Key takeaways
  • Everyone legally resident in the EU has a right to a basic payment account in Germany.
  • Schufa is Germany's main credit agency; landlords and phone companies often check it.
  • You build a Schufa record over time by paying bills on time.
  • Your salary needs a German or SEPA account.

Your employer pays your salary into a bank account, and your landlord, phone company and many others will check your Schufa record. Here is how both work.

Opening a bank account

Every consumer legally resident in the EU has the right to a basic payment account in Germany (§31 Payment Accounts Act). In practice you can choose between branch banks and online banks. Many newcomers open an online account first because it is fast, then add a local bank later.

  • Have your passport, visa or residence permit, and often your registration certificate ready.
  • Check that the account has a German IBAN if a landlord or service asks for one.
  • Compare monthly fees; many accounts are free only with a minimum monthly income.

What Schufa is

Schufa is Germany's biggest credit agency. It stores information about your contracts, loans and payment history. When you arrive, you have no record, which can make renting harder.

How to build a good record

  1. Open a current account. It is often the first entry.
  2. Pay every bill on time. Phone, rent and utilities.
  3. Avoid many credit applications at once. They can lower your score.
  4. Request your free copy. You can ask Schufa for a free copy of your data.

Common questions

Can I open a German bank account before arriving?

Some online banks allow it, but most need a German address. Check the bank's requirements.

Do I need Schufa to rent a flat?

Many landlords ask for it. As a newcomer, a letter from your employer and your contract help.

Is a basic account free?

Not always. Banks may charge reasonable fees.

Sources

Written by Swapnil (Samadhan Mule)

I moved to Germany for my master's, collected more than 1,000 rejections, and then got multiple job offers within six months. I work in digital marketing in Germany and help international professionals get hired in Europe. Read my story.