How to choose the best bank in Germany

When changing countries, you first want to secure your finances by opening an account in the best bank. Banking in Germany is known for being flexible and reliable. However, with so many options out there, it can be difficult to choose the right one. To help you out, we have written this article so that you can choose the best bank in Germany.

How to find the best bank if you don’t speak German? You can right-click anywhere on the page of the bank with your mouse (if you are using Google Chrome). A dropdown menu will appear with the text: “translate this page to English”. This will make it easier for you to make the right choice.

Overview of banks in Germany

Banks	Specifications
	1 N26 is a fully digital bank, which means you can manage your finances from anywhere using their mobile app or website. You can open an account quickly, access your funds, make payments, and track your expenses on the go. This convenience is especially appealing if you prefer to do your banking online and want to avoid visiting physical branche – Great for expats	Visit n26.de
	1 DKB offers free banking services, including a free current account with no account management fees or minimum balance requirements. This can save you money on monthly fees compared to traditional banks. DKB provides a large network of free ATMs in Germany and abroad. You can withdraw cash without any additional fees at DKB ATMs and partner ATMs within Germany. For international travel, DKB reimburses fees charged by foreign ATMs, making it convenient and cost-effective to access your funds while abroad.	Visit Dkb.de
	1 Commerzbank is one of Germany’s largest and most established banks. It has a long history and a strong presence in the German banking sector. Choosing a well-established bank can provide you with confidence and stability in your banking services. Commerzbank has a wide branch and ATM network across Germany, making it convenient for in-person banking needs. If you prefer face-to-face interactions and need access to physical branches for services such as cash deposits or consultations, Commerzbank’s extensive network can be beneficial.	Visit Commerzbank.de
	1 Postbank has a vast network of branches and ATMs throughout Germany. If you prefer in-person banking services or need to deposit cash, having easy access to physical locations can be convenient. Additionally, Postbank is often present in post offices, making it accessible and convenient for many people. Postbank benefits from the strong postal infrastructure of Deutsche Post, Germany’s national postal service. This can provide added reliability and convenience when it comes to services like sending and receiving mail, accessing postal services, and conducting banking transactions.	Visit Postbank.de

Consider the type of bank account you want to open

Before choosing the traditional banks in Germany, you should explore your options and choose the right account. The following are the basic types of accounts:

Checking: In a checking account, you can keep the money you want to spend regularly.
Savings: A savings account stores money you don’t want to spend. You can use it to save for an emergency fund, a big trip, or a house.
CD: CD or certificates of deposits allows you to store your money for a pre-determined period, like 12-24 months, and lock in the interest rates for the term. You can use CDs if you don’t need quick money and don’t want to risk your rate changing later.
Money Market Account: this type of account is similar to a savings account. The only difference is that it makes accessing your money through paper checks or debit cards easier.

Look for extra banking services

Many people do not like to handle all their finances with the same neobank in Germany. If you want banking services other than saving your money, you should find banks that offer the following services:

Investment accounts.
Mortgages.
Credit cards.
Other loans.
Financial planning

Decide the additional services and features you want from your bank and select the best bank in Germany that caters to your needs.

Online banking or branch office

Take your time and reflect on how you want to use your banking services. Do you want to manage your funds through the mobile app or online banking, or you like to talk to your bank manager at the local branch? In the past few years, online banking in Germany has disrupted the banking system, and their English customer support makes it the best choice for expats. Another primary benefit of online banking is that opening an account is easy and fast.

Girocard or Credit Card: there are different types of cards you can opt for, such as:

Credit Cards: German credit cards work differently than other countries. They are also called charge credit cards, from which you will not have the ability to pay your debt on the credit card through monthly installations.

In Germany, your credit cards have a spending limit per month. The credit card’s expenses are detracted from your checking account once a month. The interest is quite high in German for overdrafts.

Prepaid Credit Cards

To make your prepaid credit cards functional, you will have to put money on the cards. In this case, the overdraft is not possible. Prepaid credit cards are an ideal option if you are on a budget or allowance.

Debit Cards

Germany has two types of debit cards. The most known and used debit card is the giro card, Maestro card, or EC Card. The giro card is linked directly to your checking account. Every payment you make will be detracted from the checking account. However, it is not a MasterCard, and you cannot use it for online transactions.

Another famous type of debit card in Germany is the Mastercard or visa debit card.

Consider The Account Fees

There are many free and best banks in Germany. New online banks mostly offer a free account, whereas most traditional branch banks charge monthly fees.

Cash Is Preferred in Germany

In Germany, the demand for cash payments is high. The population loves cash, and many restaurants and cafes accept cash as payment. 2018 was the only year where card payments were higher than cash payments. Due to the pandemic, many people are now accepting contactless payment options, but having cash in your wallet is necessary. This is why you should know whether your bank offers unlimited withdrawals. Since the accessibility of ATMs is lower in Germany, you should find a bank with ATMs across the country.

Conclusion

Many banks offer the same services and banking products. The differences lie in the special details and features of the products. Hence, reviewing the fees and terms before opening a bank account in Germany is necessary. Consider the bank that offers the most benefits based on your lifestyle and financial goals.

Banking In Germany