A Payment Account with Basic features is a basic bank account that allows, when legally residing in Malta or in another EU Member State that do not have other bank accounts in Malta, to have access to a set of banking services considered as essential, free of charge or at a reasonable cost.
AM I ELIGIBLE?
The payment account with basic features is available to anyone who is legally resident in Malta or in another EU Member State, including those whose status may mean they are not eligible for other banking products.
This means you can get this account even if you have no fixed address, if you are a refugee, stateless person or asylum seeker, or if you have not been granted a residence permit but cannot be sent back to your home country for legal or factual reasons.
Although you have a right to open a payment account with basic features, banks have an obligation to verify that you actually need this account for your day-to-day transactions.
WHAT IS A PAYMENT ACCOUNT WITH BASIC FEATURES?
A payment account with basic features is a bank account for personal use which offers basic banking services. This account may be available either free of charge or for a reasonable fee.
You will not be under any obligation to buy any other banking services from the bank in question in order to access your basic bank account.
WHAT CAN I DO WITH THIS ACCOUNT?
You will be given a debit card so that you can access the money in the account.
You will be able to withdraw your cash either from bank counters or from ATMs, in Malta and Gozo, and also in other EU Member States.
You will be able to make payments with your card, including online ones.
You will be able to transfer funds to other accounts, including regular payments (for example, through standing orders) – either from bank counters and ATMs, or via internet banking. You will also be able to set up direct debits to anywhere in the EU.
ARE THERE ANY ADDITIONAL FEATURES?
There may be other facilities which would become available to you depending on the bank with which the account is opened. For example, you might be entitled to an overdraft.
CAN THE ACCOUNT BE PROVIDED IN DIFFERENT CURRENCIES?
The account will be offered in Euro – at the least – but it is up to the bank to decide whether it will offer the account in the currency of another EU Member State.
HOW LONG DOES IT TAKE TO OPEN THIS TYPE OF ACCOUNT?
Banks have a maximum of 10 days in which to tell you whether your application was accepted or refused.
KEEP IN MIND THAT…
The account is only for personal use and cannot be used for business purposes. For example, you can receive your salary into the account, and you can use it to pay for your living expenses. But you cannot use it for a business, for a charity, for a club or society, or for any other organisation.
The law has introduced these accounts with basic features to ensure that everyone can – at the very least – access basic banking services. This means that if you already have a bank account, you might not be entitled to this type of account.
You might be able to open a payment account if you agree to close your existing one – but the bank has a right to verify that this has been done. If the bank finds out that you did have another account and that you did not close it, your payment account could be closed immediately.
Whatever your status, you will need to provide official proof of your identity before you can open the account. Banks are obliged to carry out background checks of all their customers so if you fail to provide the requested documents, your application may be turned down.
Banks have to abide by strict rules to prevent money-laundering and the funding of terrorism. These rules also require banks to screen any applicants for their services. If you do not pass this screening, the bank shall refuse to open your account. In addition, if you do not use the account for more than 24 months, the bank has the right to close it.
If a bank refuses to provide you with a payment account with basic features, it must inform you of the reason, in writing and free of charge. However, there are some cases where the bank is permitted, under the law, not to justify its refusal to open your account. These cases would relate to situations where the provision of such information would be prejudicial to national security, public policy or the bank’s anti-money laundering obligations.
Credit institutions shall not refuse to open a payment account with basic features on the basis of the consumers’ financial circumstances, including their employment status, level of income, credit history or personal bankruptcy.
WHICH BANKS MUST OFFER A PAYMENT ACCOUNT WITH BASIC FEATURES?
The obligation on banks comes from the Payment Accounts Regulations (Legal Notice 411 of 2016) – but it does not apply to all the banks in Malta.
Banks which have five or more branches in Malta must offer the payment account with basic features. They may also offer online accounts with the same features. Of course, other banks may offer this account – but they are not obliged to do so.
Specifically, you should find this account available at:
- APS
- BNF
- BOV
- HSBC
- Lombard
