Banks & Banking in Germany

Banking is a simple process in Germany. Whether it is face-to-face in-house services, paying bills directly at the ATM (Automated Teller Machine) or online home banking, Germany's banks provide their customers with clear and easy-to-use services using the latest banking technologies.

Major German Retail Banks

The major banks in Germany are:

• Deutsche Bank
• Commerzbank (in German)
• Postbank (in German)
• Dresdnerbank  
• Volksbank (in German)
• Sparkasse (in German)

There are also many regional banks, such as the Berliner Bank or Hamburger Bank. The Savings Bank (Sparkasse) and People's Bank (Volksbank) also have regional branches, which are named according to their location (for example Sparkasse Leipzig or Berliner Volksbank).

Banking technologies allow for online transactions, standing orders and the use of ATMs to make bill payments. Cardholders of some banks may use others' free of charge and the banks themselves are becoming more open-plan, providing easy access to business advisors and clerks.

How to Open a Bank Account

It is quite easy to open a bank account in Germany, although it is essential to be registered in the country and have the correct documentation. The following documents are required:

• Proof of registration in Germany (polizeiliche Anmeldebestätigung): This can only be obtained by EU member state residents or holders of a German residence permit
• Address in Germany: This is written on the registration form and is required to obtain an account in the country
• Passport: As proof of identification
• Student Identification: In order to open a student account

Go to the chosen bank taking the documents and ask to open an account (ein konto eröffnen). There are several forms to complete, a bank clerk will be able to help. A welcome pack providing information about the bank's services is normally presented and the account details and bank card are sent by post within a few days (depending on the bank).

It is wise to keep copies of all bank documentation as well as statements for future reference.

Services offered

The services provided by the bank and the administrative service charges may differ from bank to bank. 

Services normally offered include:

• Current account (Girokonto)
• Debit card (EC Karte)
• Overdraft facility (Dispokredit)
• Partner banks offering free withdrawal from their ATMs
• Setting up standing orders (Daueraufträge)
• Opening a second account
• Opening a savings account (Sparkonto)

Administrative costs which may be charged:

• Charges for opening an account
• Yearly administrative costs
• Credit card costs
• Withdrawal costs from other banks

Using a German Bank Account

When writing or reading German numbers, it is important to know the placement of points and commas:

• €1000.00 (one thousand Euro) is written: €1.000,00
• 52.6% (Fifty-two point six percent) is written: 52,6% (zweiundfünfzig Komma sechs Prozent)

Cheques are rarely used in Germany although travellers' cheques (Reisescheck) can be issued by all national banks.

Current account (das Girokonto)

Every current account holder is issued with an account number (Kontonummer) and every branch has its own bank sort code (Bankleitzahl). These two numbers are vital for making transactions and receiving payments. 

For international bank transfers, account holders should use the IBAN number and swift code. All accounts in the EU are allocated with these numbers aimed at facilitating cross-border payments. These are vital for employees based in a different country from their employers.

Banks normally provide software to set up online banking services, or they will provide access directly through their websites. Pre-allocated TAN codes are required for secure money transfers. These will be issued when opening an account.

Most accounts also issue an EC card, which can be used in most larger retail outlets as a debit card. A PIN number will be issued when opening a bank account and this can be changed directly at the banking terminals. Most shops that accept EC card payment require the holder to type their PIN number into a card scanner or simply sign the back of a receipt. Cash is still used when making purchases in smaller shops and restaurants. 

Savings account (Sparkonto)

Savings accounts can easily be set up by phone, Internet or in person. Current account holders will be issued with a separate EC card for their savings account. Depending on the savings account, money can be withdrawn at any time or must be left for a specific period in order for higher interest rates to come into effect. A standing order can be set up directly from the account holder's current account, or money transfers can be made directly into the savings account from other sources.

Statements 

Statements (Kontoauszüge) are normally sent once a month by post to account holders. They may also be printed out at any time from bank terminals in branches of the account holder's bank. 

