Choosing the right bank is an important decision that will affect your financial life for years to come. When deciding on a bank, there are many factors to consider – from account maintenance fees to customer service. In this article, we will introduce you to the different types of banks in Germany and give you tips on how to find the perfect bank for you
Types of banks in Germany
In Germany, there are two main types of banks: traditional banks with branches and online banks. Each type has its own advantages and disadvantages. Traditional banks usually have higher costs for operating branches, but offer more personalized customer service and a range of other services such as credit cards and mortgages.
Online banks, on the other hand, usually have lower overhead costs, which they pass on to customers through lower or no account maintenance fees (such as N26, Openbank or C24). However, they don't offer face-to-face customer service or physical branches, which can be a disadvantage for some customers who need more support or access to cash withdrawals without ATMs or card issuers
Account management fees
One of the most important factors you should consider when choosing your bank is the account maintenance fees or "administration fees" that some banks charge monthly in addition to other banking services such as overdrafts and direct debits. Many German online banks such as N26, Openbank and C24 are free and don't require minimum deposits.
So it's worth looking around before you decide on a provider. When comparing the fees of different providers, you should also consider additional services such as debit cards, overdrafts and customer service before making your final decision
Debit cards and overdrafts: another factor you should look for when choosing a bank is whether it offers debit cards (also known as EC/Maestro cards) that allow you to make purchases in stores as well as online without incurring unnecessary fees, such as.B. Non-refundable fees for international transactions or ATM withdrawals abroad.
Also, some banks offer overdraft facilities that allow you to borrow money up to a certain amount. Make sure there are no hidden fees for an overdraft, though.
Customer service
It's also worth paying attention to how good the customer service is in case you run into problems using your new account – after all, no one wants their money sitting in an inaccessible account due to poor support. Look out for positive reviews from existing customers on Trustpilot or Google Reviews (as these are often more reliable than reviews on providers' websites).
It's also worth checking for contact options such as phone, email support, etc. To ask, so you know how quickly you can expect help if something goes wrong
Conclusion
It's not easy to find the perfect bank, but if you consider account maintenance fees, debit cards and overdrafts, as well as customer service, you can narrow down your search significantly.
Ultimately, you'll need to weigh which factors are most important to you personally before choosing a provider – good luck.