Banking - Setting up a French bank account
Taken into account: There’s a lot to think about and organise when you set off house-hunting in France, whether you are planning a permanent move or buying a second home...
The more work you can do in advance the better, as it frees up the time you can actually spend looking at properties on the ground. It also means that when you do find your dream property, you should be able to make an effective offer more quickly.
Opening a French bank account is something you can usefully do in advance, so you won’t waste precious time sitting in the Village Perdu branch of Banque des Grenouilles. While you can organise the down payment on a property and the lump sum due on completion by transfers from a UK or offshore account (or maybe you are happy toting around a carrier bag of cash?), once you start dealing with daily life a French current account becomes essential. Even if you already have a UK account in euros (or an account in another euro-zone country) you will need a French bank account to handle the flow of bills and expenses.
The EDF, water and telecoms providers will all ask you for details of a French bank account. Builders and suppliers will want cheques drawn on a French bank – not a foreign bank, for which they are likely to incur charges. Opening a French account can be easier than you think. If you choose the right bank it can be done from the comfort of your own home in the UK, with or without internet facilities. If you struggle with the French language it makes sense to choose a bank where you can deal with someone in English: it’s better to make mistakes speaking French in the local auberge than to practice financial French on the phone and make a mess of your finances.
A decent bilingual banking service can remove much of the stress and worry of buying, running and renovating property, and will help ease a move to France. To find out what’s on offer these days, I recently interviewed Hugues Soudé, the head of Banque Populaire Occitane’s English language service, L’Agence Directe. Since its creation in 1999, L’Agence Directe has opened more than 3,500 accounts for foreigners. Based in Cahors in the Lot département, Hugue’s bilingual team are well-versed in dealing with questions posed by British buyers and they genuinely understand what mystifies les rosbifs about the French banking system. It helps that Hugues is a lifelong anglophile, having studied in Great Britain before marrying an English girl. Patricia Little and Sophie Boissol, his colleagues, speak fluent English and have wide experience in this field.
Telephone calls go straight to their service, not to an impersonal ‘press button 1...’ call centre. They aim to answer all questions within three to four days, and give ongoing flexible support to their clients as they develop their interests in France. A range of brochures in English cover not only the bank’s most popular services, but also subjects such as registering with the French health service. If they don’t know the answer to a question they will say so – and go the extra mile to find out. The bank can arrange current accounts with online banking, savings accounts, investment products and mortgages.
They also offer property and contents insurance, car insurance, and extra health cover. A typical client makes contact when they are about to buy a house and need a current account. L’Agence Directe will explain in English what documents are needed, and open the account, usually at the branch near the property. This gives a local focal point, yet L’Agence Directe is always on hand to deal with matters in English. They operate thoughout the Banque Populaire Occitane network of 214 branches across south-west France. Debit and credit cards are explained – the high French charges for these bits of plastic can come as a shock to those used to free British cards – and arranged if required.
If large sums of money are being transferred in advance of purchase completion, or with major renovation works in mind, the team will explain the options available for short-term interest-bearing deposits, and then ensure the funds are available when required. Notaires don’t like to be kept waiting! House and contents insurance can be arranged to be ready on completion day, and direct debits set up for the EDF, GDF and other service providers. It can be hard to keep track of things from a distance, but even if you don’t have an internet connection you can contact the bank by phone, fax or letter.
If you panic that there isn’t enough money in your account to cover your taxe foncière for example, a quick call to Hugues can work wonders (so long as you are basically solvent!) Whatever bank you choose, make sure you understand what documents you are signing, and your rights and obligations. Be aware that writing cheques when there are insufficient funds in your account is a serious matter in France. Owning and running property costs money, and it pays to get your banking and finances into good shape before you commit yourself to a purchase. A good banking service can help you stay on track, and avoid the many pitfalls awaiting the unwary across the Channel.
by Mary Hall (chartered surveyor in south-west France. Email: hall.bureau@neuf.fr).