Opening a bank account is one of the first practical tasks when arriving in Germany. The options have changed substantially in the last five years — here is the current landscape.
The Online Banks: N26 and Vivid
N26 (founded Berlin, now headquartered in Berlin, banking licence from BaFin) is the most popular choice for newly arrived expats: account opening entirely in the app with passport and video identification (no branch visit required), no minimum deposit, free Mastercard debit card, English-language app and support. N26 Standard is free; N26 Smart (€4.90/month) and N26 Metal (€16.90/month) add features including travel insurance and fee-free cash withdrawals. Limitation: N26 has no cash deposit function — you cannot deposit cash at an ATM or branch. Foreign cash transactions: N26 Standard charges 1.7% on foreign currency transactions; the paid tiers offer fee-free foreign spending. Vivid Money is a newer competitor with a similar model, strong on cashback and investment features, BaFin regulated. For a first account in Germany for an expat who does not deal much in cash: N26 Standard is the practical first choice.
Traditional Banks: Deutsche Bank and Commerzbank
Deutsche Bank and Commerzbank offer full-service banking with branches, cash deposit, and broader product ranges (mortgages, investment accounts, insurance, full business banking). The trade-off: account fees are higher (Deutsche Bank’s basic account starts at €6.90/month; Commerzbank’s Girokonto at €9.90/month unless certain conditions are met), the app experience is inferior to N26, and opening requires either a branch visit or video identification with more extensive documentation. The value proposition: if you need to deposit cash frequently, need a bank branch for complex transactions, require a mortgage, or are building a long-term banking relationship in Germany, traditional banks make sense. Commerzbank eliminated account fees for several years (to attract customers) and then reintroduced them in 2022 — check current conditions.
Sparkasse and Volksbank
Sparkasse (savings bank, publicly owned, organised regionally — there is no national Sparkasse) and Volksbank/Raiffeisenbank (cooperative banks) together handle approximately 50% of German retail banking. They are the banks where most Germans have their primary accounts. The advantages: extensive ATM network (free at any Sparkasse ATM for Sparkasse customers; free at any Volksbank ATM for Volksbank customers), branch availability in smaller towns where N26 has no presence, often excellent business banking, and deep integration with German payment systems. The trade-offs: less polished apps, generally no English-language service, and higher fees in some regions. For expats who move to smaller German cities or towns: Sparkasse is often the most practical option simply because of physical branch presence.
Payment Culture in Germany
Germany is unusually cash-heavy for a wealthy economy: as of 2024, approximately 40% of point-of-sale transactions are still made with cash. EC-Karte (Girocard, the German domestic debit card) is accepted more widely than Visa or Mastercard at German shops and restaurants. Many small businesses (Bäckereien, markets, some restaurants) are still cash-only. The practical advice: always carry cash in Germany; €50–100 is reasonable; €20 notes are the most practically useful denomination. ATMs (Geldautomaten) are widely available and free for customers of the same banking group.
