What is a bank account

Who is the holder of a bank account?

The holder of a bank account is the person who contracts the product with the bank and who accesses the rights and assumes the responsibilities of the account. They can manage the money, make deposits, transfers, and other operations. An account can have one or several holders, who share the management of the funds and have access to them according to the chosen arrangement.

What is a co-holder and how does it differ from the holder?

An authorized representative on a bank account is the person to whom one or more holders have granted a notarial power of attorney to carry out certain transactions on their behalf. However, they are not the owner of the account's money, and their powers are limited according to what is established by the holders in the power of attorney.

What is the IBAN and what is it used for?

The IBAN is a code made up of 4 initial characters followed by the account number. It is used to identify bank accounts internationally, facilitating bank transfers between all countries of the European Union, as well as Liechtenstein, Norway, San Marino, Iceland, and Switzerland. Parts of an IBAN:

• COUNTRY CODE: two numbers that identify the country
• CHECK DIGIT: two numbers used for validation
• ACCOUNT CODE: includes the bank code, branch code, a national code, and the bank account number.

What are interests in a bank account and how do they work?

Interests in a bank account are the benefit you receive for depositing your money in the bank. They are calculated by applying a percentage to your account balance, generating periodic earnings according to the terms of the contract.

What are bank fees and how do they affect your account?

Fees are what a bank charges you for the services it provides related to your bank account. At ABANCA, you have the possibility of not paying the main fees. If you want to know the requirements to avoid these fees, check our ABANCA Services Program.

What is the difference between available balance and accounting balance?

The available balance is the money you have in your account and can use immediately, while the accounting balance includes transactions pending to be processed, such as purchases or transfers.

What are bank transfers and how are they made?

Bank transfers allow you to send money between accounts at different banks. At ABANCA, you can make them from mobile banking, online banking, or by phone. Select the account, enter the details of the account you want to send money to, the recipient's information, the amount, and you can carry out the operation.

What are direct debits and how do they work?

Direct debits are authorizations for a company to collect the cost of a service they are providing to you. These are usually recurring payments, such as electricity bills, gym memberships, or internet. At ABANCA, you can manage them from online banking in the Payments/Direct Debits tab or from the ABANCA app in 'Operate' > 'Direct Debits'.

What is an overdraft and what are its risks?

Bank overdrafts are situations where you run out of sufficient funds in your account and the bank advances you the money, traditionally known as "going into the red". In these situations, since the bank has allowed you to use money that wasn't in the account, some costs and fees may be generated; the late payment interest for the amount that is overdrawn, and for the period it remains so.

A fee is also usually charged for being overdrawn, and if you take longer to deposit money and bring the account back to a positive balance, you will be charged for any expenses incurred in trying to recover the advanced money.

What is the BIC/SWIFT code and what is it for?

The BIC/SWIFT is the code that identifies us as an entity to all other banks and financial institutions worldwide. It is a code you must provide if you are going to receive a transfer from abroad. In the case of ABANCA, the BIC/SWIFT code is CAGLESMMXXXYou will be redirected to another website.

What is the Deposit Guarantee Fund and how does it protect customers?

The Deposit Guarantee Fund (FGD) guarantees bank deposits and deposits in negotiable securities and financial instruments, up to a maximum amount of 100,000 euros per holder and entity.

If you have more deposits, they are added together and the total is subject to this limit.

Fees and Charges

Bank accounts may have various types of fees, which are applied depending on the services the bank provides to you according to your way of operating. The most common fees are:

• Maintenance fee: This is charged for providing the necessary IT support to safeguard your money and manage all account operations.
• Administration fee: Charged for transactions made in the account; banks usually apply it after a certain number of monthly transactions.
• Overdraft fee or higher overdraft balance fee: Charged when the account has no money at a given time and the bank has made a payment by advancing the funds.

More information about ABANCA fees

Profitability and Interest

Profitability is a financial indicator that measures the ability of an investment, product, or asset to generate profits or gains over a given period. It is usually expressed as a percentage of the invested capital.

