Banking in Germany

Whether it’s paying rent, receiving a salary or paying for your other amenities, a free bank account in Germany is required for all. So after landing in Germany, the first thing you need to do is opening a bank account in one of the best German banks to make your stay comfortable. Wondering which bank to choose in Germany?

List of banks in Germany

All the banks below offer different rates and accounting options for different prices. Comparing the specifications of each bank can be time-consuming. Are you wondering which bank offers the best deals or the best accounting options? We have listed the most reliable banks below while using the following criteria:

✓ English speaking customer service
✓ Best value for money
✓ Clear contracts (no hidden costs)
✓ Flexible contracts
✓ Different banking options

Banks	Specifications
	1 One of the biggest and fastest growing banks in Germany is the DKB – Free worldwide withdrawal ✓ Neo bank (low-costs) ✓ Low Fees ✓ No withdrawal fees ✘  No English website	Visit Dkb.de
	1 Commerzbank is the second largest bank in in Germany. It has 1200 bank branches in Germany alone. If you like a brick and mortar bank – this is a great bank for you. ✓ Neo bank (low-costs) ✓ Low Fees ✓ English website ✓ No withdrawal fees ✘  No free credit card	Visit Commerzbank.de
	1 Purely online bank with English customer service and app – fast growing – Great for expats ✓ Neo bank (low-costs) ✓ Low Fees ✓ English website ✓ No withdrawal fees ✓ English speaking customer service	Visit n26.de
	1 One of the largest traditional banks in Germany. The bank has offices in every major city ✓ Large German bank ✓ Low Fees ✓ Brick and mortar bank ✘  Withdrawel fees ✘  No English website	Visit Postbank.de

Banks explained in detail

The main question that you hear nowadays is if the online banks offer better value than brick-and-mortar banks (banks that have a physical presence in a building). According to the ‘Bundesverband deutscher Banken’ banks are steadily getting rid of their brick-and-mortar offices in the last years. Meanwhile, there is a clear up-trend in online banking. However, it is up to you to decide what you like best. Finding the best bank in Germany for foreigners is not easy, but with our tips we will ensure that you will find the bank that fits to your needs.

Deutsche Kreditbank AG – DKB

One of the biggest and fastest growing banks in Germany is the DKB – Deutsche Kredit Bank. The bank was founded 1990 and serves now over 3 million German customers. If you are fine with doing all your banking online – this is the best bank account in Germany for you. It offers benefits and advantages that traditional banks do not offer and therefore DKB internetbanking very interesting for expats.

DKB benefits:

• ✓ Free account with no monthly input
• ✓ Free VISA card
• ✓ Free worldwide cash withdrawals
• ✓ 0.70% Interest paid on credit card balance
• ✓ Free securities account
• ✓ Monthly credit card and bank statements online

The DKB is a subsidiary of the Bavarian bank. The bank primarily focuses cash checking accounts for private and freelance clients, but they also offer financing of real estate and the granting of personal loans. Their main advantage is that they offer free VISA credit card with free worldwide withdrawals. That hey offer a free credit card in Germany is unique in the German banking world. This is something that can come in handy when you are often abroad. Moreover, you can withdraw cash from any ATM in Germany without paying additional fees. Also, DKB makes it easy to set up a German bank account for foreigners since they have a clear business model. DKB is therefore the best bank in germany for foreigners and the best bank in germany for students.

N26

N26 is a purely online bank. It has rapidly grown as the largest online bank in Europe. The N26 Checking account is free of costs. It provides everything you will need to do all your banking. N26 is used by most expats since there is no minimum input and their mobile banking app is in English. Moreover, there is no credit check or ‘Shufa’ entry necessary, which makes it fairly easy to open an account. You can open a bank account within 10 minutes. You will receive a free Mastercard along with the bank account. It is a prepaid credit card and it does not allow overdraft. You can get free cash withdrawals at any ATM worldwide that accepts Mastercard – which is quite exceptionally within Germany. If you are interested you can have a look at their website and see if this is the right bank for you.

N26 benefits:

• ✓ Free account with no monthly input
• ✓ Free Mastercard
• ✓ Free worldwide cash withdrawals
• ✓ Free securities account
• ✓ Monthly credit card and bank statements online

N26 offers bank accounts to non-German residents. If you are from Spain, Italy, the Netherlands, Belgium, Portugal, Finland, Austria, Ireland, France, Slovenia, Estonia and Greece you can get a free checking account. N26 is a very convenient bank for newcomers. You need to have proof of Identity and you need to be 18 years and older. You can open an bank account if you fulfill those requirements within 10 minutes.

The best traditional banks in Germany

The growth in online banking does not mean that traditional banking is at its end. A lot of people still go to their trusted banks to access their accounts. If you handle more complicated transactions or banking products on a daily basis, it would be advisable to put your money in a traditional bank. Moreover, if you are in a business where you handle a lot of cash on a regular basis, this would be the right choice for you.

Commerzbank

Commerzbank is the second largest bank in in Germany. With around 1200 bank branches in Germany alone, it is one of the most represented banks in Germany. It has around 14,5 million customers worldwide and was founded in 1870. The Commerzbank is a strong entity that offers almost everything a normal customer may need from their bank. They are well represented within Germany and can be found in every city and almost in every village.

