Norway's stable and modern banking system reflects its citizens' prudence and financial foresight. But when settling in Norway, should you choose a physical bank or an online one? Is opening a Norwegian bank account an absolute necessity? This guide explores your options, the types of accounts available, and the steps to get started.
Types of banks in Norway
Local banks
Traditional banks and online options make up Norway's robust banking system. Here are some key players:
DNB (Den Norske Bank)
The DNB is the largest bank in Norway, offering a wide range of services, including current accounts, loans, credit cards, and insurance. As a leading bank, it offers a comprehensive network of branches and ATMs nationwide. However, you may need a BankID to open an account.
Nordea
Popular among expatriates, Nordea is another of Norway's key players that provides tailored banking services, including advanced online banking, to individuals and companies alike.
Handelsbanken
Renowned for its high quality customer service, Handelsbanken is a Swedish bank operating in Norway, offering wealth and investment management along with traditional banking services.
Sbanken (formerly Skandiabanken)
Norway's first fully online bank, Sbanken is praised for its low fees and user-friendly interface. It is an excellent option for those who prefer managing their finances remotely without the need to visit a physical branch.
International banks
Norway is also home to several international banks, including Santander and Danske Bank, which cater to non-residents with specialized services such as multi-currency accounts, quick international transfers, and loan solutions. These institutions offer advanced digital platforms, multilingual customer support, and streamlined financial management for foreigners living in Norway, ideally providing flexible and secure solutions for transferring funds or holding an account in Norwegian kroner. Other international banks operating in Norway include BNP Paribas, Swedbank, and Handelsbanken.
Types of bank accounts in Norway and their benefits
Understanding the types of accounts will help you choose the right one for your needs when opening a bank account in Norway:
Current account (Brukskonto)
The most common account type in Norway, current accounts are ideal for everyday transactions (bill payments, bank transfers, purchases), with included debit cards for payments and ATM withdrawals.
Benefits:
- Easy access to funds for daily expenses;
- Debit card included for cash withdrawals and payments;
- Compatibility with mobile payment services.
Savings account (Sparekonto)
Designed for long-term savings with higher interest rates than current accounts. These rates are nonetheless subject to variations according to the bank institution selected and the deposit made – for which no minimum amount is required. However, banks provide accounts with tailored conditions, such as higher interest rates for larger savings balances.
Examples:
- DNB: The "Sparekonto" account has no minimum balance requirement and provides full flexibility with no withdrawal restrictions.
- Sbanken: The "Sparekonto" account also requires no minimum balance and offers adaptable savings options to suit your needs.
- Nordea: The "Sparekonto Ekstra" account features a competitive interest rate with no minimum deposit requirement but limits free withdrawals to four per year.
Therefore, it's advisable to compare the specific offerings of each bank to select the savings account that best meets your needs.
Advantages of the Sparekonto:
- Higher interest rates to maximize your savings growth;
- Separation of daily and savings funds;
- Suitable for specific projects like home purchase.
Youth account (Ungdomskonto)
Specifically designed for individuals under 18, youth accounts typically offer low or no fees and attractive interest rates. They are often used as a financial education tool to teach young people money management skills.
Benefits:
- No or low fees;
- Educational tools to promote financial management;
- Access to a youth debit card.
Business account (Bedriftskonto)
Specifically for entrepreneurs or company managers in Norway, business accounts cater to business finances such as customer payments, payroll, and operational expenses.
Advantages:
- Separation of personal and business finances;
- Business-oriented financial management tools;
- Access to business-specific banking services.
Conditions for opening a bank account in Norway
Opening a bank account in Norway is relatively straightforward, but there are specific requirements to fulfill. Here's what you need to know:
Residency in Norway
To open a bank account in Norway, you generally need to be a resident, therefore requiring a Norwegian personal identification number (personnummer) or a temporary identification number (D-nummer) if you're a newly arrived expatriate. Once this essential ID is acquired, banks are typically very responsive and can open your account quickly, generally within a timeframe of about three weeks from the issuance of your personnummer or D-nummer.
Required documents
The following documents are necessary to open a bank account in Norway:
- Passport or national ID;
- Proof or address in Norway (rental agreement or utility bills);
- Personal ID number (personnummer or D-nummer);
- Work contract or proof of income (in some cases).
