Banco del Estado de Chile Review – that will be the topic of today’s article.
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Table of Contents
Banco del Estado de Chile, operating commercially under the BancoEstado brand, is the only state-owned bank in Chile and was created by government decree in 1953. It provides financial services to consumers and companies with a focus on national reach in terms of geography and social relations. sectors and a special focus on non-banking and small and medium enterprises, although it serves all types of businesses.
It is the nation’s largest mortgage lender and largest debit card issuer. In addition, BancoEstado carries out part of the financial activities of the Chilean government through accounts managed by the General Treasury of the Republic of Chile.
The bank was created by Decree No. 126 of 1953, which united the National Savings Bank (Caja Nacional de Ahorros), the mortgage savings bank (Caja de Crédito Hipotecario), the Agrarian Credit Savings Bank (Caja de Crédito Agrario) and the Industrial Credit Institution (Instituto de Crédito Industrial) into one single institution.
By the end of 2009, BancoEstado was the third-largest bank in Chile, covering all areas of the country through branches or delegated bank contacts called CajaVecina (Spanish trade name roughly translated as “Neighboring Savings Bank”).
As of 2018, the bank had 417 branches (including an office in New York), 107 small offices (ServiEstado), 3,701 automated services (ATMs, dispensers, and mailboxes), and 25,400 CajaVecina contact points. It is the only bank that is present in all communes in the country (even in Antarctica) and reaches geographically isolated areas where there are no other shores.
Until 2018, the bank operated in 134 settlements where there were no other banking services. Since 2012, BancoEstado has been ranked by Global Finance magazine as the safest bank in Latin America, and in 2015 it was ranked 48th among the safest banks in the world (6th in the Southern Hemisphere).
BancoEstado is governed primarily by the Chilean Organic Bank Law (Ley Orgánica del Banco del Estado de Chile), which defines the bank as an autonomous state-owned company with a separate legal entity and its own assets. supervised exclusively by the Council of Banks and Financial Institutions (Superintendencia de Bancos e Instituciones Financieras). The Bank interacts with the government through the Ministry of Finance (Chile).
As a banking institution, BancoEstado is subject to the laws applicable to banks in general, as well as laws governing the private sector in general, and thus is not subject to general laws and regulations aimed at the public sector.
In 2005, BancoEstado became the first Chilean bank to open a branch in New York. This branch operates in accordance with US banking laws.
The bank is enough multifunction and you can find all the basic things such as insurance, mortgages, loans, savings, and investment options in Banco del Estado de Chile. But what exactly the bank can offer you? Let’s review each financial service in order to make it easier for you to understand if this bank is the best option for you.
Banco del Estado de Chile offers:
- Credit cards
- Savings options
- Sending and receiving money from Chile
Banco del Estado de Chile accounts
The bank can offer its clients three main account types which we will discuss below.
Plan Account consists of a series of Products that seek to provide you with comprehensive support at all times where you may need the help of BancoEstado. It also gives you a tariff benefit for maintaining a set of associated products.
The Products associated with a Chart of Accounts are:
- Account, which can be a Checking Account or a Pro Account (Electronic Checkbook). The current account is associated with a checkbook. The Pro Account is without a checkbook. Both work without restriction of balances.
- Debit Card, to buy in partner stores and make money orders in Chile through the ATM Network of Banco Estado, Redbanc and Falabella. When you leave the country, you can use it at Cirrus ATMs and the entire commerce network associated with Maestro. If your Debit Card is contactless Visa, when you leave the country you can use it at Plus ATMs and throughout the business network associated with the Visa brand.
- Credit card, with permanent benefits and discounts in partner stores.
- A Line of Credit, which allows you to cover emergencies and unforeseen events.
- It has a reduced monthly flat commission depending on the plan you enter.
- Benefit from discounted rates when applying for a consumer loan or mortgage at BancoEstado.
- You can request automatic payment by invoice (PAC) for loans and invoices.
- Send and receive money from your mobile using the PagoRUT app.
- You can make inquiries, transfers, payments and other transactions via Internet Banking, Mobile Banking or App.
- Please note that the maximum first transfer limit to new recipients is $ 250,000 within the first 24 hours of registration.
- The limit of transfer via the Internet or the Application to other holders in 24 hours from the moment of the first transfer is 5,000,000 US dollars.
- You can take out secure checking account insurance to protect your products.
- You can use your debit cards for partner store purchases and money transfers in Chile through the Banco Estado, Redbanc and Falabella ATM network. When you leave the country, you can use it at Cirrus ATMs and throughout the Maestro-affiliated merchant network. If your debit card is a contactless Visa, when you leave the country, you can use it at Plus ATMs and throughout the business network associated with the Visa brand.
- You can make deposits, money transfers and payments during extended hours after bank hours at any CajaNeighborhood and ServiEstado branch.
The bank presents Pro Account, a Vista Account with which you can manage your money without balance limits or monthly credits. Pro account uses a chip card which mitigates exposure to cloning It allows you to turn and buy in Chile and abroad and access a line of credit to cover emergencies and unforeseen events.
