Banks and Banking
Banking in Germany is not all that different from the other countries in Europe or the United States but there are a some aspects to be aware of.
Staying in Germany for a longer period means you will probably need a German bank connection. All you need is your passport and money for the initial deposit.
If you bring cash, your account is opened immediately. If you are transferring funds from your home bank, it may take a little longer for the amount to be credited to your account.
Once you have opened the account the bank will issue you a bank card (not a credit card), which is valuable for transactions. You can use it to get cash or statements around the clock from automatic teller machines (ATMs), and it is commonly accepted for all sorts of payments.
You can establish a line of credit (Dispositionskredit) at a German bank, usually two or three times your monthly pay. Once you have done this you may overdraw your account to the agreed amount, but be warned that these overdrafts may cost you some heavy interest, sometimes ranging from 14.5% to 18% per annum.
Transfer (Überweisung)
is used to transfer money from one account to another. You fill in a transfer form (Überweisungsformular) and hand it in. It is similar to writing a check.
Standing order (Dauerauftrag)
is used if you have regularly recurring payments of a set sum, such as rent, insurance premiums, television fees. This sum is deducted automatically from your account on an agreed date and transferred to the account of the recipient. The bank will provide you with the necessary form.
Direct debit (Lastschrift)
is a practical method if you have recurring payments that vary in size, such as the telephone, gas and electric bills. You give the recipient a direct debit authorization (Einzugsermächtigung) which authorizes it to deduct the respective amounts from your account. Of course, you can always cancel the authorization and stop the direct debit. As a safeguard against abuse you also have the unrestricted right for 90 days to recall any sum that was deducted in this manner. You can recall it even if it was proper, though this would give it the status of an unpaid bill.
