What is the Currency Used in Iceland

If you’re planning on travelling to or living in Iceland, knowing the ins and outs of the currency in Iceland and payment methods is essential. In this article, we aim to provide a detailed overview of Iceland’s currency, its banking system, various payment options, and important considerations for seamless financial transactions during your stay.

The official currency of Iceland is the Icelandic Króna (ISK), represented by the symbol “kr” or “ISK”. You’ll find it available in diverse denominations, with banknotes ranging from 500 kr to 10,000 kr, and coins minted in values of 1 kr, 5 kr, 10 kr, 50 kr, and 100 kr.

Salary and Banking in Iceland

Direct bank transfers to local bank accounts are the standard method of salary payment in Iceland. For anyone planning to work in Iceland, opening a local bank account is a crucial step upon arrival. This might seem like a daunting task, but rest assured, local banks are accustomed to assisting new residents in setting up their accounts.

Iceland prides itself on its robust and efficient banking system. Local banks such as Arion Bank, Landsbankinn, and Íslandsbanki offer a wide range of services, including both domestic and international money transfers. These can be made conveniently online, via mobile banking apps, or by visiting a bank branch in person. Always have your account details handy, and adhere to any specific instructions provided by your bank for a smooth banking experience.

Iceland is very focused on cashless transactions. Here’s what you need to know about card and cash payments during your stay:

Cards and Cash

Card Payments

Cards are universally accepted throughout Iceland, making them the most convenient way to pay for goods and services. Visa and Mastercard are the most widely accepted cards, with a significant number of businesses also accepting American Express and Diners Club cards. Both contactless payments and chip-enabled cards are prevalent, ensuring speedy and secure transactions. As a precaution, remember to inform your bank about your travel plans to avoid any potential disruptions to your card usage.

Cash Payments

While not a necessity, there may be occasions when a small amount of cash could come in handy for spontaneous local market purchases or similar small expenses. If you need cash, ATMs are accessible across Icelandic cities and towns for easy Icelandic króna withdrawals. However, be mindful that your home bank may apply charges for international withdrawals.

Where to Exchange Currency in Iceland

If you arrive in Iceland with foreign currency, banks, some hotels, and dedicated exchange offices offer currency exchange services. Generally, banks offer competitive exchange rates, while exchange offices might charge slightly higher fees. It’s advisable to compare rates and fees before making a decision.

Moreover, staying informed about exchange rates can help you get the best value from your currency conversions. Utilize online currency converters and financial websites for real-time information. If you’re traveling in Iceland and planning to use your bank cards, it might be helpful to notify your bank ahead of your travel to ensure seamless card usage.

In Conclusion

Being familiar with the currency in Iceland and payment options can immensely contribute to a hassle-free Icelandic experience. With the Icelandic króna as the official currency and extensive acceptance of card payments, you’ll find monetary transactions in the country quite effortless. A mix of local bank services, mindful card usage, and occasional cash handling can provide a well-rounded approach to your financial activities.

Remember to seek advice from financial professionals or institutions for the latest and most accurate information on currency exchange and payment methods in Iceland. This article offers general guidance that can be subject to change, emphasizing the importance of up-to-date advice.

Embarking on a journey to Iceland is exciting, and we’re here to ensure your financial experience is as smooth as possible. If you have further queries or need additional assistance, please do not hesitate to reach out to us.

Useful Links:

• Currency Converter – Arion Bank: https://www.arionbanki.is/english/markets/currency-converter/
• Cost of Groceries: https://movingtoiceland.com/cost-of-groceries-in-iceland/