3.3 Opening a bank account

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== Types of German Banks ==
== Types of German Banks ==


* Sparkassen & Volksbanken (Savings and Cooperative Banks)<br>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.
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<loop_title>Sparkassen & Volksbanken (Savings and Cooperative Banks)</loop_title>
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.
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<loop_title>Nationwide Banks (Private Banks)</loop_title>
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.
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<loop_title>Online and Mobile Banks</loop_title>
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.


* Nationwide Banks (Private Banks)<br>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.
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.


* Online and Mobile Banks<br>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. <br> 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. <br> 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.
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.
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== Documents required for opening a Bank Account ==  
== Documents required for opening a Bank Account ==  

Revision as of 19:24, 5 February 2021

There are several banks in Germany. To decide which one to choose, you should consider the following aspects:

  • In General: Gather the full set of information about the available banking services beforehand.
  • How good is your German? Check if there is a customer support in English or in your language.
  • What are the maintenance and withdrawal fees? Since some ATMs can charge as much as 5€, you should also check this in advance.
  • How good is the network of branches and ATMs? In Germany, it is not yet possible to pay for all expenses by card. Therefore, it is important to ensure easy access to cash as well.
  • Which banking services are (also) offered online?

Types of German 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.

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 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.

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).

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.


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.