Open an account and banking services

Luxembourg has a highly developed banking system, renowned for its stability, international reach, and diverse range of services.
When you move to or work in the Grand Duchy, understanding how the banking system works allows you to make choices tailored to your situation: retail banking, digital services, wealth management, or cross-border solutions.

This page provides the essential information you need to understand the Luxembourg banking environment and identify the services that are useful in your daily life.

A robust international banking system

Luxembourg is one of Europe’s leading financial centers. It is home to over a hundred banking institutions, most of which are part of international groups.

This diversity enables:

• easier access to cross-border services
• extensive support for international clients
• banking services tailored to both individuals and mobile or expatriate clients

The Luxembourg banking system is also recognized for its strength, with high solvency levels, providing a secure framework for managing your finances.

Retail banks: your everyday partner

Retail banks (or branch banks) are your primary point of contact for managing your day-to-day needs: receiving your paycheck, payment methods, loans, or savings. Today, they offer largely digitalized services while maintaining a personal, often multilingual, level of support.

The most useful everyday services to sign up for as soon as you arrive in Luxembourg are:

• opening a checking account. This page provides practical information on how to open a bank account
• applying for credit and/or debit cards.
• Obtaining loans if needed for a real estate purchase or the purchase of a vehicle.

Private Banks and Wealth Management

In addition to these standard services, private banks cater to clients with assets that need to be structured or grown. They offer more personalized support, including investment solutions, asset management, and estate planning.

In line with this, Luxembourg has also seen the development of specialized structures such as family offices, which manage substantial wealth through a comprehensive, often international approach.

Services for Businesses

Major international banks operating in Luxembourg also offer services tailored to businesses, whether in cash management, financing, or support for international operations.

Is it mandatory to open a bank account in Luxembourg?

Check out our EXPERT SESSIONS with Yves Sommer, Branch Manager at our partner, Raiffeisen Bank. He answers all your questions about opening a bank account in Luxembourg. Video in French.

Learn more here about opening a bank account as an expat or cross-border worker.

Essential banking services to know

In Luxembourg, banking services cover all your daily needs, with a strong focus on digitalization and an international outlook. Here are the key points to know for managing your finances easily.

Payment methods in Luxembourg

Banks offer several payment solutions tailored to local and European needs. The bank card remains the most widely used payment method, whether for in-store or online purchases.

You can generally choose between:

• an immediate debit card (expenses are deducted directly from your account),
• a deferred debit card (payments are grouped together and debited at the end of the month).

Visa and Mastercard are widely accepted, both in Luxembourg and internationally. Some European debit cards are also available, but their use is currently more limited, particularly for online payments.

Except at your own bank’s ATMs, withdrawals made at other banks incur a fee. To withdraw cash from an ATM, you will need a bank card.

Mobile payments and digital solutions

Mobile payments are widely used in Luxembourg. Most banks offer a mobile banking app that allows you to pay directly with your smartphone, track your spending in real time, and perform everyday banking tasks.

The Payconiq app, widely used in Luxembourg, allows you to pay in stores or between individuals via a simple QR code. It also facilitates certain payments to government agencies or local services. This type of tool is part of a strong trend toward faster, digital payments.

Bank Transfers and the SEPA Area

Luxembourg is part of the SEPA (Single Euro Payments Area), which means that transfers in euros between European countries are generally free and processed quickly.

Bank transfers are commonly used for:

• paying salaries,
• paying rent,
• transferring funds between accounts in different countries.

Instant transfers are also becoming more common, allowing funds to be transferred in a matter of seconds, depending on the bank and the options selected.

Online Banking and Transaction Security

Online banking services are now indispensable. They allow you to manage your accounts remotely: check your balances, make transfers, download your statements, or manage your payment methods.

In Luxembourg, transaction security relies in particular on strong identification solutions, such as LuxTrust. This electronic authentication system allows you to validate your transactions securely, whether on a computer or via mobile.

Cash Withdrawals and Use

Cash withdrawals are still possible at ATMs located in bank branches or certain public places. However, the use of cash is declining in favor of electronic payments.

Withdrawal terms (free of charge, out-of-network fees) vary depending on your bank and your account plan. It is recommended that you review these details when selecting your banking plan.

Regarding cash payments, it is worth noting that Luxembourg is one of the few countries in the European Union to allow cash payments without any amount limits.

