Want to learn all about banking in Germany? Look no further. This article will be your guide to banking and finance infrastructure in Germany, providing an overview of different types ofbank accounts, which you can easily open even online, being an international in the country. Find out more aboutopening a current account in Germany, including our top recommendations. Germany has a long banking tradition, from the merchant bankers of the 16th century to 19th-century industrial financiers. Not known for flashy marketing or risky products, Germany's banks tend to be divided into savings banks, regional banks, cooperative banks, and multinational private banks. The sector is proud of its sensible approach, and consumer-focused services,but which banks and financial institutions should new German residents choose? Germany's banking system includes four major types of institutions, and there are some important distinctions between them Firstly, there are private commercial banks.These banks control almost half of all German assets and finance most of Germany's international trade. And within that sector,Deutsche Bankreigns supreme, being the8th biggest bank in Europe. However, private banks don't dominate the retail banking sector.The three largest private banks control 15% of the retail sector, but they are rivaled by public sector and cooperative banks - not to mention so-called "free" banks. The public banks are divided intoSparkassen(local savings banks, don’t confuse with the name of big German bank Sparkasse!)andLandesbanken(regional banks). Seven Landesbanks operate in German regions, while smaller Sparkassen tend to operate in particular cities or urban areas. Also known asRaiffeisenbanken,cooperative institutions are the final major group, and there are around 1,000 across Germany. Both coops and public banks tend to cater for local communitiesand aren't usually focused on international visitors. But they are seen as more reliable and less risky, and some are moving toward more outward-looking strategies. According to national statistics, there are c. 1,400 banks in Germany. Banks in Germany offer a range of different accounts for expatriates,and there are numerous types of bank to choose from as well. We can't cover them all here, but it helps to provide a short introduction. Most arrivals will want to create what is known as aGirokonto.This is essentially a checking account or current account,and can be provided by various forms of bank. There are big international banks that offerGirokonto, or current accounts,for foreign residents. Applicants must be sure to check theKontoführungsgebühren(account fees) when making a decision, as they can bump up the cost of banking quite a lot in some cases. Germans aren't restricted to a single bank account.While it's advisable to set up aGirokontoto handle income and savings, this account often functions alongside aSperrkonto(blocked account). That way, students can receive their monthly payments and add them to work income or payments from abroad. Moving to Germany from a non-EU country? You'll likely need ablocked accountas financial proof for your visa. Some people may want one account that offers advantages for international money transfers, as well as acurrent account that guarantees good ATM access anywhere in Germany. You won't always find an account with the features you need, and there's nothing wrong with shopping around. There's no limit to how many bank accounts you can use, so find a mix that works for you. Opening a bank account in Germany isn't usually a difficult task In fact, knowing the value of solid savings and a good credit rating, Germans have gone out of their way to make the processstreamlined and efficient. Before you can open a bank account in Germany, you'll need to satisfy certain requirements. In most traditional banks,individuals who come from outside the European Union must provide documentationsuch as proof of residency, or in some cases, a visa and proof of address is enough. These requirements mean that a little work will be involved when you start an account. However, the various stages aren't hard, and you should have most of the documents required.To set you on your way, here's a breakdown of things needed to open a bank account in Germany: Once you have these documents, you can head to a local bank branch and startfilling out forms. However, nowadaysthe best place to open a bank account is definitely online! Popular mobilebanks likeN26*andBunq* allowusers to apply 100% online. Just download the app, submit a few personal details, and then add your ID information.Within a few minutes, you can be up and running, depositing euros as with any normal account. Non-EU nationals should note that they may need to be residents in Germany before using certain mobile apps. EU residents can create accounts from abroad before moving to Germany, but for Chinese, Indian, or US visitors be sure to check the individual requirements of each bank. Mobile