GERMAN BANKING SYSTEM
Banking system in Germany explained
Germany’s banking system includes four main types of banks. Knowing the differences helps you pick the right one for your needs.
Private commercial banks:
Banks like Deutsche Bank and Commerzbank lead in global finance but are less relevant for daily banking.
Cooperative banks:
Cooperative banks focus on local stability and member benefits, with secure services across Germany.
Public banks (Sparkassen):
Sparkassen and Landesbanken prioritize local communities and regional needs over international services.
Online banks:
Digital banks like N26 and Revolut are fast, low-cost, and ideal for expats.
Important to know about banking in Germany
Focus on Stability: German banks are generally considered stable and well-regulated, prioritizing long-term relationships with customers.
Cash is still king
Although digital payments and mobile banking are on the rise, cash remains widely used in Germany. Many small businesses, restaurants, and local stores still prefer cash transactions. While most banks offer debit cards (EC-Karte) and contactless payment options, it’s always a good idea to carry some cash, especially in rural areas.
Banking fees and account costs
Unlike in some other countries, many German banks charge fees for basic services like account maintenance, withdrawals at non-affiliated ATMs, or international transactions. While online and challenger banks offer fee-free accounts, traditional banks often require a minimum deposit or monthly income to waive certain fees.
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Finding the Right Bank for You
Choosing a bank depends on your needs. Some expats prefer an account that provides free international transfers, while others prioritize ATM access and low withdrawal fees. There is no limit on the number of accounts you can open, so it’s common to use a mix of banks to get the best benefits. Shopping around can help you find the right combination for your lifestyle in Germany.
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How we help you
All-in-one support for your banking needs
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Account setup assistance
We help you open a standard account with a traditional bank or support you with fast online banking options. Whichever suits your situation best.
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Personal financial orientation
We explain how banking works in Germany, what to expect in terms of fees, and how to manage your account effectively as a newcomer.
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Support with documents and communication
From translating banking documents to contacting your bank on your behalf: we handle the bureaucracy so you don’t have to.
Opening a bank account in Germany
Germany’s banking system is stable and efficient, and opening an account is usually straightforward. Traditional banks often require proof of residency and a visa, while many digital banks simplify the process.
What you will need
Proof of Identity: valid passport or national ID, and a residence permit (if applicable).
Proof of Address: rental contract, utility bill, or any official document confirming your residence.
Registration (Anmeldung): a registration certificate from the Bürgeramt is usually required.
Sometimes required:
Employment contract (can help but is not always necessary).
Credit report (SCHUFA) (some banks may request this for credit or overdraft services).
Your bank account
Tips for choosing a bank
Disclaimer: This information is for general guidance only and may not be entirely accurate or up-to-date. Always consult with a financial advisor or directly with a German bank for the most accurate and current information.
Compare fees
Look for accounts with low or no monthly fees, free ATM withdrawals, and reasonable transaction charges.
Consider online banking options
Many German banks offer convenient online and mobile banking services.
Read reviews
See what other customers have to say about different banks and their services.
Visit a branch
If possible, visit a branch in person to get a feel for the bank and ask any questions you may have.
Why online banking is a smart choice
Getalong recommends online banks for their simplicity, affordability, and expat-friendly features. This makes your financial setup in Germany fast and stress-free.
Easy account setup
Open your account online in just minutes. No need to visit a branch or fill out paperwork in person.
Low or no fees
Many online banks offer free accounts with no monthly fees and affordable international transactions.
English-friendly apps
Most digital banks provide user-friendly apps in English, making banking easier for non-German speakers.
Fast international access
Send and receive money worldwide quickly, with multi-currency features ideal for expats and travelers.
Our recommendation for online-banks in Germany
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Book an appointment
Choose a convenient time in our calendar to speak with a team member.
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Get free guidance
Tell us about your current situation, and we’ll offer tailored advice at no cost to you.
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Find clear solutions
Receive helpful options, step-by-step recommendations, and access to useful services that match your needs.
Get in touch with us
FAQ
Find answers to your most pressing questions about living and working in Germany.
To open a bank account in Germany, you typically need your passport, proof of residence, and employment details. Some banks may also require a tax identification number. It's best to check with the specific bank for their requirements.
Yes, many banks in Germany offer online account opening services. However, you may still need to verify your identity in person. Ensure you have all necessary documents ready.
Bank account fees can vary widely depending on the bank and type of account. Some accounts may have no monthly fees, while others might charge for services like overdrafts or international transfers. Always read the terms and conditions carefully.
Getting started is easy! Simply fill out our online form or give us a call. We’ll connect with you to discuss your needs and how we can assist.
A Girokonto is a current account commonly used in Germany for everyday banking. It allows you to receive payments, make withdrawals, and manage your finances easily. Most residents use a Girokonto for their salary deposits.