Bancolombia, which is probably the most used financial institution in Colombia, has not too long ago been within the information for the fallacious causes. Its app isn’t very secure and a few Bancolombia purchasers have discovered themselves with out entry to their account for a couple of days, seen all their cash disappear, and even obtained some extra cash of their account attributable to technical glitches that took the financial institution some time to resolve. Since I don’t get pleasure from worrying about my funds, I made a decision to have a look at a number of the options which can be out there in Colombia.
My story with Bancolombia began in 2017 once I opened my account with this establishment. I didn’t know a lot about dwelling in Colombia, so when the financial institution worker requested me if I wished to join an insurance coverage coverage that may defend me in case of getting robbed, I mentioned sure. A while later, I realised that this service wasn’t what I wanted and tried to cancel it. Bancolombia knowledgeable me that they’d nothing to do with the service and advised me to contact BNP Paribas Cardif. I did so, however to my shock, I obtained a letter telling me that I had by no means been their consumer and there was nothing to cancel. That was a bit bizarre since they have been very happy to maintain deducting a payment for the insurance coverage coverage every month. In the long run, I needed to report BNP Paribas to Superintendencia Financiera de Colombia, which did the trick and eventually helped me to get the undesirable service cancelled.
One other fascinating characteristic of being a Bancolombia consumer is that I preserve receiving emails asking me to fill out this FATCA type to verify that I’m not a tax resident abroad. I will need to have submitted the shape no less than 10 occasions, but the emails preserve coming. They’re getting extra threatening of their wording, telling me that my account will likely be blocked if I don’t fill out the shape. I’ve contacted Bancolombia’s buyer providers a number of occasions and even went to the financial institution in particular person as soon as attributable to this situation, and the response has at all times been the identical: I’m purported to ignore these emails, that are apparently despatched to me by mistake. Once more, this isn’t a really comfy state of affairs to be in, is it?
Even when your account doesn’t endure from these technical glitches or no matter causes all the issues, utilizing Bancolombia’s so-called financial savings account truly means shedding cash attributable to dealing with charges and intensely low rates of interest. There are numerous sad clients like me, so it’s not shocking to see that different establishments are developing with fascinating affords with a view to appeal to new purchasers.
Opening an account with one other conventional financial institution would imply related (or perhaps even worse) points, so I feel it’s time to have a look at different choices. Neobanks are basically on-line banks (sometimes cell purposes) with none bodily branches. They provide monetary providers that may make your life simpler, and this weblog publish lists the most well-liked neobanks which can be lively in Colombia. Please notice that the rates of interest and merchandise supplied will most certainly change sooner or later, so that you undoubtedly must do your analysis and browse the phrases and situations first.
Ualá (uala.com.co)
This firm, which was initially arrange in Argentina, affords a financial savings account with a 13% annual rate of interest and a Mastercard debit card. Other than paying in retailers and on-line with the cardboard, you should utilize the app to do financial institution transfers and pay for stuff by way of PSE with none hidden charges. You don’t even get charged for withdrawing cash utilizing different banks’ ATMs, which is superb. I presently use Ualá for my each day transactions and the cash that’s generated within the account truly covers a few of my bills.
The registration course of could be very easy: to enroll, you must take a selfie and a photograph of your cédula de extranjería. What I actually like is how clear every little thing is and the truth that the curiosity is added to your account each single day. The very best factor concerning the Ualá account is that if you happen to spend lower than 3 million pesos per 30 days, the 4×1000 tax isn’t utilized. In consequence, Ualá is a superb choice for getting groceries, normal buying, paying utilities, and withdrawing money.
The primary drawback of Ualá is that you just aren’t allowed to have greater than 9.6 million pesos in your account, which implies it might’t be used for transferring massive quantities of cash. This service is best suited to making widespread each day transactions, each in-person and on-line, and due to Ualá I don’t actually need to make use of my Bancolombia debit card anymore.
Nubank (nu.com.co)
That is by far probably the most profitable neobank in Colombia. It was arrange by David Vélez, a Medellín-born entrepreneur who initially wished to simplify banking in Brazil. Nubank is excellent at advertising and its cell software is extraordinarily straightforward to make use of. Along with a financial savings account with a 13% rate of interest, Nubank affords a no-fee bank card.
