Digital business accounts: A comparison of online banks in Germany

Contents

1. Quiz: Is a digital bank right for me?
2. Our recommendations
3. Open a business account online: Digital Banks A-Z
   
   • bunq
   • Finom
   • Fyrst
   • Holvi
   • Kontist
   • N26
   • PayCenter
   • Qonto
   • revolut
4. What do I need from an online business account?
5. How do I choose the right account?
6. Do I even need a business account?
7. Want to know more? 

Quiz: Is a digital business account right for me?

If you answer “yes” to three or more of the following questions, then an online bank is a good fit for you.

• Do I mainly use smartphones and computers for managing my business?
• Do I want to digitise my business as much as possible?
• Do I want to link additional third-party services (eg accounting, tax adviser) to the account?
• Can I do without in-person services?

If you do tend towards a branch or direct bank, you can find more information here.

Our recommendation

Open a digital business account: A-Z of online banks in Germany

All the following data was researched in April 2023. Please always read the current conditions of the respective provider because we can’t guarantee that things won’t change.

bunq

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FINOM

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FYRST

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Holvi

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Kontist

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N26

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PayCenter

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Qonto

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revolut

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What do I need from a digital business account?

In Germany, there are now numerous providers offering different banking solutions. To make the right decision, you should first figure out your requirements for a business account. This will keep the search short and effective.

• Number of cards and users
• Amount of the account management fees
• Additional fees for paperless and paper-based transactions
• Additional fees for foreign transfers
• Number of free cash deposits and withdrawal
• Available cash dispensers
• Amount of available overdraft facility and conditions
• EC card and credit card included
• Upper limit for free transactions
• Mobile banking
• Financing/factoring
• Option of data export for your tax adviser
• Interface for synchronisation with accounting (eg with a software solution such as Lexware Office)
• Planned taking out of a subsidised loan (this can be an important factor because the lending bank won’t normally deposit the loan into an account at a third-party bank)
• Free account switching service
• Integration of Google Pay/Apple Pay

How do I decide on the right account?

This is only a short overview. If you want to get informed, taking a closer look at product and service tables is the way to do it. The costs for transfers, transactions with foreign currencies or cash withdrawals can often only be found out here. At this point, at the latest, the list of your requirements is worth its weight in gold in order not to lose the overview.

Does free mean free? Or: what is the best account fee strategy?

If you only run a small business, rarely withdraw money and have few paper-based and paperless transactions, the free account offers are attractive because you can expect few additional costs per unit.

For larger transaction volumes and multiple users, these providers quickly become expensive. In this case, it is better to choose an account that has higher basic fees but offers more functions and included services.

If rapid growth is likely, you should also look at what upgrade products have to offer and whether an account switching service is available.

Also, keep in mind, it’s smart to have multiple business accounts.

Another factor: if you do not have EU citizenship and/or residency, this will limit your choice when opening an online business account. You can find out more about this here.

Are there additional costs for a digital business account?

Even if some accounts promise to be completely free of charge, it is not uncommon for costs to be hidden for day-to-day functions. These are the typical fees you may get hit with:

• Account management (fixed basic amount per month)
• Account statements (usually monthly)
• Documentary transactions (monthly; eg foreign transfers, cash deposits)
• Voucherless transactions (monthly; eg standing orders, SEPA direct debits)
• Use of debit and/or credit card(s) (usually as a fixed amount per year)
• Additional users or cards (joint account management, monthly or annually)
• Deposits and withdrawals (monthly)
• Overdraft facility (also called Dispo in Germany; monthly)

Expect a business account to cost up to €100 per year.

Do I even need a business account?

Business accounts are mandatory for corporations and partnerships. Sole proprietors, GbRs and freelancers don’t need a business account per se.

Legality aside, bear in mind many banks prohibit the business use of a private account in their general terms and conditions. So it’s advisable to read the small print, otherwise, the bank has grounds to terminate your account without notice.

Also, no matter what, it’s best practice to keep private and business transactions separate. This prevents disputes with the tax office. If, for example, you want to deduct an expense as an operating cost but the invoice was paid via your private account, the onus of proof is on you.

By clearly separating the accounts, you make accounting much easier and you can avoid any prying into your private transactions.

Want to know more?

Banking

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Opening a business bank account in Germany
Opening a German Bank Account as a Non-German Citizen
Why entrepreneurs should have five bank accounts in Germany

Master list of all articles on starting a company

Master list: Company Formation

Checklist for setting up a company

Opening a German business bank account is one of the 22 steps in the company formation process.

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