How to Effortlessly Find a Free Checking Account for 2025

In Germany, individuals spend an average of EUR119 annually on their checking accounts, yet many are unaware that there are numerous cost-effective and even free alternatives available. The process of switching banks, which often seems daunting, can actually be straightforward with the assistance of the banks themselves.

A recent survey conducted by YouGov revealed that approximately one in ten Germans made it their New Year's resolution to change their checking account. Notably, over half of the respondents incur monthly fees for their accounts, with a third paying between EUR5 and EUR10, while 10% face even higher charges. This indicates a substantial opportunity for savings for those willing to explore their options.

Before initiating a switch, it is essential for consumers to identify their specific needs. Questions to consider include whether online banking suffices or if in-person service is preferred, the importance of low overdraft rates, and whether the ability to withdraw cash without charges is a priority. The consumer protection agencies offer a complimentary checklist that can guide individuals in their selection process.

For a comprehensive overview of available checking accounts, the German Federal Financial Supervisory Authority (BaFin) has launched a free comparison tool. This online database, established at the beginning of the year, lists 6,900 different accounts, allowing users to filter options based on criteria such as account maintenance fees, debit and credit card costs, and overdraft rates.

Typically, the lower the expectations for a checking account, the fewer the associated fees. A study by Stiftung Warentest analyzed 661 salary and pension accounts and found that the best options for free accounts primarily come from direct banks and neobanks, which operate exclusively online or through mobile applications. Moreover, the study indicated that age can influence account fees, with younger individuals often receiving more favorable terms compared to older customers. In fact, 146 banks offer free checking accounts specifically for young adults under the age of 30.

Finanztip, a consumer portal, regularly conducts comparisons of checking accounts, focusing on providers with fees below EUR10 who offer a German contract and IBAN, along with a credit facility and mobile payment options. Out of 40 accounts reviewed, six were highlighted as particularly recommended.

It is important to note that while some banks advertise their accounts as "free," this may only apply under certain conditions, such as a minimum monthly deposit. Other potential charges may include fees for debit or credit card issuance, cash withdrawals, and transactions in foreign currencies. Additionally, some customers may be caught off guard by the costs associated with cash deposits, as well as the need for additional services like a TAN generator or printed account statements.

A significant motivator for switching accounts is the desire to eliminate high account maintenance fees, as indicated by a third of those who have made the switch. Other reasons may include inadequate customer service or a lack of trust in the current bank. In some cases, banks may close accounts without providing a reason, often linked to economic factors or changes in terms and conditions that customers may not agree with.

The good news is that switching banks does not have to be a complicated process. Most banks are eager to attract new customers and typically offer assistance during the transition. By searching for the desired bank along with the term "account switching assistance," customers can find relevant information quickly.

Some banks even claim to facilitate the switch within minutes, often working with a BaFin-approved third-party service that can access the existing account to manage ongoing transactions, including direct debits and incoming payments. However, it is crucial for customers to verify that everything has been executed correctly after the transition. Additionally, they must manually update payment information for services like Amazon, Netflix, or iTunes.