Moving to a foreign country can be very exciting; however, accessing the local banking system might get quite complex. For an expatriate living in Germany, this knowledge of the local system of banks in Germany becomes indispensable in streamlining one’s transition process.
Knowing the types of banks available to you, understanding what documents you will need, and being prepared is key. Do not let language barriers or complicated procedures overwhelm you. Whether it is opening your first account or making international transfers, we have got you covered.
In this article, we’ll break down 10 important things every expat should know about banks in Germany. Ready to make banking in Germany easy?
Here are the 10 things expats should know about banks in Germany
| Sr. No | Topic | What You Should Know |
| 1 | Three-Pillar Banking System | Germany’s banking system is divided into private, public (Sparkassen), and cooperative banks, providing a variety of services and options for customers. |
| 2 | Documents Needed for Accounts | Expats need a passport, proof of residence (Meldebescheinigung), and sometimes proof of income to open an account. |
| 3 | Online Banking | Digital banks like N26 and Revolut are popular, offering user-friendly interfaces and multilingual support for expats. |
| 4 | Cash Usage | Despite the rise of digital banking, cash remains dominant in Germany, accounting for around 74% of transactions, especially in small shops and cafes. |
| 5 | Free Banking Accounts | Many banks offer free basic accounts (Basiskonto) with essential services but may have limitations on features and transactions. |
| 6 | Credit Rating System | SCHUFA is Germany’s credit rating system that evaluates your creditworthiness and impacts your ability to secure loans and credit cards. |
| 7 | Expat-Friendly Banks | Banks like N26, bunq, and Wise cater specifically to expats with quick sign-up processes, multilingual support, and easy account management. |
| 8 | Language Support | Larger banks, like Deutsche Bank, offer English-language services, while some local banks may have limited English-speaking staff. |
| 9 | International Transfers | International transfers may take several days and could involve varying fees. It’s essential to compare rates and services before making transfers. |
| 10 | Safety Measures | German banks prioritize security with biometric identification, encryption, and fraud detection systems to protect account holders. |
Overcoming challenges when opening accounts at banks in Germany
Opening a bank account in Germany is one of the most challenging experiences for expatriates, and the language barrier is the most significant obstacle. According to various reports, 62% of expats find it difficult to communicate with local institutions, such as banks, due to language issues worldwide. This can make it difficult to understand the basic banking terms, documents, and financial products.
In addition, expats experience problems with the bureaucratic procedures in Germany. There are several documents to be submitted, including a valid passport or ID card, proof of address, and employment verification. It is important to know the details of these requirements to avoid delays.
Expats should take proactive steps to overcome these challenges:
- Multilingual Services: Most banks in Germany, including N26 and Deutsche Bank, allow service in a multitude of languages, including English, which might greatly facilitate matters.
- Translator Assistance: One might consider employing a translator or bringing an eloquent friend who speaks fluently in German to accompany the person when making visits in person.
- Off-Peak Hours: Visiting the bank during off-peak hours may prevent lengthy waits, thus increasing help from bank employees.
A Salesforce survey reveals that 80% of customers felt that interactions with banks providing easy online banking improved their experience. Expats can also opt for digital-first banks, which offer a smoother banking experience and ease the process of opening an account.
With these challenges in mind and considering all available options, expats can better navigate the German banking system and build a solid financial foundation in their new country.
Key Takeaways
- Banks in Germany Structure: The banking system consists of private, public (Sparkassen), and cooperative banks, providing various options for customers.
- Account Opening Requirements: Expats need a passport, proof of residence, and sometimes proof of income to open an account.
- Expat-Friendly Banks: Banks like N26 and Deutsche Bank offer easy sign-up processes and multilingual support.
- Cash Usage: Despite digital banking growth, cash remains dominant in Germany, accounting for 74% of transactions.
- Language Support: Larger banks provide English-language services, while local banks may have limited English-speaking staff.
- Overcoming Language Barriers: Choose banks with English support, use online resources, or bring a German-speaking friend for help.
Here are the top banks in Germany you should consider
| Banking Section | Banks |
| Private Banks | Deutsche Bank |
| Commerzbank | |
| DZ Bank | |
| Public Banks | KfW Bank |
| DZ Bank | |
| Landesbank Baden-Württemberg (LBBW) |
