Portugal's banks, despite an initial reluctance to join in, have been offering a low-cost account option to qualifying customers.
The scheme is going well with strong growth in the first half of 2016 reported by the Bank of Portugal, with over 30,000 customers opting for a low-cost account that allows them to carry out basic ‘essential’ transactions.
At the end of the first half of 2016 there were 30,894 accounts that provide a raft of essential services, representing an increase of 66% from the end of the first half of 2015. Most of these new accounts resulted from customers converting from a normal account where running costs have risen sharply in recent years.
According to the governor of the Bank of Portugal, 7,542 new minimum banking service accounts were opened in the first six months of the year, more than half - 4,076 - were converted from an existing account while 3,466 resulted from the opening of an account by a new customer.
These minimum banking services accounts offer a debit card and the ability to perform other operations deemed essential, such as direct debits and domestic bank transfers.
Unlike a normal account, where customers pay account maintenance fees that can cost over €100 a year, the minimum services account cost is capped.
According to the Bank of Portugal, banks may not charge banking commissions, fees or other charges which each year and as a whole, exceed 1% of the national hourly minimum wage, currently €5.30.
Since 5 October 2015 all national banks have been required to offer these accounts.
