Banks in Germany

As an expat in Germany, one of the first steps in setting up your life will be to open up a German bank account, to receive your salary, rent an apartment, transfer money abroad, or take out health insurance. You will also need a debit card (Girokarte) for many day-to-day things, such as buying food at the supermarket.

This page explains how to open a bank account in Germany, and gives more general information on how banking works in the federal republic. 

Banks in Germany

Before you open your bank account, you might want to do some research on which bank best suits your needs. In a country that has more banks per head than anywhere in the developed world, you have plenty of choice.

Banks in Germany fall into five main categories:

• Private banks
• Savings banks
• Cooperative banks 
• International banks
• Online banks

Private banks

Private banks are nationwide banks with branch networks. There are about 200 private banks in Germany. Although they offer everyday banking services, they also have a stronger focus on wealth management, real estate and investment banking. As large multinational companies, they are usually better set up to give advice to international residents of Germany, and offer more services in English.

Some of the biggest private banks in Germany are:

• Commerzbank
• Deutsche Bank
• Targobank
• Postbank

Public savings banks and cooperative banks

Pillars two and three of the German banking system are public savings banks and cooperative banks. These are local banks with a strong focus on small and medium-sized businesses and local investment. Cooperative banks give their customers a say in how the bank operates. Although the branding for these banks is the same nationwide, each regional bank operates as its own separate entity. They usually have the most number of physical branches, especially in more rural areas.

• Sparkasse
• Volksbanken Raiffeisenbanken

International banks

Unsurprisingly, a good number of international banks also operate in Germany. This might be advantageous to you if you already bank with one of these companies abroad; it is usually possible to simply transfer your bank account to the German arm of the company. Some of the major international banks in Germany include: 

• ING
• Santander
• Citibank
• BNP Paribas
• Barclays
• HSBC

Online banks

Plenty of online-only banks are now arriving in Germany, offering lower fees and telephone-based customer service in English. These banks do not have physical branches, and so it is sometimes more difficult to withdraw cash if you are with an online-only bank, unless they have an arrangement with a high street bank. Some popular online banks in Germany include: 

• N26
• Bunq (link only accessible from Germany, the Netherlands and France)
• Tomorrow (climate protection with every euro and a free Visa debit card)

Business bank accounts

Businesses in Germany need their own business accounts. You can open a business account with almost all of the banks above, but these companies specialise in business banking for entrepreneurs: 

• Finom
• Qonto
• Vivid

What is the best bank in Germany?

When comparing your options to find the best German bank for your situation, consider the following: 

Costs

Most banks in Germany charge fees (see below) for everything from holding an account to withdrawing cash and making transfers. You should compare these costs to see how they stack up. For instance, one bank might not charge you monthly fees, but charge a high rate for cash withdrawals. 

Free bank accounts

N26, bunq, Wise and Revolut all offer free bank accounts with no monthly fees - but they are all limited in their own ways, so it’s best to check the small print to make sure a free account is the best option for you. 

ING and Commerzbank charge no monthly fees as long as you deposit a minimum amount each month (700 euros as of 2025). 

Plenty of banks also offer free accounts for students, including Deutsche Bank, Commerzbank, Volksbank and ING. 

English-language services

Not all banks in Germany provide their services in English. If this is important to you, you would be better opting for a large private bank or an online bank that provides customer service in English. 

Bunq, N26, Revolut and Wise provide all of their services in English (and some other languages as well!) Deutsche Bank and Commerzbank offer some of their basic online banking services in English. 

Additional products and services

You should also consider the other products and services on offer. As someone who travels regularly, you might value options like free cash withdrawals abroad, or low fees on international money transfers. 

Banking fees in Germany

While you are deciding where to do your banking in Germany, it’s worth noting that most banks in Germany charge fees for their services. This includes:

• Current account fees
• Credit card fees
• Cash withdrawal fees

Current account fees

Most banks charge their account holders a monthly fee for maintaining their account. Current account fees range from between 0 and approximately 5 euros per month. It’s worth checking the small print with your chosen bank to make sure you don’t get any nasty surprises. Student bank accounts are usually free. 

