Just arrived in Germany? You would certainly need to open a bank account! Everything finance in Germany revolves around having a bank account. If you are a student who has a block account, you need a bank account to activate your block account and collect your monthly payouts. If you are an expat who is in Germany for work, Germany has strong laws that prevent employees from paying you in cash. Thus, you would need to open a German account to receive your salaries. This article will guide you as you open you open your first German bank account.
Is Opening a Bank Account in Germany Hard?
Well … it used to be the case! But not anymore, thanks to digitalization. Today, it is possible to open an account (Bankkonto) without speaking any word of German and in the comfort of your bedroom. The digital services offered by the new generation banks in Germany have forced the traditional German banks to wake up and become more open in the way they offer their services. So if you want to open a bank account, you do not have anything to worry about. Simply follow this guide.
What Banks Allow Foreigners to Open a Bank Account in Germany?
Almost every bank allows foreigners to create a bank account in Germany if they have the right documentation. However, we would still recommend you do thorough research before approaching any bank. It is important to note that most banks charge a monthly fee when you have an account with them. Some banks would even charge you when you withdraw from the ATM.
Now that you know that you can open a bank account in Germany, we will want to show you some of the most popular banks. In this country.
Top Biggest Private Banks (traditional) in Germany are:
- Sparkasse
- Deutsche Bank
- Commerzbank
- Targobank
- Postbank
- ING
Top Direct and Mobile Banks in Germany are:
- N26
- Tomorrow
- Bunq
- Vivid
- DKB
- Revolut
Note: N26, Tomorrow, Vivid, and Bunq provide banking services in English. This could be very helpful if you are a student in Germany and you do not speak German yet. Note that even if a bank offers you services in English, your banking contract would still be in German (with an English translation). This is because the official and binding language in Germany remains only German.
Steps to Open Your Bank Account in Germany – Bankkonto
- Gather Your Documents
Just like in any other country, you would need to have the right documents before you can create a German bank account. Without these documents, it would be almost impossible. Some of these documents include:
- Passport (Reispass)
- Visa or Resident Permit (Aufenthalttitel)
- Certificate of City Registration (Meldebescheinung)
- Enrolment Certificate (for students)
- Employment Contract (for working expats)
Note that most banks may require additional documents. This depends on the bank you are dealing with as well as your status in Germany.
2. Contact the Customer Services
If you are dealing with the traditional German banks, you will need to make an appointment to open a bank account online or call them on the phone to schedule an appointment. In recent days, most of them are starting to provide an online form you can sign to create your account. However, with mobile banks such as N26, you can create your bank completely online without any need to visit the bank. Mobile banks in Germany such as N26 do not have any office you can visit. Everything is done completely online.
3. Wait For Your Account to be Opened
In most cases, even if you open the account online, you would still need to wait for a couple of days before receiving your details. Most banks in Germany will send your account opening information such as your username and PIN to the address you provided. Once you receive your detail, you are ready to start enjoying the services provided by banks in Germany.
What is IBAN?
Your bank will send you the IBAN number. IBAN means International Bank Account Number. It is typical in Germany to receive IBAN once your account is ready. IBAN number is used to identify your bank country and the account owner. It is accepted worldwide. This is the number your employer needs to pay your salary. As a student, it is this number that you need to unblock your block account. N26 and other banks will also provide you with IBAN.
What is SEPA?
SEPA stands for Single Euro Payments Area. It is a mandate you can issue to your bank to deduct a certain amount of money from your account to a specific receiver. Typically, this is a method you will use to pay your student fees at school in Germany. SEPA was introduced on February 1, 2014, to improve payments in the European Union.