Every country has its banking system, and Kyrgyzstan is no different. As a brand new resident of Kyrgyzstan, I needed a bank account that would allow me to conduct my day-to-day business from home or abroad. Many ex-pats and nomads suggested Demir Bank. Before I dive into Demir Bank, I would like to share my experience of what’s available and the information and documents you need to open a bank account.
How many banks are there in Kyrgyzstan?
There are a lot more banks than I first thought. In Kyrgyzstan, I counted 27 banks. However, your options are significantly reduced if you need a bank with English-speaking employees. Only two banks have English-speaking employees, websites, and phone apps. These are Demir Bank, a Kyrgyz bank and Optima Bank, a Kazakhstan bank.
Local banks make it easy to pay local bills.
The Kyrgyz prefer to conduct business in cash. The majority of purchases are made in the local currency (Soms). If I don’t have a local bank, I’ll have to withdraw money from my international bank using an ATM and carry huge quantities of cash with me. I’m not too fond of handling cash because I am concerned about loss or theft. A local bank account makes it possible to use bank transfers to pay rent, utilities and grocery shopping.
Easy to budget
I can divide my money and send enough to cover my local monthly bills with a local bank account. I treat my living cost the same as I will treat other expenses. It shows up as a line within my overall budget.
It saves me money on foreign exchange fees.
I only need to transfer money once a month and pay a small foreign exchange fee.
Transferring money from the UK account to my local Kyrgyz Bank
TransferGo is a service I use. I like how fast, easy, and cheap the service is. I’ve tried to use Transfer Wise, but I still need to learn how to do this.
Documents needed for bank account opening
- Passport
- A translated copy of your passport
- Registration Document
- Your visa
The list works for all Kyrgyzstan banks.
Translating your passport
Your passport must be translated by an authorised translation company. I used GMC Translation services, but there are many more options.
The service is fast and can be completed while you wait. They charged me 350 soms, around £3.50 at the time.
A list of accredited translation services is also available from the British embassy.
Registration document
According to Kyrgyz officials, foreigners must register with their district State Registration Service Office. Kyrgyz authorities will allow citizens from 92 countries to stay there for up to 90 days without registering. British and American nationals can stay for up to 60 days without registering. If you plan to stay longer, then you need to register.
Registration was easy. My landlord organised everything. The official registration fee is 120 soms (£1.20), but I paid about 1,000 soms—the price of convenience. Mine is a light blue document like the one above.
Why I choose Demir Bank
The choice was between Demir Bank and Optima. I chose Demir Bank.
Demirbank is a leading commercial bank in Kyrgyzstan, which offers a wide range of financial products and services. Demir bank has been operating since 1997 and is the first bank in Kyrgyzstan to provide online banking services.
Demir Bank provides services you’d expect from a modern bank, including online banking and a mobile app in English. You can make deposits and withdrawals via a mobile application or ATM. You can also transfer money to any part of the world through SWIFT transfers, international cards, Visa, or MasterCard.
I also noticed that Demir Bank has many more branches, with one outside my apartment for ease of banking.
Finally, Optima, a Kazak bank, was having issues when I made my choice. It was not the bank’s fault, but Kazakhstan was embroiled in riots and unrest, which led people to withdraw money.
Benefits of opening a bank account in Demir Bank
Demir bank is a full-service bank offering various banking services. They have many branches and have a good reputation for reliability and service. In my dealings with them, they are always very helpful.
Demirbank also has branches in all the major cities in Kyrgyzstan, including Osh and Talas.
How long does it take to open a bank account with Demir Bank?
Opening a bank account with Demir Bank took about a week. The process was done in person at my local branch. I filled out a paper form, my documents were checked, copies were taken, and all originals were returned to me. Upon verification of my documents, I received my bank debit card within one week.
What currency is money held?
With Demir Bank, you can choose your default currency. The options are soms, dollars or euros. All international transfers will be received in your default currency. So, if your default currency is dollars, all international transfers will be received in dollars. I find this very helpful when the foreign exchange rate is volatile.
Once the money is received into your Demir account, you can easily convert all or some of your dollars into the local currency using the telephone app. The exchange rate is slightly lower than the transfer exchange bureaus., but the convenience makes it worthwhile.
Extra services from Demir Bank?
Demirbank offers a variety of extra banking services.
- Telephone and email alerts whenever you spend money on your account.
- A monthly bank statement in English is emailed to me every month.
- Bank transfers and bill payments via the phone app
- Buy or sell foreign currency.
- Transfer money from my international account using TransferGo
The locals love Demir Bank
Choose Demir bank if you want the greatest bank in Kyrgyzstan. The bank has a solid reputation in Kyrgyzstan and provides its customers with a wide range of banking services. Because of its extensive range of services and courteous employees, many Kyrgyz people select Demir bank as their primary bank.
Demirbank has offices throughout Kyrgyzstan. You may easily manage your account by visiting them or going online! If you visit the branch for any reason, remember to bring your passport because you will only be seen if you have your passport. Even if the personnel know you, they insist on seeing your passport.
Things I don’t like
Fees
If i choose to withdraw dollars from my Demir account, the fee charged is substantial. It was not always the case; I have drawn dollars in the past with little or no fees. The last time I attempted to withdraw $200, I was told to pay $20 for the privilege.
ATM Set Up
I used to work at a bank in the UK. When you take out cash, ATMs are set up to give you your card before they give you money. This is done so that people remember to get their cards when they get cash from an ATM. The ATMs at Demir Bank give out cash first, and I’ve left my card in the machine more than once. Other ATMs in Kyrgyzstan return the card first, so expecting the bank card before cash is standard.
Final Thoughts
I hope you have found the information helpful and that you can make an informed decision about which bank is best for you.
Find out more about moving abroad in this blog.
If you enjoyed reading this post, sign up for my email list, and I’ll send you new posts as they come out.
