Many banking services, including numerous kinds of bank accounts, are provided by German banks. Expats in Germany have the same options for choosing their preferred bank accounts as German citizens. In this post we will try to chalk out all of them so that you can get familiar with the nomenclature. The following are the major types of bank accounts in Germany –
Girokonto/Maestro/EC-Karte
In Germany a standard Bank account is known as Girokonto. These are all bank accounts, and they are not credit cards in anyway. Also known as Checking account or Current account, it is hard to live in Germany without having them. You need them to pay rent or bills, receive salary or internet contract. You’ll need to have an address in Germany to open a current account as an expat in the country.
Most German banks issue two types of cards with this account type. One is debit card which is Visa or Mastercard. Second is EC card or Girocard which is mostly Maestro. Debit cards can be used to withdraw money, online purchases and in-store payments. However, Girocard can only be used for in-store purchases and money withdrawal (Not recommended). You cannot use it for online purchases. It is good to know that some Government offices and stores only accept Girocard or cash. They don’t accept Visa or Mastercard. So, It is recommended to have a bank that offers a Girocard.
Sparkkonto (Savings account)
Savings accounts are an excellent banking choice for expats in Germany because they can be opened by both German residents and non-residents from other countries. German savings accounts often fall into one of two categories. These can be either instant access (Tagesgeldkonto) for saving money or fixed deposit (Festgeldkonto). The first is immediate access to financial savings. This is frequently employed in investment banking. The second option is a fixed deposit, which stipulates how long funds must stay in the account. It is a higher interest account with a minimal deposit requirement and a set amount of time during which funds must remain in the account to qualify for interest.
Digital accounts
Majority of banks in Germany are offering internet banking and mobile account services via web or mobile banking apps. There are also several online-only and mobile-only banks operating in Germany. N26 and Revolut are popular players in this category. There are some perks like quick account opening, free services and English support that you get with digital accounts. The only downside is that they don’t have physical branches.
Non-Resident accounts
Standard checking or current accounts are generally only available to German residents. It means you should have a permanent address in Germany to open an account. Some banks in Germany offer banking services to people living abroad. Most of these banks are online-only and mobile-only German banks. These banking services are most useful to people working in Germany and those planning to move to the country.
Offshore accounts
Opening a foreign offshore bank account may be the most effective approach for expats living in Germany to handle their funds. Anybody who travels regularly, works overseas, or routinely transfers money between nations will find this to be of special use. Offshore accounts are kept outside of the holder’s home nation and typically come with several benefits, including a greater selection of cross-border services and reduced tax rates on funds. They are frequently seen as stable, dependable, and secure. The international divisions of Commerzbank and Deutsche Bank both provide offshore banking.
Summary
During your initial days in Germany, it is necessary to open an account as soon as possible to receive your salary. I would suggest Revolut. It is easy to signup and has full English support. ING Diba can also be opened online but they have limited English language support and their App and website is in German.
There are lot of banking services available in Germany that can fulfil your needs. You just need to figure out the right account type and you are good to go. I personally feel that online banking services is not crazy fast but safe and secure.
Finally as a disclaimer, please be warned that this article is only for information to help those who wants to know about different types of bank accounts available in Germany, the website accepts no liability, and the information might change. Please let me know if something needs to be updated. I would be more than happy to modify it.