Whether you’re looking to save for the long term or a specific event, there are various savings in France to suit. Jennie Poate of Beacon Global Wealth reviews your options…

Banks and post office

Banks and the post office, La Poste in France, offer a range of deposit accounts that pay a fixed or variable rate of return.

A basic deposit account is available for both resident and non-residents, and is called a ‘compte à terme’. They offer variable rates and the interest is taxable.

Table dated June 2021

Livret A and Livret Bleu

Other accounts have a fixed rate of return set by the government. They are offered by most banks and La Poste and the interest, although low is tax free. These accounts are great for sitting alongside your current/checking account and it’s easy to switch funds between the two. The nearest equivalent in the UK is a Cash ISA, but in France, once you have reached the limit of funds that can be held, only the interest earned can exceed that and is normally added at the end of each year. These are available to residents (not including Livret ‘Bleu’).

LEP: Livret d’Epargne Populaire

For the ‘LEP’ the maximum income threshold for an account is €19,977 for a single person, and €30,645 for a couple. It is increased by €5,334 for each additional ‘half-part’ of a household, eg child. It is designed as an extra savings tool for those on low income.

Livret Jeune

The Livret ‘Jeune’ account is for ages 12-25.

Accessible savings

All of the above accounts are accessible. Interest rates across Europe are generally low and indeed inflation in 2021 is running at 0.80% (www.inflation.eu/en/inflation-rates/france/current-cpi-inflation-france.aspx) which will in effect mean that the accounts are generally providing a return below inflation.

As advisors, we generally recommend that funds held in accounts such as these are the cash/emergency funds portion of any investment portfolio. Generally you can make an instant transfer if required.

Post Brexit, there are no changes for account holders.

Want to know more? Contact Jennie direct for more information, there’s no obligation.

By Jennie Poate, Head of Operations, www.beaconglobalwealth.com

Please be aware that Beacon Global Wealth management are not tax advisors or accountants.

The above information was correct at the time of preparation and does not constitute investment advice or research. You should seek advice from a professional adviser before embarking on any financial planning activity.

The information on this page is intended only as an introduction only and is not designed to offer solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses incurred by acting on the information on this page.

The financial advisers trading under Beacon Wealth Management are members of Nexus Global (IFA Network). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI).All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licenced and regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B

The post Guide to savings accounts in France appeared first on The Good Life France.

Moving to France has never been so popular. Though living in France has changed for UK citizens post-Brexit (1 January 2021), there are many things which continue to attract Britons and other nationalities to life in France. And of course, you can continue to fulfil your dreams of a different lifestyle.

Fulfilling a dream is exciting – and at times, has its challenges! Here we give you some advice on the key things to do: Opening a bank account, getting a mortgage, arranging insurance and ensuring that you have adequate health cover.

How to open a bank account in France

Opening a bank account is an essential first step for living in France. And, it’s simple and straightforward. From withdrawing cash, arranging currency transfers, funding your property purchase, organising your insurance policies to setting up direct debits, standing orders or a savings account. A dedicated French bank account is essential for daily life in France.

You can open a bank account remotely. Supply the documentation online, saving you the hassle of visiting a branch.

If you run a small business in France, whether it’s a gite, chambre d’hôtes or another type of commercial venture, you must open a separate account for any business-related transactions.

Bank cards

There may be differences in how banks work in France from your home country, notably bank cards. In France, most people use débit cards, with the money deducted from their bank account immediately or shortly afterwards. Credit cards are less common. With a carte de crédit you choose a set date for payments to make budgeting easier.

Banking services

A RIB (Relevé d’Identité Bancaire) contains all of your French bank account details. It includes your unique bank account number, your name, address of bank and other code information. When you set up your utilities to pay by direct debit, they will ask for your RIB.

Cheques are also still widely used in Frances. If you receive a cheque as a payment, sign and date it on the back before you pay it in to your bank account.

TIP: Most transactions are completed online giving you flexibility with your banking. It is useful though to have a few RIBs printed off for when you need them. Print these at home or your bank can supply them free of charge.

Getting a Mortgage

Compared to the UK, property is generally more affordable in France. And, there is a wide choice of properties available: houses requiring renovation, homes in pretty coastal or quiet countryside locations, city or town apartments. As well as land to build new homes that is often reasonably priced.

When it comes to French mortgages, they’re worth checking out. Interest rates are low at present and fixed rate mortgage loans for a 25-year term are widely available.

Important note: French mortgages are available to residents and non-residents.

