When the checking account costs more than 100 euros: How to successfully switch

Changing Banks: How to Save Money on Your Current Account

A current account is practically indispensable. Yet many branch banks now charge account maintenance fees — costs that can often be avoided.

Rent, electricity and gas, mobile phone bills and Netflix subscriptions — all of this is unthinkable without a current account. Many Germans therefore rely on their account in everyday life. Yet simply having a current account is no longer free of charge at many long-established branch banks.

On the contrary: a glance at the specific price lists of individual banks shows that a current account can cost several hundred euros per year. At Volksbank Köln Bonn, for example, the comfort account for customers aged 27 and over, including a debit card, costs 120 euros per year. Those who place transfer orders at the branch pay extra on top of that. Depending on the institution, fees can be significantly higher: the "Echt unser Bestes" account at Dortmunder Sparkasse costs as much as 238.80 euros per year for customers aged 27 and over.

And it is not only savings banks and cooperative banks that charge handsomely for account management — major banks operating across Germany, such as Commerzbank, also charge account maintenance fees. Their various account models cost between 58.80 euros and 154.80 euros. "We went through a period of low interest rates during which banks were unable to generate any returns on the money held in current accounts, or even incurred losses due to negative interest rates. As a result, banks significantly raised their account maintenance fees a few years ago," explains Martin Faust, a banking expert at the Frankfurt School of Finance and Management, in the latest video from the ARD financial format 50k on YouTube.

Digital Banks Are Often Cheaper

However, this is far from the case at all banks: neobanks such as C24 and neobrokers with full banking licences such as Trade Republic, in particular, charge no account maintenance fees. The reason is straightforward: neobanks are digital banks that offer their services primarily via mobile apps and online platforms. Unlike traditional banks, they have no branches — and therefore have lower costs and better terms to offer.

Many customers have already taken notice: a Bitkom study from 2024 shows that loyalty to one's main bank has been steadily declining for years — a trend that has likely intensified since then. According to the study, 58 percent of Germans had already switched their primary current account at least once by 2024. In 2022, the figure was just 51 percent, and in 2018 it was only 35 percent. "Customers are paying more and more attention to price and performance. And they are no longer willing to pay for things they no longer need," expert Faust explains this trend.

What Services Matter?

For many people, this now includes branches: according to the Bitkom study, more than 40 percent of bank customers in 2024 never visited a branch and used exclusively online banking. It comes as little surprise, then, that brand name or branch network has barely played a role in the decision for or against a bank. Instead, digital offerings have become important factors in the decision — such as a user-friendly app or mobile payment application.

Consumer advocates like Finanztip also recommend watching out for hidden fees, such as charges for bank cards, transfers, or a minimum monthly incoming payment requirement. Before switching, you should also check whether and where you can withdraw and deposit cash free of charge. To get an overview, Finanztip, for example, offers a current account comparison tool.

How the switch works

Anyone who decides to switch their current account does not have to go through the process alone. This is regulated by the so-called Payment Accounts Act. This law requires banks to assist their customers with switching their current account through what is known as the account switching service.

As a customer, you open an account at the new bank and then authorize it to contact the old bank and request the necessary data. The old bank then has five business days to transfer all payments and direct debits from the past 13 months to the new bank. The new bank then has five business days of its own to prepare everything, such as setting up new standing orders.

The consumer advice center recommends running both accounts in parallel for a short period of time during an account switch. Even though there are legal deadlines, some processes — such as those conducted by post — can take longer. And if a financial loss occurs during the account switch, for example if you receive a reminder due to faulty data transfer by the banks, the banks are liable for this.

Is there a catch?

In the current 50k video, Martin Faust also emphasizes that even a fee-free current account is not without its pitfalls: "The bank naturally also learns a great deal about the customer." The financial institution can then profit from this: "If they have savings, I might be able to approach them about securities. If they are often in the red, a consumer loan might be something for them," says Faust.

And for customers themselves, free accounts at direct banks that no longer have branches apparently do not only have advantages. Even though almost half of Germans do not use branch services, many people still value them. "Many people want to keep their options open. There might be a situation where they have a problem they would prefer to resolve in person at a branch," expert Faust explains the apparent contradiction: "They still have that option in the back of their mind and are therefore willing to stay with the bank, even though they don't actually use that service."