Tag: Czech Koruna

Credit Cards in Czech Republic

paidincrowns1 Comment

For years I’ve lived here in Czech Republic, I noticed that Czech people are generally against using credit cards. I understand, credit cards aren’t for everyone, especially those who have a hard time controlling their spendings. But if used correctly and wisely, credit cards can actually bring you some extra money.

One thing to keep in mind before using a credit card is to understand that credit cards aren’t an extra income. It is a form of loans, which means if you don’t pay off everything you owe, there will be interests you need to pay. I would only recommend using credit cards if you can pay off everything every month, so you won’t stock up some debts.

For me personally, I started using credit cards because I wanted to manage my cashflow. There are times when I need to make big purchases, be it for work or personal use, and I want to ‘spread’ out my spendings as to not have spikes in my monthly cashflows. However, if you’re an expat here and don’t have permanent residency, finding the right bank that would issue you a credit card is another tricky part. Most banks require you to at least have a PR first. Luckily for me, I’ve been banking with Česká spořitelna and they had no problem issuing one to foreigners.

Using the card is free as long as you spend minimum 3,000Kc monthly, which isn’t all that difficult to do. You get a card for free and could also get an extra one if you want. An extra benefit for me was that Česká spořitelna was charging 100Kc monthly, and this was reduced by 50Kc if you receive 7,000Kc in your account (I got my salary to this account so this wasn’t a problem), and further 50Kc if you use another product from them, so using their credit card brought my banking expenses with them to 0.

A standard credit card from Česká spořitelna is a Mastercard World credit card, which is considered a ‘premium’ credit card. This means, there are some perks you could enjoy just by owning this card, one of which is free entry to airport lounges in Vienna Airport and reduced price to Mastercard airport lounge in Prague airport (350Kc per entry, or 100Kc if you’re registered to the Priceless Specials program).

Another thing I like from using this card is the 1% cashback program if you spend online or abroad (max. 350Kc). Buying airline tickets, booking hotels, or even paying Netflix or Spotify subscriptions then entitle me to get 1% cashback. I have another trick to maximize this 1% cashback program, but I will write it in a separate article.

Again, I pay off all my credit card debts every month, so credit cards for me has only brought benefits so far. It might not seem like much, but using credit cards, especially one from CS, has been bringing me some extra cash at the end of the month, and also I could enjoy some free snacks/drinks whilst waiting at airports.

Disclaimer: Things I write here are coming from personal experiences. I am not a professional financial advisor and I am not paid to promote any products by any banks.

First Things First: Which Czech Bank Should I Choose?

paidincrownsLeave a comment

So now you’re settled, you’ve managed your paperwork, you’ve got a new Czech SIM card, rodné číslo in hand, and your new employer is asking where to send your salary to. Of course you need a bank account, but how to choose the best one?

If you’re a regular employee whose salary is not more than 70,000 CZK a month, I’d suggest you choose a bank which has no monthly fee, no hidden fees for receiving or sending out money, good interest rates on savings account, willing to let foreigners open an account (you’ll be surprised how frustrating it could be that some banks decide not to let foreigners without permanent residence open an account), good internet banking system, and of course, English friendly. The competition of banks is pretty tight, which is good for us because banks would compete to give the best service to get clients. Many banks provide referral program, which means if you have a friend who is a client already and they refer you to the bank, you both will get some hundred koruns rewards. Pretty sweet, huh? So, which bank is the best?

The answer is, depends on what you are looking for. At the moment I have 3 bank accounts for different purposes (and later on after you get more comfortable with your new life in Czech Republic and have known more about your way around your money, I would recommend you to have more than 1 bank account), and each of them offer something that is better than other banks. But below are my recommendations for your first Czech bank account.

How to choose the best bank in Czech Republic
The Czech National Bank

Czech National Bank

1. Equa Bank

One of my favourite banks. It is very easy to set up an Equa account. All you need is just to take your passport+residence permit and you’re good to go (also bring your job contract or if you’re self employed, some documentation to prove your income). I’m pretty sure you can try to open an account online, but for a foreigner, the process is slightly trickier than for citizens (best they will do is they will call you and tell you to come to a branch).

What I love about Equa is that the account is free to use (unless you opt for their gold card which gives other benefits), have free withdrawals from any ATMs in Czech Republic (quite possibly because they don’t have their own ATM (or at least I’ve never seen any)) and only charge 9 CZK from any withdrawals abroad, instant transfer to other Equa accounts (would help a lot if your friends/circle also use Equa since many banks take a long time to transfer to other accounts), have one of the highest interest rates in savings account, really good and easy to use internet banking, and English friendly (even their website is very English friendly). If you have friends who use Equa as well, mention their name+phone number, you both will receive some rewards (last time was 100 CZK, not sure about now). It is also really easy to set up a Euro account link it to your card so when you buy something in EUR, it will be charged directly to the EUR account. Everything can be done online.

What I don’t love from Equa is they don’t have a deposit cash machine so unless you got your salary transferred there directly, might be difficult to use. You could go to a Post Office to deposit your money (maybe with a small fee) or, like what some of my friends do, they give cash to some friends and ask them to wire them to their account. Not the easiest way.

They also don’t offer credit card and their currency exchange rates aren’t the best.

2. Fio Bank

Another English friendly bank (both online and offline) with good internet banking system. They also offer free current account and you can even open accounts in 14 other currencies. Only 10 withdrawals from their ATM network is free monthly (but that’s normally more than enough) and you can also deposit cash in their branch.

Fio Bank is also one of few banks that offer stock investment services (a huge plus!). They also offer credit card (but probably not to new clients who haven’t established rapport in Czech Republic). Eurozone payments are also free. Their interest rates on savings account aren’t appealing at all though, but if you’re only looking for a bank for your day to day transactions, Fio Bank is one of the best in the market.

3. Air Bank

The website is not English friendly at all but Air Bank also offers a free account, free cash withdrawals from their ATM network.All incoming and outgoing payments are free and they also have cash deposit machines, unlike Equa. It’s also easy to open account in EUR and from time to time they offer rewards for new clients (for example, 500 CZK to open a new account). They also give bonus about 1% interest rate for a year to your current account if you use the card at least 5 times a month (which isn’t difficult to do at all). And they also offer one of the best interest rates for savings account in the market.

Much like Equa, you need to provide passport+residence permit and employment contract/self-employed documentation to open an account. Go to their branch as they will only speak in English in the branch not by phone. I’m not sure about their exchange rates, but it’s pretty common for banks to add a certain percentage to the exchange rates.

There are of course older and more established banks like Česká spořitelna or ČSOB. These banks have their advantages for other products but for current account, the three banks I mentioned above are among the top 3 banks with free account I can recommend.

PS: This is my personal opinion. I am not endorsed or paid by any banks to promote their products.

Welcome to the Czech Republic!

paidincrownsLeave a comment

This beautiful country has a lot more to offer than just the pretty castles and historical bridges.

This blog is for you (especially expats) who would like to know about managing your finances in Czech Republic, whether you’re new or have been here for a while, would like to choose your first bank or thinking of moving your money somewhere more profitable for you, would like to save up more or budget your money so you could live reasonably whilst also enjoying your pivo on weekends (or weekdays, nobody’s judging), all in English.