Bank transfers in Spain to be free and instant from January 1, 2025
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Starting on January 1, bank transfers in Spain are getting a game-changing upgrade.
Thanks to new European regulations, all bank financial transfers will be free and completed in just ten seconds—no exceptions. Currently, transfers come in two flavours – Standard Transfers: Free, but they take one to two business days; and Instant Transfers: Fast but costly, with fees for the sender.
The upcoming changes eliminate this divide, making every transfer not just instant but also completely cost-free. Get ready for a faster, smarter way to move your money!
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Costs of transfer up to now, have tended to be quite costly, depending on the bank. According to the OCU, Bankinter charges 0.4 per cent of the amount transferred with a minimum of €12 and CaixaBank charges €1.99 plus 0.4 per cent of the amount transferred with a minimum of 3.95 euros. However, from 2025, this will all be a thing of the past.
European regulations: bank transfers will be free and immediate in EU
European regulations, which have just come into full swing this year, dictate that all bank transfers will be free and immediate, competing with quick-and-easy transfer apps like the popular Bizum.
Starting in 2025, transfers will incur no charges and the money must be sent to the receiver within ten seconds. Regulation (EU) 2024/886 of the European Parliament and Council also stipulates that “the immediacy of transfers must be guaranteed; regardless of the day or time, the money should reach the recipient’s account within 10 seconds.” Not only this, but the person transferring the funds will be informed within ten seconds if the funds have been successfully received by the lucky recipient.
The ruling also mandates that banks which previously did not charge for transfers will not be able to do so – whether or not the requested transfer is immediate or over two to three business days.
The catch: transfers to be made digitally in order to be free and instant
In response to the new ruling, the grand majority of Spanish banks have confirmed that from January 9, 2025, transfers will be free. Hoswever, there is a catch. They will need to be made throughout digital channels offered by banks to their clients for example online banking. Banks can maintain the cost for transfers which are carried out in person.
Behind the new regulation, is a unanimous desire to standardise European rulings regarding financial transactions. The European regulation text states: “To create an integrated market for immediate euro transfers, it is essential that such transactions are processed in accordance with a common set of rules and requirements.”
The great news is that the legislation will extend beyond the eurozone, applying to countries in the European Union, which do not even use the euro. These rules will need to be applied in non-euro banks. In order to maintain tight standards against fraud and to reinforce security, banks must implement systems like fingerprtint authentication for transfers to take place, similar to those used by transfer apps like Bizum. Customers will also be obliged to encourage or make customers aware of setting maximum transfer amounts in another preventative move against fraud. These should be easy to tweak in the case of an instant transfer.
Spain’s new free instant bank transfers are a game-changer, thanks to a push for unified financial rules. Let’s just hope that fingerprint authentication can stop your cat from transferring your life savings while sitting on your phone!