Discover our new financial education videos. Complex topics simplified and explained in a short and simple format. 

These videos are in French with English subtitles except "I just arrived in Luxembourg"

 

Sustainable investment, what's that?

Do my investments have an impact on the climate?

What does it mean in practice?

If I want to invest, how does it work?

The report by the IPCC (Intergovernmental Panel on Climate Change) demonstrated the need for action to combat climate change. The European Union is committed to combating climate change, notably via the Paris Agreements, but also to tackling societal problems via the United Nations' Sustainable Development Goals. Our generation is facing a huge challenge. It also presupposes that we're going to have to change the way we produce energy, move around, and consume goods and services. And to facilitate this transition, finance has a role to play in moving towards an economy that is more resilient to climate change, and a society that is more sustainable as a whole.

In this context, the European SFDR regulation aims to increase the transparency of financial products and services, notably by requiring the publication of sustainability data. Sustainability risks, such as the risk of rising sea levels and the negative impact that investments can have on sustainability, must also be considered when making investments or advising clients.

 

What does this mean in practice?

In practice, the first thing we look at is whether an investment is sustainable or not. So, there are common rules in Europe with certain criteria, and the aim is to classify the various investments. The more stringent the criteria, the more sustainable the investment. There are three main families of criteria.

  1. The first are environmental criteria, such as greenhouse gas reduction, protection of biodiversity, water resources and natural resources.
  2. The second family, societal criteria: respect for human rights, working conditions, diversity within the company, etc.
  3. Third, governance criteria: i.e. anti-corruption and anti-bribery rules, corporate culture and ethics.

These three large families form what we call ESG criteria.

 

If I want to invest, how does it work?

So, in practice, a client who wants to invest will communicate their ESG preferences to us via the investor questionnaire. In a way, they'll tell us to what extent ESG criteria should influence their investment decision. Thanks to this information, the bank will be able to offer products that match his preferences, and we'll use it in particular to manage portfolios under a discretionary management mandate and provide investment advice to customers.

Finally, customers will receive a periodic report on their portfolio, enabling them to see the impact of their investments. In a nutshell, we're going to use financial investment as a lever to create a better society for future generations.

Insurance: can my credit card protect me?

Apart from payment, what else is a credit card good for?

But in practical terms, how does it work?

A few examples

A credit card isn't just for paying, it's also for protecting you. You have a choice of several cards, and each protects you in a different way. So, you'll need to take a close look at the insurance and assistance packages your credit card offers when you order it.  

To benefit from your credit card's insurance and assistance, you'll need to pay with your card. You have three separate sections for different types of assistance: one for persons, one for your car and one for your home.

Here are a few concrete examples: 

  • Have you left your keys inside your house? A locksmith can come to your home, and this will be covered by home assistance.
  • Your car breaks down? Your credit card can be used to pay for the roadside assistance, as well as a loaner car.
  • You order a tablet online and it's delivered broken? In this case, your credit card insurance may cover the cost of the broken order, and you'll be reimbursed automatically.

What insurance or assistance you can take advantage of will depend on your choice of card and what it covers. The most important thing is to take the time to find out what you need to know, so you can make the choice that's right for you!

I just arrived in Luxembourg, what now?

How do I open a bank account?

How do I get in touch with a bank?

Can I visit a branch at any time?

I was asked about a rental guarantee. What is it?

How do I open a bank account?

There are several ways to do this:

  1. First, you can open a bank account and order a credit or debit card online. If you do this, you can even do it before you arrive. If your application is successful, please note that banks may ask you to come in person to finalize the procedure.
  2. Secondly, you can go directly to one of the branches of your choice, making an appointment in advance.
  3. Thirdly, some of you may be assisted by a relocation agent who, among other things, will help you choose the bank with the account opening procedure.
  4. And finally, some banks have designated teams who will guide you through the account opening process or even just help you set up your LuxTrust and, by the way, check out our other video because we give some other useful information there.


How do I get in touch with a bank?

The banking environment in Luxembourg may differ from that in your home country. Here, the "click-call-meet" approach is often the most common and effective. So, basically, you make an appointment in advance, for example to open a bank account, apply for a loan, make an investment or simply to get help installing your LuxTrust app on your cell phone.


Can I visit a branch at any time?

You can always visit your branch. Some branches are open to the public, but please check beforehand whether they are. And if you do, bring the documents required. For example, to open a bank account, this includes identification documents, official proof of residence and an employment contract.


What is a rental deposit?

A security deposit or rental guarantee is a financial guarantee that is provided by the tenant to block a certain sum of money until the end of the rental contract. There are various possibilities here in Luxembourg, but the most common and secure way of requesting this is via a bank guarantee, which is a document issued by the bank providing a right for the landlord to claim a certain sum of money in the event of damages and rent arrears arising.

