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A Guide to Accessing Loans and Savings Products for Bangladeshi Expats in Germany

26 Apr 2024

A report by The Business Standard revealed that around 20,000 Bangladeshi migrants are living in Germany for work. They regularly send money to Bangladesh from Germany to offer financial support back home.  

Living in Germany is beneficial in more ways than one, mainly when living there as a migrant. Because:

a) You can find jobs in several sectors and fields in the country owing to the robust German economy with a nominal GDP of $4.08 trillion (2022) 


b) The viable financial market of Germany makes it easy for you to get loans and access savings products and services from German banks.    

Let’s explore what triggers the need to get loans and the savings accounts you can open in Germany as a Bangladeshi migrant to save money.

What are the Primary Reasons for Obtaining a Loan in Germany as a Migrant?  

When you work in Germany, you are responsible for looking after your family's financial needs back home in Bangladesh. These needs and requirements, at times, are beyond your financial strength, within which you offer financial aid to your family regularly. Therefore, you step out of your financial limits and seek loans.   

Some of the reasons for acquiring loans as a migrant are listed below.

  • The first reason you will seek a loan is debt consolidation
  • The other reason is to support house renovation projects
  •  You seek loans for attending to emergencies financially
  • You can also get a loan to purchase a vehicle
  • You might have to get a loan if you are shifting from one city or country to another
  • You can apply for a loan for larger purchases
  •  Applying for a loan to afford nuptials is a norm for people in developing countries

Different Types of Loans in Germany You Can Apply for

As mentioned earlier, Germany's thriving and financially solid market makes it easy for you to get a loan to address the issues listed above financially. In this context, the different types of loans you can get in Germany as a Bangladeshi migrant are explained below. 

Car Loan (Autokredit)

It is one of the most common loan types that you can apply for in Germany. As the loan title suggests, it is mainly used for financing or purchasing a new or used car. Generally, the interest rates in Germany on car loans are relatively low.

Instant Loan (Sofortkredit)

As the title of this type of loan suggests, you can get this loan in a short time, such as a couple of days. A financial institution, like a bank, lends a small amount of money to this type of loan, and it comes with a relatively high-interest rate.

Mortgage Loan (Immobilienkredit or Baufinazierung)

This loan type is available in Germany and is acquired for purchasing property or renovating houses. Since this loan requires a large amount of money to be lent by the financial institution, the rates are lower than other loan types, and the repayment duration is fairly long.

Consumer Credit (Privat Kredit)  

These loans are perfect for consumers who can use them for various reasons, such as purchasing a vehicle or property. In this loan type, you can acquire a larger amount and still pay a relatively lower interest rate, unlike mortgage loans.    

Business Loans for Entrepreneurs

As the title depicts, a business loan is designed for entrepreneurs wanting to launch a business or expand an existing one. These loan types are available for both large and small companies, and their interest rates depend on the quantum of the loan and type of business.

General Requirements to Acquire a Loan in Germany

You must meet the following conditions to get a loan in Germany from financial institutions, including banks in Germany. But remember that these are the general conditions. It means that different financial institutions may have set other conditions but, by and large, they are the same as listed below.

  • You must have a bank account in Germany regardless of whether you use your bank account for a money transfer from Germany to Bangladesh or not
  • You must not be younger than 18 years
  •  You must be residing in Germany
  • You should have a regular income or, at least, prove a steady income stream (3-6 months of pay slips for employees or 2 years of balance sheets for freelancers)

Types of Savings Accounts in Germany for Bangladeshi Expatriates

When you are working in Germany as a Bangladeshi migrant or elsewhere, to earn a living and support your family, you must open a savings account. However, when choosing a bank to open a savings account, consider the risks and challenges almost every bank faces.  It will help you save money and create a small yet steady income stream.

In Germany, however, you can open the following savings accounts, which are considered the best in the German financial market.

Flexible Savings Account (Tagesgeldkonto)

A flexible savings account is the most common savings account type in Germany and the most popular one. It is simple to open and operate. Despite being a savings account, you can withdraw money from it anytime.  

Its Benefits include the following:

  •  Earning profit on balance
  •  Access funds any time
  •  No long-term commitments
  •  No account opening or maintenance fees
  • Stable value and no loss due to a change in market
  • Deposit insurance covering  €100,000

Its Cons include the following:

  • Changing interest rates
  • Unfit for regular payments
  •  A reference account is essential
  • Offering lower returns

Fixed-Term Savings Account (Festgeldkonto)

It is another popular savings account that you can open in Germany as a Bangladeshi migrant. It is also known as the fixed deposit account. You will get a relatively higher interest rate on these deposits over time.

Its benefits are:

  • Guaranteed interest rates across the investment duration
  • Competitive return due to high-interest rates
  • Zero account maintenance fees
  • Varying deposit lengths

Its cons are:

  • Interest rates remain static even if they spike in the market
  •  A premature withdrawal may lead to an interest decline  

To open a savings account in Germany, you only have to provide your identification document, proof of address, and another account, preferably a checking account, for reference.

ACE Money Transfer Helps you Save Money while Transferring Funds like a Savings Account in Germany  

When you make an online money transfer from Germany to Bangladesh with ACE Money Transfer, you save your hard-earned money, given that you must pay service charges as many times as the number of transactions.

The firm charges you a low fee and delivers funds swiftly and safely. It also offers you live and market-competitive currency exchange rates that can compensate you for whatever amount you pay as fees.

Always remember that when opening a savings account or a checking account in Germany may be essential, sending funds through banks is never binding. Therefore, choose an online remittance transfer service provider such as ACE Money Transfer to get optimal financial benefits and save money.


What are the main reasons for which I need a loan?

You might need loans for a host of reasons that vary from person to person and vary. Still, some common reasons are purchasing a car, house renovation, planning marriages, shifting from one city or country to another, attending to financial emergencies, large purchases, debt consolidation, and so on.

What are the different types of loans I can get in Germany?

The different types of loans you can get in Germany are business, car, instant, mortgage, and consumer credit. These loans come with other terms and conditions and repayment tenures and can be used for several purposes.   

What is a savings account?

A savings account is a bank account in which you deposit funds and earn profit. Different types of savings accounts offer different rates of interest and profit margins. The deposit duration also depends on several factors and varies largely for other account types.

What are the main types of savings accounts in Germany?

Unlike in several other countries, you will find only two main types of savings accounts in Germany. These savings account types in Germany are the flexible savings account and the fixed-term savings account. These two are the most common and popular savings account types in Germany.

What are the pros and cons of savings accounts in Germany?

The benefits of savings accounts in Germany include earning a profit on your deposit, earning interest rates, saving funds, access to funds and zero account maintenance fees.

The downsides of the savings accounts include fixed interest rates even if the rates in the market spike, not suitable for routine financial matters, and a substantial cut in the profit margin on a premature cash withdrawal.


(GDP (current US$) - Germany | Data (

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