Lenders look closely for proof of income and will calculate the total amount of household debt (it should not exceed 33% of your annual income). Get together all of your paperwork before applying online, including proof of income, outgoings, assets etc.

Note: Borrowers must sign a sale and purchase contract for their property before a lender will issue a formal Mortgage Offer.

Setting up a business

The majority of Britons currently moving to France are of working age, so earning a living is clearly key. Many choose to set up their own businesses and there are a variety of legal structures enabling you to do this.

Before moving to France you may find it useful to consult a French based accountant for advice on the best way of setting up a business. They can help register you correctly, complete the necessary paperwork and also advise on tax issues. If you do not speak French, there are English speaking accountants available.

House & contents Insurance

There are two main types of policy: ‘new for old’ cover that essentially pays for you to purchase replacements as new. The second type of policy reimburses you, however, there is a deduction for the age of the item.

Car Insurance

If you’re bringing your UK registered car to France, there are several things you need to do including arranging your car insurance.  You have up to 6 months to ensure your vehicle conforms to French regulations, such as changing the car headlamps and putting the car through its Contrôle Technique (like an MoT) to obtain a carte grise.

Note: Depending on the terms of the Brexit deal between the UK and EU, you may need to exchange your UK driving licence for a French one.

Registering your vehicle and exchanging your driving licence are both undertaken online.

In 2019 France launched a database called Fichier des Véhicules Assurés (FVA). This checks if vehicles are not appropriately insured – and is linked to other systems.

Top-Up Health Insurance

In France, the state generally funds 70% of healthcare costs. The other 30% is the responsibility of the individual. Top-Up Health Insurance is provided by mutual health companies. Referred to as complementary healthcare cover or the mutuelle, this system reimburses you for the remainder of the cost of your healthcare. Private health insurance is another option, but it’s more expensive.

In France you are legally required to have insurance for health, homes and property, motor vehicles, civil liability and even for children attending school. For those in self-employment business insurance is a legal requirement too.

A Carte Vitale is used every time you go to the doctor, dentist, a pharmacy or visit the hospital. You are eligible for a Carte Vitale if you have lived in France for at least 3 months.

Life in France after Brexit

The UK formally left the EU in January 2020 as part of the Withdrawal Agreement (WA). You can find out more about the Withdrawal Agreement and how it affects British Citizens on the FranceRights.org website.

Of course, you can continue to buy property in France post Brexit, either as a second home or for a permanent move.

The official UK Government website (“Living in France”) contains information on many issues including health matters, pensions and working in France, as well as driving.

The post Expert essential tips for moving to France appeared first on The Good Life France.

An estimated 84,000 UK nationals moved across the Channel in 2019 –  a 10 year high. Traditionally most home buyers were retired or looking to purchase second homes, but France is an increasingly attractive option for young families and people in their 40’s and 50’s.

Affordable property, beautiful countryside and coastline, great food, wine and good quality health and education systems are all irresistible temptations for a new generation of Britons seeking a new life in France.

French house prices are considerably cheaper than the UK. Although official figures suggest the property values are rising gently, there are plenty of competitively priced homes for sale, particularly in rural locations and smaller towns.

The French mortgage market and eligibility for a loan

Buying a property with a mortgage is increasingly popular, helped by continuing low interest rates. Mortgages can also be taken out to pay for renovations, new build construction (including both the land and building costs),  equity release or to re-mortgage. Though, if you are thinking of re-mortgaging, be aware that in France there may be high fees.

There are a number of differences between French and UK mortgages. Below are a few examples:

Interest rates: In France rates are set for a maximum 25 year term. A fixed term of 5 years is more common in the UK.

Eligibility: French banks look in detail for proof of income and the total amount of household debt. This debt ratio determines whether they feel your mortgage is affordable. In the UK the affordability criteria is generally three times your income.

Consumer protection: The French mortgage market is heavily regulated. Buyers are required to pay for mortgage protection insurance. The UK market, despite some tightening in recent years, has lighter regulations.

The French mortgage market is open to both residents and to non-residents.

French mortgage lenders have become far more prepared to offer loans to non-resident buyers in recent years. Lenders have an option of taking out a Euro mortgage rather than a loan in sterling from a UK bank. An important first step is opening a French bank account; this will enable you to deposit and transfer funds regularly.

Proving that you have a stable income is a key test for French home buyers. Lenders will not discriminate against you if you are self-employed but you must supply three years’ tax returns and your earnings over that period determines the amount you can borrow.

