Opening a German Bank account.

Opening a bank account in Germany is a crucial step for managing your finances. Germany offers various types of accounts, including Girokonto (current account), which is the most commonly used for everyday transactions. This account is essential for receiving salaries, paying bills, and handling other financial tasks.

To open an account, you'll typically need the following documents:

  1. Valid Passport or ID (for EU citizens)

  2. Proof of Residency (Anmeldung - registration confirmation of your German address)

  3. Tax Identification Number (Steuer-ID)

  4. Proof of Income or Employment (OPTIONAL but required for certain accounts)

  5. Immatrikulationsbescheinigung (Certificate of enrolment issued by a university OPTIONAL)

NOTE !

  • You can only open your German bank account after your Anmeldung and after you have received your Steuer-ID.

  • To avoid any complications, schedule your appointment, to open your bank account, in-person at your local branch.

  • An IBAN (International Bank Account Number) is a standardized numbering system used globally to identify individual bank accounts in cross-border transactions.

    In Germany and most of Europe, an IBAN is mandatory for all domestic and international bank transfers.

    Structure of an IBAN:

    An IBAN consists of up to 34 alphanumeric characters, and its structure includes:

    1. Country Code (2 letters): Identifies the country of the bank (e.g., DE for Germany).

    2. Check Digits (2 numbers): A validation mechanism to detect errors in the IBAN.

    3. Bank Code and Account Number (up to 30 characters): Identifies the specific bank and account within that country.

  • Your Steuer-ID will be delivered to you in about a week via Post, after your Anmeldung.

    Alternatively you can go to your local Finanzamt, one day after your Anmeldung, and receive it there.

German bank recommendations.

Special mention on Sparkasse.

For a easily accessible bank account, go directly to Sparkasse. Opening a account with them grants you same day access to your online banking, which is handy for the following:

  • Access to your IBAN (Forwarding it to your blocked account provider).

  • Transferring money into the account.

  • Setting up mobile phone transactions, such as Apple and Google pay.

The following are recommendations based on excellent customer service reviews, wide networks, and low/no-fee account options:

  • Sparkasse

  • Commerzbank

  • Deutsche Bank

“Exclusively online” banking solutions.

While opening a bank account with the numerous online providers seems like the most practical and easiest solution - most of the time this can lead to complications further down the line.

Such as:

  • Lack of a German IBAN (Most of these online providers provide you with an IBAN outside of Germany. While you can still use these to make purchases within Germany, complications can arise when you need to provide proof of funds to a government body within Germany. e.g. When applying for your Aufenthaltstitel at the Ausländerbehörde, you must. have your proof of funds in a German bank account).

  • Sub-par customer service (Since the online providers do not have their own branches, you cannot get in-person advice, which as a foreigner in a new country can prove to be difficult. Although they do provide online chat and call services, your milage may vary on the queuing time for queries and the availability of English speaking consultants).

These accounts can prove to be difficult to use within Germany, however, they are still a great alternative to traditional savings-accounts or backup-accounts.  

Two of the most popular in Germany:

  • N26 (provides you with a German IBAN)

  • Revolut

What is “SCHUFA” and how to navigate it.

Schufa (Schutzgemeinschaft für allgemeine Kreditsicherung) is essentially Germany's credit bureau.

It collects and stores financial information about individuals and businesses to assess their creditworthiness. Similar to credit agencies in other countries, Schufa helps banks, landlords, and other service providers determine if someone is a reliable borrower or customer.

How Schufa works.

Schufa gathers data from banks, telecommunication providers, leasing companies, and other financial institutions to track financial behavior such as:

  • Loans

  • Credit cards

  • Missed payments

  • Contracts

They use this data and assign each individual a Schufa score that reflects their credit reliability, with a higher score indicating better creditworthiness, which companies review before approving loans, rental agreements, or mobile phone contracts.

Why Schufa matters.

  • If you plan to rent an apartment in Germany, landlords often require a Schufa report.

    • Since you will more than likely be entering Germany for the first time and do not have anything Schufa can relate to you, try to avoid rental agreements that require a Schufa report.

  • Getting a loan or credit card usually requires a good Schufa score.

  • Some internet or phone contracts may be denied if your score is low.