OPENING A BANK ACCOUNT ONLINE

Many banks offer the possibility to open accounts online. The most important one is the current account, in German called “Girokonto”. While you won’t need to visit the bank’s branch, you will still need to go to the Post office for an ID check. Most banks offer accounts with differing levels of service and a differing monthly charge ranging from €0 per to about €8. Accounts without a monthly fee will include free internet banking EC-cards but will charge for any transactions made in the branch. The so-called "EC-Karte" (Debits card) is issued as part of the package.

The advantage of filling out the forms online is that you don't have to deal with the bank staff. The disadvantage is that you may not be able to navigate the websites and find the type of account that best suits you if your German is limited. Further, in some cases, it is somewhat convenient to have a bank officer in charge of your account. If something with a payment goes wrong, it tends to be easier to clarify the issue with a person dedicated to supporting you specifically but a hotline employee.

STANDARD BANK ACCOUNT OPENING

The big national or international set-ups like Deutsche Bank, HASPA or Commerzbank require personal appointments if you want to open a bank account with them. You would usually need to present your signed employment contract, your passport and residence title as well as your municipal registration.

Some bank clerks make an exception for rent saving accounts, so-called “Mietkautionskonten”, because the risk is significantly lower. They would accept that the municipal registration is provided in the aftermath. This is extremely helpful as you would normally only be able to register in Hamburg once your rental agreement is effective, however, by that date you already need to have paid the deposit.

CREDIT CARDS

Credit cards are more difficult to obtain. They are widely accepted in shops, restaurants, and hotels.  MasterCard and VISA are the most common credit cards. You may have difficulties with American Express or Diners. Small shops and restaurants or landlords of holiday apartments may not be equipped with a credit card reader. Taxis show the credit card signs on their back window if they are prepared to take credit cards. Often, a minimum purchase (10-15 EUR) is required before shops accept a credit card.

OVERDRAFTS

Overdrafts are usually only granted after a 6-month history with the bank (or another German bank) and a positive SCHUFA rating. They will usually grant you between 2 and 3 times your usual net salary and the interest rate will be around 11% sometimes even higher.

Choosing the right bank

Availability of cash machines

The answer to this depends on your situation and needs. Most banks do have their own cash machines, and although online banks often don’t, they have contracts with other banks whose cash machine you are free to use without extra charge. Three large networks of banks allow free withdrawals within their own network:

• Cashgroup
• Cashpool
• Sparkassen

Living within one of our focus towns you will have easy access to all of them. If you will be traveling a lot and all over the world, it makes sense to go with one of the banks with a lot of branches all over the world or partner banks that allow you to withdraw cash in any place of the world without extra charge.

Cashgroup comprises the big national banks and their subsidiaries along with Deutsche Post's Post bank. Cash machines are widely available in all larger towns and cities throughout the country. Cash machines in smaller towns and villages are often limited to Post Bank and Hypovereinsbank (predominantly Bavaria). Deutsche Bank has branches all over the world, and so does Hypovereinsbank.

• Deutsche Bank
• Commerzbank
• Hypovereinsbank
• Post Bank
• Comdirect Bank
• Norisbank
• Bankhausneelmeyer
• Bayerische Hypo- und Vereinsbank
• Berliner Bank
• DAB Bank
• Oldenburgische Landesbank
• Reuschel & Co.

Cashpool comprises a mix of foreign-owned banks and smaller, local banks.

• BBBank eG
• Degussa Bank GmbH
• GE Money Bank
• National-Bank
• Santander Consumer Bank
• SEB
• Sparda Banken
• Südwestbank
• Wüstenrot

Each city, town and/or local municipality has a state-owned bank called a "Sparkasse". Every local Sparkasse is a member of the Sparkassenverbund, so customers can withdraw money without charge in any Sparkasse cash machine in the country. When going to another city, it helps to know the Sparkasse's name in that city to not withdraw money from the "wrong" bank and end up paying 5 EUR charges. However, you will usually be ok if the name includes the word "Sparkasse".

• Hamburger Sparkasse
• Berliner Sparkasse
• Frankfurter Sparkasse
• Stadtsparkasse München
• Sparkasse Nürnberg
• Stadtsparkasse Düsseldorf
• Sparkasse Köln Bonn
• Sparkasse Neuss