banking isn't the only option, of course. Many arrivals like to visit a nearby bank branch to meet the staff and discuss their accounts. These accounts often deliver more complex features like credit cards overdrafts, and may suit self-employed workers and families. We recommendCommerzbank*for people who prefer to visit a physical branch to do their banking. There's nothing to stop people using both mobile banks and conventional banks. In fact, that's a very common option for expatriates as they navigate Germany's financial system. Transferring money from abroad and between German banks could be a headache for expatriates, but it doesn't have to be German banks know that easy transfers are a major selling point and way to serve their customers, so they tend to make the process relatively hassle-free. Making a domestic transfer (Überweisung) between German bank accounts isn't complex at all. To do so, use your bank's online banking portal, via your banking app, or visit a local branch. You will need the account details of the receiving account. So, if you are paying your monthly rent, be sure to request these details from your landlord. Even better, you can set up a standing order (Dauerauftrag) which transfers a set amount of money at regular intervals.For variable transfers such as phone bills, you can also set up direct debits calledEinzugsermächtigung. Services like PayPal are widely used in Germany as well, and can be the easiest way to shift money between accounts or manage self-employment income. Depending on your bank and the bank you are transferring to, transfers may be immediate, or can takea couple days. Online banks like N26 offer you functions like 'Moneybeam' whichsends money instantlyto otherN26*, users.Revolut,Bunq*,andMoneseall offer similar functions. However, most bank transfers to a recipient with a different bank won't be instantaneous.If you need to make a payment by a certain date, be sure to leave a couple of days leeway. Transfers will typically take2-4 working days. If you are transferring money from an EU-based bank with an IBAN code to another EU-based bank, transfers are normallyfree and easy.For non-EU nationals, fees and delays could be involved, but specialist transfer services exist to make the process simpler. TransferWiseis probably the cheapest and most popular method. This mobile-based service can be connected to online banking services like PayPal, and will convert foreign currencies into Euros, before depositing them into your German account. When you sign up, you'll need to provide some basic personal details, including your full German bank details. Beyond that, all that's involved is a swipe of the smartphone screen. OurInternational Money Transfer pagepresents you more providers to transfer money internationally. Germany's banking landscape is changing fast, and here are some of the current leading operators for international residents to consider: Our top recommendation? N26*! N26is a fully licensed German bank meaning you’ll have a German IBAN, simplifying your life in Germany. No long waiting times, no hidden fees, and a fully online application that can be completed in few minutes. With N26, you get a free bank account, a virtual card, and 24/7 English support. Use their mobile or web app to handle transfers, track spending, and enjoy fee-free foreign transactions. For an in-depth comparison, check out our article all aboutchoosing a current account. Does our top pick sound good to you? Check out Commerzbank* today! *These are affiliate links with advertising intent. We might earn a small commission if you see value in the products and decide to buy them.A quick note on the history of banking in Germany
Banking System in Germany
How many banks are there in Germany?
However, while bank numbers are high, they have been declining in recent years. The rise of mobile banking and the internet have accelerated branch closures, albeit from a much higher level.Types of bank accounts in Germany
Can I have two bank accounts in Germany?
How to open a German bank account
What do I need to open a bank account in Germany?
Note for non-EU nationals
Bank transfer
How do I transfer money to a German bank account?
PayPal
How long do bank transfers take in Germany?
What is the cheapest way to transfer money internationally?
Recommended Banks in Germany
Which bank isrecommendedfor students in Germany?
Here's why:Open your N26* current account for free now!
Some other top recomendations include:Open your bank account now
FAQs
Is Germany a good country for finance? ›
Employment Opportunities: Germany has a strong job market for finance professionals due to its financial industry, multinational corporations, and robust economy.
What is the financial system of Germany? ›The country's so-called “three-pillar" banking system is made up of private commercial banks, cooperative banks, and the public banks (savings banks or Sparkassen, and the regional state-owned banks, or Landesbanken).
