Understanding the right banking terminology can be the key to achieving financial freedom and avoiding costly mistakes. Whether it’s for saving, spending, or simply making sense of your transactions, mastering the essentials will help you stay in control and prevent slip-ups. So, let’s dive into the must-know Italian banking vocabulary that will elevate your financial fluency!
Basic banking terms in Italian
Let’s start by learning some basic Italian banking terms that will come in handy in many situations.
The official valuta (currency) in Italy is the Euro (€), and you’ll encounter banconote (banknotes) of €5, €10, €20, €50, €100, €200, and €500. For smaller transactions, you’ll use monete (coins), which come as €1 and €2, as well as 1, 2, 5, 10, 20, and 50 centesimi (cents).
To manage your money, you’ll typically visit una banca (a bank), which is also referred to as istituto di credito (credit institution). Each bank has a sede centrale (head office) and various filiali (branches), which operate during specific orari di apertura (opening hours).
When you visit a bank, you usually go to the sportello (teller window) and interact with a cassiere (bank teller) to carry out a range of operazioni (transactions). For example, you might aprire o chiudere un conto corrente (open or close a current account), fareun pagamento (make a payment), arrange un bonifico (a bank transfer), or perform un deposito (a deposit). Many of these operations are now available also via i servizi online (online services), where you can manage your account and make operations without ever having to go to a branch.
For extra security, you have the option to rent a cassetta di sicurezza (safety deposit box) from your bank. This service allows you to store oggetti preziosi (valuable items), important documents, or anything else you wish to keep protected.
Posso cambiare questa banconota da 100 euro?
Can I change this €100 note?
Sono andato in banca per aprire un conto corrente.
I went to the bank to open a current account.
Ti faccio il bonifico entro fine settimana. Promesso!
I’ll transfer the money by the end of the week — promise!
Opening a bank account in Italy
Opening a conto corrente (bank account) in Italy is a straightforward process, as long as you have the right documenti (documents) ready. These include your carta d’identità (Italian identity card) or passaporto (passport), your codice fiscale (tax identification number), and basic personal information such as your data di nascita (date of birth) and indirizzo di residenza (home address).
The two most common accounts to consider are the conto corrente ordinario (ordinary checking account), which can be used for all day-to-day transactions, and the conto deposito (deposit account), which is designed for savings and typically limits transactions to accrediti (deposits) and prelievi (withdrawals). Many banks also offer conti digitali (online bank accounts), which make it even easier to manage your account from anywhere.
You may need to deposit a somma minima (minimum sum) to activate the account, and if you wish to allow someone else to access it on your behalf, you can grant a delega (mandate).
Once everything is in order, you’ll receive your numero di conto (account number) and the coordinate bancarie (bank coordinates), which include the IBAN, ABI, and CAB codes. At this point, you might also receive a libretto degli assegni (cheque book), though any bancomat (ATM card) and carte di credito (credit cards) are usually mailed to your address.
With your account set up, you can carry out a variety of operations, including:
- Depositare denaro (to deposit money)
- Accreditare lo stipendio o la pensione (have your salary or pension deposited)
- Set up addebiti diretti (set up direct debits), such as la domiciliazione delle bollette (direct debit of bills)
- Fare bonifici (make bank transfers) and pagamenti (payments).
- Ricevere pagamenti (receive payments)
You’ll quickly become familiar with the estratto conto (bank statement) and saldo (balance). Also, keep an eye on the commissioni bancarie (bank charges), as these can vary depending on the bank and the type of account.
Finally, as life evolves, you might decide to chiudere il conto (close the account) one day. Whether you’re moving away or simply switching banks, the process is quite simple.
Mi puoi mandare le tue coordinate bancarie?
Can you send me your banking details?
Posso pagare con carta di credito? Altrimenti ho qui con me il libretto degli assegni.
Can I pay by credit card? Otherwise, I have my chequebook with me.
Mi può stampare una copia dell’estratto conto per favore?
Can you print me a copy of the bank statement, please?
Using cards
The use of carte (cards) has become essential for managing finances. Not only do they reduce the need for contanti (cash), also known as denaro liquido (liquid money), but they also offer convenience, security, and flexibility for everyday transactions.
Different types of cards cater to different needs:
- Bancomat (ATM card): this card is linked directly to your bank account, and money is withdrawn immediately when you make un acquisto (a purchase).
- Carta di credito (credit card): this card allows you to make purchases up to a limite di spesa mensile (monthly spending limit)
- Carta prepagata (prepaid card): ideal for those who prefer more control over their spending, this card requires you to caricare (pre-load) a specific amount of money and you can’t spend more than the importo caricato (loaded amount).
All cards come with essential details printed on them, such as numero di carta (card number), data di scadenza (expiry date), and a codice di sicurezza (security code).
At the end of your billing cycle, you’ll receive an estratto conto (statement) summarizing all your transazioni (transactions).
Per pagare online, può usare la sua carta di credito, inserendo il numero di carta, la data di scadenza e il codice di sicurezza che si trova sul retro.
You can pay online using your credit card by entering the card number, the expiry date, and the security code found on the back.
Withdrawing money
Need contanti (cash) while in Italy? You have a couple of options for making a prelievo (withdrawal) from your bank account.
