How to open a bank account in Germany
Written by Sarah Braun-Herr
There are around 1,519 banks in Germany, with a total of more than 23,231 banking outlets, and the total assets of the German banking industry amount to around 9 trillion euros. In terms of banking, Frankfurt is the most important city in Germany. The city is home to the European Central Bank and the German Bundesbank. Almost all major German banks and many foreign banks as well as the most important German stock exchange are located here.
Requirements for opening a bank account for residents:
In Germany, any adult can open a checking account. Minors over the age of 7 can also open a checking account, provided that their legal guardians give their consent.
If you are a German citizen, you will need an identification document such as a valid passport or ID card. Young people under the age of 18 also need the consent of their parents in the form of a signature. The account can be opened either in the branch itself or online via video identification.
It usually takes a few days to receive a bank card. However, the log-in data for online banking will be provided directly after completion of the application, so that the account can be used directly.
There are also extra accounts for students and trainees which have no account maintenance fees and are free of charge. These accounts are usually designed so that they cannot be overdrawn and are strictly checking accounts.
Opening a bank account in Germany as an international student:
In addition to a passport, a residence permit and proof of enrollment are required to open an account.
When opening an account in Germany, it is mandatory to present a valid identity card or passport in order to carry out the legally required identity check. A primary or secondary residence must be registered with a German residents’ registration office in order to then obtain a residence permit that provides the bank with information about your current address in Germany. Underage students need the consent of their legal guardians to open an account.
Some banks require a certificate from the university confirming at least three months of residence.
Special case: The “Sperrkonto” for foreign students outside the EU
If a visa is required for entry into Germany, the opening of a so-called blocked account (Sperrkonto) is mandatory. The Federal Republic of Germany wants to ensure that the living expenses for the 1st year of study can also be financed and therefore requires the deposit of a minimum amount of 11,208 euros (as of April 2023). Of this amount, 934 euros can be disposed of each month. The rest remains blocked. The money that is deposited in addition to the minimum amount can be freely disposed of.
Opening a bank account in Germany as a non-resident:
When living in Germany completely or temporarily, but not being a German citizen, one has the right to open a checking account. However, some banks offer this possibility only depending on the status of the person and the country of origin. Even with a positive evaluation, most foreigners are only granted a checking account on a deposit basis.
1) Requirements for non-residents from another EU-Country
The “Basiskonto” has been available since June 19, 2016. This checking account can be opened by any consumer who is legally resident in the EU. The banks are legally obliged to open the account.
In this case, no special identification documents are required. However, if the customer wants to have a better checking account that can be overdrawn, for example, the bank needs proof of residence from the Residents’ Registration Office and the last pay slip.
2) Requirements for non-residents from a non-EU Country
For non-EU citizens, every German bank has the right to refuse an account opening application without giving reasons. Especially if foreigners have only been in Germany for a few weeks, many banks refuse to open an account because they do not have enough information about the financial situation. The longer someone lives in Germany and the more money they earn, the easier it is to get a checking account.
For non-EU citizens, the following documents must be submitted for a bank to even process a request:
- Valid passport
- Proof of residence from the local registration office
-If applicable, the reason for the residence
-A work permit
Once the checking account has been requested, it takes a few days for the opening request to be confirmed and the checking account to be available. The account cards for payment and withdrawal of money, as well as PIN and other passwords, will be sent by mail.
Opening a bank account in Germany as a tourist:
If a non-German citizen wants to open a German checking account from another country, there are significantly fewer banks to choose from. Most financial institutions require a German registration address to open an account from abroad. The best option is therefore to open an online account with a direct bank represented in Germany where transfers from or to foreign countries are possible without any problems.
There are only a few German direct banks where it is possible to open an account from abroad. These are DKB Bank, Comdirect and N26.
· At DKB, however, only customers from Switzerland and Austria are permitted.
· Comdirect allows openings via video identification from Liechtenstein, Switzerland, Austria, and Luxembourg.
· At N26, anyone residing in the European Union can apply for an account.
Unfortunately, other countries are generally not supported. The only option here is the Wise Multi-Currency account.
The Wise Multi-Currency Account is available for people in most countries (including many non-EU countries). It provides users with account access in up to 10 different countries. With these, they can receive or make transfers. Although Wise is not a German account, it offers a Belgian IBAN that is accepted throughout the SEPA area.
Cost of opening a bank account:
Each institution decides for itself how high the account fees should be. As a rule, opening a checking account is free of charge and you can expect to pay a monthly amount of three to eight euros for account maintenance fees (approximately 60 euros/year).
Account maintenance fees include all charges related to maintaining an account. How high these are depends on the respective institution. In addition, the costs vary depending on the account model. In some cases, account management fees only must be paid once a certain amount of money has been deposited.
Normally, there are no costs for using online banking. Only additional account management fees incur costs.
Most checking accounts are free for students, trainees, pupils, and interns under the age of 28.
However, this only applies to customers who can open this account as well as residents, non-residents from other EU countries, non-residents with a residence permit, or students. This does not apply to tourists.
The Wise Multi-Currency Account has no account opening costs. Sending money costs around 0.41% depending on the currency. Withdrawals of 100 USD per month per account are free for 2 or fewer withdrawals. Other withdrawals cost up to 2% of the withdrawal amount plus $1.50 per withdrawal. A one-time payment of 9 USD is required for the Wise Deposit card.
This article was written by Sarah Braun-Herr, a graduate student at NYU.
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