Banking
You'll need a German bank account for rent, salary, insurance, and daily life. Compare digital banks with fast setup versus traditional branch banks.
Digital banks with fast setup
English apps and online onboarding. Open an account before or shortly after arrival — no branch visit needed.
Traditional banks
Branch-based German banks. Full-service accounts, universally accepted by landlords and employers.
Why this is harder than it should be
Germany runs on bank transfers far more than on cards. Rent, salary, insurance premiums, phone contracts and the household broadcast fee all move by direct debit from a German account, so this is not something you can sensibly postpone until later.
The difficulty for a newcomer is entirely circular. Traditional banks want a registered address before they will open an account, landlords often want a German account before they will rent to you, and you cannot register an address without somewhere to live. Digital banks broke that circle by dropping the address requirement, which is why they are the sensible first move even if you eventually want a traditional account as well.
Schufa, and why having no record is a problem
Schufa is Germany's national credit reference agency, and almost every financial decision in the country touches it. Arriving with no Schufa file at all is different from having a poor score, but some systems treat the two similarly, because an empty file gives them nothing to assess.
In practice a basic current account is almost always obtainable regardless. Digital banks generally run a Schufa check but do not refuse a standard account over a thin file. What you will struggle with is credit: overdrafts, credit cards, phone contracts and mainstream rental applications. Those open up over your first six to twelve months as a record builds.
It is also worth knowing that anyone legally resident in Germany has a statutory right to a basic payment account, a Basiskonto, which a bank cannot refuse over Schufa. It covers transfers, direct debits and a card but excludes credit. Most newcomers never need to invoke it, but it exists as a floor.
The IBAN detail nobody warns you about
Some providers issue accounts with a non-German IBAN. Wise uses a Belgian one and Revolut has issued Irish-format IBANs. Under EU rules these must be accepted anywhere a German IBAN is, and refusing them is not lawful.
In practice some German payroll systems and landlord standing-order setups still reject them, usually because of outdated software rather than policy. If your employer or landlord pushes back, an account with a German IBAN resolves it without an argument you should not have to have.
Important considerations
Traditional banks may require appointments and German documentation:
- Traditional banks require a Schufa credit check — newcomers have no Schufa history
- Branch appointments can be 1–3 weeks out in major cities
- You'll need your passport, Anmeldung (city registration), and possibly a visa
- Digital banks let you open an account from abroad, but some landlords prefer traditional banks
- Consider opening both: a digital bank immediately, and a traditional one after your Anmeldung