The Coronavirus has caused an unprecedented crisis across the world. In Germany, only essential businesses have been allowed to remain open and companies are being encouraged to let employees work from home. These measures have caused mass disruption to people’s way of lives, including the way people manage their finances and banking.
In this guide, we’ll take you through digital bank accounts, what they are and how they might be a good option to consider during the ongoing COVID-19 crisis.
A digital bank account is an account that you can apply for and manage entirely from your computer or smartphone. You don’t need to visit a bank branch to apply, pick up your debit card or manage your account. This makes it a viable option to consider as we’re self-isolating and only able to leave home for the essentials.
How can a digital bank account help you during the Coronavirus crisis?
Digital bank accounts come with a number of features that can make banking simpler and more convenient. This is especially important during COVID-19.
No face-to-face interactions required. Digital banks do not have branches you need to visit to apply for an account and all customer service is conducted in the app or over the phone. When you have applied for an account and your identity has been verified, your card is mailed to you.
Low fees. It’s more important than ever to keep our spending on bank fees low, and digital banks have far fewer fees than traditional banks. You can usually have your pick of a standard account with no monthly fee or pay for a higher tier account to unlock more features. With all account tiers you are generally given free ATM withdrawals up to a certain limit, free foreign currency transfers up to a limit, no contactless payment fees and no transaction fees.
Budgeting features. When you sign up for a digital bank you’ll get an app to manage your spending. Features with these apps include automatic spending categorisation, savings goals and analytics.
Low-cost international payments. With travel limited, you may need to send money overseas or receive payments from other countries. You can do this easily with a digital bank account. Finance app Revolut lets you hold multiple currencies in one account, while N26 lets you transfer money to other currencies with no foreign currency fees.
What other features come with a digital bank account?
You can also find a number of other features offered by digital bank accounts, including:
Mobile wallets. Digital features such as Apple Pay and Google Pay are usually standard.
Paying your friends. Along with easy international transfers, you can pay your friends, too. This includes through split bill functions or through innovative unique payment links such as those offered by bunq.
Card and safety controls. Keeping your money safe is easy with a digital bank app. You can switch off contactless payments in the app and switch them on again when you like. You can also lock and unlock your card if you lose it or it’s stolen and also change your spending limit, all within the app.
Savings. While few digital banks have savings accounts that pay interest, they do have a savings function that encourages you to build up your savings balance and reach a savings goal. For example, N26’s Spaces feature lets you save for a specific goal and keeps that money away from your main account funds.
Compare a range of digital bank accounts in Germany
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
*The products compared here are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order for the products we list on our site, so we enable you to re-order and compare products. The initial display order is influenced by a range of factors including commercial partnerships, product costs and conversion rates, so please don’t interpret the listing order as an endorsement or recommendation from us. We’re happy to provide you with the tools you need to make better decisions, and we encourage you to make your own decisions and compare and assess products based on your individual needs, preferences and circumstances.
What fees and charges come with digital banks?
These differ depending on the bank, but generally, you can expect the following:
Monthly fee. Most digital banks offer a standard €0 account and then come with paid, tiered accounts that which come with more features.
Foreign currency fee. You’ll find that digital banks generally waive foreign currency fees. However, this may be for only a certain number of transactions per month. If you’re currently overseas or plan on travelling later on with the account, make sure you pick an account that meets your needs.
ATM withdrawal fees. Usually, digital banks will not charge for ATM withdrawals up to a certain number per month. This is because these accounts do not charge you any transaction fees or contactless payment fees, so you can use them as often as you want in-store or even online without being charged.
ATM withdrawals abroad. You may be charged a fee for withdrawing money from an ATM that’s not in Euros.
Card delivery. Generally, card delivery will be free, but some digital banks charge for this with their free accounts.
How do you sign up for a digital bank?
Signup is relatively simple. Once you’ve compared your options above, click “Go to Site” on your chosen digital bank account and you’ll be taken to the website to complete the signup process. You’ll need a few things to sign up:
Personal details such as your name, date of birth and address
Your passport
Your face (for a selfie)
Once you’ve verified your identity you will need to add €10 to your account by linking an existing bank account.
Have more questions about digital banks in Germany?
Yes, but they are all licenced differently. It would be best to check how the digital bank you’re looking at is licenced and will protect your money if anything happens. For example, Revolut has a European banking licence from the European Central Bank, meaning your funds are protected up to €100,000. N26 also has deposit protection for its customers up to €100,000.
Generally, yes. However, some, for example N26, are now offering web apps that make your account accessible on a computer.
You can contact your digital bank and have the app on your lost phone deactivated so no one else will be able to access your bank account. You can have it reactivated if you find your phone or set up again if you get a new one.
This is up to you. One way to determine this is to sign up to a free digital bank account and test it out. You can then determine if you want to upgrade to a paid account for more features, if you’ll need to have both your current account and a digital bank account or if that account can handle all of your banking needs.
Elizabeth Barry is Finder's global fintech editor. She has written about finance for over five years and has been featured in a range of publications and media including Seven News, the ABC, Mamamia, Dynamic Business and Financy. Elizabeth has a Bachelor of Communications and a Master of Creative Writing from the University of Technology Sydney. In 2017, she received the Highly Commended award for Best New Journalist at the IT Journalism Awards. Elizabeth has found writing about innovations in financial services to be her passion (which has surprised no one more than herself).
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