Age requirement
18 years is the minimum age in Norway for a current account. Parental or tutor consent is required for minors.
International student account
It is possible for international students in Norway to open a bank account by producing the following documents:
- Passport or national ID;
- National ID number (fødselsnummer) for stays exceeding six months, or temporary D-number (D-nummer) for stays under six months;
- Proof of residence in Norway (rental agreement or recent bill);
- Proof of enrollment in a Norwegian institution (acceptance letter or enrollment certificate).
Websites of the University of Oslo or the municipality of Oslo are a good starting point for initial guidance and information in English, while it is advisable to directly contact your chosen bank to inquire about their specific requirements and the documents to provide. Some banks may also request a letter of recommendation from your current bank or details regarding your personal finances.
Good to know:
Processing times can be lengthy, particularly when applying for the essential fødselsnummer or even a D-number. It's recommended to bring your home country's bank card, as Norway operates predominantly on a cashless system.
The process of opening a bank account in Norway
Opening a bank account in Norway is a relatively straightforward process, although the specific steps may vary slightly between banks. Here's an overview of the general procedure:
Choose a bank
The first step is to select a bank that suits your needs by taking the time to compare services, fees, and benefits offered by different banks to ensure you make an informed decision.
Schedule an appointment or apply online
Upon bank selection, you can either make an appointment to open your account in person or apply online for certain banks, especially with online banks like Sbanken.
Submit required documents
Whether you're applying in person or online, you'll need to provide the necessary documents, such as your passport and proof of residence. Be sure all your documents are valid and properly organized to prevent any delays.
Wait for approval
Upon document submission, the bank will process your application and, once approved, will send your account details and bank card by mail.
Is online banking an option in Norway?
Online banking is gaining popularity due to its convenience and lower fees.
Advantages of online banking
Reduced fees: Online banks (e.g., Sbanken) are typically synonymous with lower banking fees compared to traditional banks.
Ease of use: Online interfaces are generally simple and intuitive, conveniently allowing for finance management from anywhere.
Fast account opening: Accounts can be opened online from the comfort of your chosen location.
Challenges of online banking
Barriers for new residents: Some popular online banks, like Sbanken, require a physical address in Norway. Additionally, they may refuse to open an account without a BankID, which poses a challenge since you need a bank account to obtain a BankID in the first place.
Limited human interaction: One drawback of online banks is the lack of in-person support, which can be a concern for older individuals less familiar with digital services. If you prefer face-to-face interactions with a bank advisor, online banks may not be the best option.
Limited services: Some online banks offer fewer specialized services compared to traditional banks.
Is it absolutely necessary to have a bank account in Norway?
Benefits of having a bank account
A bank account is essential for receiving your salary, paying bills, and managing everyday expenses in Norway.
Moreover, keeping your money in a bank is much safer than holding cash.
Having a bank account also grants you access to other financial services, such as loans and credit cards.
Can you live in Norway without a bank account?
While technically possible, living without a Norwegian bank account is impractical, and managing finances can be extremely challenging. Most employers and landlords require a bank account for salary payments, and many organizations and services, including public utilities, demand one. If you wish to access social benefits, payments are only made to a Norwegian bank account.
Likewise, mobile and online payments require a bank account in Norway.
BankID, the digital identifier used to secure online transactions, is compulsorily linked to a Norwegian account.
Without a bank account, you would be limited to cash transactions, which are increasingly rare in Norway, a country where digital payments are the norm.
BankID: An essential online banking service in Norway
Once you open a bank account, you will receive a BankID (if not, you will need to request one), which serves as a personal digital identifier for all online transactions, extending far beyond traditional banking services. With this identification, you can:
- Sign and submit documents and online;
- Register or modify your postal address;
- Apply for loans or childcare services;
- Access your bank account;
- Make transactions;
- Set up automatic payments (AvtaleGiro);
- Pay electronic invoices (eFaktura).
These features are particularly important, as in Norway, fees are charged if you opt to receive paper copies of your invoices by mail.
As you can see, BankID is crucial for managing your finances in Norway!
Bank withdrawals in Norway
While ATMs are still available in Norway, the country is transitioning towards a cashless economy, causing these machines to gradually disappear. Cash payments now account for only 3% of Norwegian purchases. It is, therefore, advisable to favor card payments. If you don't yet have a Norwegian debit card, withdrawal fees may apply depending on your bank. Some expatriates opt for virtual banks like Wise, which offer free withdrawals up to a certain limit.
