Opening a bank account in Germany as a US citizen

A German current account (Girokonto) is one of the first things you need after arriving. Rent, salary, phone contracts, utilities and the public broadcasting fee are normally paid by bank transfer or direct debit from a euro account with a German or European IBAN. When I lived and worked in Germany, daily life ran on transfers and direct debits far more than on checks, which are rarely used.

Americans face one extra layer: US tax law reaches into foreign banks, so German banks ask US customers for additional forms. This guide explains what to expect, the right to a basic account under German law, and the US reporting that comes with a German account.

What banks usually ask for

Every bank must verify your identity under anti-money-laundering rules. For a US citizen, the core documents are:

• A valid passport. The financial regulator BaFin explains that valid official photo IDs that satisfy the German passport and ID obligation are accepted, including foreign passports recognised under immigration law.
• Your registered address. Many banks ask for the registration certificate (Meldebescheinigung) you receive after registering your address. Some accept other proof.
• Your residence permit or visa, where you have one.
• Your German tax identification number, once it arrives by post after registration. Banks ask for it for tax reporting on interest and investment income.
• Your US taxpayer identification number, which for most Americans is the Social Security number, because of FATCA (see below).

Online banks often verify identity by video call or at a partner location. Branch banks usually want an appointment. Requirements differ from bank to bank, so check the list on the bank's own site before you go.

BaFin notes one trap for newcomers: a Fiktionsbescheinigung, the temporary certificate issued while a residence permit application is pending, is not on its own an accepted identity document for a basic account. Bring your passport.

Why FATCA forms come up

The Foreign Account Tax Compliance Act (FATCA) generally requires foreign financial institutions to report on the assets held by their US account holders, or face withholding on certain payments, according to the IRS. As a result, German banks ask every customer about US tax status, and a US citizen will be asked for a self-certification and a US tax number. A W-9 form is commonly used for this.

This is routine, and it is not a sign of suspicion. Answer accurately. A small number of banks choose not to take US customers at all because of the compliance work. If a bank declines, try another, or use your right to a basic account.

Your legal right to a basic account

The Payment Accounts Act (Zahlungskontengesetz, ZKG) gives consumers a right to a basic account (Basiskonto). Section 31 ZKG obliges any institution offering payment accounts to consumers to conclude a basic account contract with any consumer lawfully resident in the European Union, if the application meets the legal requirements. A US citizen living in Germany legally qualifies.

Key points from the law and BaFin's guidance:

• The bank must offer the contract without delay and at the latest within ten business days after receiving a complete application.
• You must apply expressly for a basic account under the ZKG.
• According to BaFin, the right applies to consumers who do not yet hold a payment account in Germany.
• Under Section 38 ZKG, the basic account is a euro account that must allow cash deposits and withdrawals, transfers including standing orders, direct debits and card payments.
• The bank does not have to grant an overdraft.
• BaFin states that banks may only charge reasonable fees for a basic account, and the bank's options to close it are tightly restricted.

A bank may refuse only on legal grounds, for example if you cannot identify yourself with a suitable document, or if the relationship would breach money-laundering duties. If you think a refusal was wrong, BaFin runs an administrative procedure that is free of charge; you pay only your own postage and any advice costs.

Deposit protection

German bank deposits are protected by statutory deposit insurance. Section 8 of the Deposit Guarantee Act (EinSiG) limits the compensation claim to the equivalent of 100,000 euros per depositor and bank. In specific cases, such as recent proceeds from selling a privately used home or payments tied to life events like retirement or marriage, temporary coverage of up to 500,000 euros applies for a limited period after the money is credited.

Banks also belong to institutional or voluntary schemes. Your bank must tell you which scheme protects your money.

Paying in Germany

Germany is part of the Single Euro Payments Area (SEPA), so euro transfers and direct debits work the same way across the euro area. The Bundesbank notes that Germany's girocard is a national debit card scheme. Many German accounts come with a girocard, a debit card from an international network, or both.

Cash is still used more than many Americans expect, especially in small bakeries, market stalls and some restaurants. Card acceptance has spread, but carrying some cash remains practical.

Common account features you will meet:

• IBAN: your account number in international format, starting with DE for German banks.
• Lastschrift: a direct debit you authorise, used for rent, phone and utilities.
• Dauerauftrag: a standing order you set up, often used for rent.
• Überweisung: a standard transfer.

Order of operations

Because so many steps depend on each other, it helps to plan the order:

1. Arrive with your passport and visa if you have one.
2. Find an apartment and get the landlord's move-in confirmation.
3. Register your address within two weeks of moving in and receive the registration certificate.
4. Open an account. Some online banks will open an account before the tax number arrives and ask for it later.
5. Give your tax identification number to the bank once it arrives by post.
6. Give the account details to your employer for salary and to the immigration office if it asks for proof of funds.

If you need an account before registration, ask the bank directly. Some will open with a passport and a provisional address, others will not.

Keeping a US account

Most Americans keep at least one US account for US obligations, such as student loans, US credit cards or receiving US payments. Check whether your US bank allows customers with a foreign address, because some close accounts or limit services for non-resident customers. A US mailing address and a US phone number for security codes help keep access.

What the IRS expects from you

Having a German account creates US reporting duties regardless of whether it earns any income.

• FBAR. US persons must file FinCEN Form 114 if the aggregate value of their foreign financial accounts exceeded 10,000 dollars at any time during the calendar year. The IRS states it is due April 15, with an automatic extension to October 15, and is filed electronically through FinCEN's BSA E-Filing System, not with your tax return.
• Form 8938. Under FATCA, taxpayers living abroad file Form 8938 with their return when specified foreign financial assets exceed higher thresholds. For a single filer living abroad, the IRS states the threshold is more than 200,000 dollars on the last day of the year or more than 300,000 dollars at any time during the year; thresholds double for joint filers.
• Interest. Interest from a German account is reportable on your US return as part of your worldwide income.

The separate guide on US taxes in this series covers these filings in more detail.

Checklist

1. Bring a valid US passport and your visa or residence permit.
2. Have your registration certificate ready, or ask the bank what it accepts instead.
3. Expect a FATCA self-certification and provide your SSN.
4. If refused, apply expressly for a basic account under the ZKG.
5. Note your bank's deposit protection scheme.
6. Diary your FBAR deadline every year.

Common questions

Can a German bank refuse me because I am American? A bank may decline an ordinary account, but under Section 31 ZKG any bank offering consumer accounts must offer a basic account to a consumer lawfully resident in the EU, unless a legal refusal ground applies.

Why does my German bank want my Social Security number? FATCA requires foreign financial institutions to report on accounts held by US persons, so banks collect a US tax number and a self-certification from American customers.

How much of my German deposit is protected? Statutory deposit insurance covers up to 100,000 euros per depositor and bank under Section 8 EinSiG, with temporary higher coverage for certain one-off amounts.

Do I have to report my German account to the US? Yes, on an FBAR if your foreign accounts together exceeded 10,000 dollars at any time in the year, and on Form 8938 if you exceed its thresholds.