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A Guide to Bank Account Types for Overseas Filipinos in Germany

30 Jan 2024


Do you know how your bank account can facilitate your money transfers to Philippines from Germany? All the Filipino expats must be trying to raise their financial standards by working in Germany. Whenever you hear the term "finance," the image of a bank account hits your mind first. Banks play a huge role in the lives of working people. A Bank account is like a facilitator managing most of your stuff, whether it's saving, making payments, or transacting money.              

Opening a bank account abroad can be a practical step for individuals residing overseas and frequently contributing to international money transactions. Choose your bank account wisely by considering financial needs, requirements, residency status, and the banking regulations of the particular country. Explore the benefits of multiple accounts and choose the one with better services.           

As a Filipino, you may have to make frequent transactions to the Philippines to help your family members. You must maintain and update your accounts to efficiently deal with instant transaction issues. In this article, you will explore the types of banks that can facilitate your international transactions from Germany to the Philippines.   

Types of Bank Accounts for Filipinos Residing in Germany

Almost 69% of the world's population, which makes up 3.8 billion people worldwide, has bank accounts. If you plan to open a bank account, consider the following types. Your bank is one of the safest places to keep money. You can make deposits and withdrawals at any time without the fear of theft. It helps you save money and make instant money transfers from Germany to the Philippines within a span of a few minutes.      

Savings Account   

A savings account is suitable for all expats because it allows you to save extra funds and secure emergency deposits. It allows you to make withdrawals from the account at any time. Saving accounts offer low-initial deposits, so they are easy to open. You can open your savings account with the least cost of ₱100 (1.7$).

*Note: The lowest cost stated above may be subject to variation based on currency fluctuations and updates in banks’ regulations.    

A few limitations of saving accounts is that you need to maintain your account balance. You have to pay for essential cards like ATMs. Moreover, you cannot get a check for such accounts and need to maintain a specific balance within 30 days.        

Foreign Currency Account

A foreign currency account is a type of account where you can keep your money in a different currency. As a Filipino expat living in Germany, you can keep money in the currency of the Philippines. It will help you to instantly send money from Germany to Philippines. These accounts are specially designed for international business holders and expats. It reduces conversion rates and facilitates cross-border transactions without any limits.     

The overall charges of foreign accounts are higher than other accounts. Fluctuations in exchange rates can impact your currency. There is a risk of currency mismatch. Furthermore, making or closing foreign currency exchanges is complex and requires a lot of paperwork. Also, you need to maintain a minimum amount to keep your account working.         

Current Account

A current account facilitates regular transactions. It serves as an operational account for managing your routine financial activities. It supports multiple day-to-day activities. You can get an ATM card, credit card, debit card, and checkbook so you can make transactions. You can rely on your current account for minute transactions like bill payments, groceries, or loan installments. Learn tips for managing your bank account effectively as an Overseas Filipino Worker (OFW).  

Current accounts also come with some restrictions, like limited daily transactions. Also, it is more costly than saving accounts. It does not allow you to make long-term savings. Moreover, you need to maintain a specified amount to keep your account working.       

Joint Account

It is a bank account that two or more individuals share. Usually, joint accounts are created by two members of the same family or business partners. It promotes financial support. Account holders can share the financial responsibilities. Neither the holders have equal access, nor can they withdraw the finances easily. This account is best to tackle financial emergencies.    

As an expat, you can open a joint account with any of your family members so they can withdraw money when required. A joint account lacks privacy, and any partner can misuse the account. Joint accounts require clear communication, trust, and careful consideration.  

Non-Residency Account

These accounts are primarily for people living abroad to cater to their financial needs. It allows expat to manage their accounts and finance internationally by maintaining the accounts remotely. They provide currency flexibility to individuals who earn overseas and need to send money to Philippines from Germany. It provides you with investment opportunities and facilitates your international transactions.     

Non-residency accounts are expensive. It imposes a lot of taxes on individuals. As an expat, you may have to pay taxes in both countries to exchange money. It requires high maintenance. Certain services, benefits, or promotional offers may be restricted.

It is mandatory to choose the type of bank account carefully. Look for the benefits of all the accounts and compare positive and negative aspects. Consider the drawbacks and look for an account that can fulfill your needs and align with your situation. There are multiple types of banks, but as a Filipino expat, you must consider a joint, savings, or non-residency account because these suit your conditions the most. Foreign currency accounts and non-residency accounts are specially designed to facilitate the needs of an expat. It helps you to make secure international transactions with reasonable exchange rates.     

Bottom Line

A suitable bank account can facilitate you in so many ways. Every bank account has its benefits, which are followed by some limitations. A joint bank account can help you share your responsibilities with your fellow. You can have a joint account overseas with an individual from a different country. In this way, you do not need to send money to your family members. They can withdraw it whenever needed without any limitations and restrictions.       

As an expat, you can also consider savings accounts because they help you align your budget and save as much money as you want. It helps you secure an amount for emergencies and maximize remittance. So, you can send money online to Philippines from Germany. Moreover, it also comes with multiple benefits. All you need is to maintain a certain amount of balance in your account to keep it working.    

Bank accounts are essential for overseas workers to fix their finances. You may need to maintain a specific amount of money in almost all types of banks. Choose a bank account wisely. Only open a joint account if you have trustworthy partners. If you fear exchange rate fluctuations, opt for a bank other than foreign exchange or non-residency. Your bank type can help in making your life easier.        

FAQs

What kinds of banks are available for overseas Filipinos?

Many bank account types are available for Filipino expats, such as current, savings, multi-currency, joint, and non-residency accounts.   

How to open a bank in Germany as a Filipino expat?

Look for different banks, visit the physical branches of the banks, and choose a reliable bank. Provide them with your essential details and documents to open your bank account.   

How do you manage the finances of the Philippines while working in Germany?

You can manage the Philippines' finance requirements even if you live in Germany through bank accounts. You can create a joint or non-resident account to meet your needs in a different country.  

How do bank accounts facilitate money transfers from Germany to the Philippines?    

Through bank accounts, you can make unlimited transactions in any country. Moreover, banks chase you for a little service fee, and you can make instant online transactions.

Is opening a joint account in the Philippines while working in Germany possible?  

Yes, you can create a joint account with any family member or partner living in the Philippines by providing both details.


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