Commerzbank benefits:

• ✓ Free account (at 1200 euro’s input per month)
• ✓ Free cash withdrawals at most ATM’s in Germany
• ✓ VISA or Mastercard for €29.90 per year

If you handle a lot of cash on a day to day basis, this company could be something worth considering because they have a lot of branches. All activities of the Commerzbank can be managed online. Think about account management, retirement or mortgage planning. This can all be done relatively easily at the Commerzbank.

Deutsche Postbank AG

The German Postbank AG is one of the largest traditional banks in Germany. It has around 16 million customers in Germany alone and has offices in every major city. This makes it the largest bank when it comes to dealing with current or checking accounts. The Postbank has offices in every major city and can be found and almost every village. It does not matter if you live in Berlin, Munich, Hannover or Frankfurt – you will find a Postbank branch in your city. If you prefer face to face banking- this could be an option worth concidering.

Postbank benefits:

• ✓ The current account cost 1,90 euro per month
• ✓ Free cash withdrawals at most ATM’s in Germany
• ✓ Free withdrawal with the credit card at home and abroad
• ✓ Free securities account
• ✓ VISA card for 29 euro per year (1st year for free)

The Postbank offers a lot of options; whether you want a personal savings account, a deposit or a trust fund – the Postbank can offer it. With a total asset of 147 billion and 18,000 employees Postbank is a big player in the market. The Postbank is well known for its high customer satisfaction rate. The Deutsche Postbank primarily focusses on business with private customers and on small and medium-sized companies.

Opening a bank account in Germany

If you are from German origin and you possess a German ‘Personalausweis’ you can easily open a bank account using the AusweisApp. The sign-up process is very similar in every bank. It does not matter if you go to DKB, Norrisbank, Postbank or Commerzbank they all request the same basic data. It is relatively easy opening a German bank account, also when speaking little to no German. To ensure that you understand the requested data we translated the most important fields for you. If you still don’t understand what exact data they require from you be sure to translate the page in your browser, as described on top of the page.

• Vorname(n): First Name
• Name: Last name
• Titel: Titel
• Geburtsname: Maiden Name
• Geburtsort: Place of Birth
• Staatsangehörigkeit : citizenship
• Steuerliche Ansässigkeit: If you only pay taxes in Germany
• Geburtsdatum: Date of birth
• Familienstand: Civil status
• wohnhaft seit (Jahr): Resident on this adress since
• Wohnstatus: Resident status
• Aktuelles Nettoeinkommen pro Monat in Euro: Current net income per month in Euro
• Zweiten Kontoinhaber: Secondary account holder

After you have provided all the requested information you will have to agree with the terms and conditions of the banks. You can easily do an online-id-process, which is quite convenient. You will have to identify yourself via a webcam where you must show your current ID or passport and a pin number which you will receive via email. That’s all there is to it! You now have officially opened a German bank account.

So what is the best bank in Germany for foreigners? DKB makes it is possible for foreigners or future expats to open a German bank account from abroad. If this is an important point for you, then it could be smart to open a bank account with the DKB, because their online presentation makes signing up really easy! During the process you simply state your current foreign address and you can open a German bank account and receive their free DKB Visa Card.

In short

Everybody is different, and therefore there is not one bank that can fulfil everybody’s needs. Therefore it is hard to say what the best bank in Germany is because everybody has other needs. One person likes to do business in person while to other is fine with the anonymity of an online bank. It does not have to be one or the other, you can also choose both! Open one account at an online bank and one at a traditional bank. In this way, you can use the best of both worlds. Use the benefits of an online bank – high interest rates and free ATM usage- and use the benefits of traditional banks- tailored service and personal assistance.

When it comes to online banks, DKB offers the best rates and benefits in the online banking segment. Furthermore, when it comes to traditional banks, Deutsche Postbank offers tailored service and is well represented within Germany. If you want more information about these topics, just have a look on the websites of DKB and the Postbank – they both have an excellent website where everything is clearly explained. If you don’t understand German that well, be sure to check their website with the trick we described on the top of the page. Good luck banking!

Different banking accounts

Current and savings accounts are the two common types of banking accounts in Germany. Depending upon the particular bank, you can also get loans, credit, and various other types of accounts.

• Current Account (Girokonto) – During your stay in Germany, most of your transactions will take place with this account. And this makes it the best German bank account. Reach any of your preferred German bank to open this free account.
• Savings Account (Sparkonto) – After making bank comparison in Germany, when you reach your chosen bank to open a current account, at the same time, saving account is also opened. This type of account helps you to save money and earn interest on it.
• Blocked Account (Sperrkonto) – International students prefer this bank account. The holder can withdraw an amount of up to €853. This bank account acts as proof that the student has the funds that are required for leading a comfortable and stable life in Germany.
• Mietkautionskonto (Mietkaution Sparkonto) – If you rent an apartment, then this account is beneficial for you. It is very advantageous for foreign students too. During your stay, at times when depositing your rent seems difficult to you, the bank does that favor for you. You can repay this amount plus interest on it to the bank.

The above-listed account types are commonly found in banks. While making German bank account comparison,in addition to the above accounts, you can come across various other accounts.

Tips and tricks

While opening a bank account here in Germany, be ready with the following information:

• Passport or your valid ID-card
• Proof of address – your electricity bill, a rental contract, and official government document are considered the valid documents
• BSN that is obtained at the municipal office

• For student accounts, student registration is required
• Initial deposit as per the individual bank
• Some banks also ask for income proof – payslips or salary statements, and a recommendation letter from employer

FAQ about banking in Germany