How to Open a Free Bank Account in Germany, specially if you are an International, can be a difficult question to answer. However The process of opening a Bank Account in Germany is Quite Simple.
You just need to find a suitable bank in Germany and the type of account you want to open with them. Fill out a form either online or in a Branch. Then verify your Identity using a Valid ID document. For ID verification you again have both options of online and in person verification and thats it.
However this is Easier said than done. As you need to know many things before you can choose a bank to Open a free account with.
Open a Free Bank Account in Germany
Types of Bank Accounts in Germany
The most common type of Bank account in Germany is the Checking account or Girokonto. Often when we say a bank account, most poeple usually refer to this type of bank account.
Checking Account in Germany
Think of this checking account as your virtual wallet. This is where your boss sends your hard-earned cash. From here, you can do lots of things – like pay your bills, swipe your card for shopping, or even grab some cash from the ATM. So essentially this is the go to bank account type that Everyone has.
Savings Bank Account in Germany
Then we have the Tagesgeld konto or the Savings Account. To open a Savings account you need a checking account first. As the checking account serves as a reference account and is necessary for transactions. The main differences between the tagesgeldkonto and the girokonto are that
- Direct transfers from the Savings account to another Savings account are not possible.
- These accounts also pay more interest compared to Checking accounts.
- and There is no Direct debits option available with Savings accounts.
What is Direct Debit?
Direct Debit is one of the most important feature of the checking account. A direct debit is basically an instruction to the bank through which you allow a company or organization to withdraw different amounts from your account. This is how you pay for your electricity bill, internet connection and many other things in Germany
Fixed deposit Bank account in Germany
As the name suggests, Fixed deposit accounts are for long-term, deposits. Picture a fixed-term deposit like a secret vault for your money. You agree to lock it away for a set amount of time, and in return, the bank pays you interest. The cool part? They promise the interest rate won’t change during that time.
So, when you sign up, you already know exactly how much extra cash you’ll have when the investment period ends.
Generally the lock in periods are of 6, 12, 24 and 36 months. These accounts are used by people who have some extra money that they wont be needing for a fixed amount of time.
Securities Account
This is a special kind of bank account , where you do not save or store money. Instead you store your Stocks and ETFs.
So If you want to invest in securities such as stocks or ETFs, you need a Securites Account or a Depotkonto. Most banks or brokers that offer a securites account almost always included ETFs, stocks and funds . Derivatives, bonds and crypto are also often offered by some.
The securities account is linked to a clearing account. In order to buy stocks and ETFs you add funds to the clearing account from your checking account. Any profit from sales and distributions is sent to the clearing account which you can withdraw to your checking account. I have a detailed video on how to buy stocks and etfs here.
Requirements to Open a bank Account in Germany
Almost every bank In Germany needs you to be a Resident of Germany with a Valid Address. So if aren’t in Germany, you would not be able to open a bank account. At least in most normal cases. And for newcomers some banks will also ask for your city registration, so be sure to keep that in mind.
Visa Requirement for Bank Account in Germany
Then we have the visa and Passport situation. You need a Valid visa to open a bank account in Germany, be it a Student visa, Blue Card, Dependent visa or even Permanent Residence. That being said, due to international regulations, some banks might refuse to open a Bank account based on your Passport. It is an unfortunate thing but it does happen.
Other Requirements
Other Requirements include a Valid phone number, this is necessary for most online banks. Some need a Valid European Number while others only work if you have a German Phone number. Tax ID number is also required and some banks also require your job status.
This status requirement leads us to the Biggest reason for a Bank Rejecting to open a bank account in Germany.
Reasons for Bank Account Rejection in Germany
The Biggest reason for a Bank Rejecting to open a bank account in Germany is your Credit Score.
SCHUFA Holding AG is a company that collects information about you as a consumer from various sources, such as utility suppliers, banks, and internet providers. They keep track of your bills and fines over time and use this data, along with their own algorithm, to create a credit score for all German residents.
Having 97% Schufa Score is Very good and 95% Credit Score is considered good. However, if you are new to Germany or have never had any contracts or bank accounts in Germany, your SCHUFA record might not exist.
So when you try to open an account with Some banks in Germany, they check your SCHUFA score. And as I just mentioned some people might not have a single Entry or in a few cases have a weak Schufa Score. This leads to a quick rejection from the Bank. That said, not every bank checks for a SCHUFA Score, and some of the ones who do check it, still open an account even if your SCHUFA record doesn’t even exist.
Best Customer For Banks in Germany
One of the best customer types for banks to open an account for is someone who is an employee in a company with a regular pay check coming every month. But what about Students or People on Dependent visas like Spouses? Ill talk about those cases too.
