Which bank for a cross-border commuter?
If you are a frontier worker, you can open an account with a Luxembourg bank without problems. You can choose between Spuerkeess, BIL, BGL, ING and Raiffeisen. Check out our bank comparison to find the best current account for frontier workers.
Which bank to use for international travel?
Most banks charge a fee for every payment and withdrawal in a different currency. That's why we recommend you choose an online neo-bank for your travels. Revolut and N26 are two banks used by many Europeans. However, check the payment and withdrawal limits of your chosen bank before you travel.