Foreign banking in Finland

[SuomenKenraali]

In short, I will most likely end up moving and living in Finland at point in the future. However, at the moment my primary residency is across the Atlantic and may very well still be for quite some time. Regardless, I travel to Finland to visit my soon to be in-laws quite often.
I would like to open a bank account in Finland and I am creating this topic in hopes someone knowledgeable of the requirements/procedures for foreigners to open a bank account will respond.

From what I understand, it is the entirely the banks decision on who they allow to open an account with them. But, I'd find it quite hard to believe there is not more to it (coming from states.)
Also, assuming that it is possible for foreigners to open a bank account without too much hassle, I'd also like to know what bank would be best for what I am looking to do. If someone could take the time to help out and provide advice/suggestions it would be appreciated greatly.

My objective at this time is to open a long-term account that will build significant interest over time, without withdrawal being harshly limited. This account would only be used while I am in the country, but I do not want it forcefully limited to that purpose.
Even though I trust the Finnish government and systems, I prefer dealing with a smaller organized bank rather than a larger ''too big to fail bank,'' if possible. This is only because of recent experiences with larger American bankers.
I do not wish to deal with a bank foreign to Finland with only a branch located in the country. For example: Deutsche Bank.
Realistically for the time being, I hate to admit that I would individually need customer service to be in English.

I thank and welcome any knowledge shared in advance.

[Adrian42]

From what I understand, it is the entirely the banks decision on who they allow to open an account with them. But, I'd find it quite hard to believe there is not more to it (coming from states.)
Also, assuming that it is possible for foreigners to open a bank account without too much hassle,

Finnish banks tend to make quite some fuss regarding requiring a Finnish social security number.
I got my first Finnish bank account a few days before I got my social security number, but I've heard that this is not a common experience...

My objective at this time is to open a long-term account that will build significant interest over time, without withdrawal being harshly limited. This account would only be used while I am in the country, but I do not want it forcefully limited to that purpose.

I still don't get why you actually need a bank account in Finland:

Bank accounts in Finland usually cost a monthly fee (coming from Germany where that is not common it was a nasty surprise for me).
You will have to sort out where to pay taxes on the interest.
And looking at the current interest rates, short-term you would anyway get nearly zero interest.

Even though I trust the Finnish government and systems, I prefer dealing with a smaller organized bank rather than a larger ''too big to fail bank,'' if possible.

I do not wish to deal with a bank foreign to Finland with only a branch located in the country. For example: Deutsche Bank.

Considering that all big banks in Finland are foreign banks, these two conditions are basically the same.

Realistically for the time being, I hate to admit that I would individually need customer service to be in English.

Customer service in English is usually not a problem.

But the online banking might only be in Finnish and Swedish.

[onkko]

So you say most of big banks, prove it.

Edit, you said all, more to prove.

[Adrian42]

So you say most of big banks, prove it.

Edit, you said all, more to prove.

Foreign banks operating in Finland include:
- Danske Bank
- Handelsbanken
- Deutsche Bank
- Nordea
- Forex
- DNB

There is no independent Finnish bank that has the size of Nordea or even Deutsche Bank.

[onkko]

So you say most of big banks, prove it.

Edit, you said all, more to prove.

Foreign banks operating in Finland include:
- Danske Bank
- Handelsbanken
- Deutsche Bank
- Nordea
- Forex
- DNB

There is no independent Finnish bank that has the size of Nordea or even Deutsche Bank.

Nordea is owned by finns by 26% vs next big swedish 24%
Biggest in finland is OP-pohjola with 34 % of loans and 36% of funds. Owned by finns.
Also S-bank is coming strongly owning half of bank places in finland and buying strategic companies. Owned by finns, me as one owner.
Forex isnt bank.
Dnb, never heard.
danske bank is sampo in finland. and if you know history they @#$% that up. Still big i assume.
Deutche bank has one contor in helsinki.

[SuomenKenraali]

Anyway...

Is there a specific bank that one of you guys would recommend based on what I said I was looking for above?
Also, Is there abnormal taxes and/or procedures I should be aware of in advanced?

[riku2]

I prefer dealing with a smaller organized bank rather than a larger ''too big to fail bank,'' if possible. T

I would individually need customer service to be in English.

These two contradict each other. Nordea have their web banking (and terms and conditions, help pages etc) in english. I don't think any other banks do, especially not the smaller ones you are looking for. Smaller ones are also swallowed up by larger concerns anyway, even renaming themselves in a show of trans-national branding (eg Danskebank which is the name for sampo bank now).

If you have enough money any bank will find someone to deal with you in english but if you are that well financed you would have had your PA sort this out for you and anyway people with that kind of money don't put it in bank accounts and wonder about the interest rate on it.

[rinso]

Anyway...

Is there a specific bank that one of you guys would recommend based on what I said I was looking for above?
Also, Is there abnormal taxes and/or procedures I should be aware of in advanced?

I think you have to try all of them and see which one will accept you without a Finnish personal identification number.
Like Adrian said, that might be the biggest problem.