Credit card fees

If you have a credit card (see below) you can also expect to be charged for it - up to 100 euros per year. Debit cards are usually free, but not all online banks provide a debit card with their free plans. 

Cash withdrawal fees

Finally, most banks in Germany will charge you a fee (of up to 10 euros) if you withdraw cash from an ATM belonging to a different bank. If you bank with an online bank, you may be charged for all cash withdrawals, so it’s worth checking the small print if you make a lot of trips to the ATM. 

Some banks cooperate to allow each other’s customers to use their ATMs at no extra cost. For instance, all of the Sparkasse banks cooperate in a network of more than 21.000 ATMs, the biggest in Germany. Volksbanken and Raiffeisenbanken also cooperate with their 18.000 ATMs. Finally, Deutsche Bank, Commerzbank, Postbank, Hypovereinsbank and their subsidiaries cooperate as the Cash Group and provide free withdrawals from their network of more than 9.000 ATMs, and 1.300 Shell garages. 

Do I need a bank account in Germany?

If you are planning on living in Germany long-term, you will need a bank account to send and receive payments, so you can receive your salary, pay your rent, set up your utilities, and take out insurance. 

While it may be possible to continue using your foreign bank account, most banks will charge fees for making payments or withdrawing cash in Germany. You may also run into trouble trying to set up direct debits with German companies using foreign bank details - making paying your bills something of a hassle - so ultimately opening a German bank account is the simplest option. 

German bank accounts

There are two main types of German bank accounts:

• Current account (Girokonto)
• Savings account (Sparkonto)

Current account in Germany (Girokonto)

A current account is the standard type of bank account in Germany, and can be used for all of your day-to-day transactions. Depending on your situation, you can choose either a general current account, or a special one for students. Most banks charge a monthly fee for opening a current account. 

Savings account in Germany (Sparkonto)

A savings account can be opened at the same time as your current account, and is a place for you to save money and earn interest on your savings. There are two main types of savings accounts in Germany:

• Instant access account (Tagesgeldkonto): You can freely deposit and withdraw money from an instant access savings account. The interest rate offered is typically lower.
• Fixed deposit account (Festgeldkonto): A fixed deposit savings account comes with a minimum (or maximum) monthly deposit requirement. Once deposited, you cannot withdraw your money until the account matures. If you close the account early, you may have to pay a penalty. The interest rate offered is typically higher. 

How to open a bank account in Germany

To open a bank account in Germany you will need to make an appointment online or visit your local branch with all of your paperwork. 

Documents for a German bank account

You will need to provide the following documents:

• Valid identification such as a passport or identity card (not a driving licence)
• Certificate of registration
• Visa or residence permit (if applicable)

If your bank has a minimum income requirement you may also have to provide proof of income with payslips or an employment contract.

Once your identity has been confirmed and all the details have been processed, you just need to wait until your account is set up and your new debit card (Girocard) and PIN are sent to you in the post.

Open a bank account online 

It is also becoming increasingly popular to open your German bank account entirely online. To do this, you need to fill out the relevant form on the bank’s website, provide copies of the documents mentioned above, and then confirm your identity. Depending on your chosen bank, identity confirmation is done either by video chat or via Postident.

Getting your debit card (Girokarte)

Most German banks provide their current account customers with a debit card (Girokarte) free of charge. Payments on your debit card are immediately debited from your account, meaning that you won’t be able to pay for things if your account balance is too low. 

Cash is still a very popular payment method in Germany, used in around 40 percent of transactions, but acceptance of debit cards is gradually increasing, and you will find that most businesses accept payments by Girokarte, although there may be a minimum spend. 

Credit cards in Germany

Your debit card should suffice for the majority of cashless transactions in Germany, but you may find you need a credit card if: 

• You want to rent a car
• You pay for a hotel room
• You shop online

Whereas debit card payments are immediately debited from your account balance, credit card payments are totted up and debited at the end of the month, or the end of the following month, depending on your account. It is possible to spread repayments over a longer period, but you may face much higher interest rates as a result.

Credit cards are becoming increasingly popular in Germany, with many of the larger banks, such as Targobank and Santander, offering them to their customers. You can also get a credit card directly from an international supplier such as American Express and Visa. There are various websites where you can compare offers and interest rates to find the best deal.

