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Many millions of current accounts are used in Germany every day. For example, for money transfers by bank transfer, direct debit or standing order; supply cash at ATMs; or for cashless payment by check, debit or credit card.
Many consumers are likely to pay more for these services than necessary. They are often not aware of the real costs that arise when using the checking account.
Free or up to 300 euros per year
According to a survey carried out by Stiftung Warentest among 175 German banks, a current account in Germany costs an average of just under 120 euros per year. Testers found a maximum value of more than 300 euros in total annual fees for a sample customer with a specific usage profile. Cheap accounts that cost less than 60 euros a year are increasingly scarce in this country. The same applies to accounts that are managed for free without the customer having to meet any special requirements such as monthly payments.
As a consumer, it’s difficult to get an overview of an account’s costs because you have to pay for many checking account services. “In addition to the monthly fee, there are some other things that have to be paid with a checking account. They would be, for example, the card fees, that is, the current card or Visa and Mastercard,” explains Josefine Lietzau, an expert at the portal. of Finanztip consumers. “There are often fees for withdrawals or fees for paying in foreign currency.”
In addition to these costs, there are smaller fees: “For example, transfers cost money, especially real-time transfers. If you deposit cash, you often have to pay fees. In some cases, also for a TAN generator if you generate your SO with a second device.”
Even free withdrawals are not always free
Many of the rates are barely noticeable throughout the year. However, they add up if cash deposits paid are made more frequently or if the checking account is overdrawn and an overdraft facility results in high interest payments.
The same applies to using credit cards abroad, says the expert: “There are costs that customers probably do not expect. Many banks advertise that they have free withdrawals, for example in the euro zone or around the world, but By this they only refer to the fees that they themselves charge,” says Lietzau. “And if you then stop at an ATM, the ATM operator himself may charge you a fee. They won’t give you your money back either.”
Determine the use of your own account
If you want to reduce your checking account costs, you should first check which services you really want to use. Is a direct contact person necessary in a branch? Am I already comfortable with online banking or would I like to use it in the future? So the current account model is usually cheaper.
In the second step, smaller fees can be tested: for example, whether transfers, cash withdrawals or even creating TAN for the existing account cost money. Here, consumers can estimate approximately how often they actually use such services.
If you know the costs and services of your current checking account and are not happy with them, you may need to reorient yourself. When looking for a suitable new account, you should also take into account the fine print of the conditions, advises Christian Urban from the North Rhine-Westphalia Consumer Center: “For example, can I only get the free current account if I have a minimum of income money? It is often necessary to reach the minimum of incoming money, even through a pay slip. These are aspects that I must take into account.”
Change the account or bank model
Once you’ve finally found a fee model that suits your needs and is cost-effective, there are two options: negotiate with your own bank or switch your account, according to consumer advocate Urban. “If you have an account model that is too expensive or you are not satisfied with your bank, you should urgently think about changing it. But there is also a ‘light’ account change, you should at least ask your own bank if not. It is possible that “There is a model that fits better and may also be cheaper.”
If such a model is not available at their current bank, consumers can take the necessary steps and switch to a better or cheaper account model at another bank. A step that many account users avoid, but which can quickly have an impact on your wallet.
Three Moving options
There are several options for managing the account change: If you want to set up the new account yourself, you will need to fully set up standing orders or direct debit procedures. Many banks offer a digital account service which usually makes this happen seamlessly.
There is even assistance to change legally established accounts. You can request it through a form in both banks responsible for the account change. Standing orders and direct debits are also transferred from one bank to another. Customers can also request that the old account be closed.
However, experts recommend running both accounts in parallel for two to three months until the account transfer is complete.
Andreas Braun, human resources, Tagesschau, April 19, 2024 08:28