- You can opt for a reduction in the value of the monthly commission depending on the number of spins you make.
- Access preferential rates when applying for a Consumer Credit or Mortgage Credit.
- You can make inquiries, transfers, payments and other operations through your Online Banking, Mobile Banking and App.
- Please note that Transfers to new recipients have a maximum limit of $250,000 during the first 24 hours from enrollment.
- The limit to transfer over the Internet or App to other holders after 24 hours from the first transfer is $5,000,000.
- You can request Automatic Account Payment (PAC) for Credits and Accounts.
- Send or receive money with your cell phone using the PagoRUT App.
- You can take out Life and Disability Insurance and Secure Card to protect your Products.
- When you leave the country, you can use it at Cirrus ATMs and the entire commerce network associated with Maestro.
- If your Debit Card is contactless Visa, when you leave the country you can use it at Plus ATMs and throughout the business network associated with the Visa brand.
- You can make deposits, money orders and payments during extended hours after bank hours at any CajaVecina or ServiEstado branch.
Banco del Estado de Chile Credit Cards
The bank provides its clients with an enough wide range of credit cards – about 10 types, for different needs, both VISA and MasterCard options.
We will not review each credit card type, but there is an in-depth description of every of them which you can find on the bank’s official website.
Banco del Estado de Chile Loans
What a bank without loan offerings. The bank provides three different loan types, which are:
- Personal credit
Personal loan allows you to realize your dreams and finance projects:
- Renew auto
- Other debts
- The minimum loan amount is 19 UF (approximately US $ 525,000), the interest rate and fixed commission are indicated in pesos.
- Term from 6 to 60 months. For contractual clients (*) the maximum term has been extended to 84 months.
- The ability to choose a larger loan amount when replenishing income with your spouse.
- Automatic credit crediting to your checking account, electronic checkbook or RUT account.
- Payment of the first installment up to 90 days.
- Choose not to pay contributions for up to 2 months a year, rather than in a row.
- Automatic payment of commissions to your checking account, electronic checkbook or RUT account.
There are also education credit and mortgage credit.
Banco del Estado de Chile Insurance
Providing insurance to its clients is another service the bank operates. Here are the main aspects you can get an insurance:
- Family insurance (health insurance, accidental death insurance, serious disease insurance, hospitalization insurance, etc)
- Goods insurance
- Card and account insurance
Banco del Estado de Chile Savings and Investments Accounts
Let’s now review one of the most necessary bank products for every clients, and moreover expat clients. Let’s see what savings accounts the bank offers and review them.
Premium savings account
This is a single-person savings account, customizable according to UF variation, with deferred rotation, allowing you to spin up to UF 30 per day or larger with 30 days notice. Plus, it gives you interest and annual adjustments on deposits held for 90 days or more.
You can make up to 3 free spins per year. If you have not withdrawn amounts from your Account or made any money transfers, they offer you an additional interest rate, which changes annually for a maximum of 3 consecutive periods.
This Account can be opened by the Owner or on a Contingent basis for the benefit of a third party by agreeing on an end date. Thus, the designated Holder will be able to release the deposited funds when the agreed date is reached.
Platinum Savings Account
This is a savings account that can be opened for one or two people indefinitely, allowing you to earn annual interest.
You can choose one of the following options:
- Queue Deferred Platinum Savings: It allows you to queue up to 30 uF per day or larger amounts with 30 days advance notice.
- Saving Platinum with Unconditional Spins: Your spins have no limit on the amount. This allows up to 6 possible expenses in each annual period without loss of interest.
- Platinum Savings with Conditional Money Transfer: You can set a special condition that must be met for the deposited funds to be rotated.
Children’s savings account
This is a peso savings account with annual interest that you can use to make money transfers of up to UF 30 per day or more with 30 days’ notice. In addition, it allows you to make 2 free spins during the annual Account period.
The account must be opened by an adult in the name of a girl or boy under 12 and 14, respectively. The conditions for opening an Account are as follows:
- Normal: opened by a legal representative (father, mother or guardian) who can withdraw money from the Account.
- Conditional: opened by any person over 18 years old, except for the Legal Representative, who cannot withdraw money.
- The account will be administered by a minor upon reaching the age of 12 and 14, depending on whether or not he is a child, when he becomes a Platinum Deferred Money Transfer Savings Account.
Savings account study insurance
This is a UF savings account to fund higher education for minors under the age of 16, where the amount of money that can be saved on plans from UF 50 to 1000 is fixed over a period of time.
The account is opened in the name of the minor who will be the “Owner” and may be opened by his or her father or mother, uncles, grandparents, godparents or anyone who wants to benefit the minor and who will be called “Acting Agent” …
This allows queuing up to 30 UF per day or for larger quantities with 30 days notice. In addition, you can exempt from commission up to 6 annual drafts without loss of adjustments, provided that your Deposits are kept in the Account for at least 90 days.
In addition, if you wish, you can take out Estudio Seguro Insurance, life insurance for the minor, so that the insurance company will provide the value of the total agreed amount to the minor, regardless of the amount saved so far, in the event of the death of the person who opened the Account.
