German banks can be broadly classified into four categories: private commercial banks (also known as private Geschäftsbanken), Sparkassen or savings banks, Kreditgenossenschaften or credit cooperatives and the Postbank. As a regular banking individual the differences between the categories is usually of little relevance. The most standard type of bank account, known as the Girokonto (konto = account) follows the regulations relevant to any standard checking or current account.
Setting up a bank account in Germany would most likely be high on your priority list of things to do once you arrive, if you are to stay for a longer period in the country as an expatriate. The processes involved are fairly simple and similar to standard procedures followed elsewhere. The documents/things imperative to opening the account are your passport and the money to be initially deposited. A cash deposit leads to instant opening of your account while a funds transfer from your account back home will often take longer till the amount is credited. You may also need an Anmeldebestätigung – the proof of a German address in certain cases.
The fees for various services offered with a Giro account differ across banks. Students are eligible for a bank fee waiver. A comparison between banks often yields results indicating differences in the interest rates offered by saving accounts.
For most transactions, once your bank account is active, you will be using what is called an EC-Karte, issued by the bank. This is the equivalent of an ATM card used for cash withdrawals from the automated teller machines – ATM, referred to as a Geldautomat in Germany. The EC Karte can also be swiped for payments at most supermarkets, shopping centres, gas stations and other stores, in which case you will be required to validate the transaction by either entering your 4 digit PIN number or with a signature. Some EC cards have both a magnetic strip at the back and a chip on the front. The chip is rechargeable with sums up to 200€ and the card can subsequently be used like a cash card for small transactions in selected stores/outlets. Getting account statements and using it at special terminals in banks for particular transactions are among its other uses.
Apart from the banks themselves, several stores, railway stations, shopping malls, pedestrian zones and commercial streets have ATM machines (Geldautomat) marked distinctly with large ‘EC’ signboards. Withdrawing cash from the ATM of your own bank or sometimes even another bank belonging to the same group, is mostly free of charge across Germany and some neighbouring countries. Getting cash with your EC card from a different bank is often charged. The charges levied usually vary between 1€ and 10€ and could be a percentage of the sum withdrawn or a flat rate.
Credit cards are also gradually gaining popularity in Germany. You can use them against cash advances at a select few international bank ATMs, for payments in some shops, hotels & telecom service stores or to purchase train/flight tickets both on and offline. Having said that, it is recommended that you check regarding the acceptability of credit cards well in advance.
Germany has many
bank- and credit institutes. Here are somy examples:
Bank Institutes
Credit Institutes