Bank Account in Germany
In Germany, a bank account is essential. Whether for your salary, rent or online payments, an account is a prerequisite for most financial transactions.
In Germany, a current account is the type of bank account used for day-to-day payments.
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Some banks charge for current accounts, while others offer them free of charge. It is therefore worth comparing the different offers.
On this page, we have summarised the most important information on opening and managing a bank account, as well as the most common payment methods.
Opening a bank account in Germany
EU citizens have a legal right to a bank account. Banks are obliged to offer them a basic account, even if they do not have a regular income. If you are not an EU citizen, you must also present a work permit and a registration certificate from the residents' registration office to open an account.
The following documents are required to open an account:
- Valid passport
- Registration certificate from the residents' registration office (required for non-EU citizens; EU citizens only need this if they want to open an account that they can also overdraw (a so-called overdraft facility).
- Work permit (required for non-EU citizens)
- Wage statement (if an overdraft facility is desired).
Debit card and credit card
Once your application has been approved, you will receive your account details and a debit card (formerly known as an EC card) linked to your account with a four-digit PIN. You will often also receive a credit card. However, this will depend on the account and overdraft facility you have chosen and often costs extra. While expenses made with a debit card are debited directly from your account, payments made with a credit card are only debited collectively at the end of the month.
In everyday life, a debit card is sufficient in Germany. However, for payments that require a deposit, you will often need a credit card – for example, if you want to book a hotel room or hire a car.
Withdrawing money and making cashless payments
With your debit card and the associated PIN, you can withdraw money from numerous cash machines worldwide – and in Germany also in some shops after making a purchase at the checkout.
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When withdrawing money from an ATM, check for any fees. It is best to use ATMs belonging to your bank or its partner banks to avoid fees.
You can also use your debit card to make cashless payments in most shops. Nevertheless, you should always carry some cash with you in Germany. Card payments are not always possible, especially in smaller shops.
Online banking
You can usually manage your account online on your bank's website or in its online banking app. In addition to online banking, many banks offer the option to manage your account at an ATM or at a branch counter.
Bank transfers
- You can pay invoices by making a bank transfer. This involves instructing your bank to transfer a specific amount from your account to the recipient's account. You must complete a transfer form for each transfer – this can be done either on paper or digitally.
- Bank transfers within Germany: To make a bank transfer within Germany, you only need the IBAN (International Bank Account Number) of the recipient.
- Bank transfers within the EU: For transfers to other EU countries, you must also provide the BIC (Business Identifier Code).
- Transfers outside the EU: For international payments, in addition to the IBAN and BIC, you must also specify the currency in which you wish to transfer the money. Please note that fees may apply for international transfers.
To save on fees, it is often advisable to use money transfer service providers. Some of these offer more favourable terms and conditions and allow transfers even without a bank account. One advantage of these service providers is that the money can often be collected from the branch within a few minutes.
Standing orders and direct debits
Another advantage of having a bank account is the ability to set up standing orders and direct debits, ensuring no payments are forgotten.
- Standing order: A standing order allows you to set up regular payments, such as rent or insurance premiums, to be made automatically. This means the specified amount is debited from your account at a fixed time, so you don't have to make a transfer each time.
- Direct debit: With direct debit, you permit an amount to be debited from your account. This is particularly convenient for recurring payments such as electricity bills or broadcasting fees.