Banking System in Costa Rica

Before selecting a bank it is necessary to decide what services you will need.

There are branches of Costa Rica's state-owned banks in San José and in other large cities and towns. The headquarters of Costa Rica's largest banks: Banco Nacional, El Banco de Costa Rica and Banco Crédito Agrícola are in downtown San José near the Central Post Office. The government guarantees all monies deposited in these state banks.

Here is a list of banks:

BAC San José (private).......................................... Tel: 295-9595
Banco Promérica (private)
E-mail: solucion@promerica.fi.cr.............................Tel: 296-4848
Banco Banex (private). .......................................... Tel: 287-1000
Banco Bantec (private) .......................................... Tel: 242-2222
Banco Cathay (private).......................................... .Tel: 290-2233
Banco Central de Costa Rica
E-mail: webmaster@bccr.fi.cr. ...............................Tel: 243-3333
Banco Crédito Agrícola de Cartago........................ Tel: 550-0202
Banco Cuscatlán (private)...................................... Tel: 299-0299
Banco de Costa Rica
E-mail: bancobcr@bancobcr.com ..........................Tel: 287-9088
Banco Interfín (private) ......................................... Tel: 210-4000
Banco Nacional ..................................................... Tel: 212-2000
Banco Popular ....................................................... Tel: 257-5797
Citibank (private) .................................................. Tel: 201-0800
Mutual de Alajuela (private) .................................. Tel: 437-0865
Scotia bank (private)
Email: scotiacr@scotiabank.com ............................Tel: 287-8700

When making deposits in national banks, you should consider the following. Checks from outside Costa Rica, including bank cashiers checks, require 30 to 45 working days minimum before funds will be usable after they are deposited. Checks issued by Costa Rican private banks will usually take a couple of working days before the funds will be available. Checks deposited from the same bank and branch are usually available the same day. Wire transfers are usually available in 2 to 4 days.

There are also numerous private banks affiliated with international banks. In the last few years there has been a trend toward privatization. Now private banks can offer many of the same services the state banks do. When the minimum deposit is not maintained, service charges for account operations at private banks can sometimes be higher than at the national banks.

Costa Rican Banks Offer a Full Range Services

Many private banks pay higher interest than state banks but cannot guarantee your deposits as the government banks do. Remember, the higher the interest, the more the risk. In the mid-1980s private finance companies were offering up to 45 percent interest in colones. As recently as 2002, several other companies were paying as much as three percent monthly. Needless to say they all failed and the investors lost everything.

Some of the better private banks are BAC, Scotiabank, Banco Interfín, Bancrecen, Cuscatlán and Banex. Check the yellow pages for more private banks. It is advisable to open an account at one of these banks or state banks so you can have a dollar account to protect against unexpected currency devaluations, cash personal checks, obtain a safety deposit box for your valuables and facilitate having money sent to you from abroad.

Regarding the latter, you should make sure that the bank you choose works with a U.S. correspondent bank to avoid untimely delays in cashing checks.

Warning: Be careful of Scotiabank. We have heard many foreign residents complain about unfair treatment at this bank. They complain about having to open their safety boxes for random inspections (which is illegal without a court order) and general lack of privacy at this overly intrusive bank. Banex also seems to be making it extremely difficult for foreigners to open accounts, and asks for extensive paperwork.

Here is what one resident said about Scotiabank, I was with Scotiabank for over a year. They were awful. And I mean bad. Their statements were impossible to read. But worse is they didn't know how to read them and often took two months to research the problems. The worst was telling me they would have a decision for a home loan in two weeks and then taking three months. In the end they said the property was worth $4 per square meter when all other sales in the neighborhood are $25 to $35. I moved to Promerica and they have been tons better. Not to say they are perfect. But compared to Scotiabank, they are amazing.

Another local who works in the real estate business said about Scotiabank: Atrocious service, and they outright mislead. I have seen them pull the rug out of a sale at the last minute, when sellers and buyers both had their house packed up to go. No good reason. I have heard this tale from others, too. Overall, I regard them as the worst because they seem so up to date and modern with the fancy air conditioning and slick offices. I avoid them like the plague and have no clue why they behave this way.