Types of French mortgage

In France, the majority of home buyers opt for a standard capital repayment loan in where you repay both the capital and the interest.

Interest only loans are less common and are mostly taken out by landlords who want to minimise their outgoings.

Fixed rate or variable rate? Fixed rate mortgages offer greater stability if interest rates increase and are generally fixed for the entire duration of the mortgage. However, redemption fees can be expensive. So, if you want to repay early, remember to take this into consideration.

Borrowing a maximum of 80% of the property’s value is the norm, though it may vary up to 85%. How much you can borrow depends on your financial circumstances and credit rating.

Equity release isn’t common in France but is possible if you don’t have an existing mortgage on your property. The amount of household debt must not exceed 33% of your annual income.

Calculating the cost of your mortgage

When applying for a mortgage, French lenders must state the interest rate as an APR (Annual Percentage Rate) to make comparisons easy. A number of factors affect the total cost including: Amount borrowed, loan duration, type of mortgage (e.g. capital repayment or interest only)

Interest rate (APR), fees, mortgage protection insurance and redemption penalties

Example: Couple buying a French property for €170,000 with a capital repayment loan.

*Important note: this is an example only and does not represent an offer.

How to apply for a French mortgage

Banks and financial lenders in France require detailed documentation – be prepared! This includes: Applicant details, financial information (proof of income, arrears/debts etc) Employment and business details, Project costs and fees, outgoings & assets.

You can also request a Pre-mortgage approval certificate. This will confirm how much the bank is prepared to lend you.

Successful mortgage applicants receive a Mortgage Offer which is valid for 30 days. Note: Borrowers must sign a sale & purchase contract for their property before a lender will issue a formal Mortgage Offer.

Security, guarantees and mortgage protection

There are different ways to secure against a mortgage using various types of guarantees. The fees payable vary according to each option. It is recommended that you discuss this with your lender.

In France, mortgage borrowers are offered a high degree of consumer protection, covered by a strict regulatory framework, to guard against irresponsible lending.

Good luck with your property search!

The post Everything you need to know about French Mortgages appeared first on The Good Life France.

Did you know that French banks may restrict the amount of money you can spend on your card. It’s something that regularly catches people out when they’re new to France.

How do French bank cards work?

The way in which banks operate in France compared to the UK is different and one good example are bank cards. It can prove frustrating if you find yourself in a situation whereby you have money in your bank account but discover – whilst waiting to pay at the check-out or withdrawing cash at an ATM – that the transaction has been refused. Avoid this problem by ascertaining your spending limits and adjusting the limit if necessary (see below).

The majority of bank cards in France are Carte Bancaire and you will see shops and restaurants displaying the CB sign. Carte Bancaires are debit cards and any transactions are deducted immediately from a bank account. The French certainly do not have the same appetite as Britons for credit cards, with most preferring the standard debit card. There are however plenty of options to ensure you have a card that matches your requirements and lifestyle.

In France, bank cards have limits for cash withdrawals and payments

UK banks generally limit how much money you can withdraw from an ATM per day, usually £500. However, in France the limit is generally lower. And, there are also restrictions on card payments each month.

Take a standard Carte Bancaire (Visa or MasterCard): over a 7 day period the maximum amount for cash withdrawals is €450. For card payments (online or in shops) you can spend up to €2,300 per month.

This is unlikely to pose a problem for many people day-to-day. But if you have bigger expenses, paying for renovations on your home in France for instance. Or maybe you receive a large bill. Then, these limits may present a challenge.

If you reach your spending limit, a phone call to your bank should resolve the problem. You could also ring your bank in advance to warn them if you know you have a lot of big bills coming up. You can also organise increased spending allowances on your card for a period of time. There may be a cost.

Beware that unauthorised overdrafts cause problems in France.

Contactless cards in France

France is a world leader in smart card technology and was amongst the first countries to use the chip and pin system. The use of contactless cards is widespread in shops, cafés and restaurants. There is a limit of €30 on payment. If you reach this amount you will need to enter your PIN code and the limit is reset to zero.

Annual card fees and charges in France

It may come as a surprise to people living in the UK – used to free banking services – that there are annual fees charged for holding a bank card in France.  There are no charges however for using your card for cash withdrawals and payments across the EU.

The post How bank cards work in France appeared first on The Good Life France.