High profitability indicates that the investment has generated a significant return compared to the money contributed, while low profitability reflects a smaller benefit.

Interest is what a financial institution pays a client for depositing their money, such as in an interest-bearing account, or what a client pays the bank for receiving a loan or credit.

Analyzing profitability allows you to compare different investment options and choose the one that best suits your financial goals and profile. Likewise, understanding how interest works will help you grasp the real cost of a loan or the potential benefit of a savings product.

How to earn interest on your money?

Security and Protection

The money deposited by the account holder in ABANCA is mainly protected by the Deposit Guarantee Fund for Credit Institutions (FGD).

Additionally, the following measures are implemented:

• Technological security: Uses advanced protection systems, such as the ABANCA Key, which allows you to confirm your identity using your mobile's unlock features (fingerprint, Face ID, or PIN) for sensitive operations.
• Data protection: Strictly complies with data protection regulations, ensuring that only you and the authorities (with a court order) can access sensitive information, such as security images.
• Surveillance and control: Branches have surveillance, alarm systems, and security cameras, and recordings are managed securely.

Protect your money with ABANCA

Digital Accessibility

Digital banking offers numerous conveniences for managing accounts, making payments, and checking transactions, allowing clients to operate comfortably and securely from any device (computer, laptop, tablet, or mobile).

Key features include:

• Real-time account balance and transaction inquiries, with search and customization options.
• Ability to hide accounts and view account holder information, as well as download the ownership certificate.
• Making transfers and payments, both domestic and international, in euros or other currencies, with the option to schedule them for a specific date or periodically.
• Payment of bills, taxes, fees, and fines, as well as returning or canceling direct debits and managing pending bills.
• Card management: transaction inquiries, turning cards on and off, modifying daily operational limits, and requesting PIN duplicates.
• Instant money transfers to other accounts, ATMs, or through services like ABANCA Pay.
• Access to the digital mailbox to view all banking correspondence from the past 5 years.
• Management of current products (card blocking, PIN reminder, card activation, etc.) and contracting new products (loans, insurance, virtual cards, etc.).
• Agenda and favorites to streamline regular operations.

See our commitment to accessibility

Associated Services

• Cards: Issuance and management of debit and credit cards linked to the account, with the ability to check transactions, modify limits, block or activate cards, and request PIN duplicates.
• Transfers: Making domestic and international transfers, both manual and scheduled, in euros or other currencies. Includes the option to schedule transfers and receive receipts.
• Direct debits: Direct debit of service bills (electricity, water, phone, etc.), with the ability to manage, return, or cancel direct debits from digital banking.
• Alert systems: Notification service to your mobile or email about relevant account movements, such as payroll deposits, received transfers, card operations, negative balance, unpaid bills, among others.
• Transaction and balance inquiries: Real-time access to account balance and transactions, with the option to download statements and ownership certificates.
• Bill and tax payments: Ability to pay bills, taxes, fees, and fines directly from the account.
• Digital management: Access to online and mobile banking to operate and check the account anytime, anywhere.

Before choosing a bank account, it’s important to compare several options to find the one that best suits your needs. Here are the key factors you should consider when comparing bank accounts.

Key factors to compare bank accounts:

• Fees: Check if the account has maintenance or management fees. Ideally, look for bonus programs that, like at ABANCA, let you enjoy your account without paying fees for the services you use most.
• Included services at no cost: Review all the services included when opening an account with ABANCA, such as debit or credit cards or other useful services.
• Requirements: Find out what you need to access the best benefits. Do you need to direct deposit your salary or bills? A minimum number of card purchases? At ABANCA, you can get up to €500 for direct depositing your salary or pension.
• Digital banking: Evaluate if the app is intuitive, if it allows you to manage your cards (turn them off/on), Bizum, pay bills with a photo, or receive real-time security alerts. Discover all the features of the ABANCA app.
• Security and protection: Make sure your savings are protected by the Deposit Guarantee Fund and that you have the latest security protocols for online purchases. Discover ABANCA Key

Tips according to your financial profile:

Students and young people: If you’re under 35, you’re looking for autonomy and zero complications. Prioritize accounts that give you everything without asking for anything in return: no maintenance fees, free non-urgent SEPA transfers, and a free debit card to move around the world. Also, if you start working and direct deposit your salary, ABANCA welcomes you with an incentive!

