Germany is widely recognised for its economy and reliable financial system. The country boasts a banking sector that serves the requirements of both individuals and businesses. Whether you are a resident, an international student, or an investor seeking to establish yourself in Germany, selecting the right bank is crucial for a banking journey. In this article, we will explore the world of finance to reveal the best banks in Germany. These German banks are leaders in the industry, offering solutions and prioritising customer satisfaction. They also provide a range of services customised to meet the demands of today's world. Before we dive into the best banks in Germany, let's understand the structure of banks in Germany.
Overview of Banks in Germany
The German banking system is unique in Europe with its three-pillar structure consisting of private banks, public banks, and cooperative banks. With over 1,800 banks in total, Germany has an extremely fragmented but stable banking industry.
1. Private Banks
There are approximately 200 private commercial banks in Germany. The biggest private German bank, which is highly active on a scale, is Deutsche Bank. Its headquarters are located in Frankfurt. Other significant private banks include Commerzbank and UniCredit Bank AG. Private banks primarily specialise in investment banking, asset management, private wealth management and commercial lending. Their main clients are corporations, institutional clients and high-net-worth individuals.
2. Public Banks
The second pillar of the German banking system consists of savings banks (Sparkassen) and state banks (Landesbanken). About 400 publicly owned savings banks are operated by municipalities and regulated by German states. These banks have a mandate to provide access to financial services for all citizens. Some of the largest savings German banks include Hamburger Sparkasse, Berliner Sparkasse, Frankfurter Sparkasse, and Sparkasse KölnBonn. Savings banks focus on retail and commercial banking services in their respective regions.
3. Cooperative Banks
The cooperative banking sector comprises more than 1,100 credit unions known as Volksbanken and Raiffeisenbanken. These banks, which their members own, have a structure. Focus on providing services to individuals, small businesses, and medium-sized enterprises within their local communities. The largest cooperative banking networks include Volksbanken Raiffeisenbanken and Sparda-Banken. These banks have gained market share in recent years and control over 20% of Germany's retail banking business.
The 15 Best Banks in Germany For International Students
There are many top banks in Germany that international students can choose from. Some provide various services, and some even have no charges! If you wish to learn more about these banks in an interactive, visual manner? Check out our webstory on the best banks in Germany. Some of the best banks include Deutsche Bank, Commerzbank, and KfW Bank! With so many options to choose from, we have curated a list of the 15 best banks in Germany! So, without further ado, let's dive right into it!
1. Deutsche Bank
Operational HQ: Frankfurt
Deutsche Bank, a well-known German bank in the banking sector, has significantly impacted the financial industry for more than a hundred years. Recognised for its presence, Deutsche Bank provides a wide range of services, such as personal banking, corporate banking, investment banking, and wealth management. With its dedication to embracing technologies and prioritising customer happiness, Deutsche Bank has consistently demonstrated its excellence as one of the best banks in Germany.
Plus, there are no charges! The bank offers investor compensation and deposit guarantee schemes. Two German protection schemes cover deposits with Deutsche Bank AG. One is Entschädigungseinrichtung deutscher Banken GmbH (EdB), which covers deposits up to €100,000 for individuals and some liabilities from securities transactions. Two is the German Deposit Guarantee Act (Einlagensicherungsgesetz), which protects deposits for a range of clients with varying coverage limits. Not all types of deposits are protected in this.
2. Commerzbank
Operational HQ: Frankfurt
Commerzbank, one of the best banks in Germany, takes great pride in its customer-focused approach and wide range of banking solutions. From accounts and loans to investment services, Commerzbank caters to a diverse clientele, supporting both individuals and businesses in their pursuit of financial objectives.
With a commitment to sustainability and embracing advancements, Commerzbank offers fee-free accounts as long as you have monthly deposits of €700 or more. Otherwise, there is a charge of €9.90. Commerzbank stands out as one of the best German banks, ensuring that customers receive cutting-edge banking services while actively contributing towards a future
3. KfW Bank
Operational HQ: Frankfurt
KfW Bank is a prominent German bank, plays a pivotal role in promoting economic growth and social progress. As the largest national promotional bank, KfW focuses on financing projects that contribute to environmental sustainability, infrastructure development, and small and medium-sized enterprises (SMEs). By supporting innovation and sustainable initiatives, KfW Bank reinforces its position as one of the best banks in Germany, fostering economic resilience and progress.