First and foremost, welcome! Don't worry too much about the administrative side of things - the banks are there to help you. Take your time to settle in and do as you please!

Phishing: how to avoid taking the bait?

What is phishing?

What does it look like?

A few best practices

Phishing is a form of fraud, mainly on the Internet, but also elsewhere, in which hackers impersonate a trusted organization such as a bank, insurance company or government body, in order to steal personal information such as confidential data, credit card details and so on, and misuse it. Phishing can take many forms, whether by telephone, email, SMS or chat.

For example, you may receive an email request from an organization or even a retailer asking you to click on the link in the email to fill in all your personal details, hand over your card and so on, in order to receive a refund which is obviously not legitimate. Don't forget, whether it's the government or the bank or other organizations, they'll never ask you for sensitive information like your password or your identifiers. Most of the time, if someone asks you for this information by phone, email or SMS, there's a good chance it's fraud.

When in doubt, it's imperative to contact the organization immediately, so you can be sure it's not fraud, and if it is, to take the appropriate measures, such as blocking your cards immediately in the case of a bank. It's also important to be able to secure your own home system with antivirus software and firewalls, to make sure you don't fall prey to fraud. In short, the most important thing is to be extremely vigilant when you're asked to share confidential and personal information.

LuxTrust Mobile: simple, convenient, and totally secure

What is the Luxtrust Mobile app? 

What are the benefits of LuxTrust Mobile?

How do I activate LuxTrust Mobile on my smartphone?

The LuxTrust Mobile app is the digital equivalent of your LuxTrust token or scan. It allows you to use your digital identity. It's provided by LuxTrust, the national provider of digital identities, to authenticate yourself or validate your transactions securely anytime, anywhere.

LuxTrust Mobile is very useful in Luxembourg because you can, for example, connect directly to public sites to carry out all your administrative formalities.

There are many advantages to activating LuxTrust Mobile.

  1. First of all, I'd say it's the practical aspect, because we've all forgotten our token or scan at home, so now you can authenticate directly from your smartphone, so it's a real change.
  2. The second is simplicity: no more codes to enter manually, you'll be able to authenticate directly using new tech authentication technologies like Touch ID and Face ID.
  3. And the third point, which is really the most important, is security. There, you'll benefit from better protection, particularly against phishing attacks or when validating an online transaction. So, for example, when you buy a piece of clothing online, you'll be redirected to the payment area, where you'll be given a certain amount of information that will enable you to validate the transaction in complete security. You'll be given the name of the merchant and the amount.

All you have to do is download the software from the App Store or Google Play and activate it. Of course, if you have any questions or need assistance, your bank will be happy to help.

LuxTrust Mobile is safe, convenient, and easy to use.

KYC: why does my bank ask a ton of questions?

We hear a lot about KYC, but what is it? 

What's the point? 

What does the bank expect from its customers?

What happens if the customer doesn't provide the information on time?

 

KYC stands for 'know your customer'.

Banks and other professionals in the financial sector are legally bound to know their customers well.

When it comes to customers, there are actually two groups: individuals and companies. 
What can we ask individuals? Address, marital status, profession, copy of employment contract, etc.
If we look at companies, we'll ask for an extract from the commercial register, who the shareholders are, and so on.

These are the types of data we ask for to get to know and understand the customer. The aim is, of course, to comply with legislation to combat money laundering and the financing of terrorism. By complying with all the regulations in force, we will naturally ensure the integrity of the bank.

The bank wants to be informed of any change in situation throughout the relationship, and to do this, the customer can communicate it by various means: contacting us by phone, sending an email or secure message via My ING, or by coming to the branch and making an appointment.

There are often reminders to ask customers for information: 
If we can't reach a customer, we risk having to block their accounts until we've obtained the right documents. A blocked account means blocked cards too, so the relationship will really be much smoother if we have the right contact details for the person.

Communicating any changes to us is important so that we know our customers well and can serve them well.

Remaining Due Balance Insurance (RDBI): Should I insure my home loan?

RDBI: Should I insure my home loan?

What is an RDBI?

What are the advantages of taking out an RDBI?

Is it mandatory for borrowing?

How much does it cost?

RDBI is an outstanding balance insurance policy that covers your monthly mortgage payments in the event of the death or disability of the insured party.

The main advantage is that it covers the person with whom you are taking out the loan, so you don't have to sell the property.

In the event of death or disability, the insurance company will pay you a portion of the loan to reduce your monthly mortgage payment.

The second advantage is tax deductibility: you can deduct the cost of this insurance from your tax return.

Outstanding balance insurance is not compulsory, depending on your family situation, assets, and financial situation, but in some cases, it is strongly recommended or even required by the banking institution.

The cost of outstanding balance insurance will depend on several factors: your age, the capital insured, the duration of coverage and your state of health.

So, if you're taking out a mortgage, think about insuring your outstanding balance to protect your loved ones.

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