Important Features of Free Bank Account in Germany
Lets Talk about the Most important Features you should look into when selecting a Checking account. To make things more practical Let me share 7 Banks and compare the important features you should look for The banks are:
- C24 bank ( View Detailed Guide on C24 Bank )
- Commerzbank
- Consorsbank
- Comdirect ( View Detailed Guide on Comdirect Bank )
- DKB ( View Detailed Guide on DKB )
- Norisbank
- Revolut
Account Management Fee
This is probably the Most Important Feature to Look for in a Bank Account in Germany. With the recent interest rates, there is no point for a bank to charge Account management Fees specially for a checking account which doesn’t pay any interest.
However this is not true for many banks. Even some of the Free Bank Account I am comparing aren’t unconditionally free. For Example
| Bank | Account Management Fee |
|---|---|
| C24 | Free ( Without Conditions) |
| Commerzbank | Free with Min. Monthly inflow of €700/mo |
| Consorsbank | Free for Younger than 28 y.o. or Free with Min. Monthly inflow of €700/mo |
| Comdirect | Free for Younger than 28 y.o. or Free with Min. Monthly inflow of €700/mo |
| DKB | Free for Younger than 28 y.o. or Free with Min. Monthly inflow of €700/mo |
| Norisbank | Free with Min. Monthly inflow of €500/mo |
| Revolut | Free ( Without Conditions) |
Location
Banks can be categorized as either traditional brick-and-mortar banks with physical branches or online banks without physical locations. Traditional banks have in-person services at physical branches, while online banks operate exclusively through digital platforms.
The choice between the two depends on your individual preferences and banking needs. Some people prefer to go to banks, some just want everything to be done online. Personally, I have only been to the physical brank of my bank just two times in the last 8 years.
| Bank | Location |
|---|---|
| C24 | Online |
| Commerzbank | With Physical Branches |
| Consorsbank | Online |
| Comdirect | Online |
| DKB | Online |
| Norisbank | Online |
| Revolut | Online |
Cash Withdrawal
Cash Withdrawal is still relevant in Germany. Even though many places accept various types of cards you still need cash some times.
| Bank | Cash Withdrawal |
|---|---|
| C24 | 2 Times / mo , 4Times for Active Users At over 1200 Partners |
| Commerzbank | Unlimited Cash Withdrawals in Cashgroup ATMS |
| Consorsbank | Unlimited €50 or More withdrawals in Europe with VISA ATMs |
| Comdirect | 3 Times Free Withdrawals worldwide with VISA ATMs |
| DKB | Free Unlimited Withdrawals in EU with VISA ATMs |
| Norisbank | Unlimited Cash Withdrawals in Cashgroup ATMS |
| Revolut | 200€/mo or 5 Withdrawals |
Cards offered by Free Bank Accounts
Free Banks in Germany offer various types of Cards. From Free Debit Cards to Giro Cards and Even Virtual Debit Cards.
| Bank | Cards Offered |
|---|---|
| C24 | Free Mastercard Debit Card |
| Commerzbank | Free Giro Card + Virtual Free Mastercard Debit Card |
| Consorsbank | Free VISA Debit Card |
| Comdirect | Free VISA Debit Card |
| DKB | Free VISA Debit Card |
| Norisbank | Free Giro Card + Free Mastercard Debit Card |
| Revolut | Free Virtual Visa/Mastercard Physical Card (with 7.99€ fee) |
Free Bank Account for Spouses in Germany
As I mentioned there are options for Regular Employees and Students, what about Spouses ? Well one thing you could do is try to open an account with any of the banks I mentioned.
If you select a bank that has a minimum incoming requirement. Your spouse can always make a 700€ transfer each month. This minimum amount doesnt have to come from an employer. This can let you open and keep you bank account in Germany free of charge.
Which Free Bank Account in Germany do I prefer?
Well I prefer and Actively use the DKB account, that being said they have an extrelemy high rejection rate, specially with Internationals. So I would recommend looking into C24 bank.
They have an unconditional free bank account and offer a free mastercard debit card which is quite amazing. But there are certain conditions where having a debit card isn’t enough and a credit card is needed. You can checkout my favourite Free Credit Card. You can also see many other Free Credit Cards in Germany in the Credit Cards Section.
Disclaimer: None of the content in this article is meant to be considered as investment advice, as I am not a financial expert and am only sharing my experience with stock investing. The information is based on my own research and is only accurate at the time of posting this article but may not be accurate at the time you are reading it.