4. DZ Bank
Operational HQ: Frankfurt
Next on our list of the best banks in Germany is the DZ Bank! It is a cooperative financial institution that stands out for its commitment to supporting cooperative banking in Germany. With its cooperative network comprising more than 800 local cooperative banks, DZ Bank offers a wide range of services, including corporate banking, capital markets activities, and treasury services.
DZ Bank's collaborative approach and tailored financial solutions make it a preferred choice for individuals and businesses seeking a personalised banking experience, making it one of the best banks in Germany. DZ bank grants a few financing schemes in different forms, including low-interest loans with extended fixed terms and initial grace periods, collateral alternatives, extra repayment support, and Mezzanine capital to boost equity.
5. ING-DiBa
Operational HQ: Frankfurt
ING-DiBa, an innovative online German bank, brings a fresh perspective to the banking landscape. Known for its user-friendly interface and digital banking solutions, ING-DiBa offers a seamless banking experience that caters to the needs of tech-savvy customers. From online savings accounts to mobile banking apps, ING-DiBa empowers individuals to manage their finances efficiently and conveniently; they also don't have any accounting charges, making it one of the best banks in Germany.
Its commitment to transparency and competitive interest rates further solidifies its position among the best banks in Germany. The bank's Deposit Guarantee Scheme protects deposits up to €100,000 (EU), €85,000 (UK), and CHF 100,000 when a bank cannot meet its obligations, making it one of the best banks in Germany. The coverage extends to private depositors, small businesses, and corporations.
6. BayernLB
Operational HQ: Munich
BayernLB is one of the best banks in Germany. It is a state-owned bank headquartered in Munich and focuses on supporting regional economic development and fostering growth in Bavaria. BayernLB, with its knowledge of project funding, corporate banking, and capital markets, plays a role in bolstering local enterprises and infrastructure. The German bank's dedication to sustainability and its wide array of services make it a dependable option for individuals in search of a banking partner within Germany. Consequently, it has gained recognition as one of the best banks in Germany. It is important to note that they do require a €15 fee for account maintenance purposes.
Found the best bank? Time to find the best student accommodation
Book through amber today!
VisitUs
7. Landesbank Baden-Württemberg (LBBW)
Operational HQ: Stuttgart
LBBW is a state bank in Germany that is widely recognised as being one of the best banks in Germany. Its banking services place great value on cultivating enduring connections with its clientele. LBBW's range of services includes banking, asset management, and comprehensive international business assistance. LBBW's deep understanding of the German market and its commitment to personalised customer service set it apart as a trusted banking partner for individuals and businesses alike; it also doesn't have account charges, making it one of the best banks in Germany.
8. HypoVereinsbank
Operational HQ: Munich
HVB, or HypoVereinsbank, is a subsidiary of UniCredit Group that specialises in providing comprehensive banking services to both domestic and international clients. It also specialises in investment banking, offering a variety of solutions such as trade finance, cash management, and capital markets services. With its presence and expertise, it is considered one of the best banks in Germany and an excellent choice for customers. HVB offers a range of girokonto accounts (accounts for internationals); they also have the HVB Plus Account, which is free for all customers for the first two years. HVB also provides an HVB active account and an HVB Exclusive Account, which have a monthly fee, and they come with their debit card and online banking, making it one of the best banks in Germany.
9. Sparkassen
Operational HQ: Berlin
Sparkassen, one of the best banks in Germany, is a network of local savings banks that operates throughout Germany, offering personalised and community-oriented banking services. With its extensive branch network, Sparkassen provides convenient access to financial services for individuals and small businesses. Each Sparkasse operates autonomously, tailoring its offerings to the needs of its specific region. They have account management fees of €9.30 per month. Sparkassen's commitment to local communities and their wide range of services make them an integral part of the German banking landscape. The bank's Institutional Protection Scheme consists of 13 guarantee funds, ensuring customer deposits remain secure, making it one of the best German banks!
10. N26
Operational HQ: Berlin
N26 is a digital bank based in Berlin that has revolutionised the banking experience with its mobile-first approach. It does not charge any fees for opening an account or managing it! As a branchless bank, N26 offers a seamless and user-friendly platform for managing finances on the go, making it one of the best banks in Germany. From opening accounts to making payments and tracking expenses, N26 provides a convenient and efficient digital banking solution. With its focus on technology and customer-centric design, N26 appeals to the digitally savvy generation seeking a modern banking experience.
