To open a German bank account is the first and the most important step that comes to your mind when you step foot on the German grounds. You need to arrange utilities and finances for a new home, basic groceries, a mobile connection and German insurance. All this can only be made possible only if you have a German bank account.
Once you are in Germany and are all set to make your new bank account with the necessary funds, you would want to do some research as to where you want to open your bank account. A thing about Germany is that it has more banks than heads in the country so you definitely have a wide variety to choose from. For the starters, the German banking system is made of 3 main pillars that are –
- Private Commercial Banks
- Public Savings Banks
- Cooperative Banks
The Deutsche Bundesbank is the National Central Bank of Germany whereas the Federal Financial Supervisory Authority is the regulator of the country’s banking and financing services.
Types of Accounts in German Banks
Current Account (Girokonto)
A current account in Germany is some what like a basic account. With this account, you can receive payments and salaries and pay off bills. A lot of banks in Germany offer general current accounts and special current accounts for students and youngsters.
Savings Accounts (Sparkonto)
A Sparkonto account is usually opened alongside a Girokonto account because that allows you to save money and earn interest on it. Interest rates in Germany are way lower than interest rates in most other countries but saving an extra buck is always beneficial!
How to Open a Bank Account
German banking laws are pretty strict when it comes to admiting a new bank account holder. While most of the EU nationals will have absolutely no problem with getting a bank account, a non-EU national is going to face a few hardships. Non- EU nationals have to prove their registration by producing a German Work Permit. If you do not have a financial history in Germany, you might have to struggle a little in order to get somewhere with a bank account. If you are new to Germany, it is always advisable to personally head to the German bank branch and present your documentation.
The documentation includes: –
- A valid passport/ photo id with German Residence Permit.
- Address proof.
- Evidence of Income and financial history in Germany.
- Proof that you are a student if you are opening a student account such as college id.
- SCHUFA credit rating.
To add on to this, you must prove your identity online or at a post office nearby.
Setting up life in Germany from scratch can be a task but once you have these banking guidelines in hand, it gets super easy at least when it comes to financing. We hope you have got an idea of how the German Banking System works and what you need to do in order to open a German bank account.
Read more about top job websites in Germany here.