Things to Know About Banking in Germany


Written by Germany Simplified

December 17, 2020

Know everything about Banking in Germany. Germany has a three-pillar banking system which consist of private banks, public banks and co-operative banks. Alongside all these banks, Germany also has international banks for foreigners to exchange money and to promote globalisation to the fullest. Germany is also doing very well in the internet banking field and has online banks too since technology has advanced so much. These are a gist of banks that the German banking system comprises of. In this article you will read about all the things to know about banking in Germany.

In Germany, there are a lot of small regional banks. This helps ease money transactions since everybody prefers a bank that is in their locality. However, Germany does not have many centralised banks. There are only a few centralised banks that Germany has a part of the coveted banking system of the country. The Deutsche Bundesbank is the central bank of Germany and handles cash flow centrally. The German bank regulatory authority is the Federal Financial Supervisory Authority which comes above the German central bank in the banking system hierarchy in Germany.

Currency in Germany

The German currency back until 2002 was the Deutsche Mark and since then it changed to Euros. Currently, the currency predominant in 19 EU states is the Euro. Euro is placed at 1. 21 against the American dollar and 0.91 against the British Pound in the year 2020.

Germany has notes of 5 Euros, 10 Euros, 50 Euros, 100 Euros, 200 Euros and 500 Euros. Whereas, they have coins for 5, 10, 20 and 50 cents. The Germans also have coins for 1 Euro and 2 Euros.

This is important information to know if you are planning to head to Germany any time soon. Knowing the currency of a country is very important for exchanging money and making payments in the country and banking in Germany.

ATMs and Cash Machines in Germany

When you are in Germany, you can find an ATM almost everywhere. The German banking system is universally appreciated for their ATM machine procedures. They are present at grocery stores, banks, shopping malls, train stations and on the streets. You can find an ATM in Germany whenever and where ever you feel the need to withdraw money.

Using an ATM machine in Germany is usually free but you will be charged a fee of about 5-10 Euros if you are using an ATM machine of a different bank. There are a few German banks which have tied up with each other for fee-free transactions. This means, you will not be charged a fee if you withdraw money from a certain bank ATM which has a tie up with your bank. You must check with your bank about the tie ups they have for saving money on your withdrawals.

Payment methods in Germany

The German banking system has a variety of payment methods it offers. These options have come into play to make transactions easier for the Germans. A few of these payments methods in Germany are: –


Germans love to use cash as a way to pay their bills. They use cash as a mode of payment most of the times at bars and cafes. For small transactions they are always up for paying by cash instead of using any other mode of payment. You can use other modes of payment as a foreigner since they will have card machines and other paying options at public places. However, Germans usually choose to pay by cash everywhere they go. A research by the Deutsche Federal bank states that around 75% of Germany’s total payments are made by cash only. Paying by cash makes up for most of Germany’s economic circle and therefore is a huge part of the banking in Germany.



Germans have two options when it comes to paying by cards in their elaborated German banking system. They can either pay by their debit card or their credit card. Although, debit card payments are way more popular than credit card payments in Germany. Germans can withdraw money at ATMs with their debit cards at any time as long as they have enough bank balance. Credit cards are more popular for online shopping, buying electronic gadgets and making huge payments. The fees for credit card payments vary from bank to bank and year to year. Credit card bills can also be paid at the end of the month or on quarter basis in Germany.



Germans do not always pay by checks. According to a recent study, Germans do not make a lot of payments by check. This is because the banks in Germany have stopped issuing checks in the recent times. There are many places where check payments are still gladly accepted but the mode of payment has become rare and obsolete. If you have opened an account in a German bank, it is very unlikely of you to make payments by check since it is a tedious task. Although, checks are still an important part of banking in Germany.


Online Payments

Online Payments in Germany have bloomed in the recent years. With the advancements in technology, most Germans find online payments a more convenient and quick option to conduct transactions. If you have a smartphone and a bank account in Germany, you are eligible to make online payments wherever and to whoever you want. All you have to do is link your debit or credit card to your app. That’s it! You will know how to conduct banking in Germany.



Banking in Germany stands strong on the three pillars. However, there is a lot more to the German Banking System. After reading this article, you will know exactly how to make your payments in Germany with ease.

Read more about How to Open a German Bank Account. 




advertisement advertisement

Join us NOW


advertisement advertisement


You May Also Like…

Top 10 sports in Germany

Top 10 sports in Germany

Is there any country which loves sports more than Germany? We don’t think so. Germans just love sports and most of...


Submit a Comment

Before you leave...
Before you leave...

Stay updated on our blogs and new developments, all to support you. 

You have successfully submitted the information. Thank you.