Best Savings Account in Germany | bunq (2024)

FAQs

What is the top savings account in Germany? ›

The TF Bank Flexible Savings Account is the best savings account in Germany. With its primary operations in Sweden, TF Bank also offers its services in Germany and has established itself as one of the highest interest paying banks. Notably, this bank functions purely online.

The best banks for foreigners are N26 and bunq. I use N26 since 2016, and I recommend them. Wise is also a good option, but they have a low free withdrawal limit, and no German IBAN.

The average gross savings of households in Germany amounted to 5,924 euros per capita in 2022. Since 2015, the value of those savings in Germany increased steadily, peaking in 2020 at 6,420 euros per capita.

Money market savings accounts (Tagesgeldkonto) can effectively minimize potential losses. You do not only earn interest but are also completely flexible and can access the money at any time. A trustworthy fixed-rate savings account (Festgeldkonto) enables you to earn interest confidently, outweighing inflation.

Yes, foreigners moving to Germany can open a account. Getting an account with a local bank is even recommented to expats planning on staying in Germany for more than a year. Opening a German bank account will make your life much easier and you won't have to worry about spending extra on international charges.

You typically need to have a permanent address in Germany to open an account. Many online-only and mobile-only German banks also offer accounts to those living overseas. These are useful for those planning to move to Germany or those who work in Germany.

If a foreigner wants to open a German bank account before moving to Germany, he will need to have a valid German visa and provide a residence address in Germany. For citizens of certain countries, opening an account may not be available.

Can I have two bank accounts in Germany? Germans aren't restricted to a single bank account. While it's advisable to set up a Girokonto to handle income and savings, this account often functions alongside a Sperrkonto (blocked account).

1. Deutsche Bank. Deutsche Bank is regarded as one of the biggest banks in Germany and the world. It provides a wide range of services, such as personal banking, corporate banking, investment banking, and wealth management.

We recommend informing your bank a couple of weeks beforehand but keeping the bank account for another six months afterward. You can also provide your financial institution with a follow-up bank account so they know where to direct any left-over money from your German bank account.

How much tax do I pay on a savings account in Germany? ›

At a flat rate of 25%, it's automatically deducted from your bank account and paid to the tax office. But as with any other German tax, there's more to withholding tax than meets the eye. In this guide, we'll explore what it is, how it works, and when you need to pay.

Deutsche Bank Savings Bank Interest rates

Deutsche Bank offers an interest rate of 3.00% on its savings bank accounts (which is bound to change from time to time as per the Banks T&Cs). The interest is paid at quarterly intervals.

The Tagesgeldkonto or savings account is where you keep your extra money. This account pays up to 4% interest. Use a Depot or trading account to invest in stocks and ETFs. This is a popular way to invest money in Germany.

Germany uses the popular euro, so your travel money will stay super simple. It also makes it handy if you're planning to visit Germany's eastern neighbours or head down to Austria (they use euros too).

Tax exemptions for 2023

For 2023, the threshold for single taxpayers is €1,000. That means that any interest income you earn under this amount is tax-free. And since the tax rate is 25%, that means that you save up to €250 in taxes. After that threshold, your interest income is taxed at the normal rate.

Deutsche Bank is the largest bank in the country, totaling over 1.32 trillion euros in assets.