Once I created my account with Nubank, I wanted to take a selfie and add a photograph of my cédula de extranjería. I additionally had to supply my financial institution statements from the earlier three months. Since Nubank affords a bank card, it doesn’t approve all purposes, and your present earnings will decide how a lot you may be allowed to spend per 30 days utilizing the bank card. I feel Nubank is a wonderful choice for individuals who need to construct up their credit score rating in Colombia. Since there are not any hidden charges, it is sensible to make use of your bank card in retailers or on-line (you’ll be able to generate a completely digital card within the app, which is a superb characteristic) and pay every little thing in full so that you don’t get charged any curiosity.
Nubank offers its purchasers with two sorts of accounts. One is linked to the debit card and can be utilized when you must purchase one thing; the opposite one is named Cajita, and that is the true financial savings account the place you retain your cash and see the curiosity added daily. You may freely switch funds between the accounts at any second, so you might have full management of what occurs together with your cash. There are not any limits and you may have as a lot cash as you want in your financial savings account. Nonetheless, every ATM withdrawal incurs a payment of 6,800 pesos.
I’m actually all for seeing how issues go along with Nubank. In the intervening time, the one factor that stops me from marking the account exempt from the 4×1000 tax (you’ll be able to select solely considered one of your Colombian financial institution accounts for that) is the truth that it doesn’t permit worldwide financial institution transfers. If that modifications sooner or later, I can think about utilizing Nubank as my main checking account.
Lulo financial institution (lulobank.com)
Sadly, this financial institution requires you to be a Colombian citizen to have the ability to open an account. Its financial savings account with a 13% rate of interest doesn’t appear to have any limits and can be utilized for PSE transactions, so I’d be blissful to attempt it out, but it surely’s not meant to be in the mean time.
Pibank (pibank.co)
You probably have some extra cash that you just don’t plan to make use of within the close to future, Pibank affords a financial savings account that isn’t linked to a debit card. You may ship and withdraw your funds solely utilizing a financial institution switch, which I suppose motivates purchasers to depart the cash within the account. The rate of interest of the financial savings account is identical as within the case of the beforehand talked about banks, so this provide doesn’t look that enticing in the mean time. One other product you may select is a hard and fast time period deposit (CDT Pibank), but it surely truly has only a 11% rate of interest. In any case, this appears to be an fascinating try of a conventional financial institution (Banco Pichincha) to become involved within the neobank market.
Rappipay (rappipay.co)
Rappi is a big Colombian firm recognized primarily for its supply app. It presently affords monetary providers as properly, particularly its bank card RappiCard and financial savings account RappiPay. The latter’s 14% rate of interest appears to be like very interesting, but it surely’s crucial to learn the phrases. You probably have lower than 2 million pesos within the account, the rate of interest is definitely simply 1%. The usual price is 10%, which remains to be good, however to attain the 14% price you must mark your account exempt from the 4×1000 tax, which gained’t go well with everyone. As well as, Rappi has grown rather a lot in recent times and sadly it isn’t recognized for environment friendly customer support, which is one thing to contemplate earlier than opening an account with this firm.
4 issues to keep in mind
Whereas the present rates of interest are very enticing, holding them so excessive in all probability isn’t sustainable. These neobanks are presently making an attempt to get as many new purchasers as doable, and I gained’t be shocked to see the charges lower within the close to future. Even when that occurs, I feel a dependable neobank will give you higher providers than if you happen to select a conventional financial institution right here in Colombia.
If you wish to use a financial savings account in Colombia, ensure that the establishment is protected by Fogafín, a monetary authority that may enable you to recuperate your cash in case your financial institution goes bankrupt. Yow will discover a listing of protected establishments right here. Please notice that the utmost quantity coated by Fogafín is 50 million pesos, so you might want to separate your financial savings and preserve the cash in numerous establishments.
One other necessary determine to consider is 7.7 million pesos. The reason being that you probably have greater than that in your financial savings account with a 13% rate of interest, a 7% tax applies to your earnings. To be particular, this deduction will happen in case your account generates greater than roughly 75,000 pesos per 30 days. It’s not a giant deal, however don’t be shocked to see a fraction of your cash deducted from the account every month.
And eventually, watch out! These apps are really easy to make use of, which implies it’s very straightforward to get scammed. Don’t belief anyone, particularly these random individuals who message you on WhatsApp or Fb – keep in mind which you can contact customer support instantly via the banking software. The apps are protected, however if you happen to use them to ship cash to fraudsters, you’ll in all probability by no means see it once more. Use widespread sense to keep away from phishing assaults and your expertise with neobanks will most certainly be optimistic.