Banking in Germany
German banking is reliable, secure, and increasingly digital, though still more conservative than many countries.
Opening a Bank Account
Requirements:
- Valid passport or ID
- Proof of address (Meldebescheinigung - residence registration)
- Sometimes: residence permit or visa
- Sometimes: employment contract
Popular Banks:
| Bank | Type | Best For | Monthly Fee |
|---|---|---|---|
| N26 | Digital | Expats, English interface | €0-€16.90 |
| Deutsche Bank | Traditional | Full service, global presence | €0-10 |
| Commerzbank | Traditional | Expat programs | €9.90 |
| Sparkasse | Savings bank | Local, widespread ATMs | €3-10 |
| DKB | Direct | Free account, travel perks | €0-€4.50 |
Account types:
- Girokonto (checking) - for daily use, salary deposit
- Sparkonto (savings) - minimal interest rates currently
- Tagesgeldkonto (daily savings) - slightly better rates
SCHUFA - Germany's Credit System
Unlike US credit scores, Germany uses SCHUFA (Schutzgemeinschaft für allgemeine Kreditsicherung):
What it tracks:
- Bank accounts
- Mobile phone contracts
- Rental payment history
- Loan applications
- Payment defaults
How to build good SCHUFA:
- Pay all bills on time
- Don't apply for multiple credit cards
- Maintain stable banking relationship
- Avoid payment defaults at all costs
Getting your SCHUFA:
- Free once per year at meineschufa.de
- Required for apartment rentals
- Sometimes needed for employment
Payment Methods
Cash (Bargeld) - Still king in Germany:
- Many restaurants cash-only
- Markets, bakeries prefer cash
- Small shops often have €10-20 card minimums
Debit Card (Girocard/EC-Karte):
- Most common card
- Widely accepted
- Direct bank withdrawal
Credit Cards:
- Less common than other countries
- Visa/Mastercard accepted at major stores
- Amex rarely accepted
Digital Banking & Apps
Banking apps:
- N26 - Full mobile bank, English interface
- Deutsche Bank Mobile - Traditional bank, good app
- Revolut - Multi-currency for travelers
Payment apps:
- PayPal - Widely used online
- Apple Pay/Google Pay - Growing acceptance
- Klarna - Buy now, pay later
International Transfers
Options:
- SEPA (within EU): Free, 1-2 days
- SWIFT (international): €10-30, 3-5 days
- Wise (formerly TransferWise): Low fees, fair rates
- Western Union: Fast, expensive
Tips for Immigrants
First month checklist:
- Register address (Anmeldung)
- Open bank account
- Set up standing orders for rent
- Get Girocard and online banking
- Request SCHUFA to check it's clean
Common pitfalls:
- Overdraft (Dispokredit) has high interest (8-12%)
- Many accounts charge for ATM use outside network
- Negative SCHUFA can block rentals for years
Pro Tips
- •Register address before opening account - most banks require it
- •Get your free annual SCHUFA report to check for errors
- •N26 offers easiest account opening for newcomers
- •Keep cash on hand - many places still don't accept cards
- •Set up standing orders (Dauerauftrag) for recurring bills
Have questions about banking in Germany?