Banking and financial services in Germany: Major banks: Deutsche Bank, Commerzbank, KfW. Banking hours: Generally 09:00 to 16:00. Common accounts: Girokonto (current), Tagesgeldkonto (savings). ATM network: Widespread, known as Geldautomat. Cash usage: Still prevalent despite digital trends. Debit cards: EC-Karte, widely accepted. Online banking: Popular and secure. Required documents: ID, proof of address. Credit score: Schufa, crucial for loans. Financial advice: Independent advisors available.
Major banks: Deutsche Bank, Commerzbank, KfW.
Founded in 1870, Deutsche Bank stands as Germany's leading financial institution with a robust global network, catering to corporations, governments, institutional investors, and private individuals through its diverse divisions: Corporate Bank, Investment Bank, Private Bank, and Asset Management. It aspires to reinforce its stature as the Global Hausbank while advocating for a sustainable and climate-neutral business environment. Similarly, Commerzbank excels as the premier bank for the German Mittelstand, instrumental in cross-border support, and managing assets upwards of EUR400 billion, providing essential services through its brands Commerzbank and comdirect. Meanwhile, KfW (Kreditanstalt fur Wiederaufbau), a state-owned development bank, emphasizes financing projects focused on sustainable development, environmental conservation, and social accountability, supporting SMEs, infrastructure developments, and international initiatives.
Banking hours: Generally 09:00 to 16:00.
Banking hours in Germany are generally from around 8:30-9:30 AM to 4:30-5:30 PM, Monday to Friday, though some smaller branches may have shorter hours or close at lunchtime. For more specific information on finding banks with convenient hours, you might want to explore the University Of Stuttgart's Banking Guide, which offers insights tailored to international students navigating banking in Germany.
Common accounts: Girokonto (current), Tagesgeldkonto (savings).
In Germany, the Girokonto (current account) is utilized for everyday transactions, receiving income, and paying bills, whereas the Tagesgeldkonto (savings account) serves as a flexible savings option allowing instant access to funds and earning interest. Notably, this savings account imposes no fixed contract period or account maintenance fees, making it a convenient choice for individuals looking to manage their finances efficiently. For more detailed insights on these financial instruments, you can visit Simple Germany, an informative resource for understanding the nuances of banking in Germany.
ATM network: Widespread, known as Geldautomat.
Germany boasts a widespread ATM network, known locally as "Geldautomat" or "Bankautomat," with approximately 95,000 ATMs. These machines are operated by major banks, foreign banks, and independent ATM operators, and they accept major card networks, including Visa, MasterCard, and American Express. For travelers seeking detailed information about ATM fees, limits, and helpful tips for using these machines, the ATM Fee Saver website offers comprehensive guidance for navigating Germany's financial landscape with ease and efficiency.
Cash usage: Still prevalent despite digital trends.
In Germany, Cash remains the dominant payment method, used for 58% of purchases and accounting for around 172 billion euros in spending, despite a rise in digital payment options. Cash usage persists due to factors such as personal preference, ease of use, and the importance of Cashback Services, with a significant portion of the population continuing to use cash alongside digital payment methods.
Debit cards: EC-Karte, widely accepted.
The EC-Karte, also known as the Girocard, is a widely accepted debit card in Germany, linked directly to the user's bank account, allowing for cash withdrawals and cashless payments. While it enjoys high acceptance within Germany, its usefulness is limited internationally due to high fees and restricted network acceptance abroad. For more detailed information on this payment method, you can visit the Lingoda Blog.
Online banking: Popular and secure.
Online banking in Germany, particularly through digital banks like N26, is both popular and secure. N26, operating with a full German banking license, ensures funds are protected up to EUR100,000 by the German Deposit Protection Scheme and employs advanced security measures such as 3D Secure, Mastercard Identity Check, and biometric recognition.
Required documents: ID, proof of address.
To open a bank account in Germany, you need a valid passport or German ID, proof of address (such as a utility bill or rental agreement), and proof of income or financial statements. For non-residents and foreigners, additional documents like a valid visa or residence permit are also required. If you're interested in more detailed information, you can visit the guide on the process of opening a Bank Account in Germany, which provides comprehensive insights and helpful tips for both residents and non-residents.
Credit score: Schufa, crucial for loans.
In Germany, the Schufa Credit Score, calculated by Schufa Holding AG, is crucial for assessing creditworthiness and is used by banks, landlords, and other institutions to determine the likelihood of meeting financial obligations. The score ranges from 100 to 600, with lower scores indicating a lower risk of default, and is influenced by payment history, loan repayments, and other financial behaviors. For more detailed insights into how this scoring system operates, you can visit the N26 Blog, which offers a comprehensive explanation and additional resources on managing credit scores effectively.
Financial advice: Independent advisors available.
Independent financial advisors in Germany, such as FragFina, provide expats with holistic and transparent advice on insurance, investments, and other financial matters, tailored to individual needs and free from the influence of product providers. Similarly, Dr. Schlemann and Patrick Mini emphasize client interests by offering independent advice to expatriates, focusing on areas like insurance, investments, and pension planning without additional brokerage fees. CR&Cie also specializes in providing independent financial advice to expats, offering a comprehensive approach to insurance, investment, mortgage, and pension planning with access to a broad range of financial products and services.