29 Jan 2025
Understanding a foreign country’s banking policies is essential for every expat if they want to settle in as quickly as possible. One common challenge every expat faces is that figuring out those banking policies can be a bit complicated because people don’t really know where to start. If you are a Filipino expat or if you plan on moving to Germany so you can earn and send money to Philippines from Germany, getting knowledge on banking policies in Germany is crucial.
Not to worry! This blog is your ultimate German banking policy guide 101, with all the essential information needed to start. Let’s dive in!
As is the case in most situations, you can open varying types of bank accounts in Germany, depending on what suits your priorities and needs. These include general savings, current accounts, and online-only bank accounts.
Many banks also offer specialized student accounts with low or no fees to support international students. Business accounts are also available for entrepreneurs and self-employed individuals to manage their financial operations efficiently. Some banks in Germany provide joint accounts for couples or families, making it easier to share and track expenses.
There are two main types of bank accounts that you must know as a Filipino expat. One is the Girokonto (checking account), which is preferred for everyday financial transactions. The second one is the Sparkonto (savings account), which includes interest on your deposited money.
Opening a bank account is essential for salary deposits and bill payments, so many expats open a Girokonto checking account first. You should also know that a bank account is necessary to send money from Germany to the Philippines.
Now, the question is, what kind of bank should you open an account in? You are required to have an account for a money transfer from Germany to the Philippines, so this is important to understand. Germany has mainly two kinds of banks. One is a traditional run-of-the-mill bank like Commerzbank and Deutsche Bank. Another kind is a digital bank like Bunq or N26. You should know that a digital bank is more flexible and has lower fees.
As a Filipino expat, you should consider a digital bank since the paperwork doesn’t exist, and the account setup process is much easier. Plus, managing the account will be more convenient if you’ve got the bank app on your phone. However, you should also know that they might offer less comprehensive services than a traditional bank.
Pro Tip: Do you know that you can save enough on your remittances from Germany to the Philippines? Using the ACE money transfer app, you can enjoy low fees and competitive exchange rates when you send money to Philippines online from Germany. The app fast, secure, and convenient, and millions already trust it.
A traditional bank charges monthly fees for maintaining an account. You can set up a zero-fee or relatively low-cost account with a digital bank. This is preferable for budget-conscious people. With digital banks, you can also conveniently send money online from Germany to the Philippines.
Opening a bank account, whether in a traditional or digital bank, requires some essential documents.
As a Filipino expat, you will need a valid passport, proof of employment or income, and proof of residence. These documents are generally asked for, especially in a traditional bank, but a digital bank might be more flexible. They usually only ask for residency details and a passport.
Read 10 things every Filipino worker in Germany must know in 2024 here!
Making an account with a digital bank might not require paperwork, but they might request a video call to confirm your identity. So you must ensure you have a good camera and a stable internet connection.
Under the General Data Protection Regulation (GDPR) of Germany, all German banks must abide by strict data protection laws. Banks must protect your personal information, but it is still advised not to share sensitive information over untrustworthy connections.
With the right information, you can smoothly sail through the German banking system and even make an easy online money transfer from Germany to Philippines without much hassle. All you need to do is understand the varying types of banks and accounts to choose the best option for yourself.
The main types are Girokonto (checking account) and Sparkonto (savings account).
Yes, many traditional banks charge a monthly fee, but some digital banks offer no-fee accounts.
Typically, you'll need a passport, proof of residence, and sometimes proof of income.
Use two-factor authentication and follow GDPR guidelines to secure your account.
To send money from Germany to Philippines, consider using digital remittance services, which often have lower fees than traditional bank transfers.
