Banking and accounts in Germany

Germany is a country of bank transfers (Überweisung) above all. Salaries arrive by transfer, rent is pulled automatically via direct debit (Lastschrift), every bill goes through your account, even scholarships and social security need a German IBAN.

• Your employer asks for a German IBAN before your first salary.
• Your landlord needs an account to set up a Lastschrift for rent.
• Health insurance, taxes, electricity, internet — all run on direct debit.

• Girokonto: current account — for receiving salary and paying bills. This is what you need first.
• Sparkonto: traditional savings account at low interest, withdrawable any time.
• Tagesgeldkonto: daily-access account at higher interest (2–4% currently), fully liquid, ideal for a reserve.
• Festgeld: fixed-term deposit at higher interest, but your money is locked.

• No monthly fees on the free plan.
• Does not always require Anmeldung — passport and a German address are often enough.
• VideoIdent identity check not available in Arabic — but English or German works.
• Maestro/Debit Mastercard arrives by post in 5–10 days.
• Great app: instant notifications, auto-categorization, savings goals.

DKB is ideal if you travel a lot or shop online in foreign currencies. The credit card enables free withdrawals from any ATM worldwide (after transferring balance to it).

• Free Girokonto with no minimum-salary requirement.
• Decent app, though less polished than N26.
• Requires a completed Anmeldung to sign up.
• Customer service in German or English.

If a lease or employer asks for an account at a "real" bank with a physical branch, Sparkasse is the fit. Warning though: most branches charge monthly fees (€5–10) on the current account.

• Branches everywhere, even in small villages.
• Free ATMs within the Sparkasse network.
• Counter (in-person) transactions for those who need face-to-face service.
• Requires Anmeldung and an in-person appointment to open.

• Commerzbank: free account with salary transfer ≥ €700/month.
• Deutsche Bank: good for international relationships and investment.
• Some branches have staff who speak English or French.
• Fees are relatively high if you don't meet the waiver conditions.

• ING: free Girokonto with monthly income ≥ €700, free withdrawals from any ATM in the EU.
• Comdirect: free for the first 3 years, then subject to monthly income.
• Both support Apple Pay and Google Pay.
• Support primarily in German.

• Passport or residence permit (Aufenthaltstitel).
• Anmeldebestätigung (municipal registration confirmation).
• Full residential address in Germany.
• Steuer-ID (tax number) if available.
• German phone number for verification.
• Some banks: proof of income or a work/study contract.

• VideoIdent: 5–10 min video call with an agent, available from anywhere. The fastest.
• PostIdent: go to the nearest post office (Deutsche Post) with a printed form and your passport. Free.
• Both are free if requested by the bank.
• Pick VideoIdent if you're still abroad or recently arrived.

Schufa is computed automatically from your financial activity in Germany. On arrival, your record is "empty" — not bad in itself, but some companies view it as risk. It improves over time as you pay your bills on time.

• Your first Schufa Auskunft (free copy) is your right each year via meineschufa.de.
• Don't take unnecessary loans to build your record — regular Girokonto use is enough.
• On-time rent and bill payments raise your score.

• A German IBAN starts with DE and is 22 characters long.
• SEPA transfer within the EU: free, arrives in 1–2 business days.
• SEPA Instant: instant transfer (10 seconds), some banks charge a small fee.
• BIC is only needed in certain international cases; IBAN alone usually suffices.

• You give the company a Mandat (authorization) once, then it pulls automatically (rent, internet, insurance…).
• You have the right to reverse any debit within 8 weeks, with or without reason.
• Review your statement monthly — bogus charges happen.
• To cancel a Mandat: email the company and notify the bank.

• Set up in a minute from the bank app.
• Editable or cancellable at any time.
• Best way to pay rent to the landlord.
• Some banks charge for setting up a Dauerauftrag on paper, but it's free online.

• Girocard (EC): local debit card, accepted in nearly every shop.
• Debit Mastercard/Visa: works internationally but may be refused in some bakeries and markets.
• Credit Card (real credit card): for travel and international bookings.
• Many shops still prefer cash — always carry some.

• Cash Group: Deutsche Bank + Commerzbank + Postbank + HypoVereinsbank — free for their customers.
• Cash Pool: includes Santander + Sparda + Targobank and others.
• Sparkassen: their own network, free for Sparkasse cards.
• DKB and ING: free withdrawals at most ATMs inside the EU.
• Simplest solution: use Cashback at the supermarket (Rewe, Lidl) — free.

• Wise (TransferWise): near-mid-market exchange rate, transparent fees, fastest option.
• Revolut: good for small recurring transfers.
• Western Union / MoneyGram: fast but very expensive (5–8%).
• Direct bank transfer (SWIFT): €15–40 fee + bad exchange rate.
• Beware of tempting offers via "a friend" — often money laundering.

• Freistellungsauftrag: automatic exemption on the first €1,000 of annual interest (€2,000 for couples).
• Without it, the bank withholds 25% (Abgeltungssteuer) on any interest directly.
• Steuer-ID (tax number) required to open any account since 2024.
• Savings banks send a yearly Steuerbescheinigung for your tax return.

• Only enter your banking details on the official website/app.
• No bank ever asks for your password by phone or email — never.
• Enable 2FA (SMS or TAN app) on every operation.
• Review your statement weekly — going a whole month is risky.
• "Bank" emails asking to update your details = phishing attempt.

• Oder-Konto: each partner acts independently (the most common).
• Und-Konto: requires both signatures for every operation.
• Oder-Konto is easier day to day, but opens the door to trust risks.
• In a separation, the money is presumed 50/50 owned by default.
• Always keep a separate personal account alongside it.

• Cancel every Lastschrift and Dauerauftrag before closing.
• Get a final Kontoauszug and a closing letter (Kontoauflösungsbestätigung).
• Notify the Finanzamt and Einwohnermeldeamt of your new address.
• Some banks charge a closing fee (€10–30).
• Keep all correspondence for at least 10 years.