There are a variety of banks in Germany. When opening a German bank account make sure that it is a bank which has lots of ATM's in order to draw money easily. If you have an account with, for example, "Sparkasse" and you draw money at "Volksbank" then you have to pay a charge. It is not like in England where you can draw money without being charged at almost every ATM.
The account you should open is called a Girokonto and is a debit account. You are not normally offered an overdraft at the outset but as you build a history you may be granted an overdraft facility. If you accidentally overdraw you will most likely be charged interest fees.
The most popular banks, with the easiest access to your money, are Volksbank and Sparkasse. Just visit your local branch and they can assist you with opening an account. Please check beforehand what you need to take along (documents, passport etc).
You should always compare a few banks of your choice and watch for hidden costs for managing your account, such as monthly fees.
If you need a loan, stay away or be extremely careful with ones offered on the internet. Go to your local bank and discuss your options. Request the following, in writing:
- the exact amount of money you will need to pay back;
- how long the loan will be;
- how high the interest rates are; and
- what the administration charges are.
Be careful of loan insurance. However, I have never heard of something like this in Germany, so it's possible that this is an English initiative.
Please click here to learn more about store cards.
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