When reading a statement, money which has been credited to the account is indicated with H (Haben) and money debited from the account is indicated with S (Soll).

Receiving money transactions

It is necessary to provide the sender with:

• Account name
• Account number
• Sort code
• Name of bank
• Swift code

Transfers from the same bank normally take effect on the same day; from other banks this process can take up to five working days. Transfers from abroad require the international IBAN code, may take longer and incur additional costs.

Transferring money to other accounts

The details required for money transactions (Überweisungen) are:

• Account name (Kontoinhaber)
• Account number (Kontonummer)  
• Name of bank (Bank)
• Sort code (Bankleitzahl)
• Swift code (Swift Code)
• Amount (Summe)
• Reason for transaction (Verwendungszweck). This is especially important for standing orders for rent or utilities and normally consists of a name and customer reference number

Transfers can be made:

• Online
• Directly from the bank clerk (fill out an Überweisungsformular before getting in line)
• From the banking terminals in local branches of all banks

It is recommended to get and keep a receipt (Quittung/Beleg) of each transaction.

Setting up a standing order (Dauerauftrag)

When setting up a standing order, many companies (including water, utilities or telephone companies) will ask for a direct debit authorisation (Einzugsermächtigung) to be completed, enabling them to draw money directly from the holder's account on a regular basis. A standing order can also be set up directly with a bank clerk, by telephone or by using the banking terminals in local branches of the account holder's bank. Simply fill out the account information, frequency of payment and start date.

Credit cards (die Kreditkarte)

Credit cards can be issued at any bank from a variety of credit card companies. Visa and Mastercard are the major issuers, but other smaller companies exist as well. Credit card bills will be deducted straight from the current account at the end of every month and a separate statement will be sent to the account holder's address.

Telephone banking

Many services can be carried out over the telephone through a centralised telephone service or directly with a local branch of the bank. It is useful to have a contact name at the chosen branch who is familiar with the account.

Opening Hours

In general banks are open from 08:30 or 09:00 until 16:00. On Wednesdays smaller branches are often closed, and larger banks may close at 13:00. Banks frequently stay open until 18:30 on Thursdays.

German Banking Terminology Guide

English	German
Bank	die Bank
Bank account	das Bankkonto
Bank balance	der Kontostand
Bank book	das Bankbuch
Bank charges	die Bankgebühren
Bank draft	die Bankratte
Bank loan	das Bankdarlehen
Bank manager	der Filialleiter
Bank note	der Geldschein
Bank rate	der Diskontsatz
Bank statement	der Bankauszug
Bank transfer	die Banküberweisung
Bounced cheque	der geplatzter Scheck
Cheque	der Scheck
Cheque book	das Scheckbuch
Credit balance	das Guthaben
Credit card	die Kreditkarte
Credit facilities	die Darlehensmöglichkeiten
Current account	das Girokonto
Debit	das Soll
Debit balance	der Soll-Saldo
Deposit	die Einzahlung
Deposit account	das Einlagenkonto
Direct debit	die Abbuchung
Exchange Bureau	die Wechselstube
Exchange rate	der Wechselkurs
Fiscal/tax code	die Abgabenordung
Fixed rate	die feste Rate
Interest rate	der Zinssatz
Joint account	das gemeinsames Konto
Non-resident account	das Ausländerkonto
Overdraft	die Kontoüberziehung
Paying-in slip	der Einzahlungsbelag
Payment slip	der Einzahlungsschein
Share	die Aktie
Shareholder	der Aktieninhaber
Standing order	der Dauerauftrag
Take out a mortgage	eine Hypothek aufnehmen
Travellers' cheques	der Reisescheck
Variable rate	der variabler Zins

Further Information

• See AngloINFO INFOrmation page Lost/Stolen Bank/Credit Cards, Cheques, Mobile Telephones in Germany