Setting Up An Expat Bank Account In Denmark

Tiffany Jansen
Posted: December 3rd, 2013
Copenhagen DenmarkCopenhagen Denmark

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Expat Banking In Denmark
There are a number of logistical things you need to take care of before you start really tucking into the incredible sights and sounds of Denmark. Setting up a bank account is one of them.

While getting your finances in order in Denmark isn't difficult, there are a few things you should know. And we've got them lined up for you right here.

Money Matters

Denmark may be part of the European Union, but the official currency is not the Euro. It's the Danish Krone (DKK), which is comprised of 100 ore.

The denominations are:
Coins: 50 ore and 1, 2, 5, 10, and 20 kroner.
Notes: 50, 100, 200, 500, and 1,000 kroner.

ATMs can be found virtually everywhere, most typically located outside of banks, but also at shopping centers and supermarkets. While it is free to withdraw money from your own bank, you will most likely be charged a small transaction fee to use the cash machine at another bank. It is also important to be aware that not all ATMs are open 24 hours a day.

Mastercard, Visa, American Express, and Diners Club are widely accepted, but be advised that you will be charged a fee. Some smaller establishments do not accept credit cards at all. Cheques are not used in Denmark, though banks and some of the more prominent hotels will exchange Travellers Cheques, with a preference for Euros, Pounds, and US Dollars.

The most widely used form of payment is Dankort, Denmark's debit card system. Payments large and small can be made with the Dankort, which will pull funds directly from your account. Cash back on purchases is another perk. You'll also need it to withdraw money.

Banks in Denmark
Denmark's leading banks are Dankse Bank, Nordea, and Nykredit. Rounding out the list are Jyske Bank, Syd Bank, FIH Erhversbank, Spar Nord Bank, Roskilde Bank, Forstaedernes Bank, Amagerbanken, Fiona Bank, Arbejernes Landsbank, Alm Brand Bank, Sparbank, and Vestjysk.

Services include loans, insurances, internet banking, current and deposit accounts, overdraft and credit facilities. You will also be required to set up a Nemkonto, or Easy Account. Payments coming from public institutions, such as tax refunds, social security payments, child subsidies, and pensions, will be made to this account.

If, at any time, you find yourself dissatisfied with your current bank, switching banks is quick and easy. The matter can often be sorted online in a matter of minutes.

Banks in Denmark subscribe to the NEM ID internet banking system. This requires an identification code and password as well as a list of 6-digit codes provided by your bank. A new 6-digit code is required each time you access your account. Your bank will explain the system to you in more detail.

When you visit a bank, you will need to take a numbered ticket from one of the machines located just outside the main lobby. You then wait until your ticket number flashes on the screen above the teller's counter. The teller will also call your number. Once you've arrived at the appropriate counter, simply place your ticket in the basket provided.

Danish banks are open from about 9:30-5 on Mondays, Tuesdays, Wednesdays, and Fridays. On Thursdays, banks stay open an hour later. Banks are closed on weekends and public holidays.

What You'll Need
The first thing you'll need upon your arrival in Denmark is your CPR number. The CPR number is your Civil Registration Number. You will not be able to open an account without it. Other things you'll need are:
- a passport,
- a residence permit,
- proof of employment and income,
- proof of address.

Good to Know

Dankse, Nordea, Jyske, and Syd banks each offer internet banking and information on their websites in English, making them the best options if your Danish is weak or non-existent.

- Loans can be taken out from any bank, not just the one you belong to. Be sure to hunt around for the bank with the lowest rate before taking out a loan.

- See if your bank in your home country has a partnership with a Danish bank. It will make the transition to Denmark and back again much easier.

- Danish banks are notorious for hidden fees, so be sure to ask the final fee before purchasing any of the bank's services.

Before choosing where to bank, shop around and do some research of your own to find the establishment that will best suit your needs during your stay in Denmark.

Denmark Expat Taxes.
Tivoli Copenhagen DenmarkTivoli Copenhagen Denmark