Opening a Bank Account in Germany: everything you need to know
Opening a bank account is a vital step for anyone moving to Germany. Whether you’re relocating for work, study, or long-term residence, having a German bank account simplifies daily life – from paying rent and receiving your salary to setting up health insurance and mobile contracts. This comprehensive guide covers everything you need to know, including account types (Girokonto, Sparkonto, blocked accounts), required documents, fees, and expat-friendly banking options. Learn how to open an account with or without registration (Anmeldung), compare digital vs. traditional banks, and understand what to expect from German banking services. We also cover how to avoid hidden fees, report issues, and switch banks easily. Ideal for newcomers, international students, and non-residents, this guide will help you choose the right bank and manage your finances confidently in Germany.
Why You Need a Bank Account in Germany
A bank account is essential for everyday life in Germany, as the country’s financial system relies heavily on bank transfers rather than cash for major transactions. You’ll need a German bank account to pay bills and rent, receive wages, or access financial support from the state, as these transactions typically occur through banks.
Having a bank account allows you to keep money securely at the bank, send and receive money efficiently, and withdraw cash when needed. It enables you to set up bank transfers for bills instead of relying solely on cash payments, which can be inconvenient for larger expenses.
If you plan to live in Germany long-term, a German current account becomes practically mandatory. Landlords typically require bank transfer capabilities to rent a flat, and employers usually pay salaries via bank transfer. Additionally, having a German bank account makes it much easier to set up direct debits for local expenses like health insurance, utilities, and mobile phone plans.
While you can initially use an international bank account or online/mobile banking services, you’ll eventually need a German bank account if these alternatives don’t meet your needs. Some German businesses and major financial commitments, such as mortgages, may specifically require an account that operates within Germany’s banking system.
Types of Bank Accounts
Germany offers several types of bank accounts to meet different financial needs and circumstances.
Current Account (Girokonto)
The current account is the standard and most common type of bank account in Germany, designed for daily banking activities. You’ll use this account for receiving income, paying bills, making withdrawals, and using your debit card for purchases. Basic accounts are a simplified version of current accounts that offer essential banking functions and are designed to be accessible to everyone, including those who might face barriers with traditional accounts.
Savings Account (Sparkonto)
A savings account is specifically designed to help you save money and earn interest on your deposits. These accounts typically offer limited access to your funds, requiring you to transfer money to your current account before you can use it for purchases or bill payments. Both residents and non-residents can open savings accounts in Germany.
Instant Access Savings Account (Tagesgeldkonto)
This flexible savings account provides easier access to your funds compared to a traditional savings account. While it still earns interest, you can access your money more readily, and some instant access savings accounts even allow you to make payments directly from the account.
Fixed Deposit Account (Festgeldkonto)
Fixed deposit accounts are investment-oriented savings accounts that offer higher interest rates in exchange for keeping your money deposited for a specific, predetermined period. These accounts are ideal for long-term savings goals when you won’t need immediate access to your funds.
Blocked Account (Sperrkonto)
Blocked accounts are special accounts particularly important for migrants, including students and job-seekers, who need to prove they have sufficient funds for their stay in Germany. These accounts are often required for visa applications. As of 2024, students typically need to deposit €11,208 for a full year, with limited monthly withdrawals of €934. Several providers offer blocked accounts, including Expatrio, Fintiba, and Coracle, though Deutsche Bank has discontinued this service.
Non-resident Account
While standard current accounts usually require German residency, some online or mobile banks offer accounts for people living overseas. These accounts are particularly useful if you’re planning to move to Germany or will be working there temporarily.
Digital and Mobile Accounts (Direktbanks)
These banks operate entirely online or through mobile apps without physical branches. They often offer more affordable conditions and can sometimes be opened from abroad, making them attractive to international residents. Popular options include N26, bunq, DKB, Revolut, and Wise. Notably, Wise allows you to open an account before arriving in Germany without requiring a German address or residence permit.
Offshore Accounts
Offshore accounts are international accounts located outside the account holder’s country of residence. They can offer advantages such as cross-border banking services and potentially favorable tax treatment. These accounts are suitable for people who frequently transfer money internationally or live in multiple countries.
Where to Open a Bank Account
You can open a bank account at various types of financial institutions that accept private customers.
