Banking

You will need a German IBAN to receive your salary, pay your rent and set up direct debits (Lastschrift) for everything from internet to gym membership. The good news: opening a basic account is easier than it used to be. The less-good news: Germany still loves paper, queues and the occasional fax.

Types of bank you can choose from

• Traditional banks with branches — Deutsche Bank, Commerzbank, Postbank, and the local savings bank Stadtsparkasse Düsseldorf. Useful if you want to walk into a building and talk to a person. Monthly fees are common.
• Direct banks — DKB, ING and Comdirect. No branches, free or cheap accounts, full German IBAN. Most paperwork happens online.
• Mobile / neobanks — N26, Revolut and similar. Quick to open, English-friendly, app-first. Some landlords and employers still raise an eyebrow at non-traditional IBANs, but this is fading.

What banks want to see

For an ordinary current account (Girokonto):

• Passport or national ID.
• Anmeldung (Meldebescheinigung).
• A German residence address.
• A tax ID, if you already have one. If you do not, banks will still open the account and request it later.
• For a credit card or overdraft: a SCHUFA check.

SCHUFA in one paragraph

SCHUFA is Germany's main credit-scoring agency. Banks, landlords and mobile phone providers check it before signing you up. As a newcomer you start with no SCHUFA record, which is neutral rather than bad. After a few months of paying rent and bills on time you will have a normal score. You can request one free SCHUFA self-disclosure (Datenkopie) per year — a copy of this is often what landlords actually want when they ask for "SCHUFA".

Identification methods

To open an account online, you will go through one of three identity checks:

• VideoIdent — a video call with an agent who checks your passport on camera. Fast, but only works with certain documents and certain nationalities.
• PostIdent — you print a form and bring it, with your passport, to a Deutsche Post branch. Slower but rock solid.
• eID — the chip in a German residence permit or ID card, used with the AusweisApp. Once it works, it is wonderful.

Cash, cards, and Apple Pay

Düsseldorf is more card-friendly than it was a decade ago, but the cash-only café still exists, especially in the Altstadt. Carry €20–50 in cash, especially for bakeries, small bars and some doctors' offices. Most chains, supermarkets and restaurants now accept contactless cards and phone payments without fuss, but check at the door if you are unsure.

Sending money out of Germany

SEPA transfers within the eurozone are free or nearly so. For non-euro transfers, dedicated services such as Wise and Revolut typically give you better rates than a traditional bank counter. Compare before sending large amounts — a single transfer can save you more than a month of bank fees.

The IBAN, decoded

A German IBAN has 22 characters: country code (DE), two check digits, an 8-digit bank code (Bankleitzahl), and a 10-digit account number. Once you have your IBAN you rarely need to think about the parts — just paste the whole thing into a transfer field. Account number alone is no longer enough; SEPA transfers always go by IBAN.

SEPA, Lastschrift and Dauerauftrag

Three building blocks run most of your domestic money flows.

Überweisung

A one-off bank transfer you initiate. Free inside the SEPA area, usually arrives same-day or next-day.

Lastschrift / SEPA-Lastschrift

A direct debit that you authorise a provider to pull on agreed dates. You can reverse one within eight weeks no questions asked — useful if a gym keeps billing you after you cancelled.

Dauerauftrag

A standing order you set up yourself on a fixed schedule (rent, savings transfers). You control it, not the recipient.

For your rent, Dauerauftrag is by far the safest default. For utilities, mobile and gyms, Lastschrift is normal and convenient as long as you read the statement once a month.

Savings: Tagesgeld, Festgeld and beyond

• Tagesgeldkonto — an instant-access savings account. Interest is paid monthly or quarterly. Online direct banks beat traditional banks comfortably on rates.
• Festgeldkonto — you lock money in for a fixed term (3 months to several years) at a higher rate.
• Depot — a brokerage account for ETFs, shares and bonds. ING, DKB, comdirect, Trade Republic, Scalable and others compete on fees.
• Bausparvertrag — a hybrid savings/loan product tied to buying property. Sold heavily; not always the best deal.

Interest in savings accounts is taxable above the annual Sparerpauschbetrag. You sign a Freistellungsauftrag at your bank to use the allowance automatically.

Closing an account, leaving Germany

If you leave Germany, do not just stop using the account — you may keep accruing fees and a small unpaid balance can be sold to a debt collector. Close it formally in writing, set up a forwarding address for the final statement, and provide an IBAN abroad for any remaining balance. Some banks insist on a closure form returned by post; some accept email.

Keep at least one piece of evidence of closure for your records. If the bank ever surfaces a claim, it is much easier to disprove with the original confirmation than to dig it up later.

A practical bank comparison

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