Alongside finding a job and getting the keys to a new apartment, opening a bank account is one of the top priorities on any expat’s list.
Germany’s banking system operates off a three-pillar system comprised of private commercial banks, cooperative banks, and public-sector banks, according to the European Banking Federation. There are also neobanks and banking alternatives such as N26. This means that expats may also open a bank account remotely.
What do I need to open a bank account in Germany?
Although each German bank differs and the documentation needed is dependent on the type of bank account you’d like to open, generally you will need:
- A completed application form (this is often either online or printed out)
- Photo identification and residency card/visa if applicable
- A valid European address
- An initial deposit
In an article published, Life in Düsseldorf compiled a list of the top banks for expats in Germany:
- N26 (free and easy to register)
- wise (alternative option for Americans and multi-currency spenders)
- Kontist (for freelancers and entrepreneurs)
- DKB – Deutsche Kredit Bank (affordable and convenient)
- Comdirect (affordable and convenient)
- Commerzbank (a German favourite)
Postbank, O2 Bank, Santander Bank, Sparkasse, and Deutsche Bank also received mentions on the list as other popular banks to consider.
Should I consider an online bank or a bank with branch locations?
It always comes down to personal preference. Interestingly, many of the banks listed among the top seven are online-only banks. Statistics from Statistisches Bundesamt show that in 2019, 60% of people aged 10+ in Germany used internet/online banking – with those aged between 25 and 44 years of age being the most significant proportion of users (81%).
With this shift towards digital banking, it’s no surprise that online-only banks claimed the top couple of spots on the list.
Let’s look at these banks in more detail:
N26
This mobile bank offers a free bank account and a contactless Mastercard debit card that can be used around the world. Their CASH26 feature allows you to withdraw and deposit money at no cost in over 11,500 shops in Germany. However, deposits are only free up to €100 per month – for higher amounts, a charge of 1.5% will apply.
As N26 advertises that there is ‘no paperwork’ required and their app is available in English, it’s easy to see why N26 is such a popular alternative to banks for expats.
How to open an account with N26:
You must be over the age of 18 and have a compatible smartphone. Download their app, enter your details, verify your identity, and then deposit funds to your account via bank transfer or CASH26 deposit (if you have a bank account in Germany, Austria, or Italy).
Open your N26 account now
Wise Bank
Remember the name TransferWise? Yep. One of the world’s biggest money transfer websites out there rebranded to “Wise” and now offers a free multi-currency bank card for even the American market.
How to open an account with Wise:
This bank is likely going to be the easiest to open an account with. If you already have a money transfer account with them, it’ll be as simple as ordering your debit card. If not, you’ll need to fill in a few details, send over proof of identification and you’re finished!
Open your Wise account now!
Kontist
Kontist aims to make things extra simple for freelancers to not only have a business account but also manage their finances without needing to contact their local Finanzamt. Their app is available in German and English and offers some of the coolest features we’ve ever seen available to self-employed. By opening up a Kontist account you’re actually eliminating the need to hire an accountant, saving you hundreds (or thousands) per year. Kontist offers free business consultations for their members and helps you file your monthly and annual taxes online.
- While you spend (like you usually would with a bank card) Kontist calculates your income tax and VAT automatically so you’ll never lose track
- They also offer bookkeeping on the go! In Germany, you need to provide proof of receipt for all purchases made on your business account. Kontist encourages you to take a photo of every receipt as you shop so you don’t need to worry about it later. They also organize them into the bookkeeping categories automatically for you.
- With the help of lexoffice and their professional accountants onboard, they make submitting taxes easier than you could ever imagine here in Germany!
How to open an account with Kontist:
Download their app, enter your details, and choose a login code. To verify your identity, they require a document. For countries within the EEA, a passport, driving license, ID, or residence permit is sufficient. The documentation required for non-EEA countries differs – with some requiring a passport, and others requiring a residence permit.
Open your Kontist account now
Looking to find an online program that helps you file your freelance taxes (even monthly/quarterly)? Accountable.de is an English/German-run program that makes is easy.
DKB – Deutsche Kredit Bank
DKB offers a free current account that comes with a DKB-Visa card. They also offer a credit card with no annual fee, with a 0.01% pa credit interest up to €100,000 on the DKB-VISA card. The DKB Visa card can also be used with Apple Pay and Google Pay to make contactless payments from your smartphone, smartwatch, or tablet in a variety of different shops, websites, and apps.
How to open an account with DKB:
Their website is in German, so this may be a stumbling block for some expats although Google can translate the webpages for you. You can access a registration form online in which you outline all of your basic personal details, as well as your tax residency status, and employment information.
Open your DKB account now
Comdirect
Comdirect offers a free current account that comes with a Girocard (debit card) and a Visa credit card (assuming creditworthiness). They also offer an app that allows you to transfer via chat, photo, or voice.
How to open an account with Comdirect:
Their checking account can be opened online by filling out a registration form and verifying their identity either online or at the post office. Then you pick a PIN-code and wait for a photoTAN activation letter – and that’s it!
Open your comdirect account now
Commerzbank
This bank offers a free-of-charge current account for those who are employed or receiving a regular income. Their virtual debit card can also be used with Google Pay and Apple Pay.
How to open an account with Commerzbank:
Fill in the online application form and you will immediately receive your IBAN. The next step is to verify your identity, which can be done via the Commerzbank videoIDENT app from the Apple or Android app store. With your identity card or passport at hand, a customer service agent will then guide you through the process via video chat. Once your identity has been verified, you will receive a photoTAN activation letter and you will be able to complete your account setup.
Open your Commerzbank account now
How to save on money transfers to your new bank account
Once you have chosen the right bank for when you move to Germany, easily transfer currencies from your home bank account to your new bank account with a money transfer service.
Typically, the banks can charge an eye-watering 3-6% markup for FX, depending on the amount you send and the transfer time requested, there may be other fees lost in the fine print.
But with online exchange websites like Wise and CurrencyFair, for example, there is often a simple flat fee of €3 (or the currency equivalent) regardless of whether you’re transferring a little or a lot – so you can rest assured the fee won’t snowball when transferring larger amounts.
For example, take this brief CurrencyFair comparison: someone transferring £10,000 from the UK to Euro to use in Germany will receive €11,968.00 with CurrencyFair – that’s €325 more than you’d get with a typical bank. – Data collected from CurrencyFair.com, 17 February 2020, 09:06am.
That’s enough saved to cover the costs of a weekend away exploring Berlin.
See CurrencyFair’s bank-beating FX rates in action, try their free currency calculator below.
To help you get set up, CurrencyFair is offering Life in Düsseldorf readers five free transfers.
The information contained in this article should not be relied upon as a substitute for professional advice in individual cases. Future changes in legislation, tax level, and practice could affect the information on this site. The information shown is based on data or information obtained from sources believed to be reliable but CurrencyFair makes no representation and accepts no responsibility as to its accuracy or completeness and will not be held liable for damages arising out of any person’s reliance upon this information.