11. Deutsche Bundesbank
Operational HQ: Frankfurt
The Deutsche Bundesbank, which serves as a bank in Germany, plays a role in upholding monetary stability and protecting the trustworthiness of the financial system. Acting as the foundation of Germany's policy, the Bundesbank supervises payment systems, oversees foreign exchange reserves, and conducts research. Although it differs from a bank, the Deutsche Bundesbank holds great importance in ensuring a secure financial environment and is an integral part of Germany's banking sector. The bank's protection scheme is governed by the Deposit Guarantee Act, which mandates that all credit institutions involved in deposit activities must be part of a statutory deposit guarantee scheme (DGS) to safeguard customers, making it one of the best banks in Germany.
12. Postbank
Operational HQ: Bonn
Postbank, a subsidiary of Deutsche Bank, combines the familiarity of postal services with modern banking solutions. With its extensive branch network across Germany, Postbank provides convenient access to a wide range of financial services, including current accounts, savings accounts, and loans, making it one of the top banks in Germany. Postbank's integration of traditional and digital banking channels ensures accessibility for customers, making it a popular choice among individuals seeking convenience and a reliable banking partner.
13. Hamburg Commercial Bank
Operational HQ: Hamburg
For Maritime, one of the largest commercial German banks out there is the Hamburg Commercial Bank (HCOB). Previously known as HSH Nordbank, this bank is considered one of the largest providers of maritime finance! Their primary focus lies in the areas of transportation, shipping, real estate, and renewable energy. If you are a client of HCOB, you can expect to get high-level expertise in structuring your finance of commercial real estate projects; you will also get individual financing solutions and focused corporate client business, making it one of the best banks in Germany.
14. Landesbank Hessen-Thüringen
Operational HQ: Frankfurt
Landesbank Hessen-Thüringen, or HELABA for short, is a state-owned commercial bank that focuses on large customer business! With it being one of the best banks in Germany, it is also a municipal bank for authorities and a savings bank! Their business field includes financial services for enterprises, banks, and companies. They also provide services as a savings bank in Hesse, Thuringia, North Rhine-Westphalia, and Brandenburg, making it one of the top banks!
15. Norddeutsche Landesbank
Operational HQ: Hannover
Commercial at its best, Norddeutsche Landesbank is one of the largest and best banks in Germany for commercial purposes. It provides a range of financial services to corporate and public customers. Its goal is to help its German customers in their international business. It also serves as a central savings bank for various federal states, making it one of the top banks!
Digital Banking In Germany
Germany is no exception to be swept by the digital age and revolution. Many top banks in Germany have started using the advantage of technology to its fullest potential for making banking more convenient and easier, in spite of its deep traditional approach to paperwork.
1. For banking, many banks, like Deutsche Bank and Commerzbank, have started their operations online by providing different basic services like managing your account, doing transactions, making P2P payments, paying your dues, rent, etc., all of which are possible by a single click. All these apps have custom & personalised features that streamline your digital banking experience.
2. As international students, you can also send money back home at a cheap international transfer & payment rate. For sending money to the European Union, Germany belongs to the SEPA agreement, which makes cross-border payments as cheaper and quicker as a local bank transfer.
3. Outside the EU, there are plenty of ways to make a payment. Germany is part of SWIFT, a network that connects 190 countries around the world for financial transactions. You can transfer money using the safe and secure Swift network, which takes 1-4 working days. With Fintech booming, third-party payment transfer services like TransferWise charge lower fees and offer good exchange rates.
4. There has also been a rise in online-service digital banks in Germany, which provide features like no-fee accounts, international transfers, and budgeting tools.
How To Open A Bank Account In Germany
Each German bank has its process for opening an account, but each bank has some basic requirements and documents you need to present. To help you open an account in some of the best banks in Germany, here is a list of all the documents you will need!
1. A valid visa or residence permit
2. Address proof
3. A completed application form
4. If opening a student account, you need to provide a valid student ID.
If you want information about opening a bank account online, our guide on how to open a student bank account online and the documents needed will help you out!
When exploring the range of choices for banks in Germany, it's crucial to choose the best student bank that matches your financial goals and provides a complete range of services. If you are unsure of which bank to choose, our guide on how to choose the best student bank will surely help you. The best banks in Germany, such as Deutsche Bank, Commerzbank, KfW Bank, DZ Bank, and ING DiBa, aim to surpass customer expectations by delivering solutions, personalised encounters, and an unwavering dedication to superiority. Embrace financial stability and unlock a world of possibilities by choosing one of the best banks in Germany.
