The Right to a Basic Bank Account in the EU: Who Qualifies and When a Bank Can Say No

Can a bank in the EU refuse to open an account for you? For an ordinary account, often yes. For a basic payment account, only on limited grounds. If you are legally resident in an EU country, you are entitled to open a basic payment account, and banks "cannot refuse your application for a basic payment account just because you don't live in the country where the bank is established", according to the European Commission's Your Europe guide. The right comes from the Payment Accounts Directive, which also sets a deadline: the bank must open the account or refuse it within 10 business days of a complete application, and a refusal must be explained in writing, free of charge.

Two limits up front. The right covers a basic payment account only — Your Europe warns that it "does not apply to other types of bank account, such as savings accounts". And each EU country wrote the Directive into its own law, with some room to add conditions, so the national version is the one a bank will apply.

Who has the right

Article 16(2) of Directive 2014/92/EU gives the right to consumers "legally resident in the Union", and it names three groups so they are not left out:

• people with no fixed address;

• asylum seekers;

• people who have not been granted a residence permit but whose expulsion is impossible for legal or factual reasons.

The right applies "irrespective of the consumer's place of residence". In other words, living in one EU country does not stop you opening a basic account in another. Your Europe gives the example of someone who lives in Hungary, works in Slovenia and opens a basic account with a Slovenian bank near his work.

The Directive allows one brake: a country may require you to show a "genuine interest" in having an account there, such as working in that country while living in another. Countries must still make sure the right "is not made too difficult or burdensome" to use.

Two further rules sit around it. Article 15 forbids banks from discriminating against consumers legally resident in the EU "by reason of their nationality or place of residence", or on any other ground in Article 21 of the EU Charter, when they apply for any payment account. And Article 16(1) requires countries to make sure basic accounts are not offered only by banks that work purely online, so a branch bank cannot leave the job to an app.

What a basic account must include

Under Article 17, a basic payment account must let you:

• open, run and close the account;

• pay money in;

• withdraw cash in the EU, at the counter or at cash machines, in and outside opening hours;

• pay by direct debit, by card (including online) and by credit transfer, including standing orders.

Your Europe adds that it should come with a payment card for cash and purchases, and access to online banking where available. The account must be offered at least in the national currency, and you must be able to carry out an unlimited number of operations for these services. An overdraft is not part of the package: countries may allow banks to offer one on request, but access to the account cannot depend on taking it.

What it may cost

Article 18 says the services must be offered "free of charge or for a reasonable fee". What counts as reasonable is set nationally, taking into account at least national income levels and the average fees banks in that country charge. Your Europe notes that in some countries the bank may still charge an annual fee, which "should remain reasonable". Fees for breaking the contract terms must also be reasonable.

Before you open any payment account, the bank should give you a fee information document listing the main services and their charges, and at least once a year a statement of fees showing what you paid. Use the first to compare banks before you apply.

When a bank can say no

Article 16 lists the grounds, and they are narrow:

• Money laundering and terrorist financing. A bank must refuse where opening the account would breach anti-money-laundering rules.

• You already have one. A country may let banks refuse if you already hold a payment account with a bank in that country that offers the same core services — unless you declare that you have been told that account will be closed. Banks may rely on a signed declaration from you to check this.

• Limited national cases. Countries may add "limited and specific" cases, aimed at avoiding abuse of the right or at directing consumers to a free account scheme.

Whatever the reason, the bank must immediately tell you of the refusal and "the specific reason for that refusal, in writing and free of charge" — unless disclosing it would be contrary to national security, public policy or anti-money-laundering rules. It must also tell you how to complain, and give you the contact details of the competent authority and the out-of-court dispute body.

Notice what is missing from the list: your nationality, and the fact that you live in another EU country. Neither is a ground for refusing a basic account.

When a bank can close it

Article 19 limits closure too. A bank may end a basic account only if you used it deliberately for illegal purposes, gave incorrect information to get it, have made no transaction for more than 24 consecutive months, are no longer legally resident in the EU, or have since opened a second account with the same core services in the same country (plus any limited national cases). For the inactivity, residence and second-account grounds, the bank must give you the reason in writing at least two months before the closure takes effect.

How to use the right

• Use the legal name. Ask specifically for a "payment account with basic features" — the Directive's term — rather than a current account. Front-line staff may offer you a standard account with its own criteria first.

• Bring proof of identity and of legal residence. The right depends on legal residence in the EU, so expect to be asked for it, and for anti-money-laundering checks as with any account.

• Note the date of your complete application. The 10-business-day clock starts from receipt of a complete application.

• Get any refusal in writing. It is your evidence for a complaint to the bank, then to the competent authority or dispute body it must name.

• Bridge the gap. If you are waiting to be paid or to pay rent, a multi-currency provider can be a stopgap; check what Wise offers in your country of residence before relying on it.

The UK version

The UK implemented the same Directive through the Payment Accounts Regulations 2015, and the UK rules have stayed in force with UK-specific wording. They work differently in two ways: the duty sits on banks designated by the Treasury, and you qualify if you are legally resident in the UK and either hold no UK payment account with the basic features or are ineligible for the bank's other accounts. In return, the UK basic account must be free for the standard services in sterling, must not come with an overdraft, and may not charge you for a payment refused for lack of funds. The 10-business-day deadline and the written reason for refusal apply there too.

Where this fits

If you are moving to Europe, the order in which you set things up matters more than any ranking; see bank accounts for expats and who can open an online account in Europe. Once you have a basic account, a payer cannot refuse it for being in another EU country — that is IBAN discrimination, and it is a separate rule. For the wider choice of bank, start with the best banks in Europe.

Frequently asked questions

What is a basic bank account in the EU?

A "payment account with basic features" under Directive 2014/92/EU: an account for paying money in, withdrawing cash and making payments by direct debit, card and transfer, with a payment card and unlimited operations for those services. It is free or available for a reasonable fee, and it does not have to include an overdraft.

Can a bank refuse me because I live in another EU country?

Not for a basic payment account. The right applies irrespective of where in the EU you live, although some countries may ask you to show a genuine interest in having an account there, for example because you work there.

How long does a bank have to open a basic account?

It must open the account or refuse your application without undue delay and at the latest 10 business days after receiving a complete application.

Can I get a basic bank account without a fixed address?

Yes. The Directive expressly includes consumers with no fixed address, asylum seekers, and people without a residence permit whose expulsion is impossible for legal or factual reasons.

Does the right cover savings accounts?

No. It covers a payment account with basic features only. Savings accounts and other products are outside it.

This is general information, not legal or financial advice. National laws implementing the Directive differ; check the rules of the country where you apply.