Lately, we had quite a lot of inquiries regarding the opening of a USD account. This article presents the best option for a Dollar account in Germany. I hope that you will find here just what you have been looking for.
Your additions via the comments box at the end of the page are welcome!
1. Introduction: Why open a Dollar account?
In contrast to the Euro-zone, interest is paid on balances in the “Dollar-zone”. However, the exchange rate between these two currencies changes every second. That means that if I exchange money from Euros into Dollars and then exchange it back again, the probability is very high that the currency exchange will be executed at a different rate.
That may be good for me – I make currency gains – or bad: despite the interest in the USD-area, there are losses, because the exchange rate has changed (exchange rate risk).
To invest Dollars instead of Euros purely for generating interest is a (currency) speculation. I would not recommend that!
However, if someone wants to hold some of the account balance in US-Dollars for the sake of protection (risk diversification), then this may be a meaningful strategy.
… and if I absolutely want to have a Dollar account, then it should be the one that yields the most interest and is still safe, shouldn’t it?
2. Tagesgeld – call money account in US-Dollars
In my research, I encountered the IKB again, a bank that I observe since quite some time.
It is one of the few banks with a direct service in Germany, which offers an account on a US-Dollar base at all, and the IKB has the Dollar account with the highest interest in Germany!
Highest interest for US-Dollars in Germany!
An overview of the conditions:
- 0.7 % interest at a daily availability of the deposit
- free account management (online banking)
- minimum investment amount only US$ 5,000
- exchange EUR/USD for only Euros 0.0038 per Euro (38 pips)
- free incoming and outgoing transfers on the Euro settlement account
- outgoing or incoming transfers in Dollars are subject to charge from USD 101 (USD 28), does not apply to internal transfers from the Euro account!
- online account opening with following PostIdent-procedure
Always up-to-date conditions and account opening ► https://www.ikb.de/privatkunden/sparen/geldanlagen-us-dollar.
3. Festgeld – fixed deposit in US-Dollars
At the IKB, there is also the possibility of investing fixed deposits in US-Dollars with a term from one month to ten years, in addition to the call money.
DThe Dollar accounts of the IKB are addressed to private persons with their place of residence in Germany.
4. Why can the IKB pay such high interest?
The answer is simple and logical: the IKB provides loans in US-Dollars. Especially in the areas of export and project financing. The interest earned through loans are higher than the interest paid by the bank for the deposits of private customers. Classic banking business!
5. Account opening of the Dollar account
The opening of the Dollar account at the IKB is very simple and works just like with other online banks:
- fill the online application on account opening
- legitimating through the PostIdent-procedure
- wait for the welcoming documents including access data
- transfer the investment amount
- internal transfer to the investment account (call money, fixed deposit)
- enjoy the interest credits 😉
Further questions (► comments box at the end of the page) or continue with the account opening?
“Unique in Germany”
… open the free Dollar account!
6. Experiences with the Dollar account of the IKB
Of course, I am interested in the experiences of our readers with the dollar account of the IKB. Finally, it is also about whether we will officially include this bank in the list of the constantly observed banks by us and prepare more content regarding the subject of foreign currency accounts.
If you look at other guiding articles on our special portal, you will see that the reader engagement via commenting and guest posts has contributed significantly to form opinions and recommendations. In particular, when it was about the clever use of bank accounts.
Bonus: Video interview with the head of the private customer department
At the trade fair “Invest”, I met Jörn Schiemann, who is responsible, among other things, for the IKB Dollar accounts. He spontaneously was willing to answer a few questions live on camera for the fans of DeutschesKonto.ORG (video in German language).
… and here you can subscribe to our YouTube channel 🙂
If you have further questions that whether I nor other readers can answer, then perhaps there will be another video interview … 😉
Further articles about the subject USD account:
- How to convert an investment account into a USD checking account
- Open a bank account in the USA (remote account opening for German speaking people)