Our Beginners Guide to Banking in France
Originally posted on & updated on 3rd November, 2025
When you decide to buy your dream home and start a new life in France, one of the first things you’ll need to do is open a bank account. When it comes to banks in France, like in the UK and the USA, there’s plenty of choice. Caisse d’Epargne, CIC, Banque Populaire, and BNP Paribas, to name just a few. In most cases, the bank you choose will be based either on a personal recommendation or convenience. In some of the smaller villages in France, you’ll find that there is only one or two banks. There’s also La Poste, the local post office, which offers banking services and is present in many villages.
A UK Bank or a French Bank?
Even with fairly basic French language skills, there’s no reason why you should feel under pressure to stick with your current bank. So when it comes to making the right choice, like most things in life, it will probably be down to personality. If you walk into your local branch, you might be taken by the smiling face behind the counter, even if you don’t understand every word that’s said to you. And it could well be that the convenience of having your bank on your doorstep far outweighs the disadvantages of having to go to every meeting armed with a dictionary.
Paying for your New Home
When it comes to banking transactions, one of the first things you’re likely to do is make one of the biggest purchases of your life: your new French home. For this, you’ll need to transfer a euro balance into your account so you can pay the Notaire for the new bricks and mortar that will be key to your adventure. Where and how you decide to secure euros will depend on the value you place on service and the deal, of course. If you have a good relationship with your UK bank, it may well be that you’re prepared to swallow the difference on the exchange rate or a slightly higher commission for the peace of mind. Alternatively, fintech options like Wise are now widely used by buyers and travellers for better rates and lower fees.
A Current Account is Essential
To carry out this transaction, you’ll need a current account. Like in the UK, you’ll receive a cheque book and a credit/debit card with your current account, but unlike in the UK, free banking is relatively uncommon in France. That said, you shouldn’t be afraid to negotiate with your bank, especially if you’ve got proof in your hand that they’re going to be receiving a sizeable transfer in the near future (in fact, this is a perfect time to negotiate yourself some great deals). Some online banks now offer free accounts, so it’s worth shopping around.
Get a RIB to Pay Utility Bills
Your current account will also be used for paying all your utilities: insurances, gas, electricity and telephone and most likely your day-to-day expenses while you’re in France. The way this normally works is by setting up what’s called a prélèvement, which is the equivalent of a direct debit in the UK. In order to set up a prélèvement, you will need to ask your bank for a Relevé d’Identité Bancaire, a RIB, which contains all your bank details and, together with your signature, enables the utility provider or insurance provider to debit your account within your agreed terms.
Saving in France
For savings, consider starting with a Livret A, a tax and social-charge-free account. As of August 2025, the interest rate is 1.7%, and the maximum deposit is €12,000. Beyond this, there are various savings options, with higher returns often associated with longer-term deposits. Remember, even if you don’t earn enough to pay income tax, you’ll still pay social charges (cotisations sociales) on interest. The rate for 2025 is 7.5% for investment income, although certain expatriates are exempt, including those covered by an S1 form for healthcare.
Borrowing and Mortgages
If you’re thinking about borrowing, you’d do well to get yourself organised while you’re still earning money. If you’re planning to move to France to set up a business or to retire, the possibility of borrowing will become significantly more difficult. While again there are exceptions, the general rule of thumb in France for borrowing is that you can’t borrow to a level where the repayments will exceed one-third of your net income. It’s for this reason that you should get your borrowing sorted out while you have income and research as much as you can about French mortgages, and you’ll still need euros to pay for your deposit and other related costs.
Going Overdrawn in France
In France, going overdrawn (à découvert) is not illegal, but it is strictly regulated. You must request an authorised overdraft facility (autorisation de découvert) in advance. Unauthorised overdrafts incur hefty fees and can damage your credit score.
Bank Overdraft Rule Changes in 2026
Starting November 20, 2026, new rules will tighten overdraft regulations, including those for amounts under €200 or less than a month, in accordance with a European directive. Banks will need to assess solvency, provide clear information on costs, and comply with usury rates. Existing overdraft agreements before November 20, 2026, remain unchanged.
Avoid Being a Victim of Card Fraud
Fraudsters continue to evolve their tactics, so vigilance is key. Never share your codes, passwords, or banking details, and avoid clicking on links or using phone numbers from unsolicited messages. Use strong authentication methods, such as banking apps or USB keys, and report suspicious activity immediately. The French government and banks regularly update fraud prevention advice, so stay informed.
Have You Been the Victim of Card Fraud?
If you have been the target of a fraudster attacking payment methods, you must provide law enforcement or your bank with all information regarding the fraud of which you have been a victim, including:
- The technical or manipulative processes that the fraudster used.
- The bank card or any other payment instrument that you have used.
- The messages or calls received that seem fraudulent to you.
- The actions you have taken once the fraud has been discovered.
We hope this is helpful for your research. Remember, we can assist with currency transfers and French insurance.
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