The largest bank in Iceland, Kaupthing, was seized by the government in early October 2008. Kaupthing and several other major banks, including Landsbanki and Glinir, were caught in an economic crisis with the Icelandic government. It seemed that Iceland was going bankrupt. With pleas to Russia asking for $4 billion in aid, and with the help of the United Kingdom storing money for a rainy day, Iceland seem to pull out their crisis. Now, Iceland guarantees Kaupthing that any money stored within their vaults are protected. According to the Kaupthing website, the Icelandic government states that deposits in retail banks are fully guaranteed. If you are satisfied your money will be safe, here's how to open a bank account with an Iceland bank
Show the bank your Icelandic ID number. This ID number must be attained through the National Registry (thjodskra).
Show the bank your passport. That's it. The passport and Icelandic ID number are all the documentation that is required to open a banking account in Iceland.
Give the bank a deposit. The amount of the deposit varies greatly for each bank
Create a bank account. Once you have completed steps 1 through 3 you can create an account. A typical account will consist of a debit card, online banking, a savings account and a basic checking account. If you are working in Iceland, the bank will offer a pension plan as well.
Tips
Kaupthing, Glitner, and Landsbanki were all government banks. They all became privatized. Now they are again under government control since the Icelandic financial crisis of 2008. All three banks are guaranteed by the government that your money is safe.
References
- The World Bank. ”GDP Per Capita (Current US$) - Iceland.” Accessed Aug. 9, 2020.
- The World Bank. “Iceland.” Accessed Aug. 9, 2020.
- The World Bank. “GDP Per Capita (Current US$) - United States.” Accessed Aug. 9, 2020.
- The World Bank. “GDP Per Capita (Current US$) - Canada.” Accessed Aug. 9, 2020.
- The World Bank. “GDP Growth (Annual %) - Iceland.” Accessed Aug. 9, 2020.
- Statistics Iceland. “Iceland in Figures 2018,” Page 19. Download PDF. Accessed Aug. 9, 2020.
- CIA. “Europe :: Iceland.” Accessed Aug. 9, 2020.
- Reuters. “Factbox-Who Owns Icelandic Bank Debt?” Accessed Aug. 9, 2020.
- Bank for International Settlements. “FSI Crisis Management Series No 1, The Banking Crisis in Iceland,” Pages 3, 10-22. Accessed Aug. 9, 2020.
- YCharts. “Euro to Icelandic Krona Exchange Rate (Discontinued).” Accessed Aug. 9, 2020.
- Trading Economics. “Iceland Stock Market (SE ICEX).” Accessed Aug. 9, 2020.
- Bank for International Settlements. “FSI Crisis Management Series No 1, The Banking Crisis in Iceland,” Page 5. Accessed Aug. 9, 2020.
- Brookings. “The Rise, Fall, and Resurrection of Iceland: A Postmortem Analysis of the 2008 Financial Crisis,” Page 198. Accessed Aug. 9, 2020.
- Althingi. ”Chapter 21, Causes of the Collapse of the Icelandic Banks - Responsibility, Mistakes and Negligence,” Page 86. Accessed Aug. 9, 2020.
- eurostat. “Glossary: European Economic Area (EEA).” Accessed Aug. 9, 2020.
- European Parliament. “Will Iceland Join the EU?” Accessed Aug. 9, 2020.
Tips
- Kaupthing, Glitner, and Landsbanki were all government banks. They all became privatized. Now they are again under government control since the Icelandic financial crisis of 2008. All three banks are guaranteed by the government that your money is safe.
Writer Bio
Launie Sorrels is a veteran who has worked as a chef and has more than two decades of martial arts training. His writing has developed from his experience as a quality assurance manager for Microsoft and IBM. Sorrels has a degree in computer science and is currently working on his journalism degree.