What is a bank account

What is the holder of a bank account?

The holder of a bank account is the person who has rights and responsibilities over the account. They can use the balance, make deposits, transfers, and other operations. An account can have one or several holders, who share ownership and management according to the type of arrangement chosen.

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

A co-holder is an additional holder of the account, and they can be classified as indistinct co-holders, where each can freely operate the account, or joint co-holders, where several signatures are required to carry out operations. The distinction between holder and co-holder is merely terminological, facilitating differentiation.

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 European Union countries, 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 get for depositing your money in the bank. They work as a percentage applied to your account balance, generating periodic earnings according to the contract conditions.

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

Fees are what a bank charges you for maintaining and managing your bank account. At ABANCA, it is very easy not to pay for these banking services. 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 operations pending processing, such as purchases or transfers.

What are bank transfers and how are they made?

Bank transfers are money sent between accounts. At ABANCA, you can make them from mobile banking, online banking, or by phone. Select the account, enter the recipient's details, the amount, and confirm the operation.

What are direct debits and how do they work?

Direct debits are authorizations for a company to automatically collect recurring payments from your bank account, such as electricity bills, gym, 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, commonly known as being in the red. In these situations, some costs are generated, such as late interest for the amount 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, a collection management fee for the unpaid amount may be applied.

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, and 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 CAGLESMMXXX.

What is an authorized representative in a bank account and what are their functions?

An authorized representative in a bank account is the person authorized by the holders to carry out certain transactions on their behalf. However, they are not the owner of the account and their powers are limited according to what is established by the holders.

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

The Deposit Guarantee Fund (FGD) protects deposits up to a maximum of €100,000 per person and entity. If you have more deposits, they are added up and the total is subject to this limit. More information at: info

Fees and Charges

Bank accounts may have several types of fees, which are applied depending on the services and transactions performed. The most common types of fees are:

• Maintenance fee: Charged periodically simply for having the account open and active.
• Administration fee: Applied for each entry or transaction made in the account. It is settled by accumulating all fees accrued during each period.
• Overdraft fee or highest overdraft balance fee: Charged when the account shows a negative balance. It is calculated based on the highest overdraft balance during each settlement period.
• Card issuance and maintenance, as well as any unplanned use of these cards.
• Flat rate fees: If the client has contracted a flat rate for services, pending fees may be generated.

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 the price paid for the use of someone else's capital over a specific period. In other words, it is the amount a financial institution pays a client for depositing their money, or that a client pays the bank for receiving a loan or credit.

Interest is usually expressed as an annual percentage, known as the interest rate. There are two main types of interest:

• Simple interest: Calculated only on the initial capital.

• Compound interest: Calculated on the initial capital plus the interest generated in previous periods.

Analyzing profitability allows you to compare different investment options and choose the one that best fits your financial goals. Understanding how interest works helps you grasp the real cost of a loan or the potential benefit of a savings product.

Security and Protection

The money deposited by the account holder in ABANCA is mainly protected by the Deposit Guarantee Fund for Credit Institutions (FGD). This fund guarantees bank deposits and deposits in negotiable securities and financial instruments, up to a maximum amount of 100,000 euros per holder and institution.

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 transactions.
• 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.
• Asset safeguarding: Keeps your funds separate from those of the bank and other clients, avoiding any confusion and protecting your money even in the event of the institution's financial problems.
• Surveillance and control: Branches have surveillance, alarm systems, and security cameras, and recordings are managed securely.
• Transparency: All transactions and movements are regulated and supervised to protect your rights as a client.

Digital Accessibility

Digital banking offers numerous facilities for managing accounts, making payments, and checking transactions, allowing clients to operate comfortably and securely from any device (computer, laptop, tablet, or mobile). Among the main features are:

• Real-time account position and transaction queries, with search and customization options.

• Ability to hide accounts and check account holder information, as well as download the ownership certificate.

• Making transfers and remittances, 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 cancellation or return of direct debits and management of pending bills.

• Card management: transaction queries, 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 consult all banking correspondence from the last 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 speed up regular operations.

Associated Services

• Cards: Issuance and management of debit and credit cards linked to the account, with the possibility to check transactions, modify limits, block or activate cards, and request PIN duplicates.
• Transfers: Making domestic and international transfers, both manual and periodic, 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 possibility 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 transactions, negative balance, unpaid bills, among others.
• Transaction and balance queries: Real-time access to account balance and transactions, with the option to download statements and ownership certificates.
• Payment of bills and taxes: Ability to pay bills, taxes, fees, and fines directly from the account.
• Digital management: Access to online and mobile banking to operate and consult 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 for comparing bank accounts:

• Fees: Analyze whether the account charges maintenance, administration, transfer, card, or other service fees. Assess if there are loyalty or bonus programs that allow you to reduce or eliminate these fees.
• Services included at no cost: Check which services are included for free, such as debit/credit cards, national and international transfers, check deposits, in-branch transactions, etc.
• Linkage requirements: Verify if you need to direct deposit your salary, bills, maintain a minimum balance, contract additional products (insurance, funds, etc.), or carry out a minimum number of transactions to access the account’s benefits.
• Digital banking facilities: Evaluate the quality and features of online and mobile banking, such as viewing transactions, making transfers, managing cards, paying bills, alert systems, etc.
• Access to in-person services: Consider whether the account allows in-branch service and which transactions can be performed at the counter free of charge.
• Limits and conditions: Review the maximum number of accounts a holder can have, transaction limits, conditions for free services, etc.
• Security and protection: Confirm the protection of funds through the Deposit Guarantee Fund and other security measures.

Tips according to your financial profile:

Students and young people (16-29 years): Look for accounts specifically for young people that offer benefits such as no maintenance or administration fees, free SEPA transfers, free debit card, and free cash withdrawals at selected ATMs. Take advantage of digital banking to manage your finances and make payments easily. Additionally, a bonus is offered if you direct deposit your salary.

Families: Choose accounts that allow you to direct deposit your salary or pension and bills, and that offer bonuses for meeting linkage requirements. Value services such as free cards, free transfers, management of direct debits, and alert systems to control expenses and transactions. If you have minor children, there are commission-free accounts for them.

Self-employed and micro-businesses:

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 facilities for managing bills and transfers. If you don’t meet the self-employed requirements, you can opt for the family program benefits if they are more advantageous for you.

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 linkage (salary, insurance, minimum balance) and alert systems for both holders.

Seniors:

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

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.
• Failing to meet linking 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 client 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 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 hidden 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 fine print.

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, and 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 suspicious transaction, claim if there is an incorrect charge, and protect your money from 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 way, you will avoid fraud and unauthorized access to your information.