The banking system in Chile
In order to open a bank account in Chile, you need a RUT number (or Chilean national ID), and therefore, you must have residency. In this article, you will learn how to proceed once you've established residency in Chile.
Even after obtaining temporary residency, most banks are still very reluctant to open an account for foreigners unless the individual is a big investor or already has a relationship with the bank. But don't give up too easily. Many small-town bankers are not used to working with foreigners so you may get different stories from different bankers at different banks, and you can use this to your advantage. Even so, it is often helpful to find a friend or contact who can recommend you to a banker.
Again, who you know in Chile goes a long way. An inside contact is called a pituto and can help you with everything from opening a bank account to finding a job.
The Cuenta RUT
Once you've established temporary residency in Chile, one thing you can do to start a relationship at a bank is to apply for a type of account called a 'Cuenta Vista' or 'Cuenta RUT' with Banco Estado, one of the local Chilean banks. These accounts aren't always ideal long term because they have maximum monthly and total deposits well under the US$5,000 threshold; however, they can be handy for paying bills and sending wires within Chile.
Banco Estado has many branches with ATMs all over Chile -- even in the smaller towns. Starting in 2019, the Cuenta Rut card is now a visa debit card that can also be used abroad. In Chile, its network is called RedBanc or RedCompra, and can be used in stores, online, or at ATMs.
While a Banco Estado Cuenta RUT has long been the only account available to foreigners with temporary residency, in 2019, Scotia Bank added another option. With this simple checking account comes a debit card that you can use in Chile or abroad. A monthly fee may be charged, and you must show proof of a minimum income in order to open the account.
As it is common to pay phone, internet, and tuition bills (among others) online in Chile, these bank accounts will come in handy. It is free and easy to pay for local services and contractors through the web service of Chilean banks. They may not always be quite as high tech as some other countries like the USA or the UK, but the system works well for the most part.
The Cuenta Corriente
Once you have permanent residency in Chile, opening an account becomes much more straightforward, and the banking industry in general starts to have a lot more appeal. You can open a cuenta corriente which has much higher maximum limits. Opening a brokerage account which pays an attractive interest rate becomes a lot easier, you're eligible for local financing, and if you can provide proof of income of $4,000-$8,000/month, or can start an account with $400,000 or more, you also have the option of starting a premium account at one of the more exclusive departments of the major banks.
If you receive a pension in the US, for example, and establish residency in Chile, it's possible to set up direct deposits for the pension funds at some of the local banks.
The Chilean peso
Peso notes in circulation are CLP 1,000, 2,000, 5,000, 10,000, 20,000. Coins in circulation are 10, 50, 100 and 500 pesos. Until 2017, there were also 1 and 5 peso coins, but those are not out of circulation. Most people refer to the 1,000 CLP notes by the name “luca”, therefore 2,000 CLP is “dos lucas” (two lucas), and so on. Other colloquial names for money are “gamba” for 100 pesos, “quina” for 500 pesos, and “un palo” for a million pesos.
Converting your money into Chilean pesos
Many people use the ATMs here as they accept cards from around the world. This enables you to get your foreign currency from your bank outside Chile converted into Chilean pesos quickly and easily with better rates than the money exchange stores. There can be fees associated with ATM transactions on both ends even though some American banks refund you all ATM fees and don't charge international usage fees. Additionally, there is a limit to how much you can take out per card per day, which is 200,000 CLP. To transfer more substantial amounts, you can use Western Union, but there is often a lot of hassle bringing more substantial amounts of money into the country. This is especially true if the money source is in the USA because of laws to prevent drug smuggling money and money laundering. Therefore, transactions are limited to under 10,000 USD if you want to avoid the hassle with governments and financial institutions.
A great website/app available is XE.com which will give you the current conversion rates for any currency.
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