Account

Germans use a current account (Girokonto) for their daily banking business. The Girokonto allows them to transfer money from one account to another (Überweisung). It allows automatic withdrawals (Abbuchung or Einzugsermächtigung) for paying regular bills such as telephone bills or the monthly rent. When opening a Girokonto, you receive an EC card (an electronic cash and debit card) with a PIN which can be used for cashless payments in supermarkets or department stores. It is also convenient for withdrawing money from a cash machine (ATM).

Most banks offer students a Girokonto free of fees or charges. Before opening an account you should inquire if any fees apply and how much they are. They may vary from bank to bank. Some banks charge fees for the Girokonto from their customers who have attained the age of 30 regardless of their studies.

For more Information on and a comparison of current accounts, please visit: 

http://finanzen.check24.de/konto-kredit/girokonto/girokonto-vergleich/  (only in German!)

Cash

Within approximately one week after having opened an account you will receive your EC card and your PIN. With this card it is possible to withdraw money, free of charge, from the ATM of any branch of your bank company in Germany. Ask for partner bank companies whose ATMs you can use without paying an extra charge. Of course you can also withdraw money from any ATM of other banks, but they usually charge approx.  2,50 – 5,00 €. Most ATMs worldwide will accept your card, too (maestro symbol). Until you have received your new bank card in Ulm/Neu-Ulm, it is possible to withdraw money at the counter of your branch office.

Account Statement (Kontoauszüge)

In each bank branch there is a machine, usually located near the ATM, called a Kontoauszugsdrucker. As soon as you have received your bank card, you can use it to print out bank statements at your bank. You should do so regularly to keep track of your balance and to avoid costs for mail postage.

Credit Transfer (Überweisungen)

Instead of writing checks, bills are paid by electronic money transfer. In order to send money to another account within Germany you will need two numbers: the bank routing number (BLZ, Bankleitzahl) and the account number (Kontonummer) of the recipient. With these numbers and your own account number you will fill in a money transfer order (Überweisungsauftrag). If you need help you can always ask your bank staff for assistance. Some banks also have computer semesterinals in the customer area on which you can fill in orders electronically. 

Every bank account comes with an International Bank Account Number (IBAN) for money transfer to other countries. It consists of 22 to 27 units with numbers and letters. Credit transfers in-between EU-countries follow all semesters and conditions like national transfers.

Regular Payments: Automatic Withdrawal or Standing Order (Einzugsermächtigung und Dauerauftrag)

For regular expenses such as rent, health insurance, phone bill, etc., it will be required for you to give permission for automatic withdrawal. You have to sign this permission e.g. when you sign your phone contract. These companies will then withdraw the money from your account every month (usually during the first week of each month). Attention! It is your responsibility to make sure that there is always enough money on your account when these sums are withdrawn! If the withdrawal fails, you will be charged bank fees (usually around 5,00 – 10,00 €). The withdrawal will not be repeated.  Therefore, you will have to fill out a money transfer order amounting to the sum of the failed withdrawal on your own. 

A Dauerauftrag is a standing order. This means that you order the bank to transfer a fixed amount of money to the same account on a regular basis. Basically, it is the same as an automatic withdrawal, but initiated by your side. You have to cancel it if necessary.

Online Banking / Telephone Banking

If you want to do your bank business online or via telephone, ask your bank staff for the online banking/telephone banking facility. For online-banking, you will have to buy a TAN-Generator at mosts banks. This may cost around 10 to 12 €. Depending on the supported security system you will receive a telephone PIN and transaction numbers (TAN).  Each transaction number can be used only once. Online banking is one way to handle transactions with reduced or no fees.

Traveller’s Cheques

You should be aware that nearly no German restaurant, hotel or store accepts traveller’s cheques. Instead, you will have to exchange traveller’s cheques for cash at a bank. Please note that many banks charge fees for cashing cheques.

Credit Cards

Mastercard and Visa are accepted in bigger stores and gas stations. Other credit cards are not very common. Acceptance in general is not as widely spread as in other countries. Stores often only accept the EC Card.

Credit cards can also be used to obtain cash at ATMs if you have a PIN. Be aware that credit card companies usually charge high fees for this service.

Bank companies

You can roughly differentiate between

  • Traditional brick- and mortar institutions:
    • Local bank companies like Sparkassen and Volksbanken (e.g. Sparkasse Ulm, Sparkasse Neu-Ulm/Illertissen, Volksbank Ulm, Volksbank Neu-Ulm). You will find many branches and ATMs of these bank companies in Ulm und Neu-Ulm but none in other cities. It is possible to withdraw money, free of charge, from the ATM of any other Sparkasse or Volksbank in Germany.
    • National bank companies (Postbank, Commerzbank, Deutsche Bank, Dresdner Bank, HypoVereinsbank). Only a few branches and ATMs of these bank companies are located in Ulm/Neu-Ulm but you will find their branches all over Germany. These five bank companies form the “Cash Group”. Customers may withdraw money free of charge, from the ATM of any branch of these bank companies in Germany.
  • Virtual banks are internet based financial institutions which offer deposit and withdrawal facilities, as well as other banking services, through automated teller machines or other devices without having physical (brick and mortal) walk-in premises (norisbank, comdirekt and Ing DiBa for example).