Savings, Credit, and Wealth Management

Beyond everyday banking services, banks in Luxembourg offer solutions to support your life goals: financing, savings, and wealth management, often in an international context.

Financing Your Projects: Mortgages and Personal Loans

Banks can assist you in financing your projects, whether through a personal loan or a mortgage. The amount granted will depend primarily on your income, your employment status, and your debt level.

For a mortgage, several options are available, including:

• a fixed rate, which locks in your monthly payments over time,
• a variable-rate loan, which adjusts based on market conditions.

Early repayment terms, potential fees, and loan flexibility vary by contract. It is therefore recommended that you compare offers and seek guidance before committing.

In some cases, interest expenses may be deductible on your tax return. Check with your bank advisor.

Specialized brokers can also help you identify the solutions best suited to your profile, particularly in a cross-border context.

Savings and Investment Solutions

Banks offer various solutions to help you save and grow your capital, depending on your goals and investment horizon.

Common options include:

• savings accounts for short-term liquidity needs,
• longer-term savings products,
• investment solutions that allow you to diversify your assets.

Certain products may also offer tax advantages, subject to conditions, such as home savings plans or certainlife insurance policies. These arrangements are designed for medium- or long-term planning.

Planning for Retirement and Managing Your Assets

With a long-term perspective in mind, banks also offer solutions designed to help you prepare for your future retirement or transfer your assets, helping to reduce the financial burden in the event of death.

Wealth management and personalized support

Luxembourg is renowned for its expertise in wealth management, particularly in an international context. Banks and specialized firms offer support tailored to different levels of wealth.

This support may include:

• investment advice,
• asset management,
• wealth structuring within an international framework.

For larger estates, dedicated structures such as family offices offer a comprehensive approach, integrating financial, legal, and sometimes even philanthropic aspects.

Regardless of the size of your wealth, the goal remains the same: to build a strategy that aligns with your personal situation, your plans, and your potential mobility.

Banking Costs and Fees in Luxembourg

Bank fees in Luxembourg remain generally moderate, but they vary depending on the institution and the services chosen. It is therefore important to fully understand what you are paying and why, in order to select an offer tailored to your needs.

Account maintenance fees: what to expect

Most banks charge monthly account maintenance fees. On average, these range from €3 to €5 per month for a standard checking account.

This fee may vary depending on the services included, such as:

• a debit card (immediate or deferred debit),
• access to online banking,
• assistance or insurance services,
• the number of withdrawals or transactions included.

Banking packages and related services: a popular choice

Most banks offer packages combining several services: checking account, bank card, digital access, and sometimes insurance or additional options.

These packages simplify account management with a monthly fee. It’s important to compare offers with equivalent services to identify the one that best suits your needs.

They may also include additional benefits, such as free withdrawals within the eurozone or card-linked insurance.

To effectively compare offers, it is essential to check the specific details of each package and not limit yourself to the advertised price.

Additional Fees to Anticipate

In addition to monthly fees, certain costs may applydepending on your usage:

• cash withdrawals at out-of-network ATMs,
• fees associated with certain premium cards,
• sending paper account statements, which is often charged,
• certain specific transactions (international transfers outside the SEPA zone, payment issues, etc.).

To simplify things and keep costs down, it’s generally recommendedto opt for electronic statements and prioritize the services included in your plan.

Special Offers for Expats

Several banks offer packages designed for expats or newcomers. These packages often include tailored services, such as multilingual support, assistance with cross-border situations, or solutions to help with the first few months of settling in.

These offers can be an attractive short-term solution, provided you monitor how their fees evolve over time.

How to effectively compare offers

Beyond the monthly cost, choosing a bank should be based on your actual usage. A slightly more expensive package may prove more advantageous if it includes services you use regularly.

Before making your choice, take the time to assess:

• your payment method needs,
• your use of online services,
• any international needs you may have,
• the level of support you desire.

A clear understanding of these factors will help you choose a package that fits your needs, without paying for unnecessary services.

Luxembourg and banking secrecy

Banking secrecy no longer applies in Luxembourg. Luxembourg banks now systematically exchange banking data to combat tax evasion.

All banks are now required to report their clients’ financial information to the tax authorities. If you reside abroad, this information will also be shared with the tax authorities of the country where the bank account holder is a tax resident. You must therefore declare your Luxembourg account to the tax authorities in your country of residence.

Everyone must also report all sources of income, including foreign income, to the tax authorities in their country of residence.