To be eligible for a credit card, you will usually need to be a resident in Germany and earn a minimum amount of net income per month. You will be asked for your employment contract or payslips as proof of this. The exact income requirement differs from bank to bank. You will almost certainly also need a SCHUFA credit report.

Online banking in Germany

Almost all banks in Germany provide some sort of internet banking for you to conduct your financial affairs online. Be aware that sometimes you will have to specially request online banking (Online-Banking) when opening your account. Your login details will usually be posted separately to your home address.

Most banks offer internet services only in German. If you are unsure, you can always ask for a tutorial from the bank staff member when you open your account. (Or you can brush up on your German!)

What is a TAN (Transaction Authentication Number)?

In order to make internet banking more secure, most German banks use TANs (transaction authentication numbers). These single-use passwords are required to log in to online banking or authorise online transactions. 

In the past, German banks used to print these out 50 at a time for customers! The printed TAN was then taken over by the smsTAN, but nowadays the smsTAN is being phased out in favour of TANs generated by smartphone apps. Your bank will provide you with an activation code (usually sent in the post) to set up your TAN smartphone app. 

Online shopping in Germany

Online shopping is growing in popularity in Germany. If you like to shop online, you can pay via the following methods: 

• Credit card: Using a TAN to authenticate the transaction. 
• PayPal
• ELV (elektronische Lastschriftverfahren - electronic direct debit) or SEPA Direct Debit: Systems that electronically allow the customer to authenticate a one-off direct debit, collected by the online retailer.
• Bank transfer: The retailer issues an invoice that the customer settles via bank transfer. 
• Wero: A new digital payment system, set up in Germany in 2024.
• Klarna, Ratepay & Afterpay: Popular buy-now-pay-later services in Germany, that allow customers to pay for their purchases in installments. 

Giropay & Paydirekt

Giropay and Paydirekt were two schemes offered by German banks that allowed you to pay online using your debit card. In 2021, they were merged into one scheme, under the name of Giropay. However, Giropay was discontinued at the end of 2024. 

Opening a blocked account in Germany

If you are from outside the EU and you have no source of income in Germany, you might need to prove your financial subsistence with a blocked account, a special type of account that limits your monthly withdrawals. The process for opening a blocked account (Sperrkonto) in Germany is slightly different to opening a regular bank account. 

Business bank accounts in Germany

If you are planning to start your own business in Germany you might also need to open a German business bank account (Geschäftskonto). Qonto, Finom and various other banks in Germany offer accounts specifically designed for entrepreneurs.

The process for opening a business account is very similar to opening a private account. As well as documents confirming your identity and address, you will also need all of the details concerning your business, such as your Handelsregisternummer and a record of your turnover. Most banks will be able to offer different types of business accounts, depending on the size of your company. If you are a freelancer, you may not need to open a business account.

What is SEPA?

SEPA (Single Euro Payments Area) is an initiative of the European Union that came into effect on February 1, 2014. It affects bank transfers of euros, seeking to improve the efficiency of cross-border payments. Using your IBAN, you can make or receive payments to any account located in the SEPA.

What is my IBAN?

IBAN stands for International Bank Account Number. It is a unique number that identifies your country, bank and account number in a way that can be understood by financial institutions worldwide. Your IBAN will be included on any correspondence you receive from your German bank, and also sometimes on the front of your debit card.

Getting a loan in Germany

The most common form of loan or money-lending in Germany is an arranged overdraft with your bank. It is usually possible to get one (for an additional monthly fee) after you have been with your bank for six months, as long as you have a regular salary. Overdrafts in Germany are usually up to three times your monthly income.

If you need a loan in Germany, you can arrange this through your regular bank or a specialist loan provider. Whether you are approved depends on how much you wish to borrow, your SCHUFA credit rating, your net income, and your residency status. Note that you must be over the age of 18 to be approved for a loan in Germany. If you only need to borrow a small amount, you can always use a credit card.

Can I open an offshore account with a German bank?

Offshore banking is usually only offered by the major German banks, such as Commerzbank or Deutsche Bank.