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    Banking

    Payments and Banking

    In Germany, as in most countries, you can pay with cash or debit (EC) and credit cards. Nowadays, almost all day-to-day financial transactions are handled via your bank account, like salary, rent, telephone, credit card use, etc. The only currency accepted in Germany for cash payments is the euro.

    Importation of Cash

    The ability to import a larger amount of cash (e.g. more than 10,000 €) to Germany is limited. Therefore, we recommend checking with local consulates or German customs about the exact guidelines before your arrival in Germany.

    Exchange of Foreign Currency

    Not all banks across Germany allow you to exchange foreign currency for euros. There’s also a chance you could experience long waiting times. Please ask for more information about currency exchange in a personal consultation.You can, however, exchange foreign currency for euros for a fee at travel banks, e.g. at the airport. There is little to no waiting time for these transactions.

    Bank Account

    If you’re planning on staying in Germany for a longer period of time, we recommend opening a German bank account.The most common account in Germany is the “Girokonto”, or checking account. A “Girokonto” provides you with access to the following services:

    • automatic deposit of your salary;
    • a debit card for withdrawing money or paying for goods at a store or restaurant (the money will be immediately debited from your account);
    • online money transfers;
    • the option of setting up standing orders for recurring payments, e.g. rent, utilities, credit, etc.;
    • automatic debit authorization for recurring costs when amounts can vary, e.g. cell phone bills, electricity, etc. (direct debiting system);
    • make payments with a credit card issued by a credit institution;
    • use of a drawing credit (contractually regulated); as well as online banking. 

    Opening an account

    Each bank offers a wide range of financial services for checking accounts, such as online banking, free credit cards without account management fees, etc. There are also other accounts available in addition to the “Girokonto”. To select the account that’s right for you, we recommend a personal consultation at a bank of your choice, or with several banks to compare your options. These questions can help when choosing a bank for your checking account:

    • How high are account maintenance charges?
    • Are interest rates applied to the account and, if so, what are they?
    • Can I set up standing orders?
    • Can I set up a drawing credit?
    • If yes, for what amount?
    • What are the interest rates for a drawing credit?
    • Is it possible to appoint another authorized representative for the account?
    • Am I able to withdraw money immediately after opening an account?
    • Where can I withdraw money free of charge?
    • Am I able to apply for a credit card?
    • If so, how long is the application process?

    A drawing credit allows you to overdraft the account up to a certain limit (usually up to the equivalent of three monthly salaries).However, this only becomes an option after regular salary deposits have been received. The bank will charge increased interest rates for using drawing credit. Once you’ve decided on a bank, you can apply for a checking account. The team at the Welcome Center Heilbronn-Franken will be glad to assist you in this process if you’d like!

    Depending on the bank, you are likely to need the following documents for opening an account:

    • Passport, residence permit, and work permit
    • Registration confirmation for your place of residence

    Customers can close a checking account without notice at any time.The bank is not allowed to charge you any fees for closing the account. The bank also has the right to close the account.

    Credit Card

    As the owner of a checking account, you can also apply for a credit card. A sufficient credit history, which is often shown in the form of regular payments, is required for receiving a credit card. You will normally have the choice between MasterCard and Visa. In Germany, payment by credit card is less pronounced in everyday life than in other countries simply because the network of businesses that accept this form of payment has only just started to grow over the past few years. Also, credit cards here don’t provide “real” credit per se, but rather postpone payment by one month, at which time the full amount charged will be debited from your checking account. 

    Each bank offers a wide range of financial services for checking accounts, such as online banking, free credit cards without account management fees, etc. There are also other accounts available in addition to the “Girokonto”. To select the account that’s right for you, we recommend a personal consultation at a bank of your choice, or with several banks to compare your options. These questions can help when choosing a bank for your checking account:

    • How high are account maintenance charges?
    • Are interest rates applied to the account and, if so, what are they?
    • Can I set up standing orders?
    • Can I set up a drawing credit?
    • If yes, for what amount?
    • What are the interest rates for a drawing credit?
    • Is it possible to appoint another authorized representative for the account?
    • Am I able to withdraw money immediately after opening an account?
    • Where can I withdraw money free of charge?
    • Am I able to apply for a credit card?
    • If so, how long is the application process?

    A drawing credit allows you to overdraft the account up to a certain limit (usually up to the equivalent of three monthly salaries).However, this only becomes an option after regular salary deposits have been received. The bank will charge increased interest rates for using drawing credit. Once you’ve decided on a bank, you can apply for a checking account. The team at the Welcome Center Heilbronn-Franken will be glad to assist you in this process if you’d like!

    Depending on the bank, you are likely to need the following documents for opening an account:

    • Passport, residence permit, and work permit
    • Registration confirmation for your place of residence

    Customers can close a checking account without notice at any time.The bank is not allowed to charge you any fees for closing the account. The bank also has the right to close the account.

    Source: Welcome Center Neckar-Alb

     

     
    Wirtschaftsregion Heilbronn-Franken GmbH | Weipertstraße 8-10 | 74076 Heilbronn | Telefon 0049 - 7131-7669-860
     
     

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