Housing savings account
This is an individual and regulated UF Change account with which you can apply for Housing Benefit.
Earn interest and adjustments annually on Deposits held in your Account for 90 days or more. In addition, it allows queuing up to 30 uF per day or more with 30 days advance notice.
With this savings account, you can apply for a D. S. No. 40 of 2004 by the Ministry of Housing and Urban Development immediately after receiving the minimum required savings. You can also apply for a general grant of territorial interest (formerly urban renewal) or heritage restoration as stipulated in D. S. No. 40/2004 MINVU.
Automatic monthly savings
You can schedule an automatic monthly transfer of this loan to your chosen savings account. This will help you organize yourself and achieve your savings goal.
Make your dreams come true and finance your projects by investing money for a certain period, receiving at the end of the term a return on the initial capital plus interest that was accrued at a previously known rate.
You can accept term deposits in pesos (through your online bank and/or at branches), dollars, and euros (only at branches) from 7 days.
In addition, you will have the opportunity to define to which Account to automatically deposit the Term Deposit capital through your Internet Bank.
You can choose between:
- Term deposit with a fixed term: it is characterized by the fact that after the expiration of the term of the deposit, interest is no longer accrued on it, and the capital plus the interest received is returned.
- Revolving deposit: if the Client wishes the collection of the deposit to take effect, he has 3 banking business days, counted from its maturity, otherwise the deposit will be extended automatically.
- Leave your certificates in electronic storage for free.
- It does not charge any fees for issuing, administering or withdrawing funds.
- You can invest from $ 5,000 in your online bank.
- You can get immediate liquidity by purchasing a document from BancoEstado S.A. Brokers. *
- (*) The pre-purchase service for term deposits will be subject to market conditions in effect at the date of the request. BancoEstado S.A. Brokers does not guarantee receipt of all Term Deposits offered.
Banco del Estado de Chile Stock exchange broker
The bank will accompany you when you enter the world of promotions
- Buying and selling shares
It corresponds to each of the parts into which the property of the company or company is divided.
The owners of the shares are called shareholders, and to acquire them they resort to the help of intermediaries (Bexchange brokers) who trade them as securities on the stock exchanges.
If you buy shares, you become the owner of a share in the company, so the more shares you have, the higher your participation percentage.
- Repurchase sales
These are short-term investments that can be taken in pesos, UFs or dollars, in which you buy from the Bank or broker part of its portfolio of instruments, for a specific period and interest rate, with a promise that these institutions will repurchase them from you as soon as it expires. the period for which you have agreed upon receiving the Instrument Storage Certificate.
It is designed to manage the cash flows of people and companies, being able to anticipate them, receiving immediate liquidity.
- Minimum investment amount: USD 10,000,000.
- Minimum amount in foreign currency: USD 10,000 or its equivalent in another currency.
- Portfolio management
An investment portfolio is a collection of investment vehicles with which you can rent out your money, which consists of time deposits, Chilean Central Bank documents, mortgage bills, business bonds, stocks and others.
You can establish a contractual relationship with BancoEstado Corredores de Bolsa S.A. so that you can manage your portfolio as you see fit.
You can buy and sell in official secondary financial markets, financial intermediation markets and fixed income markets.
Buying home in Chile through Banco del Estado de Chile
You can buy your dream home. Access to a mortgage loan financed up to 80% of the value of a home in Chile with payment options of 8, 12, 15, 20, 25 and 30 years. Dividends will be deducted from your electronic checkbook, which will open for this purpose.
You can buy new or used homes (with a final deed of acceptance issued by the relevant Office of Municipal Works).
- Access period is up to 30 years.
- Access to finance in the form of letters of credit (no subsidy), reciprocal mortgage loans (with or without housing allowance) or own funds of a mutual mortgage (with or without housing allowance).
- If you are applying for a Home Benefit Mortgage, check the conditions and application dates on the Ministry of Housing and Urban Development (MINVU) website.
All working documents must be legalized at the Chilean consulate at the place of residence. If they are not written in Spanish, they must be translated. So you have to:
- Be Chilean.
- Be an individual, no commercial turnover and not be a partner of companies.
- Have an electronic checkbook for Chileans overseas (for dividend payments).
- Have a fixed or variable income.
- Assign a judicial mandate in Chile through a special mandate for Chileans living abroad, legalized at the consulate.
- Applicant and President must be over 18 years of age. The maximum age of both will depend on the term of the loan requested:
- If the loan term is from 8 to 12 years, the age must not exceed 66 years and 364 days.
- If the loan term is 15 to 20 years, the age must not exceed 61 years and 364 days.
- If the loan term is 25 years, the age must not exceed 56 years and 364 days.
- If the loan term is 30 years, the age must not exceed 50 years and 364 days.
- Have a good business background (candidate and president).
- Indebtedness certificate in the financial system of the country of residence, issued by an independent institution (equivalent to Dicom Equifax, Credit Bureau, etc.).
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