Open a German Bank account:
Expats and foreigners in Germany

2. What features do German banks and their accounts provide?

Complementary cash withdrawals

As cash is still the dominating means of payment at a lot of places in Germany, free cash withdrawals are an important feature.

All banks usually offer them domestically with certain restrictions. Some banks limit the number of free monthly withdrawals, others set a certain minimum withdrawal amount or restrict withdrawals to their group’s own ATM network. Even if handing out several cards, most banks allow free cash withdrawals with only one of them. Ignoring any of these restrictions can result in paying as much as €6 for one withdrawal. This may also be the case if you chose to withdraw in person with a clerk at a branch instead of using an ATM.

On the other hand, multiple banks have recently started to cooperate with retailers. This has made the option available to withdraw at the cashier of certain stores at no cost even without purchase. The same retailers (e.g. REWE, Penny, dm, Lidl, Aldi, Edeka) usually also offer this service to all their customers when spending at least €5-20 in shopping.

At a lot of banks customers even enjoy free withdrawals abroad. If so, Euro transactions are usually completely free of charge. For worldwide withdrawals some banks may charge a small currency conversion fee that is usually 1-2% per transaction. This one would then also be applicable for cashless payments in foreign currency.

Free cash deposits

Depositing cash mostly occurs on rare occasions. However, if you require to deposit frequently this might be an important aspect when choosing a bank. Usually only banks with an associated network of branches or ATMs (especially retail banks) offer unlimited free deposits. There is some online banks that cooperate with retailers so that clients can at least deposit smaller amounts without fees.

Generally, it does not matter which bank you are, there is always the option to perform deposit on your account at branches not belonging to your bank. Nevertheless, the depositing bank will charge a fee (usually between €7 and €20).

Issued Girocard

Girocards (also called “EC-Karte”) are debit cards and the most widely accepted cards for cashless payments in German stores. Even though the acceptance of Visa and MasterCard has been steadily increasing, especially smaller stores/ restaurants only accept Girocard. They usually come with a Maestro or V Pay functionality and can be used for cash withdrawals, too. These cards are not suitable for online or telephone payments. However, a lot of German do only own Girocards so that most online stores offer other means of payment (e.g. direct debit, money transfer, Paypal or payment after delivery).

Optional Visa / MasterCard debit and credit Card

Having a Visa or MasterCard is especially important for online shopping as well as international travel. Some banks (i.e. N26) only offer debit cards with limited functionalities compared to credit cards. Debit cards are usually enough for day-to-day transactions. However, these cards are usually not suitable as a guarantee for rental cars or hotel bookings. Neither do they offer free credit if you run out of funds at the end of the month. In return requirements in terms of credit-worthiness are less strict.

Nowadays a lot of banks also issue virtual a Visa or MasterCard. This means that you can also benefit from digital and mobile payment services such as GooglePay or ApplePay.

Easy digital or physical service and accessibility

Nowadays all banks offer online, mobile and telephone banking. However, there are differences in regards to user-friendliness that will depend largely on your personal taste. Especially some online banks offer advanced applications that are capable of showing transactions in real-time. For traditional retail banks it may take some days to see your updated statement. In contrast, they provide their own network of branches and therefore additional face-to-face service.

Multi-language support and foreign residence

Especially when you have just arrived to the country, you might not have a German residence or extensive knowledge of the language. Most banks offer their website, online/ mobile banking interface and customer service exclusively in German. However, some provide services additionally in English. If you opt for a traditional retail bank, the language skills will depend highly on the local staff. Moreover, most banks require a German residence. If you do not have it yet, you can choose one of the accounts that allow registering with a foreign address – sometimes even from abroad (see also our article on best banks for international expats, students and non-residents).

Free accounts and premium options

Retail banks tend to charge a monthly fee, whereas most online accounts are free. Sometimes there are also some premium options available (e.g. insurances or golden credit cards). For normal use, there is usually no need to choose a paid account.

Moreover, some accounts come with a welcome bonus when you sign up – in some cases bonuses can reach up to €200. Even though it is not relevant in the long run, it may be something to consider if you are undecided.

Private and business accounts

Usual current accounts are dedicated to consumers (i.e. (un)employed people, students or pensioners). Traditionally, freelancers or self-employed people require a special (more expensive) business account. Nevertheless, most banks also allow freelancers or self-employed to open a current account for private use. Through a second account, they can therefore benefit from the more advantageous conditions for consumers like free credit cards or unlimited transactions.

Wide portfolio of financial services

Most banks’ business comprises more than just current accounts. Traditional retail banks have the largest service portfolio (i.e. credits, mortgages, saving accounts, investment banking). However, their conditions are not always the best so that it might make sense to search the best provider for each service individually.