All about Euro savings accounts: what’s available for both residents and non-residents in France…

Let’s start with the basic euro savings account information. If you have a current euro account with a French bank which you use to make all your euro payments, then you can open a euro savings account. It’s a simple application – and, just because you may not be fiscally resident in France doesn’t mean you cannot have one!

So what savings accounts are there?

Livret Accounts – What are they?

Compte sur Livret, Livret A, LDD or LEP accounts are simple instant access savings accounts, some available to both resident and non-residents living in France.

Generally these instant access accounts have no opening or closing fees and are easy to manage online. These euro accounts can be opened with small amounts from as little as 10 to 15 euros.

Some have a maximum savings limit while others with no limit at all. These accounts are eligible for children as well as adults.

You can set up regular transfers or payments from your current account to these types of accounts. If you need to get your hands on some of your savings, you may be able to transfer back into your current account online or phone.

Something to remember – if you do need to move your funds back in to your current account, try to time your withdrawals to take into account the system of interest calculation in order to maximize the interest earned. The same rule should be applied for the deposits made to your savings accounts.

Currently the rates of interest on these types of euro accounts are relatively low ranging from 0.10% to a 1.25% rate before tax per annum.

What are Epargne Logement accounts?

The main purpose of these types of euro accounts is to allow you to save in order to buy or extend a French property later on down the line. As your account balance builds up over time it will allow you to benefit from a reduced mortgage rate should you wish to buy a French property or extend the one you have.

There are two types of these accounts available:

The Compte Epargne Logement is an instant access account and allows you to set up regular or ad hoc deposits (minimum 75 euros).

The Plan Epargne Logement where regular deposits are obligatory. Depending on the frequency of your regular deposits the minimum may be 45 euros, maximum 540 euros. This account does not allow partial withdrawals therefore withdrawals mean closure of the account.

What types of Share Accounts are there in France

These types of euro accounts may be more helpful when interest rates are low on deposit accounts. Inflation in France is currently around 1.9% and in the it’s UK 2.4%, so you might consider diversifying your investments into shares, bonds and managed fund investments.

There are two types of share accounts for residents in France: CTO and PEA. The PEA is made of up of European shares and managed funds. For non-residents, a CTO account is available. This is a normal share account based on the French and international stock market.

What is an Assurance Vie?

In France, 39% of household financial assets are held in Assurance Vie policies.

These types of accounts offer tax advantages when it comes to taxation on revenue (impots) and inheritance tax. Contrary to popular belief, your funds are not blocked, and you may make a withdrawal at any time. There will be less tax to pay on withdrawals if you make your withdrawal once the policy has been opened for at least eight years.

The post Euro Savings Accounts – What is available in France? appeared first on The Good Life France.

There may not be huge differences when it comes to banking in France and the UK or other countries, however there may be some.

Before looking at the general differences, let’s break the myth that many people have that unless you have a French address (main residence or holiday home) you cannot open a bank account in France. This may indeed be the case with some banks, where their policy doesn’t include accounts for non-French address holders, but there are several banks which accept customers with an overseas address.

Here is a simple guide to banking and how to avoid the snags and stress that may occur.

Banks in France

The majority of UK banks, no matter at which branch you have opened your account, can provide you with an over-the-counter service and carry out the requested transactions on your account, no matter where you may be in the country.

In France, many banks are co-operative mutual banks which can be regionalised. This means that your account cannot be visualised, (and therefore managed) in a region outside of it’s headquarters. You will still be able to use each branch to withdraw cash from their ATM’s but any day to day discussions and in-branch management of your account must be carried out with your original branch. This can take some getting used to, especially if you normally do everything over the counter.

Making payments

Cheque books

Cheques are still commonly used in France without a cheque guarantee card. It’s important to have funds in your account to cover the cheque. Postdating a cheque in France isn’t relevant as the beneficiary can pay it in and it will be processed immediately. If this happens and you go overdrawn, you may become what is called Interdit bancaire and may be banned from writing cheques for up to 5 years. This may affect all your French accounts. If it does happen, contact your branch immediately to resolve the matter.

Debit cards

Debit cards in France tend to come with an annual fee (payable monthly or annually). Debit cards are usually classed as Immediate or Deferred debit (all payments being taken on one given date of the month). Not to be confused with a UK Credit card which may have similar facilities.

Debit card limits are built in for withdrawals of cash per week and purchase limits per month. For example standard cards offer withdrawals of 450€ per 7 day rolling period and monthly purchase limits of 2300€. Go over these limits and you’re likely to experience your card being rejected online, in shops and ATMs.