For larger withdrawals or if you prefer human assistance, head to a filiale locale (local branch). A cassiere (bank teller) can help you withdraw the amount you need. The best part? Usually, there’s no limite predefinito (predefined limit) on how much you can take out in one go.
Most people, however, prefer the convenience of a sportello bancomat (ATM). Available 24/7, these machines make accessing your soldi (money) quick and easy. Keep in mind, though, that limiti (limits) apply to how much you can withdraw in a day—typically between €250 and €1,000, depending on the bank and account type.
Using an ATM is simple. You insert the bancomat (ATM card) or carta di credito (credit card) and enter your pin. Once authenticated, the machine provides various options, including prelievo di contanti (cash withdrawal), checking the saldo (balance), or viewing recent movimenti del conto (account transactions). For cash withdrawals, you’ll be asked if you’d like a ricevuta (receipt).
Devo trovare uno sportello bancomat per prelevare dei contanti.
I need to find a cash machine to take some money out.
Exchanging money
While le carte di creditoare widely accepted in Italy, especially in larger cities and tourist areas, some smaller establishments may only accept contante (cash). To avoid problems, it’s wise to carry a mix of both. Also, keep in mind that American Express is not always an option!
If you find yourself needing contante (cash), the easiest way is to prelevare al bancomat (withdraw cash fro an ATM). On the other hand, if you need to cambiare soldi (exchange money), converting your valuta (currency) to Euros can be done in banche (banks) or agenzie di cambio valuta (money exchange agencies). Just consider that these agencies generally offer less favorable tassi di cambio (exchange rates) and charge high commissioni (commissions) to make un profitto (a profit), so the overall cost of exchanging your money could be higher than you expect.
To avoid surprises, it’s a good idea to check the tasso di cambio ufficiale (official exchange rate) for the day before exchanging money to understand what you should ideally get. Then, take a moment to compare the different options to find the best deal for your acquisto valuta (currency exchange).
And here’s a tip: if you’re using a credit or debit card abroad, always choose to pagare in Euro (pay in Euro) rather than in your valuta locale (home currency).
Devo cambiare dei soldi. C’è una banca o agenzia di cambio valuta qui vicino?
I need to exchange some money. Is there a bank or a currency exchange nearby?
Investing your savings
Got risparmi (savings)? Banks often provide servizi di consulenza finanziaria (financial advice services) to help their clienti (clients) make smart investment decisions. The goal is to increase your risparmi (savings) and protect them from being eroded by inflazione (inflation). Plus, investments can be tailored to your needs, whether you’re looking for a strategy of breve periodo (short-term) or lungo periodo (long-term).
When selecting an investment strategy, understanding key terms is essential. The capitale investito (invested capital) represents the amount of money you decide to invest, while the rendimento (yield) is the return earned. However, it’s important to acknowledge the potential for a perdita (loss), which can occur if the condizioni di mercato (market conditions) don’t go your way.
If you prefer a cautious approach, obbligazioni (bonds) are good starting points, as they tend to carry a basso rischio (lower risk). Looking for something more dynamic? The mercato azionario (stock market) and fondi di investimento (investment funds) might catch your interest. Here, professionals manage your money with the goal of massimizzare i rendimenti (maximizing returns). These funds follow the performance of an indice (stock index) on the Borsa (stock exchange).
Lastly, for those seeking something different, i prodotti di investimento assicurativi (insurance-linked investment products) combine the potential for returns with additional benefits, like the copertura assicurativa (insurance coverage).
Hai dei risparmi? Ti conviene investirli.
Do you have any savings? You should invest them.
Asking for a mortgage
Thinking about buying property in Italy? Chances are, you’ll need a mutuo (mortgage) to cover part of the prezzo di acquisto (purchase price)!
There are two main types to choose from:
- I mutui a tasso fisso (fixed-rate mortgages) come with a fixed tasso di interesse (interest rate) for the entire loan term
- I mutui a tasso variabile (variable-rate mortgages) have a tasso di interesse that changes over time based on an economic index
Banks usually limit your monthly rata (installment) to 30%-40% of your reddito mensile (monthly income). The durata del prestito (loan duration) can last up to 30 years, and sometimes even 40 years for those who qualify. Additionally, if your requisiti finanziari (financial requirements) aren’t quite strong enough, a family member might need to step in as a garante (guarantor).
Banks often require copertura assicurativa (insurance coverage) as part of the deal. One common type is against incendio e scoppio (fire and explosion), which covers structural damages to the property caused by accidents like fires or explosions. Why? Well, the property itself is typically the bank’s garanzia (guarantee) for the loan, so they want to protect their investment as much as possible!
Devo andare in banca per chiedere un mutuo.
I need to go to the bank to apply for a mortgage.
È meglio il tasso fisso o quello variabile?
Which is better: a fixed-rate or a variable-rate?
Valentina Nicastro is a travel writer in love with her home country, Italy. Having travelled widely around the globe, she realised there was more to explore closer to home and decided to put the passport aside for a while. When she is not immersed in documenting Italy, you’ll find her donning her communication consultant hat, weaving words as a content writer and bridging linguistic divides as a translator.