Banks with Branches
Traditional banks with physical locations allow you to visit in person and speak directly with banking staff. This category includes private banks like Deutsche Bank, Commerzbank, and HypoVereinsbank, as well as public savings banks (Sparkassen) and cooperative banks (Volksbanken/Raiffeisenbanken). The personal service can be particularly helpful if you need assistance with complex banking matters or prefer face-to-face interactions.
Direct Banks
Direct banks operate without physical branches or independent ATMs, conducting business primarily through email and telephone communication. These banks are often more budget-friendly than traditional branch banks, passing their lower overhead costs on to customers through reduced fees and better interest rates.
International Banks
Many international banks maintain branches in Germany, which can be advantageous if you already have a relationship with one of these institutions. You may be able to transfer an existing account or benefit from international banking services. Examples include Citibank, ING Bank, BNP Paribas, Barclays Bank, HSBC, and Santander.
Online and Mobile Banks
These modern banks operate purely through online platforms or mobile applications, offering convenient 24/7 access to banking services. They typically provide competitive rates and innovative features, making them popular choices for tech-savvy customers and international residents.
Requirements to Open a Basic Account
To open a basic account in Germany, you must meet several standard requirements that banks use to verify your identity and comply with financial regulations.
You must be over 18 years old, though children aged 7 and above can open accounts with parental consent. Valid identification is essential, typically requiring a passport, residence permit, or “Duldung” document. Note that a “Fiktionsbescheinigung” is usually insufficient for account opening purposes.
Most banks require proof of registration or “Meldebescheinigung” as proof of your address in Germany. However, some banks like N26, bunq, C24, DKB, Wise, Deutsche Bank, Vivid, Monese, and Revolut don’t initially require a registration certificate, making them more accessible to newcomers.
You’ll need to provide the bank with a German address where they can send correspondence. This doesn’t necessarily have to be your home address and can be a friend’s address or even a counseling center if needed.
Additional documents may include a visa or residence permit, evidence of income or employment such as a payslip, and proof of student enrollment if applicable. Some banks may require a SCHUFA credit report, especially if you’re applying for credit cards or overdraft facilities. It’s worth noting that opening an account with N26 creates a SCHUFA record, which can be helpful when searching for an apartment, while bunq typically doesn’t create such a record.
How to Open a Bank Account
The account opening process varies depending on the type of bank you choose.
At a Branch Bank
You can usually visit a branch bank without an appointment, and staff members can assist you with the application process. You’ll need to bring valid identification for identity verification, and the staff can guide you through completing the necessary forms and documentation.
With a Direct Bank (Online/Post)
For direct banks, you can apply online through their website or send completed forms by post. After submitting your application, you’ll receive confirmation and contract documents if your application is accepted. Identity verification is completed through either the Post-Ident or Video-Ident procedure.
Post-Ident Procedure
The Post-Ident procedure requires you to visit a designated post office with your valid identification documents. A postal worker will verify your identity and complete a verification coupon for the bank. This service is typically provided free of charge.
Video-Ident Procedure
Video-Ident allows you to verify your identity through a video call, where you’ll show your identification documents to the camera and answer verification questions. During the call, you’ll receive a confirmation code via SMS to complete the process.
Banks have up to 10 business days to inform you whether your application has been accepted. If you don’t speak fluent German, you can bring someone to translate for you, as banks cannot legally reject your application based solely on language barriers. While you can sometimes complete the entire process online, some sources recommend applying in person to avoid potential complications, especially if you’ve recently arrived in Germany.
Fees and Costs
Understanding the fee structure is crucial when choosing a German bank account, as costs can vary significantly between institutions.
Account Management Fees
Basic accounts typically incur costs, though fees vary between banks since they’re not strictly regulated by law. Annual costs generally range from €50 to €150 or more, covering basic account management services. However, fees for basic accounts should not be significantly higher than those for other account types or substantially more expensive than comparable offerings from other banks.
You may also encounter charges for specific services, such as conducting transfers at a branch or printing account statements. Online banking often makes many of these services available free of charge, making it a cost-effective option for routine banking tasks.
ATM Fees
Withdrawing cash from your own bank’s ATMs is generally free of charge. However, using another bank’s ATM often incurs fees that can reach €6 to €10 per transaction. Some banks participate in networks like Cash Group or Cashpool, which allow free withdrawals from specific partner banks’ ATMs, expanding your access to fee-free cash withdrawals.