Some banks offer tailor made debit cards with higher spending limits. You can use them in France, UK, overseas whether that’s inside or outside of the EU, and withdrawals and purchases are fee free.

Banking Fees

From bank to bank and region to region the fees applied may be slightly different, but generally it’s not a huge difference.

The post The Basics of Banking in France appeared first on The Good Life France.

When it comes to banking in France, as an expat, things might be a little different from what you’re used to back home. We ask the experts to explain some of the most common terms and facts about French bank accounts.

French Savings Accounts

An instant access savings account is called a “Compte sur Livret”. Banks also offer fixed term deposits, for over one month, which offer better interest rates, called “Comptes à Terme”. For large deposits, a “Certificat de Dépôt Négotiable” can offer slightly improved interest and a shorter term if required. Bank deposit interest is taxable, for income tax and “social taxes”.

However, there are various tax-free bank deposit accounts. For these the interest rates are fixed by the Government and the amount invested is limited. The most common accounts are:

‘Livret A’ – available from all banks: maximum €22,950 per person plus accrued interest.

‘Livret de Développement Durable’  – available from all banks: maximum €12,000 per person plus accrued interest.

The conditions of the accounts are the same and are regulated by the government and they’re only available to residents of France – including expats.

Interest is earned for every 15 day period on the balance of your account. It’s applied once a year – at the beginning of the year following investment. Or on closure of the account.

Access to funds:  Access is instant but you may lose up to 15 days interest if you take out your money during an interest period. Ideally you should withdraw money on either the 2nd or the 16th of each month.

Tax treatment: Interest is totally tax free to French tax residents and should not be included on any tax declaration made in France.

For low-taxpayers, there is an account called the “Livret d’Epargne Populaire” (LEP). Offered by all banks, this account offers an interest rate of approximately 2% for savings limited to €7,700 each. You have to prove, via a tax certificate, that you pay less than a specific amount of income tax in France, in order to qualify.

Share Dealing in France

You can hold a share dealing account at your bank, a stockbroker, or on the internet.

The normal safe custody account is called a “Compte Titres”. A share is an “action” and a Government or Corporate Bond is an “obligation”.

More on Share dealing in France

by Jennie Poate of Beacon Global Wealth who specialises in financial advice for expats in France.

Any statements concerning the above are based upon our understanding of current laws and practices which are subject to change.  Information has been summarised and an individual is advised to seek personalised advice.

The financial advisers trading under Beacon Wealth Management are members of Nexus Global (IFA Network). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI). All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licensed and regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B.

The post Banking In France | Accounts Explained appeared first on The Good Life France.

In France, you can hold a share dealing account at your bank, with a stockbroker, or on the internet.

The normal safe custody account is called a “Compte Titres”. A share is an “action” and a Government or Corporate Bond is an “obligation”.

Most people deal in shares through a specific form of investment called a “Plan d’Epargne en Actions” or PEA. This account allows you to hold and deal in French and European shares and provides considerable tax advantages ON CONDITION THAT no withdrawals are made for the first five years.

In that case, no tax is payable on dividends nor gains, during the five year period of saving, and the withdrawal of the sum is then free of Capital Gains Tax, with only the inevitable “social taxes” being payable at 15.5% of the total gain.

Withdrawals between 5 and 8 years must be made in one lump and the account closed. However, if the account is not touched for 8 years, it can then be left open and partial withdrawals can be made indefinitely.

Find out more about financial matters for expats in France from the experts at Beacon Global Wealth

Any statements concerning the above are based upon our understanding of current laws and practices which are subject to change.  Information has been summarised and an individual is advised to seek personalised advice.

The financial advisers trading under Beacon Wealth Management are members of Nexus Global (IFA Network). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI). All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licensed and regulated bythe Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B.

The post Banking in France | Share Dealing appeared first on The Good Life France.

The answers to five common questions about banking in France:

How do I write a cheque/check out in France?

Always write it in French (it is surprisingly easy to forget) and remember that in France a full stop/point is used to mark the thousands, while a comma (virgule) separates the cents: one thousand Euros is written as €1.000,00 (mille euros)

A comma marks the fractions in a percentage: seventy three point three percent is written as 73,3% (soixante-treize virgule trois pourcent)

See our step by step guide to writing a French bank cheque.

How much does it cost to transfer money to France?

