25 Mar 2024
Whether you use your bank account for a money transfer from Germany to Nigeria, having a bank account in a foreign country like Germany is essential.
Owing to its robust economy with a nominal GDP of 4.08 trillion (2022), a GDP Per Capita income of $48,718 (2022) and an expansive job market, several Nigerians are working in Germany. Since the trend of using cash is diminishing fast because financial matters have largely shifted to digital means, it accentuates the need to open a bank account.
This blog will walk you through the steps to open a bank account in Germany and the different types of bank accounts there. It will also offer insights into the benefits and whether transferring funds back home through banks is viable or whether you should choose alternatives.
If seen from the perspective of broader financial needs, having a bank account is the need of the day. Whether in Germany or elsewhere, certain financial matters make it paramount for you to have a bank account.
This is one of the basic reasons that opening a bank account anywhere, including Germany, takes only a few simple steps and requires the provision of certain documents.
The steps to open a bank account in Germany are explained below.
Only some banks and bank accounts are meant for you. Not only in Germany but in your native country, you will find several banks and account types. Therefore, the first step is to determine the exact financial needs for which you need to open a bank account.
Some of these basic needs can be divided as follows:
After determining your exact needs, you must find the bank that corresponds to those needs. Remember that in Germany, different banks specialize in different services and products, although you will find many services and financial products offered by almost all German banks.
Some of the major banks in Germany are listed below.
Some of the most popular and major banks in Germany are listed below.
After determining your needs and choosing the bank from the list above, it is time to gather the required documents. Remember that different banks ask for different documents, but the following are the most common documents required to open a bank account in Germany.
The documents German residents are required to produce are:
The documents non-residents are required to provide are:
The documents foreigners or newcomers are required to provide are:
As soon as you can provide the documents listed above, you are good to proceed with opening a bank account in Germany.
Let’s now walk through some of the major bank account types you can open in a German bank as a Nigerian migrant.
Some of the most popular bank accounts in Germany are listed below. But since you are working there as a Nigerian migrant and have to send money to Nigeria from Germany to offer financial support, you might not want to use any of the following accounts.
Remember that the titles of these bank accounts are self-explanatory.
Now the question is: why are so many bank accounts in so many German banks still unfit for your online money transfers to Nigeria from Germany?
Let’s find the answer.
Although banks cater to a large array of financial needs and have always been and seem to continue to do so in the foreseeable future, they need to improve when transferring funds online.
Banks take several days to deliver funds and charge high fees each time you transfer funds. So, given that the process is repetitive, you cannot afford to pay a high fee regularly, not when you have the alternative of ensuring easy and simple online money transfers back to Nigeria.
You will also get static or fixed currency exchange rates that are always uncompetitive. Remember that the currency exchange rates banks offer worldwide are fixed and uncompetitive.
However, you can also get a few benefits from having a bank account. These benefits include efficient management of funds, paying bills, depositing funds and making withdrawals. It also includes safekeeping, which means keeping your funds away while having easy and quick access through ATMs and so on.
However, as stated earlier, any bank or bank account, for that matter, is simply not fit to transfer funds across borders for the reasons stated above.
Remember that you have gone to Germany to earn a living and make online money transfer from Germany to Nigeria to offer financial support. So, distinguish opening a bank account in Germany from sending funds online.
Instead, choose ACE Money Transfer for your online money transfers to Nigeria from Germany to get live and market-competitive currency exchange rates. It offers swift and safe delivery of funds and much more from just one stop in exchange for a bare minimum fee. In addition, you can enjoy the benefits of having a bank account in Germany after determining your exact financial needs. You can choose the right bank and then open the right bank account by following the simple steps explained above.
It is fairly simple to open a bank account in Germany. First, determine what you need a bank account for; second, choose the right bank; third, choose the right bank account that corresponds to your needs; fourth, provide the necessary documents, and proceed with opening one.
Different banks in Germany will ask you to provide different documents, which will vary based on your status. However, some of the most common documents required are your valid passport, residence permit, and proof of income.
Some of the top and best banks in Germany are Deutsche Bank, Commerzbank, DZ Bank, KfW Bank, ING-DiBa, Postbank, DKB (Deutsche Kreditbank AG), Volksbank, Sparkasse, HypoVereinsbank (UniCredit Bank AG), and so on.
In Germany, the most common bank account types are current account, savings account, student account, youth account, and business account. The list further includes online-only accounts, joint accounts, foreign currency accounts, fixed-term deposit accounts, junior savings accounts, premium or VIP accounts, charity or social impact accounts, senior accounts, non-resident or expatriate accounts, and green or sustainable accounts.
No. It is not financially wise to send money online through banks because banks deliver funds in several days, charge a high fee, offer uncompetitive and fixed currency exchange rates, and charge for currency conversions. All of this can create a financial burden on you.
A wiser approach is to choose a globally recognized and reputable company like ACE Money Transfer.
Resources
· German GDP
(GDP (current US$) - Germany | Data (worldbank.org)
· German GDP Per Capita
(GDP per capita (current US$) - Germany | Data (worldbank.org)
