28 Dec 2023
Italy has remained one of the top expatriate destinations for Indian migrants. They travel to Italy to find a job that offers them stability and longevity in terms of duration and send money to India to support their families back home.
But do you think all the Indian migrants earn money and simply transfer funds back home? If so, then what about one’s financial management as a migrant? And what is it that almost all developed countries largely encourage when it comes to dealing with finances?
Well, only one word will suffice to answer all of these questions.
Banks remain – have always remained – one of the best financial institutions to provide customized financial services to both individuals and companies. But where banks qualify for the safe-keeping of your funds, deposits, and other routine transactions, they also provide remittance services to millions of their customers.
There was a time, and not too long ago when the only option you had banked for matters concerning finances. They would cater to all your financial needs, but as time progressed, several operations, which the banks monopolized earlier, were largely taken away from banks.
But this dilution of banks’ monopoly remains partial, and one glaring example of this is the online money transfer companies that have taken over the banks in providing this particular service as these institutions specialize in these operations.
This blog will throw light on the utility of banks and different bank account types and how they still serve Indian migrants, given that, as mentioned earlier, millions of expatriates still transfer funds through banks.
A report by NDTV said that about 18 million Indian migrants live in different countries for a host of purposes. They have contributed to the Indian economy with $100 billion in inward remittances, NDTV quoted Indian Union Finance Minister Nirmala Sitharaman as saying.
They use different channels to transfer funds, but for their financial management, they use different types of bank accounts while in Italy.
Before casting a glance at the different bank types, let’s take a look at the Italian economy.
Such a robust economy has the potential to accommodate job-seeking Indian migrants to come to Italy, earn a living, and support their families through a money transfer to India.
Having a bank account in Italy, or any other country for that matter, to pay rent, make payments for groceries, etc., is essential. It also helps you manage your finances better, which is critically important for you as an Indian migrant.
Here are some ways to Manage Your Finances Better As An Expatriate.
The following are the few bank account types you can have in Italy.
It is one of the basic and common bank account types you can open in Italy. You can use one such account for debit transactions, paycheque deposits, cheques, authorized automated withdrawals, bill payments, etc.
You can have a savings account in Italy to save your money instead of spending it, which is convenient with a checking account. A savings account normally comes with no monthly fees, offers high interest, low-fee transactions, etc.
Consider this account as a cross between savings and checking accounts. It is normally referred to as a ‘spend and save’ account and offers some bonus features such as earning rewards on your spending.
If you are a startup business or operating already, it is always advisable to keep your private account from your business account. The best part of almost all Italian banks is that they have a separate category for such accounts which makes it easy for you to open and maintain one to deal with your businesses, etc.
A joint account is a simple checking or savings account with the same functions and features, but the only difference is that a joint bank account allows two or more people to operate it.
You can also open an international bank account which makes cross-border payments easy. It serves travelers best as they can receive payments and do transactions while on the move.
An international bank account will also serve you as an Indian migrant for your online money transfer to India should you choose one but remember that it will come at the cost of high fees, long transaction time, uncompetitive currency exchange rates, etc.
Your children also want to open a bank account at a tender age to stash the money they receive from you on occasions like their birthdays, getting promoted to the next grades, etc. Several Italian banks offer you this facility, and such an account can be opened but in the presence of a guardian.
These are specialized bank accounts meant for students to cater to their complicated financial needs. A few benefits of having a student bank account often include no monthly fee, limitless debit transactions, etc.
Although different banks require different documents depending on the account type, the following few are required, by and large, by every Italian bank.
Provision of all or any of these documents can help you open a bank account in Italy as an Indian migrant.
It is easy for you to open a bank account in Italy, but it better be confined to financial management alone and not for your remittances transfers, particularly when you can get competitive rates, speed, safety, wider access, low fees, and much more if you choose ACE Money Transfer to send money to India online.
Indian expats in Italy have access to various types of bank accounts, including savings accounts, checking accounts, fixed deposit accounts, and foreign currency accounts. Each type serves different purposes, so it's essential to choose the one that best fits your needs.
A savings account is designed for storing and growing your savings over time. It typically offers higher interest rates but has limitations on the number of withdrawals you can make. A checking account, on the other hand, is for day-to-day transactions and allows unlimited withdrawals and access to a debit card for easy spending.
Yes, many Italian banks offer fixed deposit accounts, also known as term deposit accounts. These accounts allow you to deposit a specific amount of money for a fixed period, typically with higher interest rates than regular savings accounts. It's a safe way to grow your money.
Yes, some banks in Italy offer foreign currency accounts that allow you to hold and transact in different currencies, including Indian Rupees. These accounts can be helpful for expats who receive income or make transactions in multiple currencies.
To open a bank account in Italy as an Indian expat, you typically need to provide identification documents such as your passport, proof of address in Italy, and proof of legal status in the country (e.g., work permit or permanent residency card). It's advisable to contact your chosen bank beforehand to confirm the specific requirements.