Transfer Fees
Transfers within Germany typically process on the same day, while transfers within Europe usually take 1-2 business days. International transfers outside Europe can be expensive and may take several days to complete. Fee structures vary by bank, with some offering a certain number of free transfers per month while others charge per transaction.
Standing Order Fees
Setting up a standing order at a branch bank might incur a fee, but this service is usually free when arranged through online banking platforms.
Card Fees
Debit cards (Girocard) are often provided free with current accounts. Credit cards typically carry annual fees that can reach €100 or more, depending on the card type and benefits offered.
Student Accounts
Many banks offer fee exemptions for students who can provide proof of their student status. These benefits often come with age restrictions, typically covering students between 18-28 years old, though specific age limits vary by institution. Some banks also offer completely free accounts with no monthly fees or waive fees if you meet certain conditions, such as maintaining minimum monthly deposits.
Banking Services and Features
German banks offer a comprehensive range of services to meet your daily financial needs.
Girocard/Debit Card
After opening your account, you’ll receive a Girocard (the German term for debit cards), which you can use for deposits, withdrawals, and cashless purchases. The Girocard is widely accepted throughout Germany, and many small businesses may only accept cash and Girocards, making this card essential for daily transactions.
Credit Card
Credit cards can be used for payments and withdrawals worldwide and are sometimes necessary for online shopping or purchases requiring deposits, such as hotel reservations or car rentals. Different types of credit cards are available, including revolving, charge, debit, and prepaid options. Keep in mind that having a basic account might not automatically qualify you for credit card approval.
Payments
Germany offers various payment methods beyond cash, including credit cards and Girocards for in-person transactions. Online payments can be made through credit cards, instant bank transfers (Sofortüberweisung), Giropay, or PayPal. Despite these digital options, Germany maintains a strong cash culture, and you’ll still need cash for many daily transactions, particularly at smaller shops and local businesses.
Transfers (Überweisung)
Bank transfers involve instructing your bank to move money to another account. You can execute transfers at a branch using a transfer form (“Überweisungsträger”) or conveniently online. Essential information includes the recipient’s name, IBAN, BIC (for transfers outside the SEPA area), transfer amount, and a reference note. Online transfers require a Transaction Number (TAN) for security purposes. Recommended TAN methods include PushTAN/AppTAN or TAN generators (eTAN, ChipTAN), as SMS TAN is considered less secure.
Standing Order (Dauerauftrag)
Standing orders automate regular payments of identical amounts by setting up permanent instructions with your bank. You can establish these online or at a branch, requiring the recipient’s name, IBAN, payment amount, frequency, and BIC for non-European transfers. Standing orders can be modified or cancelled at any time as your needs change.
SEPA Direct Debit (SEPA-Lastschrift)
SEPA Direct Debit allows you to authorize individuals or companies to withdraw specific amounts from your account automatically. This requires completing a “SEPA Direct Debit Mandate” form. The recipient must notify both you and the bank before debiting funds. You can withdraw this permission within 8 weeks, and the money will be returned free of charge. Incorrect debits can be disputed within 13 weeks. You can cancel mandates in writing at any time without providing a reason, though this only stops the automatic debit, not the underlying contractual obligation.
Checking Balance
Regularly monitor your account balance through online banking or by printing statements at your bank. Some banks charge fees for printing statements at branches if you have access to online banking. Contact your bank immediately if you notice any unauthorized transactions.
Lost Card/Hacked Account
If your Girocard is lost or stolen, immediately block it by calling +49 116 166 or contacting your bank directly. Your bank may attempt to reverse fraudulent transactions, and you should file a police report for stolen cards. Banks must provide replacement cards and PINs free of charge when cards are lost or stolen.
International Transfers Over €12,500
When transferring or receiving amounts exceeding €12,500 from outside Europe, you must report these transactions to the Deutsche Bundesbank to avoid potential fines and comply with German financial regulations.
- See also: International Transfers
Banking Secrecy
German banking secrecy laws generally ensure that only you can access your account information. Banks cannot share your financial details with third parties without your explicit permission, protecting your financial privacy.
