How to open a bank account in Germany
Whether you're relocating to Germany for work, study, or adventure- at some point you are going to need to open a German bank account.
Having a bank account in Germany provides numerous advantages, regardless of your status as a resident, international student, expatriate, immigrant, or entrepreneur.
Having a German bank account offers various benefits– It streamlines various financial tasks, including handling day-to-day expenses, receiving income, building credit scores, and accessing financial services like loans.
In this guide, we'll cover how to open a bank account in Germany– and also we'll take a look at Ohentpay, your alternative solution to making transactions in Germany with an Euro account, especially convenient for those opening accounts from US, UK and any other part of the world.
Requirements for opening a bank account in Germany
If you're an expatriate, a foreigner, an immigrant, or an international student seeking to open a bank account in Germany, it's crucial to have the required documents beforehand. Generally, these documents include:
- Completed Application Form
- Valid Passport (your primary ID)
- Residence permit or visa(proof of legal status in Germany)
- Proof of Address/Registration, also known as Meldebescheinigung, and can be obtained from the Einwohnermeldeamt (residents' registration office).
- Initial Deposit (varies depending on bank)
- SCHUFA credit rating – This is a credit score used in Germany. It might be optional depending on the bank.
Other documents that might be needed based on your status as a student, expatriate, immigrant or foreigner to open a bank account in Germany include:
- Proof of student status (if applicable) – This could be your student ID, certificate of enrollment, or admission notification.
- Proof of income/employment –Not always required, but some banks may ask for it.
When opening a bank account online, you'll need to verify your identity through a process called Postldent.
PostIdent verifies your identity when opening a German bank account online. You visit a post office, show your ID, and a worker confirms it, allowing the bank to securely set up your account.
How to open a bank account in Germany
Pick the right bank for you
When choosing a bank in Germany, it's vital to carefully assess and select one that suits your requirements and preferences. Factors to consider include proximity, reputation, fees, and available services.
Prominent German banks to consider are Deutsche Bank, Commerzbank, Postbank, and Hypovereinsbank, each offering distinct strengths and services.
To assist you in making an informed decision, we've prepared a comparative analysis table of these leading German banks, customized to cater to the needs of expatriates, students, immigrants, foreigners, and business owners.
Gather your documents
Make sure you gather all the necessary documents needed to open a bank account in Germany as outlined earlier. Below, we've provided a checklist to help you keep track of what you've collected and what you still need.
Visit the nearest branch
Go to the nearest branch of your chosen bank during their working hours. Banks in Germany typically operate on weekdays from 8 am to 1 pm or 2 pm.
However, it's advisable to confirm the exact operating hours either through their website or by directly contacting the bank.
Complete the application
While at the bank, inquire about the most suitable account type for your needs, whether it's a savings, current, or blocked account.
It's essential to fully comprehend the differences and fee structures before obtaining an account opening form and accurately completing it.
The general types of banks accounts in Germany include:
- Current account (Girokonto): Everyday transactions, like receiving income and paying bills. Most common account type.
- Savings account (Sparkonto): Earn interest on your savings. Open to residents and non-residents.
- Blocked account (Sperrkonto): Specifically for international students and job seekers to show they have enough money to live in Germany (funds are restricted).
Submit application form and documents
Submit the completed form along with the required documents to the bank representative.
Receive bank information
Following successful verification, you'll receive your account details, including your account number and other pertinent information such as your debit card details.
Comparing the best top banks in the Germany
Keep in mind: This is a broad comparison. It's essential to research the offerings and eligibility criteria of each bank individually to determine the most suitable option for your specific needs.
Other banks include Savings Banks (Sparkassen) and Cooperative Banks (Volksbanken/Raiffeisenbanken) which require German residency for account opening.
Savings Banks is publicly-owned and popular with over 400 branches including Berliner Sparkasse, Stadtsparkasse Munich, and Frankfurter Sparkasse, while Cooperative Banks, with over 1,100 branches, operate under Volksbanken und Raiffeisenbanken and emphasize member ownership and involvement.
Also, you have the option to choose international banks in Germany, as many of them have branches there.
Popular options include Citibank, ING Bank, BNP Paribas, and Barclays Bank. If your home bank is available in Germany, you can also transfer your account to its branch there.
In Germany, mobile banks offer online-only services, without physical branches. They are known for their user-friendly and comprehensive services, often at lower costs compared to traditional banks.
Notable examples include Ohentpay, which doesn't charge fees for account opening and doesn't require a registration certificate.
Fees for opening a bank account in Germany
Here's a breakdown of the costs of opening and maintaining a bank account in Germany:
- Opening fees: Many basic checking accounts especially from national banks(Sparkassen) and some private banks are free to open. Premium accounts or those from foreign banks may incur a small opening fee, usually €10-€25.
- Monthly maintenance fees for bank accounts in Germany vary, with many basic checking accounts being free, while premium accounts may have fees ranging from €3 to €15 or more for extra benefits.
- Minimum balance requirements: Some accounts might waive monthly fees if you maintain a minimum balance in your account.
- ATM fees: Using ATMs outside your bank's network might incur withdrawal fees.
- International transactions: Fees might apply for using your card abroad or making international transfers.
In Germany, banks often waive fees for students with proof of student status, but eligibility criteria, including age limits(usually between 18-28), vary, so be sure to provide proof of student status when submitting documents at the branch.
Tips for opening a bank account in Germany
- Currency limitations: Make sure you understand any currency restrictions or exchange regulations set by authorities in Germany.
- Tax considerations: Educate yourself on the tax consequences linked to your bank account and financial dealings. Explore further into tax considerations and bank accounts in Germany.
- Regulatory awareness: Stay updated on the current banking regulations in Germany.
- Bank account protection: Enforce strong security measures to protect your bank account from fraud or unauthorized entry.
Looking for a solution to handle your euros before your relocation?
Consider the OhentPay Account — accessible for setup from the US,UK, or any part of the world, allowing you to seamlessly manage your finances upon your arrival in Germany.
Open an Ohentpay account online or through the Wise app using your proof of ID and address, enabling you to hold and exchange 50+ currencies, including EUR and USD.
Additionally, it offers convenient spending and withdrawals, and access local account details to receive payments in different currencies, including euros and dollars.
Benefit from competitive mid-market exchange rates and low fees starting from whenever you need to switch currencies, with no ongoing charges, minimum balance requirements, or foreign transaction fees to worry about.
