Best Bank Accounts in Germany

What bank account types are there in Germany?

There are many types of bank account options available in Germany. As an Expat you will come across many types: Giro-, Tagesgeld-, and Festgeldkonto. In plain English “Current Account”, “Savings Account” and “Fixed Deposit Account”.

The easiest and fastest way for an Expat in Germany would be to open a Current account. This too can be problematic as most expats in Germany do not have a credit rating (SCHUFA Score) when they arrive. Without this rating many banks can refuse to open an account.

What is a Girokonto?

The Girokonto or checking account is like the superstar of bank accounts—everyone loves it because it’s perfect for your everyday expenses! You can access your money whenever you need it to cover your daily payments and keep things running smoothly. Current accounts come with a bunch of handy services to make your life easier.

While traditional branch banks may charge fees for managing your account, direct banks offer the great advantage of free checking accounts. However, since you have such flexible access to your funds, don’t expect to earn any interest on them. So, it’s not the best choice for your long-term savings or emergency funds. Keep your nest egg somewhere else!

What is a Tagesgeldkonto?

What is a Festgeldkonto?

When it comes to investing your money for the short to medium term, you encounter a little challenge. The time frame is too short for stocks, and traditional checking or overnight deposit accounts offer measly interest rates at best. But fear not, because there’s a cool alternative: the Fixed Deposit Account!

Here’s how it works: the longer you keep your money locked in, the more interest you’ll earn. Sure, the interest rates may not be mind-blowing, but they’re better than what you’d get on a regular checking or overnight deposit account.

Just keep in mind, with a time deposit account, you won’t be able to touch your money until the agreed-upon time has passed. So, it’s important to know exactly how long you want to invest your money. But hey, the upside is juicy interest rates waiting for you as a reward.

So, if you’re looking for a smart way to grow your money in the short to medium term, consider the time deposit account. It’s like a little time capsule for your cash, and when the time is right, you’ll reap the benefits of higher interest rates.

Learn: How to Open a Free Bank Account in Germany

Frequently Asked Questions

Which bank account should I open in Germany?

You should have a checking account for everyday expenses. If you want to save, you can open a savings or fixed-term deposit account.

What types of Bank Accounts are there in Germany?

There are many types of bank account options available in Germany. As an Expat you will come across many types: Giro-, Tagesgeld-, and Festgeldkonto. In plain English “Current Account”, “Savings Account” and “Fixed Deposit Account”.