- Current accounts are the most common bank accounts in Germany, used to pay bills and to perform everyday financial transactions. Savings accounts, especially call accounts, are ideal for saving funds, while blocked accounts are mandatory for international students and job-seekers to get a German visa or a residence permit.
- Banking options for a German current account include private banks, savings banks, cooperative banks, direct banks, and neo-banks, each catering to different needs and offering varying features.
- Your chosen bank should provide affordable conditions referring to account maintenance fees, free SEPA transfers, favorable terms for international transfers, and options for cash withdrawals. Neo-banks like N26 and Revolut provide innovative digital solutions, often with lower costs.
- Opening a German bank account typically requires a passport, residence permit, proof of address, and employment or student status. Neo-banks frequently simplify these requirements.
The best providers for a German bank account
Recommended bank account with English application process
Why should I open a bank account in Germany?
You require a bank account for almost all everyday financial transactions. You can also receive and send payments via an international account – thanks to online banking and a globally accepted debit or credit card, you can remain financially flexible. However, with a bank outside the SEPA area, you must expect high costs and longer transfer times.
SEPA — Single Euro Payments Area or SEPA Direct Debit — is a common European payment area that includes all European Union countries and some other states. The SEPA area has standardized payment terms. Non-cash transfers from a German bank account are often completely free for private customers.
International banks typically also operate branches in Germany. You can transfer your international bank account to Germany with such a provider. You then have a domestic German account and can also use the services of your home bank. However, such an account transfer is not always possible. Even international banks with German operations typically require the new opening of a German bank account.
German bank account — 3 different account types
A German bank account for ex-pats can be one of three different account types:
Current account (Girokonto)
This type is intended for everyday expenses. You can use it to pay your bills and receive payments. Current accounts are the most common type of bank account in Germany. They are indispensable in everyday life and are offered by almost all banks. You can typically choose between several account models with different services and conditions. Current accounts are partly free of charge, with other providers and account models incurring monthly fees.
With your current account, you will receive a Giro card and usually a debit card. Giro cards are mainly used for domestic payments, while debit cards (VISA or Mastercard) are accepted worldwide.
If you have sufficient creditworthiness, you can get an overdraft facility (Dispo) and a credit card with overdraft if the bank offers this service.
Savings account
You invest unneeded funds in a savings account and earn interest. Call money accounts are particularly popular in Germany because users can access their money daily.
You need a checking account as a reference account because you cannot use a call money account for your daily expenses and income. Many banks also offer their customers this account in addition to checking accounts. There are no fees for managing call money accounts.
Blocked bank account
International students and job-seekers require a blocked account to prove they have sufficient funds to finance their living expenses. If they require an entry visa for Germany, proof of a blocked account is a prerequisite for granting a visa. Even with visa-free entry, students and some other groups of ex-pats must set up a blocked account, as they require it to grant their German residence permit.
Various German banks and specialized, internationally active online providers offer a blocked account. The minimum deposit in a blocked account is €11,904. You also require a German current account to receive the maximum monthly withdrawal of €992. EU citizens and citizens from Schengen Area countries do not need a blocked account in Germany.
There is a charge for opening an account and often also a monthly fee for account management.
Which German banks are recommendable?
Germany has a very diverse banking landscape. You can choose between numerous banks with different services and profiles as an expat. Some basic information will help to find a bank that best meets your requirements and wishes.
Private banks
There are over 200 private banks in Germany. These include providers such as Deutsche Bank and Commerzbank, which offer services to a broad range of customers. Other, mostly lesser-known, private banks offer their services primarily to selected customer groups.
The major German private banks operate a virtually nationwide network of branches. You can take advantage of online banking, mobile apps, and personalized advisory services at the branches. In addition to current accounts, they offer their customers numerous other banking services.
The advantages of their current accounts include free cash withdrawals at ATMs nationwide. Deutsche Bank, Postbank, Commerzbank, and HypoVereinsbank operate a joint ATM network called the Cash Group, which customers can use for free. By comparison, cash withdrawals at other banks can cost up to €10.
Under certain conditions, expats can also open a current account at these banks before entering Germany or without a German residence permit.