Payment services and options in Norway
Norway is one of the leaders in digital payment systems. We strongly recommend familiarizing yourself with online payments as early as possible, as they are central to most transactions, with physical currency becoming increasingly rare.
Vipps: the leading mobile payment app in Norway
Vipps is the most popular mobile payment app in Norway, and for good reason. Norwegians swear by it and use it for everything: buying a vase from a flea market, paying for sausages and waffles at a youth football match, or even checking out in some stores when they don't have their debit card. This incredibly user-friendly app lets you carry out peer-to-peer money transfers, make payments in stores, and even pay bills online. All it takes is linking your bank account to the app. Even children under 15, with parental supervision, can send or receive money using Vipps.
Mobile payment options: Apple Pay and Google Pay
Apple Pay and Google Pay are two widely accepted mobile payment options in Norway, conveniently enabling payments through your phone or smartwatch by simply holding them near a compatible payment terminal.
Credit cards
To obtain a credit card in Norway, the following conditions must be met:
- Have lived in Norway for at least one year,
- Provide proof of stable income with one year of tax returns. Banks will also assess your creditworthiness (debts, etc.),
- Have full-time employment or another stable income source.
Cryptocurrencies
While cryptocurrencies are not commonly used for everyday payments in Norway, their popularity is on the rise. Some banks and financial platforms offer cryptocurrency-related services, but it's important to do your research before using them.
Obtaining a bank loan as an expat in Norway
Expats can qualify for bank loans in Norway, though certain specific conditions apply. Norwegian banks assess applicants' creditworthiness based on factors such as the length of residence, employment status, and credit history.
Banks typically require applicants to have lived in Norway for a set period, usually several years, before considering a loan application.
A stable job and regular income are crucial as banks evaluate the repayment capacity based on their current income and job stability.
A positive credit history in Norway significantly boosts the chances of loan approval. Banks consult credit reports to evaluate the applicant's financial reliability.
If you're an expat planning to apply for a loan, here are a few tips to improve your chances:
- Open and actively use a local bank account. This helps establish a positive financial history in Norway.
- Keep your job stable. A long-term contract reassures banks about your repayment capacity.
- Manage your finances responsibly by avoiding excessive debt and paying bills on time. This will help build a good credit score.
International money transfers in Norway
There are several ways to make international money transfers in Norway.
Traditional banks
Norwegian banks allow international transfers from your bank account to accounts abroad to be made online, at a branch, or via mobile apps. Fees and processing times vary depending on the bank and the recipient country, so it's advisable to inquire with your bank for detailed terms and conditions.
Online money transfer services
Several online platforms offer international money transfer services, often with lower fees and faster processing times than traditional banks. Popular options include:
- Wise: Provides fast transfers with favorable exchange rates and transparent fees.
- Paysend: Allows transfers to Visa and Mastercard cards in Norway for a fixed fee of €1.50.
- Xoom: A PayPal service that facilitates transfers to bank accounts in Norway with real-time tracking.
Mobile apps and neobanks
Apps like Revolut and Monese enable international money transfers directly from your smartphone, often with lower fees and competitive exchange rates.
Cash withdrawal money transfer services
Service providers such as Monisnap allow you to send money that can be collected as cash at designated pickup locations in Norway. This option is particularly useful if the recipient prefers cash instead of a bank transfer.
Tips for choosing the right service:
- Compare fees and exchange rates: Fees can vary significantly between providers. Some charge flat fees, while others add a margin to the exchange rate.
- Evaluate transfer speeds: Depending on urgency, select a service that aligns with your timing needs.
- Consider the receiving method: Decide between options such as a direct bank transfer, cash pickup, or credit to a card, depending on what works best for the recipient.
Tips and advice on banking and finance in Norway
Maximize savings rates
Consider depositing funds that you won't need right away into a savings account with a competitive interest rate. Check with your bank to explore the best options available for growing your savings.
Steer clear of unnecessary fees
Some banks charge fees for ATM usage, international transfers, or certain specialized services. Take the time to understand your bank's fee structure to avoid unpleasant surprises.
We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
