List of German banks: which ones serve foreigners and how

How the German banking system is organised

German banking rests on three pillars. Private commercial banks such as Deutsche Bank and Commerzbank form the first. Public savings banks, the Sparkassen, owned by municipalities, form the second, while cooperative banks, mainly the Volksbanken and Raiffeisenbanken, form the third.

Each savings and cooperative bank works within its own region, so a Sparkasse in Munich is legally separate from one in Hamburg. Together these local institutions hold a large share of household deposits, and they remain the usual choice for Germans and long-term foreign residents.

Supervision and deposit protection

Banks are supervised by BaFin together with the Deutsche Bundesbank, and the largest institutions fall under direct European Central Bank supervision. Deposits are protected up to 100,000 euros per customer and bank under EU rules, with additional voluntary schemes in each banking group.

Direct banks and neobanks

Alongside branch networks, Germany has strong online banks. ING Deutschland and DKB rank among the largest direct banks, while N26, based in Berlin, holds a full German banking licence. These banks often offer English-language apps, which helps newcomers who do not yet speak German.

Development and specialist banks

KfW, the state-owned development bank, finances student loans, energy-efficient renovation and first homes through partner banks rather than directly. Specialist consumer lenders such as Santander Consumer Bank and Targobank concentrate on car finance and instalment loans, often distributed through retailers.

Who can open an account and borrow in Germany

Anyone legally resident in the European Union, including asylum seekers and people without a fixed address, has a legal right to a basic payment account, the Basiskonto, under the Payment Accounts Act in force since 2016. Banks may refuse it only on limited grounds.

Borrowing is a different matter. Lenders usually require a residence permit valid beyond the loan term, an employment contract past its probationary period and a positive Schufa credit file. Non-residents living outside Germany will find few banks willing to lend without German collateral.

Main German banks and what they offer foreigners

The table lists major institutions active in retail banking and what newcomers can typically expect from them. Account fees, product ranges and criteria change regularly, so conditions should be checked on each bank's own price list before an account is opened.

Costs and conditions

Many branch banks now charge monthly account fees, while direct banks often keep basic accounts free subject to conditions such as regular income. Basic accounts may carry fees, but consumer centres have challenged excessive charges, and courts have struck down pricing judged disproportionate.

For loans, interest depends on the Schufa score, income and term. Mortgages for foreign residents usually require a deposit covering at least purchase taxes and notary costs, and lenders may ask for more equity from applicants with temporary permits or foreign-currency income.

Documents to prepare

Account opening needs a passport or identity card, a residence permit where applicable and proof of registration at a German address, the Anmeldung. Loan applications add recent payslips, the employment contract, bank statements and the Schufa self-disclosure available free once a year.

Opening an account and applying for credit

Newcomers often face a circular problem: landlords want a bank account, while banks want an address. Registering the address quickly, using video identification at a direct bank, or invoking the Basiskonto right usually breaks the cycle within the first few weeks after arrival.

1. Register your address at the local Bürgeramt and keep the confirmation.
2. Choose a bank by fees, language support and branch needs.
3. Verify identity in a branch, through video identification or via PostIdent.
4. Request a Basiskonto in writing if a standard account is refused.
5. Build a Schufa record through regular income and on-time payments.
6. Compare loan offers by effective annual rate before applying, as several applications can be visible to lenders.

Checking that a German bank is genuine

Fraudulent websites sometimes pose as small German banks to attract foreign borrowers. BaFin's company database lists every authorised institution, and a genuine bank never asks for a processing fee to be paid before a loan agreement has been signed and funds released.

Common mistakes and red flags

Many problems arise during the first months in Germany, when newcomers rely on online advertisements or advice in community chat groups. The points below summarise recurring errors and scams that consumer centres report among foreign residents.

• Responding to ads for a Kredit ohne Schufa that require an upfront fee before payout, a typical advance-fee scheme aimed at newcomers.
• Opening several accounts or credit cards at once, which can weaken a new Schufa file.
• Leaving the residence permit expiry unmentioned on a loan application.
• Ignoring the monthly fee schedule of a branch bank.
• Sharing PostIdent or video identification links with strangers who then open accounts in your name.

Getting help

The regional Verbraucherzentralen offer independent advice on bank fees, basic accounts and credit agreements, sometimes in English. Municipal debt counselling services, Schuldnerberatung, help residents who have fallen behind on repayments, generally free of charge for people on low incomes.

Frequently asked questions

The questions below come up regularly among students, skilled workers and families arriving in Germany who need a bank quickly and later want to borrow, whether for a car, furniture or a first property purchase in their new home country.

Which German bank is best for foreigners?

There is no single best bank. Direct banks such as N26, ING or DKB suit newcomers wanting English apps, while a Sparkasse or Volksbank suits people needing a branch and, later, a local relationship for borrowing.

Can I open a German account before arriving?

A few online banks allow opening with a foreign address, but most require German registration. Students can use blocked-account providers for visa purposes, then open a standard current account once they have registered locally after arrival.

Do I need Schufa to get a loan in Germany?

Practically yes. Almost all German lenders check Schufa, and a missing record makes approval difficult. Building a history through an account, a mobile contract and timely payments over several months improves the chances of borrowing later.

Can non-residents borrow from German banks?

Non-residents can sometimes obtain a mortgage on German property, mainly from banks with international desks, provided they bring a large deposit and documented income. Unsecured consumer loans to people living outside Germany are very rarely offered by regulated German lenders.

By Nabil Frik · Updated 13 October 2026