[Adrian42]

So you say most of big banks, prove it.

Edit, you said all, more to prove.

Foreign banks operating in Finland include:
- Danske Bank
- Handelsbanken
- Deutsche Bank
- Nordea
- Forex
- DNB

There is no independent Finnish bank that has the size of Nordea or even Deutsche Bank.

Nordea is owned by finns by 26% vs next big swedish 24%

Following your flawed logic, Nokia would be considered a US company.

Nordea is a Swedish company, and the Swedish government itself even holds a bigger stake in it.

Biggest in finland is OP-pohjola with 34 % of loans and 36% of funds. Owned by finns.

That's not one bank, it's 200 banks doing some stuff together.

Also S-bank is coming strongly owning half of bank places in finland and buying strategic companies. Owned by finns, me as one owner.

But much smaller than Deutsche Bank.

Forex isnt bank.

It is a normal bank.

If you are looking for a borderline case of a huge international bank operating in Finland, Paypal would be a better example:
Technically they are just a normal bank, but they are not really in the "pay your bills with an IBAN" business.

Dnb, never heard.

That's a big Norwegian bank that also operates in Finland.

danske bank is sampo in finland. and if you know history they @#$% that up. Still big i assume.

All part of a big Danish bank now, not a Finnish bank.

Deutche bank has one contor in helsinki.

They are a huge bank, and you can open a bank account in Finland - that's all that matters.

In Germany we have pure internet banks with exactly zero offices.

[SuomenKenraali]

I was afraid that would be the case.. to have to deal with a larger bank if I required service in English. But, ofcourse, that makes sense.

I have been doing a bit of research on Aktia and S-Bank, and so far sounds good. Service appears to be available in my language, and atleast Aktia seems to be fairly small. Roughly 350k customers? And I think S-Bank is a little bigger but offers a little bit better interest rates? Maybe doesn't compare with Aktia customer service though?
This is only based on the bank sites and similar discussions though. Please correct me if I'm wrong.

Another reason of interest in banking in Finland that I must have forgot to mention is, I want something to fall back on as the USD continues to decrease. I'm aware of the Euro situation, but it is not in near the amount of danger the Dollar is in. Even though I may not be dealing with a large figure, something like 5,000 euroa available, safe and building atleast some interest in a Finnish owned bank would provide some peace of mind and probably be a good financial move, especially in the long term.

[Adrian42]

Another reason of interest in banking in Finland that I must have forgot to mention is, I want something to fall back on as the USD continues to decrease. I'm aware of the Euro situation, but it is not in near the amount of danger the Dollar is in. Even though I may not be dealing with a large figure, something like 5,000 euroa available, safe and building atleast some interest in a Finnish owned bank would provide some peace of mind and probably be a good financial move, especially in the long term.

It would be a horrible financial move, the amount you have is simply too small for that to make sense:
You will have the hassle of getting a bank account in Finland.
You might have monthly costs associated with the Finnish bank account.
You will have the hassle of sorting out taxation of the interest.

If you had a million and wanted half of that in the EU that would be reasonable, but for such a small amount of money it simply doesn't make sense.

[interleukin]

I agree with Adrian, your fees would totally override the 1-2% interest you'd get on the money. There might be higher interest options available to you, but you'd need to lock the money down totally, you'll still have a bunch of fees, and you'd not be a very interesting customer with only that amount of money. Keep the euros under your pillow and you'll get more out of them.

[rinso]

Even though I may not be dealing with a large figure, something like 5,000 euroa available, safe and building atleast some interest in a Finnish owned bank would provide some peace of mind and probably be a good financial move, especially in the long term.

what you loose on the exchange rate and the monthly bank fee is probably more than what you get for interest.

[SuomenKenraali]

Wow, I'm actually surprised to hear this..
I could have sworn the money would not be taxed unless its actually earned in Finland. Shows what I know eh.. :/
I also thought it would be a very wise financial move, considering the current situation with the USD and American bankers..

The initial loss due to the exchange rate is not a concern. I believe the USD will continue to fall at a much faster rate than the Euro. But, of course, if the taxes and/or fees are of any significant amount, That would obviously be an issue and a reason not to open an account..

[tjawatts]

Regarding Nordea. Although Nordea is a Nordic bank with the parent company in Sweden. The company operating in Finland is Nordea Bank Finland plc, a local bank.

Most locals would not consider Nordea a foreign bank. Also Danske as others have already stated their operations in Finland have roots in a Finnish bank.

The main "local" banks in Finland are (not exhaustive)

OP-Pohjola (doesnt matter what form it is, it is still considered one entity when looking at market share)
Nordea
Danske
Aktia
Säästöpankki
Evli
Ålandsbanken
S-bank
Handelsbanken

I am assuming when the OP said foreign bank he was talking people like DB, Citi etc.

Anyway, any of the banks will open an account for you if you give them sufficient information to satisfy their anti money laundering/know your client rules.

T