How Expats Can Open Both Traditional and Online Mobile Bank Accounts in Germany
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Opening a bank account in the country you’re moving to, like Germany, is one of the steps to feeling like you truly belong there. However, dealing with banks is typically one of the most expensive parts of living abroad. ATM fees, international transaction fees, and the hassle of talking to customer service when there are problems can cause serious headaches when trying to enjoy life in another country.
There are many options for you to choose from. Traditional bank accounts in your new country of residence can be a safe and secure option, but not always the right fit. As we have experienced firsthand, German traditional banks charge a lot of fees to their clients. Thankfully, there are other options out there, such as online-only banks like N26, but more on that later. First, let’s cover the basics of setting up a bank account in Germany.
Opening A Traditional Bank Account in Germany
Some of the largest consumer banks in Germany are Deutsche Bank, Postbank, Commerzbank, Sparkasse, and Volksbank. While they may differ in some small ways, once you look past all the marketing, they basically offer the same standard set of services and experiences. To give you an idea of the process required to sign up with a traditional German bank, let’s take a closer look at Deutsche Bank. Not to be confused with the central bank of Germany — the Deutsche Bundesbank, Deutsche Bank is the largest bank in Germany and has a reach all over the country and around the world. For those reasons, it’s certainly a popular option for both German citizens domestic and abroad and foreigners that have established residency in Germany.
In order to open a bank account with large central banks such as Deutsche Bank, there are, as always, some specific conditions. The Deutsche Bank requires a proof of address and a German tax ID. Expats living in Germany must register themselves at an address within 14 days of moving to a new residence. This process takes place at your local citizen’s office (Bürgeramt) and, due to the rarity of meeting German government officials that speak English, it’s likely necessary to bring a German speaker with you. For your visit to the Bürgeramt, you will need to bring the following documents:
- Passport or German ID
- A Proof of Residence Certificate from your landlord. A rental contract is not accepted in place of this. Landlords are bound by German law to provide the Certificate upon renting.
- Visa (if applicable)
- Marriage certificate (if applicable)
After your appointment, your proof of residence and tax ID will be mailed in 2–3 weeks. These documents will be necessary for all bureaucratic appointments and are required for long-stay in Germany, so be sure to keep them somewhere safe!
Beyond the government appointments, your identity needs to be verified for the bank. Of course, your passport will be required for any sort of bank registration. It’s common to set up an in-person meeting at the bank to show all of your documents and sign any final paperwork, but there are also some newer online options that may help you to verify your identity remotely if the banks will allow you to use them. VideoIdent is a government-approved identity verification process that is completely online, yet is only available for EU citizens. PostIdent, on the other hand, is an in-person identity verification service that is free of charge at any Deutsche Post branch.
If you decide to open a Deutsche Bank account, you can be sure that your banking experience will be fine in most regards and your money will be secure. However, many former customers of Deutsche Bank have had some headaches that have resulted from dealing with the bank.
Hardships of Maintaining A Deutsche Bank Account
Like the experience of dealing with many banks around the world, there isn’t always a happy relationship. David McNeill, our founder here at Expat Empire, was recommended Deutsche Bank by his former employer while in Berlin. After jumping through the bureaucratic hurdles, he found that ATMs serving the bank were few and far between and, even more annoying, fees were steep. He wrote about his experiences with escalating fees in Germany in our blog, 7 Tactics to Avoid Paying 1,000+ EUR in Fees in Germany. Since Germany is a cash culture, withdrawing cash from ATMs is commonplace and, in many cases, necessary.
Have you found yourself searching for an ATM to avoid the fees? Deutsche Bank is served in ATMs by CashGroup, a group which controls only 15% of ATMs in Germany. Cash withdrawn at all other ATMs in Germany incurs a fee of 6€ or 1% of the transaction value, whichever is larger. In order to keep these expensive transactions from taking a big chunk of his wallet, David found himself planning his day around finding the right ATM.
Deutsche Bank also charges a monthly fee for its most basic account, the AktivKonto. It is 6.90€ per month for using the account and a low account balance, such as the 0€ balance in David’s inactive Deutsche Bank account, will incur a 5€ per month. Resolving this issue involved a lengthy in-person bank visit which was prolonged due to most bank employees speaking only German. Due to all of these expenses and issues, David and many of his friends and coworkers have since moved their money to more technologically-advanced banks that don’t charge these annoying fees.
Online Mobile Bank Account Options
Digital banks are proving themselves to be far more adaptable to the wants and needs of expats and digital nomads. Have you ever wondered why you still have to visit a branch to make an update to your bank account details? N26 is one such bank that minimizes the need for bureaucratic pencil-pushing. N26 provides a debit card that functions the same in any traditional banks and enables contactless payments. All payments used on their MasterCard worldwide don’t incur international transaction fees. Certain plans also have insurance attached and deposit protection. N26 also has a built-in Wise integration, so that transferring money between currencies and bank accounts is quick and easy. Best of all, N26 allows you to verify your identity online during the signup process so that you can get your bank card as quickly as possible.
David switched from Deutsche Bank to N26 since it has fantastic customer service reviews. He has only had great experiences with the app and rarely needs to contact customer support because nearly everything can be handled within the web or mobile app interfaces. The N26 Standard account has no fees and up to 3 ATM withdrawals per month, while the N26 Smart (4.90€), N26 You (9.90€), and N26 Metal (16.90€) account plans have increased withdrawal limits and even more enticing benefits (European Union country pricing as of January 2021).
Even better, N26 isn’t open to only people living in Germany! It is also available to most people living throughout the European Union as well as countries such as the United States, United Kingdom, and Brazil. If you’re interested in opening an account with N26, apply for your account today and start living your life free from the stress of dealing with traditional brick-and-mortar banks.
Tell Your Story!
Have you had any headache-inducing experiences dealing with banks in Germany? Have any further recommendations about online-only banks? Want to leave some tips for fellow expats and travelers? Leave a comment on this post below. If you’d like to share your story about travel struggles and accomplishments, write it up and get it featured on our blog!
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Originally published at https://expatempire.com on February 3, 2021.
