Germany's banking system is built on a three-pillar structure, consisting of commercial banks, public banks, and cooperative banks.
In addition, Germany is home to a growing number of digital and international banks that offer fully online or mobile-first services. These banks typically fall under the category of commercial banks and are known for their modern, user-friendly platforms.
Germany had a total of 1,403 credit institutions, according to the Deutsche Bundesbank bank office report of 2023. This reflects a net decrease of 55 institutions from the previous year, continuing a long-term trend of consolidation in the banking sector. The reduction was primarily due to mergers, particularly within the cooperative banking sector, along with some license relinquishments and one insolvency as per the
Despite the number of banks having steadily declined over the years, the sector's overall assets have grown significantly. According to a Banking Statistics report from Deutsche Bundesbank, the German banking industry reached total assets of €10.8 trillion in February 2025, an increase from €10.6 trillion the year before.
A stable banking system is essential for a well-functioning economy, and in Germany, this responsibility is shared between two key institutions. The Deutsche Bundesbank and the Federal Financial Supervisory Authority (BaFin) work together to oversee and regulate the country’s financial sector, ensuring its security and stability.
While all the above types operate as universal banks offering a full range of banking services their key differences lie in organizational structure and reach. Specifically, they vary in the number of legally independent entities they include and the size and distribution of their branch networks across the country.
When choosing a banking system in Germany, the decision should depend on your individual needs, as all three pillars - public, commercial, and cooperative banks offer similar core services like current accounts, savings, and loans.
If you're an expat (student or professional) looking for English-language support, modern online banking, and potentially international services, commercial banks or online/digital banks (like N26 or DKB) are usually the most suitable. On the other hand, if you're living in a smaller town and value personalized, community-oriented service, then public savings banks (Sparkassen) or cooperative banks (Volksbanken/Raiffeisenbanken) may be a better fit, though keep in mind that services are primarily in German.
When opening a bank account in Germany, you’ll find several types each designed for different needs. Here’s a quick overview to help you choose the right one based on your situation:
If you're coming to Germany for your studies, you’ll likely need two accounts.
If you're employed in Germany, you’ll need a Girokonto (current account). This is the standard account for everyday use such as receiving your salary, paying rent, and handling bills or shopping. Look for an account with low or no monthly fees, a user-friendly app, and English-language support, which is especially helpful for newcomers.
Freelancers and business owners in Germany are best served by a Business Account (Geschäftskonto). These accounts help keep personal and professional finances separate and often include features like invoicing tools, tax estimation, and accounting software integration.
Joint Account (Gemeinschaftskonto) is ideal for couples or flatmates who want to manage shared expenses such as rent, utilities, or groceries. Both account holders have equal access to the funds, making it perfect for trusted partners who need shared financial control.
If you’re looking to save money in Germany, you have a few options. A Savings Account (Sparkonto) is suited for long-term savings, though it typically offers low interest. A Call Money Account (Tagesgeldkonto) gives you flexibility with higher interest and instant access to your funds. For better returns, a Fixed Deposit Account (Festgeldkonto) lets you lock your money for a set period (e.g., 1–5 years) in exchange for a higher interest rate. These are ideal for anyone building an emergency fund or saving for future goals.
If you're a digital nomad or frequent traveler, an Online-Only Account is a great option. These accounts offer a fully digital experience, with no paperwork, English support, mobile banking, and low international transaction fees. They’re easy to open remotely and usually don’t require you to speak German.
While debit cards are more common in Germany, certain situations—like renting a car or booking hotels online—require a credit card. These are usually applied for separately from your current account, and approval may depend on your credit history or SCHUFA score
Deutsche bank is one of the leading German banks and has a global name with extensive services tailored for international customers. Expats choose it for its credibility, English-speaking staff, and support with student and blocked accounts.
N26 is a digital bank known for its sleek mobile app and fast, paperless account opening. It’s popular with expats and digital nomads for its full English interface, zero-fee accounts, and international transaction benefits.
Commerzbank is one of Germany’s largest traditional banks, offering a solid range of services with English support. It’s preferred by expats for its wide branch network, current account options, and easy online banking.
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