Finnish banking

[jwoods]

Hello, sorry if this topic's already been discussed, but I was wondering if anyone had any information about banking in Finland?

I've done a bit of research, and it looks pretty awful compared to the UK (the typical Finnish business attitude that they're doing you a favour).

Is there a way to have a nice normal internet-based bank account that I pay my salary into (don't need much branch contact or printed monthly statements), a decent interest rate, a full Visa debit card (not Electron, not a credit-card), and of course fee-free.

Anyone have any recommendations? Also, is there a Finnish equivalent of tax-free mini Cash ISAs?

I was planning on writing out all these questions and visiting all the main banks, but perhaps someone has some experiences to share? Plus I don't relish the idea of taking those little paper tickets and waiting for hours!

Thanks in advance!


-
Joe

[mCowboy]

Is there a way to have a nice normal internet-based bank account that I pay my salary into (don't need much branch contact or printed monthly statements)

Yes

, a decent interest rate,

Not with current accounts (rarely maybe .25%), only with savings accounts and usually a decent rate is only with set term savings accounts

a full Visa debit card (not Electron, not a credit-card)

Yes, thou I suggest Mastercard, since it's handled by the banks themselves, whereas Visa is handled by the archaic Luottokunta. I think Sampo pankki is now trying to have their own Visa. In practise this means that with MC you'll have an easier time to integrate any additional services to it, like using it in your internet bank. Visa for that costs estra.

, and of course fee-free.

No such luck. However more you consolidate your services (loans, banking, insurance policies, etc), more discount you get.

[jwoods]

Thanks for the reply!

Do you have any recommendations of banks/accounts?

How much are these fees anyway? For the type of account I mentioned...

[mCowboy]

Thanks for the reply!

Do you have any recommendations of banks/accounts?

How much are these fees anyway? For the type of account I mentioned...

Well, Nordea is a Nordic company, so there's branches in those countries and Sampo was bought by Danskebanken so that's going to be pan-Nordic too, others are national banks.

I've used Nordea for years and I'm quite happy with them (as happy as one can be with banks) and most of my friends tend to favor that or Sampo. I think most foreigners prefer Nordea (correct me if I'm wrong here), since their internet banking (called Solo) is also in Swedish and English and is probably one of the most advanced in Finland (if not wider). I'd imagine that Nordea (and Sampo) are more used to having non-Finnish speaking customers, since they're more international.

Someone else might wanna chime in and tell about others.

Handelsbanken (Swedish) and Åland bank have quite limited number or branches and restricted to metro area only, so if you wanna use them, take that into account.

About the fees, take a look at Nordea's website, it's quite comprehensive in English too.

http://www.nordea.fi/Personal+customers ... 60144.html

[blaugrau]

I'm also with Nordea and have been happy so far. About the costs, if you're under 29 they give you Visa Electron for free (instead of a euro per month and there are no other costs to the account if I'm not mistaken, the paper statement costs about a euro monthly but you can have electronic statements instead.

What do you mean by "a full Visa debit card (not Electron, not a credit-card)" if not Visa Electron? (Btw if you have your Visa Electron from Nordea, you can use it just like a credit card for internet transactions, you just have to get that feature enabled. I heard some rumour that this is not always the case with Visa Electrons from other banks)

[jwoods]

Hi blaugrau,

Thanks for your reply!

In the UK I have a regular bank card that debits money from my account when I use it, and it also carries a Visa logo (not electron, not a credit card etc).

I don't really want an Electron as many retailers don't accept it, plus when I use the card back in the UK I'll have the same problem.

I guess I'll have to visit the big 3 banks anyway and seem which is the lesser of 3 evils...

[mCowboy]

By default the Finnish Visa (not Visa Electronic) cards are debit cards = there's no credit feature attached, unless you order it (and you're given one).

Visa Electron = always checks if there's balance on your account to meet the amount being spent

Visa (in Finland) = gives you about a month to pay the balance off, so you can use it even if you don't have any money on your account

Visa (in Finland) with credit feature = gives you the opportunity to pay the balance off in installments over a period of time (min 5% of the total)

Nordea has costs exemptions for under 30's but after that it always costs something, just check the link I posted earlier.