Savings banks and cooperative banks
Savings banks (Sparkassen) and cooperative banks are non-profit credit institutions with public shareholders such as cities and municipalities. They operate independently at the regional level but are organized in umbrella organizations, and each pursues common principles and strategies. At the cooperative banks (Volksbanken/Raiffeisenbanken), customers have the option of becoming members and participating in the development of their bank.
These providers are very popular with many German residents because of their strong regional roots and equally dense network of branches. They require a German residence permit to open an account. However, they are partially skeptical of expats with a temporary residence permit.
International banks
Many international banks also have branches in Germany. To do so, they must have a German banking license and be subject to German banking supervision.
Well-known names in this market segment are ING, Barclays, Santander, and BNP Paribas. However, numerous banks of non-European origin operate in Germany, although they do not always offer their services to private customers. If your local bank from your home country is also in the German market, asking for an account transfer may make sense.
Established direct banks
Established direct banks such as ING, DKB, or comdirect provide their services online. By avoiding a network of branches and operating with a leaner structure, they can often offer more favorable terms than many branch-based banks. These banks also offer the services of a full-service bank. In addition to current accounts, their portfolios usually also include investment products, financing, securities accounts, and insurance.
Digital neo-banks
Recently, digital start-ups have established a separate market segment in the financial sector. These so-called neo-banks provide their services exclusively digitally, typically primarily with mobile apps. Overall, these banks are extremely customer-friendly. Like established banks, they typically offer their customers a current account and various other banking services, such as investment products or financing. Compared to established banks, their conditions are typically favorable. A student visa or a temporary residence permit is not problematic when opening an account.
If you are looking for innovative digital banking and do not need the services of a bank branch, an account with a neo-bank is an excellent option.
One of the best-known and most popular German neo-banks is N26, which is the first fully mobile bank in Europe. With N26, you can choose between one free and three fee-based account models. In the N26 app, you can access a Wise module for low-cost international transfers. To open an account, you must be a permanent or temporary resident of the EU.
A comparable offer is available at the Dutch digital bank Bunq, which also offers its customers different checking accounts, a wide range of other services, and a strong focus on sustainability.
Our recommendations for expats in Germany also include the digital accounts of the international neobanks Revolut and Wise. With both providers, you also benefit from low-cost foreign transactions. In addition, the residency and domicile requirements are different for them: Revolut and Wise operate worldwide and accept customers in all countries in which they are active on the market, so you can often open their accounts even if you do not (yet) live in Germany. They consistently align their accounts and cards for global use.
However, Wise’s core competence lies in global currency transactions and bank transfers. Unlike most other digital banks, Wise offers only a single, cost-free account model and no additional services. However, for expats who want a high-performance, globally usable account, this concept can also be very attractive and useful.
Banking fees in Germany
Before deciding on a particular bank and account model, you should compare not only the profiles of the providers but also the fees for the account and other banking services. You can find information on this in the banks’ lists of prices and services, or their general terms and conditions. However, for many established banks, this information is only available in German. Bilingual (German, English) or multilingual services play a much more important role for neo-banks.
The following aspects are particularly important when comparing prices
Account maintenance fees
Many banks charge a monthly fee for their current accounts, which ranges between €5 and €10 on average. High-performance accounts can also be significantly pricier. One example is the N26 Metal account, which costs €16.90 per month. However, this price is offset by extensive additional services such as free cash withdrawals worldwide and an extensive package of travel and lifestyle insurance. For expats who travel internationally frequently, investing in this account can be highly worthwhile.
However, you can also find current accounts without monthly fees. However, such offers are only unconditionally free at neo-banks – although, in this case, the costs for other services may be higher. Many other banks require a minimum monthly deposit for free account management.
Transfers
SEPA transfers from private customers are free of charge at most banks. However, high fees may be charged for outgoing and incoming international transfers. Suppose you often make or receive international transfers. In that case, you need a current account – for example, from N26, Revolut, or Wise – that supports these services in favorable conditions.
Cash withdrawals
There can also be huge differences in the costs for cash withdrawals. Free ATM withdrawals are mainly offered by banks that have a nationwide network of branches or belong to an ATM network such as the Cash Group. However, you typically have to expect high fees when withdrawing money from “foreign” ATMs.
