I have many friends in Germany who complain about the fees and the costs and the processing time in German banks.
The "neo-banks" want to change that and try to establish a new way of banking with their rather younger target group with online registrations including bank card and low fees.
Here is a list of the most common german banks and there cost structure:
Deutsche Bank: One of Germany’s largest banks, Deutsche Bank offers various account options with varying fee structures. Basic accounts may have no monthly fees, while more premium accounts might offer additional services at a cost.
Commerzbank: Another major player, Commerzbank provides a range of accounts with different pricing tiers. Basic accounts with limited services might have lower or no monthly fees, while more feature-rich accounts could come with higher costs.
Postbank: Owned by Deutsche Bank, Postbank offers a variety of account options, including both free and fee-based accounts. The fees depend on the account type and the services provided.
ING-DiBa (now called ING Germany): Known for its online banking services, ING offers a free basic account with many services included at no additional charge. However, keep in mind that certain services or transactions might have associated fees.
DKB (Deutsche Kreditbank): DKB is an online bank that often offers free checking accounts, with a focus on free ATM usage in Germany and abroad. However, some conditions might apply to qualify for fee-free services.
Sparkasse: Sparkasse is a network of savings banks throughout Germany. It offers a range of account types with varying fee structures, often tailored to the specific region in which a branch is located.
Volksbank/Raiffeisenbank: These are cooperative banks found in various regions of Germany. Like Sparkasse, their account offerings and fee structures can differ based on the specific branch or region.
N26: N26 is a digital bank that gained popularity for its user-friendly app and global account capabilities. While it offers a basic account with no monthly fees, premium account options with additional features may have associated costs.
What are the digital Neo Banks doing different? Why they are so popular?
I have many friends in Germany who complain about the fees and the costs and the processing time in German banks.
The “neo-banks” want to change that and try to establish a new way of banking with their rather younger target group with online registrations including bank card and low fees.
Here is an overview of the most used neo banks in germany sorted after their popularity and customer base in germany:
N26: N26 is one of the most well-known neobanks in Germany and Europe. It offers a range of digital banking services, including various types of accounts, debit cards, and mobile app features. N26 focuses on a user-friendly interface, real-time notifications, and convenient international transactions.
Revolut: Revolut is another popular neobank that provides features such as international money transfers at competitive exchange rates, fee-free ATM withdrawals up to a certain limit, and spending analytics. Users can hold multiple currencies in their accounts and manage them through the app.
Tomorrow: Tomorrow is a sustainable neobank that emphasizes environmentally friendly practices. It offers a range of features, including a green debit card, spending insights, and the option to support climate-positive projects with each transaction.
Vivid Money: Vivid Money offers a mobile banking app that provides various financial tools, including cashback rewards, investment options, and a multi-currency account. It aims to provide a holistic financial management experience for users.
bunq: While not exclusively a neobank, bunq is known for its user-centric approach and focus on innovation. It offers various types of accounts and features, including spending insights, shared accounts, and real-time payments.
Differences between neobanks and traditional banks in Germany can include:
Digital Focus: Neobanks are digital-first institutions, often without physical branches. Their services are primarily accessed through mobile apps and websites, offering a more streamlined and convenient banking experience.
User Experience: Neobanks typically emphasize user-friendly interfaces, real-time notifications, and features that make it easy for customers to manage their finances on the go.
Fee Structures: Neobanks may offer more transparent and simplified fee structures compared to traditional banks. Some neobanks offer fee-free transactions or lower foreign exchange fees for international spending and withdrawals.
Innovation: Neobanks often introduce new features and technology-driven solutions faster than traditional banks. This could include tools for budgeting, spending analysis, and investment options.
Quick Account Setup: Opening an account with a neobank can often be done entirely online within a short time frame, making the process more convenient.
International Transactions: Neobanks may offer better rates for international money transfers and foreign currency spending.