If you’re new to exchanging currencies, it’s worth pointing out that you’re looking for the best exchange you can. This means, if you intend to sell US dollars for euros for instance, and the rate is 0.75 one day, but then moves to 0.80 the next day, you’ll get more euros on the second day than on the first. Generally speaking, whatever currencies you plan to exchange, it’s better for you if the value you buy at is higher. This will give you a higher overall total. So, the answer to this one is, it varies and it pays to shop around.

Read out tutorial on how to transfer money to France and what to look for to help you get the best rate.

What are bank opening hours in France?

Most banks are open Monday to Friday from 08:30-17:30 but note that most of them will close at 12.00- 14.00 for lunch. Some banks are open Saturday morning and closed on Mondays, try to check in advance if a bank will be open when you want/need it to be.

Can I get a Cashier’s Check /Bankers Draft from my bank in France?

Yes – but remember to give a couple of days’ notice at least amd put your request in writing. Cheques/checks in France are commonly used and do not need to be backed by a cheque guarantee card. Paying by cheque without sufficient funds in France is a criminal offence, they are treated like cash and will clear the day they are presented.

More about cheques in France

Can I use my Debit or Credit card in an ATM machine in France?

Yes you can – as long as your card is of the chip and pin variety. All ATMs and bank technology in France uses the chip and pin system which requires you to have a 4-digit pin number.

Most banks will charge you for using your overseas card in at ATM in France.

More on using ATM machines in France

More answers to frequently asked questions about banking in France.

The post Five important things to know about banking in France appeared first on The Good Life France.

We have all the answers you need to the most frequently asked questions about French banks and banking in France:

Can I open a bank account in France if I don’t live there?

If you own a holiday home in France but don’t live there or are intending to spend a long time in France you can open a bank account with a French bank without being a resident of France.

Your country of residence will however determine your eligibility to open an account without being resident; there are restrictions on non EU member states.

Many banks in France offer an online bank account opening service though you may have to send some paperwork by recorded delivery to complete the process.

You will need to ask to open a non-resident account – compte non-résident

How to open a French bank account.

I have a holiday home in France do I need a French bank account to pay my bills?

Technically no – practically yes!

Although you can own a property in France without having a bank account, life will be much easier for you with one and certainly if you have a French mortgage you must have a French bank account. Bills can be paid in cash in person but it isn’t very practical and if you want to set up a phone line for instance, you won’t be able to without a French bank account.

Can I use travellers cheques used in France?

You can – and some Travellers Cheques (eg American Express) are very popular as generally they are safer than carrying large amounts of cash.  Some shops and restaurants will accept Travellers Cheques as cash (once you have signed them of course) but this is rare these days. On the whole you will need to exchange them for local currency at banks, foreign exchange bureaux or designated offices of the issuer.  If you are far from a major town or city with bank or exchange facilities you may encounter difficulties in exchanging them.

Can I use my Credit or debit card in France?

Yes is the answer here generally, though we always advise you to check in advance with your bank and to alert them to the fact that you may be using your card overseas. Some banks will reject payments automatically if the transaction details are out of the norm eg it is being used in a foreign country.  If you have a card that has a magnetic strip, you may encounter some issues. Bank technology in France works on an electric chip rather than a magnetic strip so you can use it where there is someone to swipe rather than insert your card if you have a magnetic card. If you have a magnetic card and want to make an automated purchase, for instance fuel from a garage after service hours (which can be for most of the day, most of the time) it will be a problem.  Our advice is don’t rely totally on a credit card in France, you should have some cash for times when the card doesn’t work – like fuel.

Credit Cards work on chip and pin technology in France so you must have a 4-digit pin number to be able to use your card.

On the plus side, using a credit card may offer you protection against faulty goods where the card issuer accepts liability up to a specified amount. You will need to check what protection your card provider is offering.

Watch out for charges when you use your credit card in France (below).

What does it cost to use my Credit or debit Card in France?

Well, that depends on your bank and the type of credit card you have. One thing you can be sure of is that you are almost certainly going to be charged for using your card. If you use it to retrieve cash from an ATM machine there may be a charge, there may be a commission for foreign exchange and other charges, such as a transaction charge eg, a standard charge every time you use your card overseas.

Charges can rack up in no time if you’re using a credit card frequently in France.

We advise you to check with your bank in advance about the charges for use in France and shop around to see if there is a more suitable card with lesser charges.

You may find it is suitable to go for a pre-paid credit card option. This allows you to load up a card in advance, meaning you could take advantage of good rates when you see them and you will know what the upfront charges are – generally a standard transaction charge only.

The post Five frequently asked questions about banking in France appeared first on The Good Life France.