Why Do You Need a Checking Account?

If you're planning an extended stay in Germany, it's strongly recommended to open a checking account, called Girokonto. Here are the advantages:

• A checking account ensures the processing of all payment transactions. Without a bank account, rent payments wouldn't be possible. The same goes for paying bills, which can only be settled by bank transfer or direct debit.
• Bank account holders no longer have to worry about making the same transactions regularly. To achieve this, a standing order can be set up, which will automatically transfer rent payments to the landlord's account on a specific date, for example. Any transaction made on the account can be debited if it's negative or credited if it's positive, by the account holder. This way, the user can comfortably manage their payment transactions.
• For most employees, the checking account is used to receive remuneration or salary. Cash withdrawals, cash deposits, transfers, standing orders, or direct debits can also be made via a checking account.
• A checking account can be managed directly through the bank branch or via online banking services.
• The advantages of online banking are its efficiency, on the one hand, and on the other hand, banking operations can be managed both by phone and email. Online banking users can also set up standing orders themselves or cancel them.

The Benefits of a Student Account (Studentenkonto)

Many banks offer a special student account with favorable conditions and additional features for students. The main benefits of a student account are:

• Free account management: In general, account maintenance fees are not charged for student accounts.
• No transaction fees: There are no fees for bank transfers and direct debits.
• Free credit card: Many banks offer a free credit card with the student account. This is generally free and also comes with more favorable conditions.
• Debit card: The debit card is free with a student account.
• Cash withdrawals: Cash withdrawals are free at ATMs of the bank where you opened your student account, as well as ATMs of its potential partners.
• Interest on credit balances (Guthabenzinsen): Some banks offer credit interest for student accounts.
• Instant-access savings account (Tagesgeldkonto): Many banks offer an additional savings account with the student account, which is generally free and without maintenance fees. Especially for students, the flexible form of day-to-day money investment (Tagesgeld) is worth it, as the day-to-day credit (Tagesgeldguthaben) is always available and even earns interest.
• Overdraft interest rates (Dispozinsen) and debit interest (Überziehungszinsen): A student account can be overdrawn at many banking institutions. Overdraft interest rates and debit interest on student accounts are often lower. However, for longer-term loans, a student loan is worth it, as overdraft interest rates and debit interest are generally higher than for a student loan.
• Attractive offers and discounts for new customers: Most banks offer attractive discounts and bonuses to new customers when opening a student account.
• Online banking services: Online banking services are now offered by all banks. Using the online banking portal is free for students.

The Student Credit Card

You can pay by credit card not only in Germany but worldwide at very favorable conditions, making the credit card a flexible payment method. Additionally, many online stores accept credit card payments. Many banks offer students credit cards at very favorable conditions and sometimes without annual fees. With a student credit card, students often only pay the transaction fees they incur, for example, for cash withdrawals. Fees vary considerably from bank to bank, so a comparison can be useful! Student credit cards offer the same payment features as regular credit cards.

The credit card account provides students with a credit line (Kreditrahmen) or credit limit (Kreditlimit) that they can use. An exception is the student credit card account on a credit balance basis (Guthabenbasis), where credit must be transferred to the credit card account before use. Here, only the money available in the account can be used.

Often, the credit card account is directly linked to a reference or checking account. For example, amounts due from the credit card account are automatically debited each month from the reference account.

The credit limit amount granted for student credit cards is at the bank's discretion and depends on various factors that are clarified during the credit check. Regular income and financial liabilities are particularly essential. A higher credit line is often associated with a wider range of services. This applies whether it's a student credit card or a regular credit card.

Of course, there are also various additional services for credit cards. Some banks offer, for example, cashback programs or discounts.

Prerequisites for Opening a Student Bank Account

To open a student account, the bank requires proof that you're a student. For this, you generally need to submit your enrollment certificate to the bank each new semester.

Additionally, most banks limit the age for using the student account to between 18 and 25 years old.

Students also have the option to open their bank account online. In just 10 minutes, you can complete the process of opening your student account online. To do this, go to the website of the bank where you've chosen to open your student account and select the "Open account online" function. A form will appear, which you need to fill out.

Banks are required by law to verify the identity of their customers before opening a student account. To do this, go to the nearest post office with the completed form, your ID card, and a student certificate. A postal worker will verify your identity and issue a confirmation. Then, the application form with the personal data confirmation can be sent to the responsible bank.

In summary, opening a bank account requires, but is not limited to, the following documents:

• Passport or personal ID card
• Student card or enrollment certificate or university admission confirmation
• Confirmation of your registration at the residents' registration office or foreign residents' registration office

Overall, a checking account will greatly facilitate your financial transactions in Germany. As a student, you can enjoy the many benefits that a student account and student credit card can offer. Opening a student account online isn't too complicated, but you'll need to provide all documents proving that you're a student aged 18 to 25. Don't forget to check with banks for more detailed information. Good luck!