I'd still recommend Mastercard as it's Nordea's own card and has additional features that don't come with Visa.

[Jukka Aho]

In the UK I have a regular bank card that debits money from my account when I use it, and it also carries a Visa logo (not electron, not a credit card etc).

Sounds like a regular Finnish bank card (pankkikortti). The Finnish pankkikortti is a debit card that’s accepted in Finnish shops, ATMs, etc. all over the country, but it is not issued by Visa (although it may have Visa debit/credit features on it as well, in addition to the pankkikortti features.)

When you’re shopping in Finland and using this kind of card as your payment method, a common question you will hear at the cashier’s is “Pankki vai Visa?” or “Pankki vai luotto?”, at which point you would tell them which “side” of the combination card you wish to use for the purchase.

I don't really want an Electron as many retailers don't accept it, plus when I use the card back in the UK I'll have the same problem.

There is currently an on-going debate about the changes that the EU-wide SEPA (Single Euro Payments Area) project will bring in the following years. It seems the national bank card systems are going to be abolished in favor of EU-wide SEPA cards. One aspect of this change is that all issued new cards will be (or already are?) so-called “smart cards” – i.e. they have a chip on them, and metal contacts for a card reader. Various places (shops, etc.) are increasingly adding card readers and numeric keypads at their cashier desks, for entering your PIN, and this PIN-and-keypad method is going to be the preferred way of authenticating the use of your card, instead of the old-fashioned swipe-and-signature method. (The swipe method will eventually go away altogether.)

SEPA is probably a good thing in those countries where electronic payments have lagged behind, but it is feared that it will be a bad thing in Finland as the national bank card system is so well-established and has worked quite nicely this far, and especially because it is assumed that the SEPA card system will be much more expensive. According to the current plans, you can’t get a “normal” Finnish bank card any longer from the beginning of 2008, and they will be out-of-use by 2010. It is assumed that debit cards issued by Visa, Mastercard, and other larger international organizations will take its place. This irks the Finnish consumer protection organizations, and common people in general.

This is what Nordea has to say about the subject:

• SEPA cards

So I’d assume that the answer to your question is “yes” – you probably can get a Visa debit card these days, just the way how you like it. But it’s not something most Finns would have had to actively think about getting just yet since they’ve been happily using the national bank card system for their daily purchases and are only beginning to wake up to the SEPA reality.

[jwoods]

Hei Jukka,

Thanks for all that - really useful info.

We've had those smart-cards here in the UK for almost 1 year now, and you can't use magnetic-swipes any more here.

I'll certainly read up on this SEPA stuff.

It's good to see I'll have some options, and wont be forced into electron or credit-cards.

Hopefully they'll stop charging people for having the VISA/MC symbols on bank cards after they've phased-out Finnish-only bank cards as you mentioned.

[Jukka Aho]

I'll certainly read up on this SEPA stuff.

[...]

Hopefully they'll stop charging people for having the VISA/MC symbols on bank cards after they've phased-out Finnish-only bank cards as you mentioned.

The point was rather different: the SEPA debit card transactions would seem to be two or three times more expensive for the shops than the present-day Finnish bank card transactions – and at the end of the day, this difference will of course be paid by the consumers, in one form or the other. That’s why the Finnish consumer agencies are uneasy about the change.

[mCowboy]

Nordea just announced Visa debit card (and that's what's it call in Finnish too)

[jwoods]

Wow! really? where did you hear about that, does it say when they're going to launch it? I don't move to Finland until November

So nice to see Finnish banking is finally catching up with the rest of the civilised world!

[Karhunkoski]

So nice to see Finnish banking is finally catching up with the rest of the civilised world!

You're having a laugh yeah?

[mCowboy]

Wow! really? where did you hear about that, does it say when they're going to launch it? I don't move to Finland until November

So nice to see Finnish banking is finally catching up with the rest of the civilised world!

Nordea's customer magazine.

[Jukka Aho]

Wow! really? where did you hear about that, does it say when they're going to launch it? I don't move to Finland until November :)

So nice to see Finnish banking is finally catching up with the rest of the civilised world!

As I already hinted, many see it as a downgrade when compared to the old national bank card system... both in usability (a simple swipe vs entering the PIN) and expenses.