Open your Youth Account with no fees

Families: Choose accounts that allow you to direct deposit your salary or pension and bills, and that offer benefits for meeting linking requirements. Value services like free cards, free transfers, management of direct debits, and alert systems to control expenses and movements. If you have minor childrenYou will be redirected to another website, there are fee-free accounts for them.

Bring your salary and add benefits

Self-employed and microbusinesses:

Check the requirements of the Self-employed and MicroSMEs Program to access benefits such as reduced fees, payment and collection services tailored to your activity, and easier management of bills and transfers. If you are self-employed and do not meet the self-employed requirements, you can opt for the family program benefits if they are more advantageous for you.

Join with the Self-employed Account

Couples:

Consider joint accounts that allow you to manage shared expenses, direct deposit common bills, and access additional cards. Check if the account offers benefits for joint linking (salary, insurance, minimum balance) and alert systems for both holders.

Open your Joint AccountYou will be redirected to another website

Seniors:

Look for accounts that make in-person and digital operations easier, with personalized attention and adapted services (free cards, simple transfers, bill management). Consider the possibility of commission exemption for direct deposited pensions and access to protection products.

Direct deposit your pension with benefits

Common mistakes in bank accounts:

• Not regularly reviewing account transactions and statements.
• Not keeping the signed contract or pre-contractual information.
• Maintaining high cash balances at the branch, generating unnecessary costs.
• Not meeting requirements and losing bonuses or free services.
• Providing personal or banking data without verifying the identity of the requester (risk of fraud).
• Not reporting or correcting detected errors before the customer files a formal complaint.

Best practices for bank accounts

• Periodically review transactions and statements to detect errors or unrecognized charges.
• Always keep the signed contract and relevant documentation.
• Operate with the minimum necessary cash balance at the branch to avoid costs and risks.
• Meet the linking requirements to benefit from advantages and bonuses.
• Protect personal and banking data, avoiding sharing them without verifying the recipient's identity.
• Correct any error detected in daily operations before it leads to a formal complaint.

Avoid unexpected fees

It is important to review and understand all the fees associated with your bank account to avoid unexpected charges and better control your expenses. If you know which services have a cost (such as transfers, cards, or maintenance), you can decide how to use your account and take advantage of possible bonuses or exemptions. This way, you will avoid surprises in your statement and can claim if you detect any incorrect charges.

Read the contract carefully

It is essential to read and fully understand all the conditions of the bank contract before signing, to avoid surprises or unwanted commitments. Pay attention to clauses about fees, interest, terms, linking requirements, or possible penalties. If something is unclear, always ask for an explanation before accepting. This ensures you know exactly what you are committing to and avoids future problems.

Review your bank transactions:

Frequently checking your bank account is essential to detect errors, unauthorized charges, or any irregularity in time. This way, you can act quickly if you see a strange transaction, claim if there is an incorrect charge, and protect your money against possible fraud. Regularly reviewing your transactions helps you have better control of your finances and avoid bigger problems in the future.

Keep your passwords and digital access secure:

To protect your passwords and digital access:

• Do not share your passwords or codes with anyone.
• Do not write them down on paper or in accessible places.
• Use secure passwords, avoid personal data, and change them regularly.
• Lock your device if you leave it unattended.
• If you lose an authentication method, report it immediately.
• Keep your devices updated and protected with antivirus software.
• This will help you avoid fraud and unauthorized access to your information.

Do you have more questions about bank accounts? We have the answers