3202 Another Bank Thread - Fees?

Ok,

I know - I've looked through prior threads and seen that there are already several discussions on banking in Italy. But, none of them really seemed to answer my specific questions, so I'm gonna throw it out here and see what I get.

I'm planning to go to Italy from the US. Here, I have a bank account and a credit card. I pay for almost everything with my credit card, and then transfer money from my bank account to pay off my credit card online. I've got them both set up so that I get statements in E-mail, so no paperwork that I need to have a valid address for. No fees for any of this, as the credit card is free and the bank does not charge for online banking or to have an account, etc.

From what I can tell, Italy is quite different. I'm guessing credit cards are not nearly as commonly used to pay for things, and might not be accepted everywhere. Also, it sounds like banks charge fees for everything.

I'm trying to figure out what the best way is to have access to my money while in Italy for 10 months, without having to pay to get it transferred to Euros, etc. I have found a company (xetrade.com), that does not charge a commission to convert money and has good exchange rates. (only a cent or two above mid-market rates, from what I've seen) I can get money wired to an Italian bank account, or sent to me in the form of a bank draft. So, I'm ok for getting money to Italy, I believe, but the problem is where to put it in Italy - I need access to an account in order to cash a bank draft or receive a wire deposit, and even after that, I don't want to be carrying thousands of dollars around with me. I thought about traveller's cheques, but that's going to include a 1.5% fee at best, it seems.

Which leads me to banks - I'm considering opening a bank account in Italy. Requirements (residency, address, etc) aside, can anybody tell me generally what sort of fees you'll be facing with an Italian bank account? For example, do they charge a fee for the following:

-To open an account
-A monthly fee to have an account (!)
-To make a deposit/withdrawal
-To accept a Bank Draft
-To receive a wire transfer
-To speak to a teller (!)
-To access your account online

If anybody has an idea of how those fees are generally done, that would be nice too (general price range they fall in, and whether it is a percentage or per incident amount).

Finally, what is the ATM situation in Italy? I know here, I can go just about anywhere and get up to $300 or so out of an ATM, sometimes paying a $1.50 ATM fee, but never any additional fees. Is it similar in Italy, and are there plenty of ATMs?

Thank you so much for your help with this long question!!

Regards!

Category
Cost of living - Utility Services

Submitted by Anonymous (not verified) on Fri, 04/07/2006 - 16:51

one card i use is the american express travellers cheque card. I find i can buy euros when i want meaning i get a better rate. if you charge the card, you can use it as a normal credit card or withdraw cash. There is a charge for cash withdrawals though. You also get all the protection of travellers cheques ie: passport replacement etc.

Andy

Submitted by Anonymous (not verified) on Fri, 04/07/2006 - 17:15

There are plenty of ATM machines, and if you do open an Italian bank account withdrawals at branches of your own bank (or those on the same circuit as your bank) are free. Banks will give you a debit card for use in ATMs, paying for petrol, supermarket use, motorway tolls etc., within days of opening an account (no residency requirement). 250 Euro max cash withdrawal unless at your own branch, where it is higher.
Credit cards are widely accepted (sometimes Amex is not liked, though), but watch the exchange rate your card issuer gives you when paying in Euros, and if they make a charge - these can be high. Generally difficult to get an Italian credit card without residency.
It probably depends where in Italy you are going to be based, but in my area one of the banks which has "Cooperativa" in its name is generally the cheapest and has the biggest spread of free ATMs.
To run an account with a "high street bank" here, ballpark is 80Euros a year to have the account, between 1 and 4 Euros for each direct debit, around 1.5 Euros per counter cash withdrawal. No charge to open the account, but a charge to close it!! One euro a month for online access.
They are generally not too expensive in commissions putting wired money into a current account, and give a reasonable rate of exchange (compared with the UK, at least). Generally have a min charge, so worth moving loads of money at a time! Bank drafts have to be paid into an account - cannot be cashed - (money laundering controls).
Western Union seem to have quite a lot of franchised outlets - you may find this a good way to move money across - I have no idea of their rates.
That about drains me of knowledge on banks!!

Submitted by Anonymous (not verified) on Fri, 04/07/2006 - 17:39

Thanks a bunch! That is some very helpful information! It sounds like the fees are much worse than the US, but not as bad as I was afraid of...seems like if I make sure to take out the max every time I use an ATM, and pay cash for things until I'm out, I shouldn't be facing too many extra fees.