Expats can run into many troubles after moving to Germany, as most financial transactions require an established account at a local bank. For one reason or another, most German employers generally transfer salaries only to German bank accounts. Additionally, your monthly recurring expenses such as utility costs, monthly rent, phone plans, internet packages etc. will be transferred to a German bank account. Without an active German bank account, many service providers such as telecommunication or utility companies will not sell you their services at all. When it comes to opening a bank account in Germany, you will generally have the choice between two types:

• Girokonto – current account or checking account
• Tagesgeldkonto – instant access savings account

The account type that you will need to cover all your income and expenses is the Girokonto. With a Girokonto you will automatically be assigned an International Bank Account Number (IBAN), will be able to transfer money into and from your account and get a free debit card ‘EC Karte’ that will allow you to make various payments or withdraw cash from ATMs ‘Geldautomaten’.