Opening a permanent German bank account (Girokonto)

Why you need a permanent account

Germany still relies heavily on bank transfers and direct debits rather than cheques. Your employer pays your salary to a German or SEPA IBAN, your landlord typically collects rent by direct debit or expects a standing order, and recurring bills for electricity, internet and insurance are usually paid by Lastschrift. A stable account also helps build your SCHUFA record, the credit-scoring system that landlords, mobile providers and lenders check before signing you up.

While a SEPA account from another EU country can technically receive your salary, in practice a German account avoids friction: some payroll systems, landlords and direct-debit setups still prefer or expect a German IBAN, and customer support is easier to access locally.

Neobank first, then upgrade

Many newcomers open a digital account with a neobank or app-based provider before or just after arriving, because these can be opened quickly with only a passport and sometimes without a registered German address. This gives you an IBAN to receive early payments and pay deposits.

Once you have your Anmeldung and Steuer-ID, it is often worth upgrading to, or adding, a more established account, whether a traditional bank, a direct (online) bank, or a full-featured neobank. Consider a bank that offers a positive SCHUFA report, reliable direct-debit handling, branch or cash access if you need it, and English-language service. Keeping the neobank as a secondary account is common.

How to open one: documents, fees, comparison

To open a standard Girokonto you typically need a valid passport or ID, your Meldebescheinigung (proof of registered address), your Steuer-ID, and sometimes proof of income or employment. Identity is verified either in a branch (PostIdent) or by video call (VideoIdent) for online banks. The process can take from a few minutes (digital banks) to a few days.

When comparing banks, look at the monthly account fee (some are free if a minimum salary is paid in, others charge a flat fee), card fees for debit and credit cards, charges for cash withdrawals at out-of-network ATMs, foreign-transaction fees if you travel, and the quality of the app and English support. Free basic accounts exist, but watch for conditions and for fees that apply once a promotional period ends.

Be aware of the Girokonto fee-transparency rules: banks must provide a standardised fee-information document, which makes side-by-side comparison easier. Everyone legally resident in the EU also has the right to a basic payment account (Basiskonto), which banks must offer even to people with no income or fixed home, though it may carry a fee.

Common expat pitfalls

A frequent issue is trying to open a full account before completing the Anmeldung; many traditional banks require proof of a registered address and will decline until you have it. Another is overlooking SCHUFA: a thin or absent credit history can make some accounts, credit cards or rentals harder to obtain, so building a record early helps.

Watch for hidden costs such as fees for paper statements, charges after a free first year, and poor exchange rates on foreign cards. Finally, keep your account details consistent across employer, landlord and insurers, and update them promptly if you switch banks to avoid bounced direct debits.