21 Oct 2024
For Ghanaian expats living in Germany, managing finances efficiently is essential, particularly when sending money back home. Whether for the care of your family, investment, or business, knowing how to deal with the German banking system and how one could transfer money from Germany to Ghana is essential. This guide will then offer crucial information on the best ways to go about a banking account in Germany, especially going by the later part of the guide to outline the best way forward on how to send money to Ghana from Germany, especially given banking legislation, available options, and some tips on how one can effectively manage their account.
The first action towards controlling your money in Germany is to obtain an account with a German bank. This process is simpler for expats, especially Ghanaians, if you have all the required documents. Here’s what you typically need:
A valid Ghanaian passport is required;
Documentation that you are permitted by law to stay in Germany.
Ideally, this could be a rental agreement document or any utility bill bearing your name and address.
Some banks may want to be sure that you are employed in Germany or be willing to provide you with evidence of that.
You will also require a tax identification number, which is provided by the German tax office.
German banks offer different kinds of accounts, such as checking accounts, Girokonto, savings accounts, and Sparkonto, which are provided by different banks like Deutsche Bank, Commerzbank, and N26. Incidentally, a Girokonto is most suitable for everyday usage because you can deposit payments and pay out bills; you can also withdraw cash.
Some popular local banks include Commerzbank, Deutsche Bank, and DKB. Although there are more options through online banks like N26, they are easier to sign up for and provide convenient websites and apps for favored expats. Such accounts normally attract lower charges than other bank account services, such as overdraft charges and money transfer charges.
Germany has many banks, but before one selects one, one needs to be aware of the charges. This means that the majority of German banks still charge a monthly maintenance fee for current accounts. This fee ranges from €5 to €10, depending on the bank and the kind of account that a client is using.
Other fees include:
Free withdrawal from ATM is possible in most of the banks, but it only permits free withdrawal in its network ATM. For more withdrawals at other ATMs, extra charges apply.
Crossing the border, it is evident that most traditional banks that accept money transfers charge relatively higher prices than most online money transfer services. Also, they may tend to give customers worse exchange rates than the standard market rates.
The effect of any overdraft is that German banks will charge interest on the negative balance. This rate may fluctuate but is usually between 6% and 12%. With this knowledge, you can avoid some of these fees when selecting a bank for your German bank account or if you frequently transfer money to Ghana from Germany via the Internet.
Another aspect of maintaining your finances when you are an expatriate in Germany is knowing how to transfer money back home to Ghana. Luckily, there are several ways to do this, all of which have strengths in terms of cost, time, and access.
Some traditional banks include Deutsche Bank and Commerzbank, which provide international money transfers, including sending money from Germany to Ghana. However, relying on these transfers can lead to massive expenditures because of the high fees and the unfavorable exchange rate. It may even take the money up to 3-4 days to get to Ghana.
Nevertheless, this is still used among the populace for larger volume and lower frequency transactions because of the security feel and familiarity with the forms. With traditional banks, make sure you ask for the total charges for the transfer, the charges by the sending and receiving banks and the exchange rate the bank will use.
Many expatriate Ghanaians prefer these services, including ACE Money Transfer, since they offer faster and cheaper online transfer methods. This platform provides a fair exchange rate and minimal charges, and it can be used to make an online money transfer from Germany to Ghana. With these ones, you are able to transfer money to Ghana from Germany online at any time, and most of the transfers are processed within a few hours.
Mobile monetary services, especially MTN Mobile Money, are prevalent in Ghana. Thirdly, many online transfer services, including ACE Money Transfer, can directly transfer money to a recipient's mobile money account in lieu of a bank account.
Mobile money transfers are appropriate for routinely sending small amounts of money since they are quick and normally lower than bank transfers.
In addition, it is necessary to pay attention to the exchange rate while transferring money from Germany to Ghana. The exact exchange rates can also differ from one bank or online service provider to the other. High-street banks may provide a poorer exchange rate, and your recipient will receive less money after conversion. Money transfer companies online for instant money transfer to Ghana from Germany have better exchange rates, but you should compare between money transfer services.
For instance, up to 2024, the euro and the Ghanaian cedi's exchange rate fluctuated at €1 = GHS 12. Nevertheless, what your transfer service is willing to offer you for such an exchange may vary slightly. Practically, it was observed that slight differences in exchange rates can rewind and turn around the outcome of a relatively big transfer; therefore, one needs to be very careful and vigilant and should always check before transferring money.
Managing finances is wider than remitting money back home. Here are some additional tips for Ghanaian expats managing their bank accounts in Germany:
It is also important to note that the cost of living in Germany is way higher than that of Ghana; hence, one must be disciplined about spending. Use a mobile bank or a budgeting application to review and track your spending to determine in which areas you can save some money. It will help you keep more money for transfers back home.
For those who frequently remit money to Ghana, it is advisable that you make recurring sendings through your bank or any online money transfer agency. Most of the payments can be made weekly or monthly, depending on the various programs that you choose for your family to receive consensual support. This can also help you avoid missing any transfer dates for credit, which is important.
Many German banks have special top-up saving accounts, which can help your money increase as you live in the country. Check out the various savings accounts available with the bank and select the one with the best interest rate and the fewest charges. The money can be utilized in the case of an emergency or when making a large money transfer from Germany to Ghana when necessary.
The taxation law in Germany will also apply to you if you are a Ghanaian expatriate, regardless of whether you are a resident or not resident in Germany. One should not receive or transfer any income without proper knowledge of the taxation laws that surround it. One should seek help from an expatriate tax consultant who can help in going by the tax laws of Germany and Ghana.
Not only does an expatriate from Ghana in Germany need to interact physically with the bank account on a daily basis, but it goes beyond that by learning ways to invest for the future. Regardless of your intentions regarding whether you will stay and work in Ghana or remain and work in Germany in the future, you should always devise a good financial plan.
If you seek to retire in Ghana, you should consider setting up a retirement savings and investments account. Under certain conditions, several pension schemes in Germany can be transferred to Ghana.
Some Ghanaian expatriates buy real estate properties or establish businesses in their native country. Having a German bank account helps to make such investments easier and more frequent because you are constantly planning to send money to Ghana online from Germany. In the same way, you can track the exchange rates online and transfer the money at the right time.
Any money saved towards education for children or healthcare for family members in Ghana is wise. A wisely built and maintained debit in a German bank will guarantee that you will take care of your loved ones appropriately.
Despite these challenges, it is important to know that, as a Ghanaian expatriate, living and operating a bank account in Germany is not a very big deal. With the following tips, anyone can make it through. A person needs to make informed choices about the bank that charges lower fees, know the various methods of transferring money, and even know the exchange rate information and savings.
Whether you're remitting money to help a family in Ghana, invest in a business, or save for the future, ACE Money Transfer makes it easy and fast to make transfers. Always coordinate prices, and remember to look for transfer fees and exchange rates to avoid losing your cash vim.
Therefore, in order to send money online to Ghana from Germany, you should pay attention to bank account management and check online money transfer services to find the most suitable rates. By doing so, you will ensure that your finances are secure in Germany and Ghana, where you come from.
While some German banks allow you to create an account online, it's always advised to visit a branch in person to ensure everything goes well and to ask any questions.
Costs can vary depending on the bank, but typical ones include ATM, transaction, and account maintenance fees.
Most German banks provide Internet banking so that you can access your account from anywhere on the globe. Additionally, you might be able to utilize ATMs with global networks.
Debit cards (EC cards) are frequently accepted for everyday transactions. Although less frequent, credit cards can be used for more expensive purchases.
