In recent years, banking in Spain has changed out of all recognition. The service, although far from brisk is nonetheless pleasant and most banks are both reliable and efficient. On a hot day, the often long wait for service may be God sent as you revel in the air-conditioning. In expatriate areas you will find that most bank staff speak English as well as you do and in some cases, much better

There are two different types of banks, saving and clearance. The two largest clearing banks are the Banco Santander-Central Hispano and Banco Bilbao Vizcaya. You'll find all banks listed within the Spanish Yellow Pages and most advertise extensively in all mediums. Many have internet banking facilities which are excelent. Be careful though, if you lose money through internet fraud, with most banks this is what you have done - lost it! If you wish to operate, as most expats do, an internet account check to see what protection is offered against internet fraud.

Nothing prevents any resident or non-resident alike from opening a Spanish Euro account but the two are distinguished from each other in that different regulations apply to transfers for the resident and non-resident. Non-resident's accounts are called cuenta extranjera but for banking purposes operate in almost the same way as the resident's account.

All types of accounts can be open but the one in which you will be most interested is that which will allow you to either directly, or through standing orders and/or direct debits, pay your regular accounts and of course, give you instant access to your money. In Spain, such is the proliferation of ATM machines that it is not at all uncommon for many people with current accounts not to have a cheque book. If you do want one they are available and don´t worry about not speaking Spanish, simply make out your cheque in English.

Before you decide on a bank, make a definite point of asking them what it will cost to use cashpoint machines. You may find that there is little or no charge for those owned by themselves but you could find that a charge of up to €7 being levied for use of other ATM machines.

Interest rates in Spain are not very good for investors at the moment and you will probably fare better if you leave your money in a deposit account in the UK or your home country. That interest rates are low is not such a bad thing in that mortgage rates offered by Spanish Banks are also low.

However, on the subject of mortgages be careful. Banks consider clever footwork to be good business and you may find that the bargain mortgage granted to you doesn't remain a bargain for very long. Always make multiple applications for mortgages and politely make it known that you are shopping around. A quarter of one per cent can make a considerable difference over a few years. You should also be aware of the fees involved with a bank loan. Some banks are quite reasonable, others not only charge a percentage as a setup fee but add other items as well. Before you borrow find out exactly what it is going to cost.

If you become a resident of Spain, pay tax here and you have a mortagage, you can offset interest payments against your Spanish tax. This most generous allowance makes a noticeable difference to what you pay to the revenue.

On the other hand, if you have a bank account which is earning interest, your account may attract the attention of the taxman who rather along the same lines of the UK revenue, instructs the banks to deduct a percentage automatically from your account. In Spain, 18 per cent of any interest earned will be withheld and remitted to the Spanish Hacienda. You can claim this back when you file your annual tax returns if appropriate. Interest accruing on the account of Non-residents is untouched but they will of course be obliged to inform the revenue in their own country!!!

When compared to the interest rates offered on current accounts by the UK, Spanish banks pale into insignificance. You will receive a staggering 0.1 per cent on your average balance. You will also pay much more for your banking service than in most other EU countries. Some banks charge clients to pay money into their own accounts.

We mentioned earlier the need to ascertain the cost of using ATM machines but in fact it is good policy to ascertain the cost of any service you are asking your bank to supply. There seems to be no laid down scales with the banks, who often carry out major tasks, sometimes for a pittance, whilst at other times charging well over the top for a relatively trivial service. You may well find that having drawn a bank error to the attention of your bank that they have charged you for correcting it.

It is well known that money being transferred from foreign countries to Spain, say for the purpose of paying for a property, seems to take an inordinately long time.

Although your UK branch may well show the money having left your account when it should have, it is not unusual for it to take several days to arrive in your Spanish account. During this time you are not earning interest on what may be a considerable amount of money. However, you can safely bet that someone is. Multiply this figure by a few thousand transactions and you have a windfall. Before transferring money to Spain, ask your bank manager how long it will be before it is in your account. Better still, use a currency handling service which will be far cheaper and very quick.

Beware of commission charges when sending money out of Spain - some banks have been known to charge 4 per cent. If you have just sold a property for 200,000 Euros and are transferring the money to the UK or ROI, a 4 per cent commission would equate to you spending 8000 Euros or around 6000 sterling pounds. Again, use the services of a currency handling service.

Remember, a sold property probably means that you are leaving Spain so this may well be the last opportunity the bank will have to plunder your account! As if this sort of money is not enough, in an attempt to demonstrate financial acumen to their customers and make even more money, Spanish savings banks often take on other commercial roles which may involve selling computers, bicycles or other items.

With the tightening up of currency controls because of terrorism it is now almost mandatory to attend in person if you wish to open a bank account. Copies will be taken of your passport so as to be able to confirm your identity. It is possible to open a bank account in Spain through some of the currency handling companies but it really is better to put in an apperance yourself. Go into any bank - explain that you are in the process of comparing services. They may ask you why you would want to do that but on the other hand, they may well just get caught up in the spirit of things and try to win your account. In accepting responsibility for the following statement, the writer can safely say that the service provided by both SolBank has always proved effective and quite reasonably priced but there, it probably doesn't cost a lot to look after a pittance!! Cambank is another favourite of the writers and one of the banks used by SPC. They too offer an excellent service but have the advantage of being able to collect fees for the government. For instance, you can pay most tax demands, including income tax and car tax at Cambank. As with Solbank, Cambank have an excellent internet banking service.

Mentioned earlier was the fact that whilst cheque books exist, the Spanish don´t seem to impressed with the idea, preferring cash for most things. Credit cards can be used and obtained in Spain, much the same as anywhere else in the world but debit cards are probably in greater use.

Debit cards can be used in any of the myriad's of ATM machine to draw cash, or to pay for a wide range of goods and services. As with credit cards, debit cards have a PIN and when used in shops you will be required to enter your PIN into a machine. This system started in the UK in 2005 but has been operating in Spain for close on ten years.

There is probably a difference in the way the Spanish system works which as with the UK is made possible by a remote key pad, attached by a cable to the card machine. This is passed to you and while everyone is looking elsewhere, you enter the magic number. In 50 per cent of cases, nothing happens. This is because 50 per cent of Spanish workers don´t know how to use the machine, never having been shown!. Numerous attempts will be made by which time your PIN has been exposed several times and is now known to everyone in the shop. Staff and shoppers alike!

Eventually it will be suggested that you go round the corner and draw money from an ATM machine. However, the banks computer having detected what it sees as an an all out assault on your funds will by now probably have locked out your account which you will not be able to access until the following day.

Moral: use your debit card if you know, they know, how to use it. If not, use cash, which in any event is much more preferable to the average Spaniard seeking to minimise his paperwork and accountability.

Whilst it is not a necessity to have a Spanish Bank Account to purchase a property in Spain, having one will enable you to make transfers more easily and pay utility bills such as electricity, water, telephone, Sky TV and/ etc.

There is no automated central clearing system for cheques and transfers and banks communicate with each other directly, couple this with the higher levels of personal service you get from Spanish banks and you will see why their charges are higher than you are certainly used to in your own country. Spanish Banks tend to charge for every transaction or activity rather than absorbing this cost in other charges such as the interest rate, which is one of the reasons why cheques are not widely used in Spain. Pay a fortune into your bank account and you pay for it. Draw it out and you pay again.

Consider the types and amounts of transactions you wish to have go through your Spanish bank account and shop around for the most suitable charging structure. All banks are required by law to publish their charges, however not all banks provide them in English, so here is an example of some of the more common transactions and their charges: