Opening a bank account in Germany: Beginner's guide

How to open a bank account in Germany? Learn about the best banks in Germany for foreigners and the documents needed to open a bank account in Germany.

Bas Teunissen

4 minute read

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Updated on 5 Aug 2024

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Living

Opening a bank account in Germany is an essential step in your relocation to Germany for a few reasons. First, Germany is a cash-heavy country, and you want to save money on transaction fees when withdrawing. Second, it will make it much easier to receive your German salary, set up direct debits to pay for your local health insurance utilities, and mobile plan.

So, let’s look at how you open a German bank account as an expat in Germany. We’ll help you figure out the basics of banking in Germany, and the best German banks for expats.

Yes, foreigners moving to Germany can open a account. Getting an account with a local bank is even recommented to expats planning on staying in Germany for more than a year. Opening a German bank account will make your life much easier and you won't have to worry about spending extra on international charges.

If you're here for a few months only, then it might be worthwhile keeping your foreign bank account or using one of the multi-currency travel cards. But considering the country is reliant on cash, it's highly recommended to open a bank account in Germany.

Cash culture in Germany

Despite being one of the largest and important economies in the EU and the world, Germany is behind in the adoption of modern payment methods. Cash has been king in Germany for a long time.

While bank transfers are used for larger transactions, you still need cash for daily transactions. For instance, trying to do your shopping at the grocery store or buying your drinks at the bar could run you the risk of being unable to pay.

Before you go open a German bank account, it's good to know what options you have. German banks generally offers 4 types of bank accounts:

• Girokonto is a current account used for payments (what people usually open)
• Sparkonto is a savings account with a limited access to your savings
• Tagesgeldkonto is a savings account with an easy money withdrawal
• Festgeldkonto is an savings account with a higher interest rate and a fixed term

The difference between a Sparkonto and Tagesgeldkonto is you can't pay with the savings you've collected in the former. To use that money, you need to transfer it into another one of your accounts. It's a great option if you're saving money towards a larger goal like buying an apartment.

With Tagesgeldkonto you can access and pay with your savings, sometimes used as a substitute to the Girokonto. It's a good option if you're saving money towards a smaller goal like going on a trip.

The Festgeldkonto is a type of savings account used for investments as it has higher interest rates. Generally, it's used for saving money for a specific period of time.

Germany has 3 different types of banks: private banks, state-owned banks, and cooperative banks. Let's see what's the difference between them and which are the best banks in Germany for expats.

Private banks (Private Banken)

Private banks (Private Banken) offer comprehensive services and extensive branch networks, often with English-speaking staff and tailored products for expats. They are well-suited for personal banking needs, including international transactions and digital banking. Some of the best private banks allowing expats to open German bank accounts include:

• Deutsche Bank
• Postbank
• Commerzbank
• UniCredit
• HypoVereinsbank

Savings Banks (Sparkassen)

Savings Banks (Sparkassen) are widespread and have a strong local presence, making them accessible in nearly every city and town. They offer reliable and straightforward banking services, often with lower fees. Some of the larger ones include:

• Berliner Sparkasse
• Hamburger Sparkasse
• Frankfurter Sparkasse

Cooperative Banks (Genossenschaftsbanken)

Cooperative Banks (Genossenschaftsbanken) are owned by their members, who are also their customers. Each member typically has an equal vote in the bank's decisions, regardless of the amount of money they have deposited. They are known for their personalized service and strong local connections, making them a good option for those who prefer a community-oriented banking experience. Some of the best-known cooperative banks in Germany include:

• Volksbanken
• Raiffeisenbanken

Online banks in Germany

These digital banks don’t have an actual physical location, but will send you a bank card (usually Mastercard) that you can use at almost any ATM in Germany. They also enable contactless payments and allow you to send or receive regular bank transfers.

Online banks are perfect for expats or students who don't plan on living in Germany for a long time or who aren't able to open a local bank account before moving. The 3 best online banks for expats in Germany are:

• N26
• Bunq
• Wise

What is the best bank for foreigners in Germany?

Now that we've gone through the types of banks in Germany, which one is the best for expats. We've weighted the options and we found the 6 best banks to open a bank account in Germany as a foreigner.

• Deutsche Bank (for Americans moving to Germany or UK citizens, DB has a partnership with Bank of America and Barclays)
• N26
• Commerzbank
• Wise
• Sparkasse
• ING

Opening a bank account in Germany as an expat involves several steps. Here’s a detailed guide to help you through the process:

1. Choose a bank: consider factors such as branch availability, customer service in English, fees, and the specific services you need
2. Gather the required documents:

• Valid passport or photo ID
• Visa or residence permit
• Proof of address: many German banks need you to have a German address to open an account. Please note that your booking confirmation from HousingAnywhere can often be used as proof of address.
• Evidence of income/employment e.g., a payslip
• Proof of enrollment (if applicable)

3. Register your address (Anmeldung): before you can open a bank account, you need to register your address at the local registration office (Bürgeramt)
4. Visit the bank branch: go to the bank branch with your documents. It's best to book an appointment online at some banks to avoid long waiting times.
5. Fill out the application form at the bank
6. Go through the verification process: the bank will verify your documents and may take some time to process your application. Some banks offer instant account openings, while others might take a few days.
7. Wait for the account details: once your application is approved, you will receive your account details, including your IBAN. You will also receive your debit card (EC-Karte) and PIN by mail within a few days.

One thing to keep in mind is that some banks require a SCHUFA credit rating. You can request this report online, for around €29,99. Keep in mind that you'll need a German address to get a report.

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