This is another bad experience a local resident had at Scotiabank. I have a good excuse to report an experience at Scotiabank from several years ago (downtown branch). I withdrew some money, which the teller gave me after opening an unusual number of drawers (not all at his window) and roaming about a lot. Within 10 minutes of leaving the bank, I discovered I had been given a $100 counterfeit bill. I returned and they wouldn't do anything about it saying, of course, You left the bank. Whenever I had occasion to be in the bank, I would look at him in passing and he would duck his head and look away. I think he was just waiting for someone to pass it to. I avoid Scotiabank every opportunity I get.

We have a safety deposit box at Banco Nacional that is readily accessible during working hours. We also have a dollar account, certificates of deposit and an ATM card. Our only complaint is that service in state run banks tends to be very slow. You can spend up to an hour in the bank waiting to make a simple transaction.

ATMs are found all over the country in banks, supermarkets and other convenient locations. These 24 hour automated tellers disperse a few hundred dollars at a time from your account, cash advance in colones only. When using one of these machines, be sure to exercise the following precautions:

1. Look for an ATM that is not isolated or unknown.
2. Use ATMs located in well-lit area with good visibility.
3. Use an ATM that allows you entry and a door to lock rather than one on an open sidewalk.
4. Cancel the transaction at the first sign of suspicious activity.
5. Take all paperwork with you and do not throw away anything that has your account number printed on it.
6. Do not carry your ATM card with you unless you are going to use it.
7. Don't go alone.
8. RESIDENCY  ATM receipts will NOT work as proof of exchange.

Other banking services are high-yield certificates of deposit in colones, certificates of deposit in dollars on par with U.S. interest rates and credit card related services.

All banks have different requirements for opening accounts or obtaining credit cards, possibly entailing banking or personal references, identification and most certainly minimum deposits. Requirements will vary slightly from bank to bank, so check with the banking institution of your choice.

Permanent and non-residents may open a savings account in state and private banks. All that is needed is a minimum deposit, in some cases a letter of reference and a passport or cédula. To open a local checking account, you have to be a resident and may be asked to provide a Costa Rican ID card or passport as a form of identification.

You may be asked to show your water, telephone and electric bills in your name to prove you live here. If you cannot provide these documents you will need two references from banks in the United States or from two account holders in the same bank where you wish to open your account. If opening a checking account in local currency you will need an initial deposit of about $500. A local dollar checking account may require an initial deposit of $2,000.

If you have a Costa Rican corporation, you may also open a local corporate checking account, or cuenta corriente empresarial. You'll have to provide the following: passport or cédula (Costa Rican ID), the name of the corporation or personería jurídica, proof that it is active, a letter from the person who has general power of attorney of your corporation authorizing who can sign on the account, along with their ID numbers, and an initial deposit of about $1,000 for an account in local currency or $2,000 for a local dollar account.

International dollar checking accounts are offered through the BAC. Individuals and corporations may open these accounts, but specific requirements must be met. Check with the bank of your choice.

Most banks are normally open from 9 a.m. to 5 p.m., Monday through Friday. Two branches of the Banco Nacional in downtown San José open at 7:30 a.m. A few branch offices such as the one in Plaza Mayor in Rohrmoser, don´t open until 10:30 a.m. The Banco Nacional in the San Pedro Mall and a few of the private banks open on Saturdays. Mutual de Alajuela has a new service called SERVICAJA. Some of its branches are open after regular banking hours, on Saturdays, Sundays and holidays.

Warning: Never plan to do any banking on the second or last Friday of the month; this is payday for most Costa Rican workers and lines sometimes extend outside the bank.

The state banks are also very crowded after holidays and on Monday and Friday mornings. It is always best to get to the bank at least a half-hour before it opens to get a good place in line. Bring some good reading material, since the lines often move at a snail's pace.