Power of Attorney (Vollmacht)
You can grant someone else access to your account balance and withdrawal rights by providing them with a Power of Attorney. This legal document allows trusted individuals to manage your banking affairs when necessary.
Changing Banks or Closing an Account
German banking regulations provide flexibility for customers who wish to change their banking arrangements.
You can change banks at any time, and German law requires banks to provide “account switching help,” which is usually offered free of charge. However, this assistance only applies to transfers between German banks and doesn’t extend to international transfers.
To switch banks effectively, open your new account first, then apply for account switching assistance from your new bank. They’ll help transfer your direct debits, standing orders, and notify relevant parties of your new account details.
Although there’s no legal notice period for closing accounts, individual banks may set their own requirements in their terms and conditions. It’s advisable to keep your old account open for approximately two months after establishing your new account to ensure all transactions have been successfully transferred.
When closing an account, you’ll typically need to complete a closure form and return your cut-up bank cards. Ensure you receive written confirmation that the account has been closed, cancel any remaining direct debits or standing orders, and inform anyone who makes regular payments to your account about the closure.
Issues and Support
German banking regulations provide specific protections and recourse options for customers facing difficulties.
Rejection of Application
Banks can only reject basic account applications under specific, legally defined conditions. These include situations where you already have a usable account elsewhere, haven’t paid fees on a previous account, used a previous account for criminal activities, or where opening the account would violate legal requirements.
Filing Complaints
If your application is rejected inappropriately or fees seem excessive, you can file complaints with the Federal Financial Supervisory Authority (BaFin). For application rejections, use their online administrative procedure application. For excessive fees, complete and submit their complaint form. BaFin has the authority to require banks to reduce prices if fees are determined to be unreasonably high.
Support Services
Various organizations provide assistance with banking and financial matters. Migration Advice Centres offer help for individuals over 18, while the Youth Migration Service assists those up to 27 years old. These services can help with form completion and debt management issues.
Anti-Discrimination Measures
If you experience discrimination from a bank, you can contact the Federal Anti-Discrimination Agency for assistance and guidance. Additionally, Consumer Protection Centres provide general advice and support regarding banking services and contract issues.
Expat Considerations
Opening a German bank account represents a crucial step in establishing yourself in Germany, and understanding which banks cater to international residents can significantly simplify this process.
Expat-Friendly Banks
Several banks are considered particularly accommodating to expatriates due to their English-language services, quick account opening processes, acceptance of foreign documents, and flexible requirements regarding residence permits or registration certificates. Banks frequently recommended for expats include N26, bunq, Wise, Monese, and Tomorrow.
Banks That May Be Challenging for Expats
Some banks present additional challenges for international residents due to language barriers, strict requirements, or slower processing times. These include C24 (German-only services), Revolut (requires tax ID), Sparkasse (primarily German language, requires residency), Deutsche Bank (can be slow, mostly German), Commerzbank (slower processing, requires registration/residency), ING (requires EU citizenship or permanent residency, German-only), and DKB (often refuses recent immigrants, German-only services).
English-Language Services
Banks offering comprehensive English services, including online banking, documentation, and customer service, include Wise, Monese, bunq, N26, and Revolut. Some institutions provide partial English services, such as basic online banking and potentially English-speaking staff, including Deutsche Bank, Commerzbank, and Berliner Sparkasse.
Wise stands out as particularly expat-friendly, allowing account opening from abroad without requiring a German address or residence permit, accepting numerous passport types, and offering free withdrawals up to €200 monthly. However, you’ll receive a Belgian IBAN rather than a German one, which occasionally causes issues with some German businesses.
Bunq serves as an excellent alternative to N26, accepting more passport types and not initially requiring an Anmeldung (registration), though it’s more expensive and the free account option is limited. Both Sparkasse and bunq accept citizens from countries under international sanctions, such as Russia, Iran, and Syria.
IBAN Discrimination
While IBAN discrimination is illegal throughout the EU, some German businesses may still encounter processing difficulties with non-German IBANs, potentially causing inconvenience for account holders with international bank accounts.
Girocard Availability
Only German banks typically issue Girocards, which remain a common payment method throughout Germany. While the necessity of having a Girocard varies depending on your lifestyle and spending habits, it can be essential for certain transactions and businesses that don’t accept international cards.