Digital banks typically offer free monthly allowances for cash withdrawals. For all further withdrawals, rather moderate fees apply. With neo-banks and established direct banks, the bank at which you withdraw is irrelevant.
In addition to the conditions for cash withdrawals in Germany, you should also check the costs for foreign withdrawals. Neo-banks often offer here particularly attractive conditions.
Cash cards
Cash cards can also be a relevant cost factor for a current account. Giro cards or debit cards are available free of charge or for a small monthly fee. On the other hand, credit cards with an overdraft facility sometimes incur high annual fees that do not always reflect the services provided by the cards.
Suppose you are interested in a credit card with an overdraft facility. In that case, the offers from the bank where you hold your current account are not always the first choice. In Germany, you can apply for a credit card without being tied to a specific current account. Beside fee-based offers, free credit cards are on the market with no annual fee. One example is the Mastercard Gold Credit Card from the Swedish TF Bank, which also comes with attractive travel insurance.
Student accounts
Suppose you are studying in Germany or are under 28 years of age. In that case, you can open a particularly low-priced current account at direct banks and some branch banks. Some providers require proof of your age, while others require a study certificate.
Opening a German current account
How you can open your German bank account depends on which bank you want to hold the account at.
With branch banks (private banks, non-profit banks), you can usually choose between opening your account at a bank branch or online. With direct banks and neo-banks, you open an account via your provider’s online banking or mobile app.
Documents for opening an account
To open an account, you will typically need the following documents:
- Account application; in writing or online
- Valid passport
- German residence permit or visa (except for citizens of EU countries as well as Switzerland, Liechtenstein, Norway, and Iceland)
- Proof of address; available from the residents’ registration office at your place of residence
- Employment status; student, employee, freelancer
When opening an account online, you upload all the required documents to the provider’s website.
International neo-banks such as Revolut and Wise use simplified application procedures so that you can open your account without a residence permit or proof of residence.
Many banks will run a SCHUFA credit rating check before deciding on your account. This check is mandatory, especially if you want an overdraft facility or a real credit card with your bank account. SCHUFA is a credit reference agency that checks the creditworthiness of private consumers and companies.
For expats in Germany, a lack of SCHUFA history can be problematic when opening a bank account, taking out a loan, or applying for a credit card – the credit reference agency has no data on you. In such cases, we recommend a current account at a neo-bank. Many neo-banks offer SCHUFA-free current accounts on a credit basis. Most of these providers don’t even provide a real credit card. With N26, you may be able to get an overdraft facility later after your account transactions have been checked.
Verifying your identity
If you open your German bank account at a branch bank, you must present your passport to confirm your identity to a bank employee.
When you open your bank account online, verification is almost always done via VideoIdent. For this, you have a short video call with a bank employee or a service provider contracted by the bank. You must download a verification app on your PC or smartphone in advance. The identity confirmation via VideoIdent only takes a few minutes. Subsequently, you can often use your account directly. The bank will send you cards by post.
Alternatively, some banks also offer a PostIdent verification, which you can do at any post office. A postal employee checks your passport and issues a PostIdent coupon, which you sign and send to the bank by post. Your account will then be activated within a few days.
Conclusion
Opening a bank account in Germany is essential for managing finances efficiently, whether for daily expenses, savings, or visa-related purposes.
With a wide variety of accounts and providers, ex-pats can find options tailored to their needs. Neo-banks stand out for their affordability, digital convenience, and global reach.
Choosing the right account depends on your specific requirements, such as international transfers, credit card options, or sustainable banking practices. With proper comparison and research, opening a German bank account is straightforward and hassle-free.
Frequently Asked Questions — FAQ
Yes, some neo-banks like Revolut and Wise allow you to open an account without a German residence permit or proof of residence.
You typically require a valid passport, residence permit or visa, proof of address, and employment or student status.
SCHUFA is Germany’s most important credit reference agency. Lack of SCHUFA history may limit options for accounts with credit facilities, but neo-banks often offer SCHUFA-free accounts.
Some neo-banks like N26 offer free account models. Traditional banks may waive fees with a minimum monthly deposit.
Yes. Banks offer freelancers and self-employed business accounts tailored to their needs. We particularly recommend the business accounts of fintechs and neo-banks to freelancers and the self-employed, as they often come with excellent digital features for accounting and tax.