Global Major Cities Guide

Information about opening bank accounts, types of banks, and common banking practices in Frankfurt.

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Comprehensive Guide to Banking in Frankfurt, Germany

Frankfurt, as Germany’s financial hub, offers a wide range of banking options and services tailored to residents, expatriates, and visitors. Whether you’re moving to Frankfurt for work, study, or long-term residence, understanding the local banking system is essential for managing your finances effectively. Below is a detailed guide to help you navigate banking in Frankfurt.

1. Types of Banks in Frankfurt

Frankfurt hosts a variety of banks, ranging from traditional brick-and-mortar institutions to modern online-only banks. Here are the main types:

a. Traditional Banks (Filialbanken)

These banks have physical branches and offer comprehensive services, including personal consultations. Examples include:

Deutsche Bank
Commerzbank (headquartered in Frankfurt)
Sparkasse Frankfurt (savings bank)
Volksbank Frankfurt (cooperative bank)

b. Online-Only Banks (Direktbanken)

Online banks are popular for their low fees and convenience. They don’t have physical branches but offer robust online and mobile banking platforms. Examples include:

N26
DKB (Deutsche Kreditbank)
ING Germany
Comdirect

c. International Banks

For expatriates or those with international banking needs, Frankfurt also hosts branches of global banks like:

HSBC
Citibank
Barclays

d. Specialized Banks

Ethical or Sustainable Banks: GLS Bank, Triodos Bank
Private Banks: For high-net-worth individuals, e.g., Berenberg Bank

2. Types of Bank Accounts

German banks typically offer the following types of accounts:

a. Girokonto (Current Account)

The most common type of account for daily transactions.
Used for receiving salaries, paying bills, and making purchases.
Comes with a debit card (EC-Karte or Girocard) for ATM withdrawals and payments.

b. Sparkonto (Savings Account)

Designed for saving money with minimal transactions.
Offers slightly higher interest rates than current accounts.

c. Geschäftskonto (Business Account)

For freelancers, entrepreneurs, and businesses.
Includes features like invoicing tools and tax reporting.

d. Student Accounts

Many banks offer free or discounted accounts for students under 27 years old.
Examples: Deutsche Bank and Commerzbank have student-friendly options.

3. How to Open a Bank Account in Frankfurt

Opening a bank account in Germany is straightforward but requires preparation. Here’s a step-by-step guide:

Step 1: Choose a Bank

Compare fees, services, and branch/ATM availability.
Online banks are ideal for low-cost, flexible banking, while traditional banks are better for in-person support.

Step 2: Gather Required Documents

You’ll need the following:

Valid Passport or ID: Non-EU citizens must provide a valid passport and visa/residence permit.
Proof of Address (Meldebescheinigung): A registration certificate from the local Bürgeramt (citizen’s office) confirming your address in Frankfurt.
Proof of Income or Employment: Some banks may ask for a work contract or payslips, especially for credit or overdraft facilities.
Tax Identification Number (Steuer-ID): Issued after registering your address in Germany.
Student ID (if applicable): For student accounts.

Step 3: Visit the Bank or Apply Online

For traditional banks, book an appointment at a branch.
For online banks, complete the application on their website or app.

Step 4: Verify Your Identity

In-Person Verification: At a branch for traditional banks.
PostIdent: A service offered by Deutsche Post where you verify your identity at a post office.
VideoIdent: Online video verification for many online banks.

Step 5: Receive Your Banking Materials

Once approved, you’ll receive your debit card, PIN, and online banking login details by mail.

4. Costs and Fees

Banking in Germany is not always free. Here’s what to expect:

a. Account Maintenance Fees

Traditional banks: €5–€10 per month for a Girokonto.
Online banks: Often free, but some may charge fees for additional services.

b. ATM Fees

Free withdrawals at your bank’s ATMs.
Withdrawals from other banks’ ATMs may cost €3–€5 per transaction.
Online banks often partner with ATM networks for free withdrawals (e.g., N26 with Cash Group).

c. International Transfers

Fees vary depending on the bank and destination.
Online services like Wise or Revolut are often cheaper for international transfers.

d. Overdraft Fees (Dispo-Kredit)

Overdraft facilities are available but come with high interest rates (7–12%).

5. Online Banking and Mobile Apps

Germany has embraced digital banking, and most banks offer user-friendly online platforms and apps. Features include:

Real-time balance updates.
Bill payments and transfers.
Budgeting tools.
Multi-language support (important for non-German speakers).

Popular online banks like N26 and ING Germany are fully app-based, making them ideal for tech-savvy users.

6. ATM Access in Frankfurt

Frankfurt has an extensive network of ATMs (Geldautomaten). Here’s what you need to know:

Cash Group ATMs: Free withdrawals for customers of Deutsche Bank, Commerzbank, HypoVereinsbank, and Postbank.
Sparkasse ATMs: Free for Sparkasse customers but charge others.
Independent ATMs: Found in convenience stores and train stations but often charge high fees.

Tip: Germany is still a cash-friendly society, so always carry some cash for small purchases, especially in local shops or markets.

7. Local Tips and Considerations

Language Barrier: While many bank staff in Frankfurt speak English, documents and online platforms may be in German. Consider banks with English-language support (e.g., Deutsche Bank, N26).
Cash vs. Card: Although card payments are widely accepted, some smaller businesses prefer cash. Always have a mix of both.
SEPA Transfers: Domestic and EU transfers are free or low-cost under the SEPA system.
Credit Cards: Credit card usage is less common than in some countries. Debit cards are the primary payment method.
Banking Hours: Traditional banks are usually open Monday to Friday, 9:00 AM–4:00 PM. Online banking is available 24/7.

8. Cultural and Practical Advice

Punctuality: Appointments at banks are taken seriously. Arrive on time.
Paperwork: Germans value thorough documentation. Ensure all your documents are complete and up-to-date.
Eco-Friendly Banking: Many banks offer paperless statements and encourage digital banking to reduce waste.
Tax Considerations: If you’re working in Germany, your bank account will be linked to your tax ID for salary payments and tax deductions.

9. Emergency Contacts

Lost or Stolen Card: Call your bank’s hotline immediately to block the card.
General Card Blocking Service: Dial 116 116 (toll-free within Germany).

By understanding the banking system in Frankfurt and preparing the necessary documents, you can set up your finances smoothly and focus on enjoying life in this vibrant city. Whether you prefer traditional banking or a modern, app-based approach, Frankfurt has options to suit every need.