Insider Tip

Free Current Account in Germany for Low-Income, Unemployed, or People with Negative Credit History

14.5.2023

If you want a free current account in Germany, most banks require good to excellent creditworthiness in order to even open the account. To keep account management and other services free of charge, most major online banks have established a minimum monthly income of 700 euros (for example DKB, ING, comdirect).

German banks are the first choice for most people in our country due to their stability and service. I also have accounts with the three examples mentioned above.

If someone cannot open an account there or is unable to meet the 700-euro monthly requirement, there is another way to get a free current account.

Basically a universal account, since no credit check is carried out when opening. Provider: wise.com. ✅

Some foreign banks that are competing for customers in Germany are not connected to Schufa. Since they do not query Schufa, they do not receive any information about the financial history of the applicant.

Credit checks are often not part of or a prerequisite for opening an account with foreign banks.

No credit check, no Schufa query!

Example: Wise

Wise (formerly TransferWise) is a financial service provider that claims to know no borders. Of course, this is more of a political statement or agenda – but it offers advantages for people who are low-income, unemployed, or have a negative Schufa record. It is also useful for those living in Germany who have not yet built up a credit history (immigrants, refugees).

Wise accepts (almost) everyone when opening an account.

What do you get when opening a Wise account?

You get:

a free current account (for EUR, it is a BE-IBAN from Belgium, which makes no difference in SEPA transactions).
free accounts in additional currencies such as US dollars, Canadian dollars, Polish zloty, British pounds
free virtual (digital) Visa cards
a physical Visa card (Wise recently introduced a one-time card issuance fee)
online and app banking
instant transfer function
low-cost currency exchange
the option to add one or more business accounts
German-speaking customer service via email, and in English also via chat or phone
cash withdrawals of around 200 euros per month free of charge, with fees for higher amounts.

» open a free account with Wise

The Wise current account is available in euros and many other currencies. Migrant workers or refugees can receive income in the account, exchange it cheaply, and transfer it back home.

If someone is at risk of account garnishment, a foreign account could also be useful, because despite EU regulations, in practice account seizures abroad occur much less frequently – either because they are unknown or too complicated to enforce.

Switchers from Sparkasse:

A Wise account can also be interesting for people who have a basic account or universal account at Sparkasse or other local banks and use only a few banking services anyway. For example, monthly income deposits, a few transfers and card payments, plus 2-3 cash withdrawals – and for that paying 10 to 15 euros in account management fees?

With Wise, all of that would be free!

However, there is one drawback: When so much is free, customer service is where savings are made. Wise has no branches you can visit to discuss issues. Everything must be resolved by email.

If that suits you, and you want to take advantage of the variety of free services, you can open the account online right now:

» open a free account with Wise

Questions?

Questions about opening a Wise account or sharing your experiences using it can be discussed through the comment function. As valued readers, please feel free to share your ideas and suggestions. Many thanks!