Fact checked by

Michelai Graham

In Germany, “cash is king” is more than just a saying; it is an essential aspect of daily life. Expect to become very familiar with ATMs and euros as you explore this fascinating country. This overview will help you navigate money matters in Germany.

The Euro

Since 2002, Germany’s official currency is the Euro (pronounced OY-row in German). This currency is used by 19 Eurozone countries. The symbol is € and it was created by a German, Arthur Eisenmenger. The code for the Euro is EUR, and it is divided into 100 cents. It is available in denominations of €2, €1, 50c, 20c, 10c, 5c, 2c, and 1c.

Banknotes are issued in €500, €200, €100, €50, €20, €10, and €5 dominations. Coins feature designs from each of the member countries, while banknotes often depict charming European doors, windows, and bridges along with a map of Europe. To find out the current exchange rate, visit www.xe.com.

ATMs in Germany

The quickest, easiest, and usually cheapest way to withdraw money while in Germany is through an ATM, known as Geldautomat in German. These machines are widely available in German cities and can be accessed 24/7, including at U-Bahn stations, grocery stores, airports, malls, shopping streets, and train stations. Most ATMs offer a language option, allowing you to operate them in your native language.

Before departing, ensure you know your 4-digit PIN. Additionally, check with your bank regarding any fees for international withdrawals and your daily withdrawal limits. Some banks may have partner banks in Germany that can help you save on fees (for instance, Deutsche Bank and Bank of America). It may also be prudent to inform your bank of your travel plans to avoid any issues with foreign withdrawals.

Exchanging Money in Germany

You can exchange foreign currency and travelers’ checks at German banks or currency exchange offices (known as Wechselstube or Geldwechsel in German). While these exchange services are not as common as they once were, they can still be found at airports, railway stations, and many major hotels. Furthermore, consider using online services such as PayPal, Transferwise, World First, or Xoom, which often provide better exchange rates in today’s digital economy.

Credit Cards and EC Bank Card in Germany

Compared to the U.S, the majority of Germans still prefer cash payments, and many shops and cafes do not accept credit cards, especially in smaller towns. Notably, an estimated 80% of all transactions in Germany occur in cash. Therefore, before entering shops or restaurants, check the doors for stickers indicating which payment methods are accepted.

Bank cards in Germany operate differently than in the USA. EC bank cards are common and function similarly to a US debit card, connecting directly to your current account. They typically feature a magnetic strip on the back of the card, accompanied by a chip on the front. Many US bank cards now incorporate these features, which are essential for use in Europe. Confirm with your home bank if you’re unsure about your card’s capabilities.

While Visa and MasterCard are widely accepted, they are not universally embraced, with American Express being accepted even less frequently. Using a credit card to withdraw cash at an ATM may also incur significant fees, so it is advisable to consider cash as your primary method of payment.

German Banks

German banks generally operate Monday through Friday from 8:30 to 17:00. In smaller towns, hours may vary, with possible earlier closing times or lunch breaks. Banks are typically closed on weekends; however, ATM services remain available 24/7. Bank employees usually have a good command of English, but it may be beneficial to familiarize yourself with terms such as Girokonto/Sparkonto (checking/savings account) and Kasse (cashier’s window).

Opening a bank account in Germany can be somewhat challenging, as some banks offer limited English-language information and may require some fluency or outright refuse account openings for foreigners. Generally, to open a bank account, you need:

• Passport with applicable visa
• Certificate of residency (Anmeldung)
• Pay statement from your employer or proof of funds

It’s important to note that checks are rarely used in Germany; instead, direct transfers known as Überweisung are the norm. This method is commonly utilized for various transactions, including paying rent, receiving paychecks, and making purchases.