What are major issues in Germany? ›Germany's Real Challenges are Aging, Underinvestment, and Too Much Red Tape. Germany is struggling. It was the only G7 economy to shrink last year and is set to be the group's slowest-growing economy again this year, according to our latest projections. Some pundits say Germany's economic model is irreparably broken.
Why do people study finance in Germany? ›- No tuition fees.
- Enjoy the advantages of a student visa. What's it like to study in Germany? ...
- Affordable cost of living. ...
- A wide range of courses on offer.
- World-class education. ...
- You can study every subject in English.
- Germany is an interesting country.
- FAQ: Reasons for Studying in Germany.
1. Hong Kong. Hong Kong is considered one of the best offshore banking locations globally, thanks to its exceptional reputation as a financial hub.
Are banking jobs in demand in Germany? ›Finance and accounting are in-demand occupations not only in Germany but across the globe. Germany has an extensive financial sector that comprises banks, insurance companies and investment firms. As an expert in the field, you can apply for jobs in cities like Munich, Frankfurt, Hamburg, etc.
What is banking like in Germany? ›The German banking system is a universal banking system. Banks have been permitted to engage in all lines of banking businesses for a very long time and the few existing special banks have not emerged as a result of legal regulations.
Is Germany in a financial crisis? ›Following a recession in 2023, economic activity in Germany is expected to stagnate in 2024. Domestic demand is set to pick up slowly in 2024 and 2025, as real wage growth resumes. However, investment is projected to remain well below pre-pandemic levels, constrained by continued high financing costs.
What is the financial position in Germany? ›With a gross domestic product (GDP) of 4.121 billion euros in 2023, Germany is the third-largest economy in the world after the United States and China, and thus also the largest economy in Europe.
Why is Germany called the sick man of Europe? ›"Sick man of Europe" is a label given to a state located in Europe experiencing economic difficulties, social unrest or impoverishment. It is most famously used to refer to the Ottoman Empire whilst they were in a state of decline.
What's happening in Germany in 2024? ›
From the 35th anniversary of the fall of the Berlin Wall to the European Football Championship and a major celebration of artist Caspar David Friedrich, there are plenty of events worth adding to a Germany itinerary in 2024 — here are the highlights.
Why is Germany's economy so good? ›Germany has the world's fourth-largest economy. It is unique for its combination of a thriving culture of innovation, a focus on exports and a robust SME sector. The Federal Government aims to create a social-environmental market economy in Germany.
Is finance in demand in Germany? ›Germany is not traditionally known as a finance hub, focusing more on biotech, physics, science, and mechanical engineering. This has caused a surge in demand for finance and IT professionals. We spoke with CA Vipin Arora, who moved to Berlin, Germany, 2017 to join Springer Nature as a Director-Contract Compliance.
How is the finance sector in Germany? ›The German financial sector is an internationally recognised, attractive market with a very good financial infrastructure and an AAA rating.
Which finance course is best in Germany? ›- Business Finance.
- Compliance.
- Corporate Finance.
- Finance and Banking.
- Finance and Economics.
- Financial Analysis.
- Financial Engineering.
- Financial Law.
With a gross domestic product (GDP) of 4.121 billion euros in 2023, Germany is the third-largest economy in the world after the United States and China, and thus also the largest economy in Europe.
Which country is best for finance jobs? ›Countries with high demands for finance jobs include Germany, the United Kingdom, Hong Kong, Canada, and Japan. Which job has the highest salary in finance? Some jobs with the highest salary in finance include Investment Banker, Financial Analyst, Private-Equity Associate, Management Analyst, and so on.
Is Germany a good country to make money? ›Germany is also one of the countries with high salaries and low cost of living, making it one of the best countries to save money.
Which European country is best for finance? ›Which European country is best for finance jobs? While the United Kingdom is a top destination for finance careers in Europe, other countries like Switzerland, Germany, and Luxembourg also offer lucrative opportunities in finance, each with its own unique strengths and financial sectors.