Currency and Banks
Iceland is an almost cashless society, and most payments are made by card. Therefore, having an Icelandic bank account is necessary when living and working in Iceland.
To open a bank account in Iceland you will need to have an Icelandic ID number (kennitala). You will also need original proof of ID (passport, driving licence or residence permit) and you need to have your domicile registered on Registers of Iceland.
The currency
The currency in Iceland is the Icelandic króna (ISK). Foreign currency can be exchanged in banks. You can use paper bills and coins in Iceland but it’s far more common to use payment cards or mobile phone apps to pay for goods and services.
Most shops, companies, businesses and taxis accept payment by card (debit and credit cards). Information on exchange rates for ISK against other currencies can be found here. Information on the Icelandic króna, interest rates, inflation targets and more can be found on the website of the Central Bank of Iceland.
Banking services
An Icelandic bank account is necessary when living and working in Iceland. This will enable you to get your salary paid directly into your bank account and to get a debit card. A bank account is also important for daily financial transactions.
There are many banks in Iceland. Below is a list of the three main banks that offer service for individuals and have comprehensive information in English on their website.
Arion banki
Íslandsbanki
Landsbankinn
These banks have online banking services where you can pay bills, transfer money and deal with other financial matters. The easiest and cheapest way to transfer money abroad is by online banking. You can also visit your nearest bank branch and speak to representative for assistance with any banking related enquiries.
Savings banks - Online banking
There are other options than the traditional banks. There are savings banks as well.
Sparisjóðurinn operates in the north, north-west and the north-east of Iceland. Sparisjóðurinn offers similar services as the big three. Sparisjóðurinn’s website is in Icelandic only.
Indó is a new online-only bank that wants to keep things simple and cheap. It offers most of the traditional banking services except for lending. There are extensive information to be found on Indó´s website in english.
Open a bank account
To open a bank account in Iceland you need to have an Icelandic ID number (kennitala). You will also need original proof of ID (passport, driving licence or residence permit) and you need to have your domicile registered on Registers of Iceland.
ATMs
There are many ATMs located around Iceland, usually in towns and in or near shopping malls.
Useful links
To open a bank account in Iceland you will need to have an Icelandic ID number (kennitala).