How to open a deposit account in Austria?

Austria is considered one of the most stable and prestigious financial jurisdictions in Europe. It is known for its high level of banking services, built on decades of experience and trust from clients. The Austrian banking system combines stability, confidentiality, and modern financial solutions, making the country an attractive destination for holding funds in deposit accounts — both for residents and non-residents.

In this article, we will explore what deposit accounts are, their main types, how to open a deposit account in an Austrian bank, and which institutions offer the most favorable terms for placing funds.

What is a Deposit?

A deposit is a method of placing funds in a banking institution for a fixed or indefinite period, with the aim of safeguarding the funds while earning interest income from the bank’s use of the depositor’s money.

What Types of Deposit Accounts Exist?

Deposit accounts are generally classified into two main types: term deposits and demand deposits.   

Term deposits are accounts where funds are placed for a clearly defined period — ranging from a few months to several years. The main advantage of this type of deposit is a higher interest rate compared to demand deposits. However, early withdrawal of funds is typically not allowed without forfeiting the accrued interest.

Demand deposits allow the depositor to withdraw funds at any time without restrictions. The key feature of this account is the depositor’s constant access to their money, but interest rates are usually lower or even zero.

These deposit types also have subcategories. Among the most popular term deposit options are: CD – Certificate of Deposit – a deposit placed for a fixed term, with a certificate issued by the bank confirming the deposit, which is where the name originates, or Individual Retirement Account Certificate of Deposit: a type of term retirement savings account, most commonly used in the United States, offering certain tax advantages and subject to strict withdrawal rules.

Among demand deposits, the most commonly used types include: Current account – used for storing and accessing funds at any time. Typically, no interest is accrued; Savings account – offers low interest rates and flexible withdrawals. Some banks may require maintaining a minimum balance.

How Can a Non-Resident Open a Fixed-Term Deposit Account in Austria?

Austrian legislation allows non-residents to open deposit accounts; however, banks impose stricter requirements on foreign clients under KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures. This is due to the need to ensure transparency of the source of funds and compliance with international financial monitoring standards.

In general, the process of opening a deposit account in an Austrian bank includes the following steps:

• Choosing a Bank and Deposit Format.

The depositor must decide on the currency of the deposit, the term of the placement, the desired interest rate, the minimum deposit amount, and the conditions for early withdrawal. Once the main conditions are defined, the team at Azola Legal Services can assist in selecting a suitable banking institution.

• Рre-screening.

At this stage, the client’s documents are reviewed for account opening, potential risks of bank refusal are assessed, and the bank’s willingness to consider the applicant as a client is evaluated. Typically, the client’s lawyer collaborates with the bank manager to address all bank inquiries during this stage.

• KYC-procedure.

The KYC procedure is carried out after the bank agrees to consider the applicant as a potential client. At this stage, the bank performs a more thorough check of both the individual and their business reputation. Client identification may occur either in person at a bank branch or remotely.

It is important to note that passing the pre-screening stage does not guarantee that the account will be opened. Some banks reserve the right to refuse account opening without explanation, especially in cases where verifying the origin of funds is difficult or if the client’s country of residence is classified as high-risk.

• Signing the Agreement.

After successfully passing the KYC procedure, the bank sends a standard agreement for signature. Depending on the bank selected, this procedure can be completed either through an in-person visit or remotely by emailing a signed scanned copy of the agreement to the bank.

In some cases, if personal presence is required but the client cannot visit the branch for personal reasons, the bank may allow the agreement to be signed by a retained Austrian attorney instead. In such cases, a power of attorney must be issued authorizing the attorney to sign the agreement — however, this power of attorney shall not grant access to the account.

• Fund Transfer.

In the case of a fixed-term deposit, the account is activated once the client’s funds are received and remains valid for the agreed term.

What Documents Are Required to Open a Deposit Account in Austrian Banks?

The list of required documents may vary depending on the selected bank and the client’s status (individual or legal entity). However, a standard document package typically includes the following:

1. Client identification documents: national ID and international passport.
2. Proof of residential address: this may be a recent utility bill or a bank reference letter indicating the client’s registered address. The document must be no older than 3 months.
3. Tax identification number of the country of residence.
4. Proof of source of funds: such as a salary certificate, tax return, sole proprietorship declaration, etc.
5. Completed bank forms (application forms, declarations, etc.).
6. Bank reference letter or a recommendation letter from a lawyer.

It is important to note that holding an Austrian residence permit is not mandatory for opening an account in Austrian banks.

If the account is being opened for a legal entity, in addition to the documents listed above (which must be provided for the company’s shareholders and directors), the bank may request the following:

1. Corporate documents of the company, including Articles of Association, Recent company extract, Director and shareholder certificates, UBO (Ultimate Beneficial Owner) declaration, Registered address confirmation, Certificate of good standing.
2. Proof of company’s source of funds: e.g., contracts with counterparties
3. Bank statements from existing accounts.

All documents must be provided in German or English, depending on the requirements of the selected bank.

Please note that the list of documents provided above represents a general standard typically requested by Austrian banks when opening a deposit account. However, each banking institution has its own internal compliance policies and procedures, and therefore may request additional documents or clarifications depending on the specific case.

(!) The minimum deposit requirement in Austria depends on the policies and terms of the particular bank where the account is to be opened. There is no such requirement at the legislative level.

Which Banks Are Most Popular for Opening a Deposit Account in Austria?

Among the most popular banks for opening a deposit account are:

1. Liechtensteinische Landesbank Aktiengesellschaft (LLB) – A leading European bank founded in 1861 in Liechtenstein. Since 2018, it has been offering its services in Austria. Key advantages of this bank include reliability, government guarantees, and Swiss-quality service. It operates under European financial regulation and has an excellent reputation. LLB specializes in private banking, asset management, investment services, and deposit account operations.
2. Raiffeisenbank Vorderbregenzerwald eGen – One of the largest banks in the country, with an extensive branch network and attractive terms for depositors.
    There are no account opening fees for individual depositors. Standard interest rates range from 1.75% to 3%, depending on the selected deposit product. Both fixed-term and on-demand deposit accounts are available. The frequency of interest payments depends on the type of deposit account selected.
3. Erste Group Bank AG – One of Austria’s oldest banks, founded in 1819 as a savings bank. It holds high international credit ratings and receives positive client reviews. The bank adheres to high security standards, offers stable interest rates, and provides transparent service terms. It is commonly recommended for long-term funds placement.

According to its high security standards and flexibility in working with non-residents, Austria remains an attractive jurisdiction for deposit placement. However, it is important to keep in mind that the account opening process involves a number of legal and compliance requirements.

To avoid refusals or delays, we recommend seeking professional support from the Azola Legal Services team, who can assist you with both bank selection and document preparation, as well as communication with bank managers.