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Banking Basics in Germany |
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 The large German Banks have many branches all over Bavaria and do
business worldwide. The banks in Germany provide all of the customary
banking services.
To open a bank account you need to bring your
passport. There are fees for the bank account as well as for all
transactions. Banks do not provide interest on checking accounts. All
banks offer online banking.
Paying cash is still very customary, e.g. in supermarkets. All major
credit cards are available in Germany but not accepted in all shops.
Regular monthly payments like rent, telephone and utilities are usually
done by automatic payments. Single bills are paid by automatic
transfer. Monthly fixed amount payments can be set up by a standing
order e.g. rent. Bills which vary every month can be paid by direct
debit e.g. phone bill.
All banks charge a fee for the EC card and the transfers you do.
It is usually a flat monthly fee. By leaving the city or the country
please remember to give your new permanent address to the bank.
Standing Order
The standing order is used for regular payments of the same amount. The
standing order ‘Dauerauftrag’ is a contract between you and your bank ,
which allows them to automatically transfer funds to i.e. your Landlord
every first of the month. There is a one time fee to initiate the
payment.
Direct Debit
Variable amounts like your phone bill can be paid by direct debit
‘Einzugsermächtigung/ Abbuchung’, a contract between you and the phone
company. lt allows the company to withdraw the monthly bill from your
bank account. lf you feel you have been charged with the wrong amount,
you can contact your bank up to 6 weeks after you were debited, and the
money will be returned to you.
Credit Transfer
Mostly you pay bills by transfer from your bank account to the vendors
bank account ‘Überweisung’. Often there is a transfer form included
with your bill. If there is no form with your bill, the bank provides
them. You take/send the form to your bank rather than sending a check
to the company/person to whom you owe money.
Current/Checking account
The ‘Girokonto’ is a checking account. After you have established
yourself with your bank (6 months), it is usually possible to overdraw
your account up to two monthly salaries.
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