Banking is quite well developed and modernised in the big cities in Portugal and offer a wide range of services from simple savings accounts to internet banking, specialist accounts for paying taxes to pension top-up schemes.

Opening up a bank account is relatively simple if you have the necessary documents. To open up a bank account, you'll need to fill in a couple of forms. While every bank might have its own requirements, in general you can expect to fill in an application form, client details and acceptance of the bank's rules and conditions. For EU citizens, you'll also need your passport or identity card, tax number and card, residency card and proof of residence. Non EU citizens will need a passport, proof of home address in country of origin, tax card and an employment contract.

The Multibanco system is the most convenient way to access your money. It offers easy ATM access to your money by connecting a number of local banks in its network. It also acts as a debit card and can be used to swipe your payments at supermarkets, cafes, shops etc. Another added beneift of the Multibanco card is that you can also opt to use it as a credit card. If your card has both debit and credit card options, you need to specify at the time of transaction whether you want the payment from your credit or your debit account.

Some of the key banks in Portugal include:

• Banco Santander
  
• Banco de Portugal
  
• Banco Finantia
  
• Barclays Portugal
  
• Itausa Portugal
  
• BCP -Banco Comercial Portugues
  

Source:
http://www.worldwide-tax.com/portugal/porinvestbanks.asp