Munich

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Bank Accounts

An overview of opening a bank account in Munich, particularly helpful for immigrants planning to stay long-term.

Sections

1. Types of Bank Accounts in Munich

In Germany, including Munich, banks typically offer the following types of accounts:

a. Girokonto (Current Account)

  • Purpose: This is the most common type of account for everyday banking needs, such as receiving salaries, paying rent, and handling bills.
  • Features: Includes a debit card (EC-Karte), online banking, and sometimes overdraft facilities (Dispo).
  • Who it’s for: Residents, workers, and students.

b. Sparkonto (Savings Account)

  • Purpose: Used for saving money and earning interest.
  • Features: Limited withdrawals per month, higher interest rates compared to current accounts.
  • Who it’s for: Those looking to save money over time.

c. Student Accounts

  • Purpose: A special type of Girokonto for students, often with reduced fees or no fees at all.
  • Features: Free debit card, online banking, and sometimes discounts on other banking services.
  • Who it’s for: Students under 27 or 30 years old (varies by bank).

d. Business Accounts

  • Purpose: For freelancers, self-employed individuals, and businesses.
  • Features: Tailored services for business transactions, invoicing, and tax-related needs.
  • Who it’s for: Entrepreneurs and companies.

2. Costs Associated with Bank Accounts

Banking in Germany is not always free, and costs can vary depending on the bank and account type. Here’s what to expect:

a. Monthly Account Fees

  • Range: €0 to €10 per month for Girokonto.
  • Free Accounts: Some banks (e.g., online banks like N26 or DKB) offer free accounts if you meet certain conditions, such as regular deposits.

b. Debit Card Fees

  • Cost: Usually included in the account fee, but some banks charge €5–€10 annually for the card.

c. ATM Withdrawal Fees

  • Own Bank ATMs: Free.
  • Other Bank ATMs: €3–€5 per withdrawal.
  • Tip: Use ATMs from your bank’s network to avoid fees.

d. Overdraft Fees

  • Interest Rate: 6%–12% annually for overdraft facilities (Dispo).

e. International Transfers

  • SEPA Transfers: Free or low-cost within the EU.
  • Non-SEPA Transfers: Fees vary depending on the bank and amount.

3. Required Documentation

To open a bank account in Munich, you’ll need the following documents:

a. Passport or National ID

  • A valid form of identification is mandatory.

b. Proof of Address (Meldebescheinigung)

  • You must register your address in Munich at the local Bürgerbüro (citizen’s office) and obtain a Meldebescheinigung (registration certificate).

c. Proof of Income or Employment

  • For salaried workers: Employment contract or recent payslips.
  • For students: Proof of enrollment (Immatrikulationsbescheinigung) from a university.

d. Tax Identification Number (Steuer-ID)

  • Issued after you register your address in Germany.

e. Visa or Residence Permit

  • Non-EU citizens must provide proof of legal residence in Germany.

f. SCHUFA Credit Check (Optional)

  • Some banks may request a SCHUFA report (credit score) to assess your financial reliability, especially if you’re applying for an overdraft.

4. Procedure for Opening a Bank Account

Here’s a step-by-step guide to opening a bank account in Munich:

Step 1: Research Banks

  • Popular banks in Munich include:
    • Traditional Banks: Deutsche Bank, Commerzbank, Sparkasse München, HypoVereinsbank.
    • Online Banks: N26, DKB, ING.
    • Specialized Banks for Expats: N26 and Bunq are popular for their English-language services.

Step 2: Choose the Right Account

  • Decide based on your needs (e.g., free student account, low-cost Girokonto, or business account).

Step 3: Gather Required Documents

  • Ensure you have all the necessary paperwork (see above).

Step 4: Visit the Bank or Apply Online

  • Traditional Banks: Visit a branch in person. Appointments may be required.
  • Online Banks: Complete the application online. Verification is done via video call or post.

Step 5: Verification

  • Present your documents for verification. Online banks may use video identification (VideoIdent) or PostIdent (at a Deutsche Post office).

Step 6: Receive Your Account Details

  • Once approved, you’ll receive your IBAN (International Bank Account Number), debit card, and online banking login details.

5. Local Considerations and Tips

a. Language Barrier

  • Many traditional banks operate primarily in German. If you’re not fluent, consider online banks like N26 or Bunq, which offer services in English.

b. Bank Opening Hours

  • Traditional banks are usually open Monday to Friday, 9:00 AM to 4:00 PM. Some branches close earlier on Fridays.

c. Cash Culture

  • Germany is still a cash-heavy society. While card payments are becoming more common, always carry some cash for smaller establishments.

d. Sparkasse ATMs

  • Sparkasse München has the largest ATM network in Munich. If you open an account with them, you’ll have easy access to cash withdrawals.

e. Online vs. Traditional Banks

  • Online Banks: Convenient, often free, and available in English. However, they may lack physical branches.
  • Traditional Banks: Better for those who prefer in-person service or need complex financial products.

f. Student Discounts

  • If you’re a student, always ask about special offers or fee waivers.

g. SCHUFA-Free Accounts

  • If you’re new to Germany and don’t have a SCHUFA score yet, consider banks like N26 or Bunq, which don’t require a credit check.

h. Joint Accounts

  • If you’re moving with a partner or family, you can open a joint account (Gemeinschaftskonto) for shared expenses.

6. Popular Banks in Munich

Here’s a quick overview of some banks to consider:

Traditional Banks

  1. Sparkasse München: Large ATM network, good for locals.
  2. Deutsche Bank: Offers English-speaking staff in some branches.
  3. Commerzbank: Free Girokonto if you meet deposit requirements.
  4. HypoVereinsbank (UniCredit): Good for international transfers.

Online Banks

  1. N26: Free account, English support, app-based banking.
  2. DKB: Free account with excellent online services.
  3. Bunq: Flexible, English-friendly, and great for expats.

7. Final Tips

  • Plan Ahead: Opening an account can take a few days to process, so don’t leave it until the last minute.
  • Compare Fees: Use comparison websites like Check24 to find the best account for your needs.
  • Ask for Help: If you’re unsure, many expat forums and communities in Munich can provide advice.

By following this guide, you’ll be well-prepared to open a bank account in Munich and manage your finances effectively. Let me know if you need further assistance!