Opening an account

How to open a bank account in Luxembourg

In theory, all you need to open a bank account in Luxembourg is your passport (or other identification) and a smile. (A suitcase full of cash is also a great ice breaker.)

Any teller in the bank should be able to give you the necessary forms and help you to complete them. Some banks like to delay issuing credit cards and offering you some of their other services until you’ve established a good record. This is where it helps to have a letter of reference from your former bank or current employer. The right introduction can put a credit card in your hand that much sooner. In some cases, if you open a personal account in the bank your employer uses, you’re eligible for special rates or services or a discount on certain bank charges.

Savings Accounts

In addition to a current account, you can open several different types of savings accounts with most banks. Your employer may also offer a form of tax protected savings account at your own or another local bank. Luxembourg exempts a certain amount of savings account interest from income taxes, and there’s a variety of savings plans available designed to permit you to save money for a deposit on a house.

With deposit accounts (term deposits) you must be prepared to invest for a period of up to 12 months, and some employer-related savings plans require you to invest for several years before you can make withdrawals. In general, the longer the term, the higher the return. You receive a pass book for a savings account, where all deposits and withdrawals are recorded. Under some employer savings plans, you must take your pass book to the bank every few months to have the balance updated, or wait until the end of the year to receive your tax documents, telling you how much interest has been added to your account.

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Also in this section

• Banks: Where to manage your finances in Luxembourg
• Opening an account: How to open a bank account in Luxembourg
• Bank Transfers: How to make payments in Luxembourg
• Debit & Cash Cards: How to use debit and cash cards
• Credit & Charge Cards: How to use credit cards in Luxembourg
• Income tax: An introduction to the income tax in Luxembourg
• Income Tax liability: Who is liable to pay income taxes in Luxembourg?
• Taxable Income: What part of my income is taxable?
• Tax Bills: When to pay them and other matters