Opening a bank account

3.3 OPENING A BANK ACCOUNT

3.3.1 Factors to Consider when Opening a bank Account Bank in Germany

• Banking services: It is important to gather the full set of information about the available banking services beforehand.
• Customer support: If you can’t speak German, please register with a bank that has English-speaking customer support.
• Maintenance and withdrawal fees: Make sure you ask questions when it comes to maintenance and withdrawal fees since some ATMs can charge as much as 5€.
• The network of branches and ATMs: The majority of banks in Germany have a wide network of branches and ATMs. Having access to your money, at any time and place, is invaluable.
• Online services: Banking services online are essential and save time.

3.3.2 Documents required for opening a Bank Account

• Duly completed application form.
• Your valid passport and current German residence permit.
• Proof of registration/address.
• Initial deposit (the minimum depends on the bank of your choice)
• Proof of income/employment (some, not all, banks require it).
• Proof that you are a student (if you’re opening a student account).
• SCHUFA credit rating (some, not all, banks require it).

3.3.3 Types of German Bank Accounts

The two main types of bank accounts in Germany are:

Girokonto: This is a current account, which is the standard type of bank account in Germany, used to receive pay-checks as well as pay bills. German banks tend to offer both, general current accounts as well as specialized accounts (for students and youth).

Sparkonto: This is a savings account, which can be opened at the same time you open a Girokonto, and you can use it to save money and earn interest. This type of account can be opened by both, German residents as well as non-residents.

3.3.3 Types of German Banks

• Sparkassen & Volksbanken (Savings and Cooperative Banks)
  Sparkassen & Volksbanken are local banks that focus primarily on smaller businesses and long-term customers. Aiming towards regional economic development, these banks have large branch networks which can be found into city suburbs as well as rural areas.

• Nationwide Banks (Private Banks)
  The major banks belonging to this category are Deutsche Bank, Commerzbank, HypoVereinsBank, and Postbank. What these banks have in common is that they are all part of the Cash Group, meaning ATM withdrawals are free if you bank with them and use their ATMs. Basically, these major banks cooperate as the Cash Group and allow free withdrawals from one another’s ATMs. Other ATMs may charge you as much as 5€ per withdrawal.

• Online and Mobile Banks
  Online and mobile banks are also becoming pretty common in Germany by the day. They include the likes of DKB Cash, 1822direkt, N26, O2 Banking, and Santander, among others.
  The good thing about online banking is that they are usually cheaper than traditional banks, and more convenient with terms of customer service. In order to withdraw cash from these types of banks, the online bank usually teams up with a traditional bank, so customers can use their cash machines.
  Additionally, some online banks issue MasterCard or Visa, which in turn allow individuals to use any cash machine that has the MasterCard or Visa logo.

3.3.4 Money Transfer Procedures in Germany

1. Option 1: "Direct Debit Authorization" (Lastschrift)
   This is the recommended option for monthly payments. You may accept that the organizations can debit the monthly payments from your bank account automatically. In this case, you will have the possibility to order false transfers back. Make sure that you have enough money on your account. Only this option is accepted by the Studentenwerk for the payment of the room rent.

1. Option 2: "Standing Order" (Dauerauftrag)
   Arrange a standing order with your bank so the money is transferred automatically. It is possible to choose a monthly date for the transfer and you can cancel this whenever you want. Be sure that you have enough money on your account. If not, the bank will not transfer and you will not get any message from your bank!

1. Option 3: "Manual Order" (Überweisung)
   You have to give the order to transfer the money every month manually. However, students have forgotten this often and have thus caused problems.

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Medium: Text mit Quiz am Ende

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Automated Teller Machine