Account
If you intend to stay in Germany for a longer period of time, it makes sense to open an account. It is absolutely necessary if you want to take up employment. Reputable employers will not pay you in cash, but will transfer your salary to your account. Financial aid, e.g. during your studies, is also paid into an account.
You must transfer regularly recurring payments such as rent or health insurance contributions from your account as a standing order or allow them to be debited. An account is usually also required for one-off payments.
A basic account includes the following services:
- Cash deposits and withdrawals
- card payments
- bank transfers
- direct debits
- Online banking, if this is part of the bank's general offering.
The bank may charge reasonable account management fees.
To open an account, you will need valid identity documents and proof from the residents' registration office. In addition, information on your reason for residence and a work permit may be required.
German banks may reject your account application. Especially if you have only been in Germany for a short time, it is likely that your application will be rejected if the bank does not have enough information about your income.
Students must fulfill special conditions by opening a blocked account.
Account management
You will receive access data for online banking, which you can use to view and manage your account. You will receive an up-to-date overview of deposits and withdrawals and can also make transfers from your computer.
To verify your entries, enter individually requested number combinations from your TAN list. Sometimes you can coordinate TAN requests via your cell phone.
Monthly financial reports summarize all account transactions for you. Even if you do not use online banking, you can receive a summary of your payment transactions. You can obtain account statements from the relevant machines.
Depending on the agreement, you can receive various cards from your financial institution. The customer card enables you to collect cash from the branch and account statements from the ATM. A customer card does not entitle you to make cashless payments, for this you need a giro card, also known as an EC card.
The EC card is valid in combination with your signature, so a comparative identity document may be required. As an alternative to a signature, enter your personal identification number (PIN) during the payment process.
If you use a debit card with a money chip, you can load it with cash and then pay smaller amounts, e.g. at streetcar ticket counters or similar machines. Sometimes you already have a modified NFC chip with which you can make contactless payments.
If you use a credit card, you can make cashless payments at all of the credit card company's contractual partners worldwide, just like with a debit card. A credit card is therefore particularly useful when traveling abroad.
You can also use it to withdraw cash from ATMs in Germany. However, very high fees are sometimes charged.
Termination
You can terminate your account at any time without giving reasons and free of charge. If your bank has agreed a notice period with you, this must not exceed one month.
You should ensure that all current payment transactions are transferred to a new account in good time.
If a financial institution wishes to close your account, it must give you a reasonable notice period of at least 2 months. Termination without notice is only permitted in the event of gross misconduct, e.g. false identity information. If you have used more money than was deposited in your account, this is not a reason for termination without notice.