background
Many bank customers are not aware of how much they pay for their checking account over the course of a year. There are often other costs in addition to the basic fees.
Many millions of checking accounts are used every day in Germany. For example, for money transfers via bank transfer, direct debit or standing order; to supply cash at ATMs; or for cashless payment via checking, debit or credit card.
Many consumers are likely to pay more for these services than necessary. They are often not aware of the actual costs that arise when using the current account.
Free or up to 300 euros annually
After a Survey by Stiftung Warentest at 175 banks In Germany, a checking account costs an average of just under 120 euros annually. The testers found a peak 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 becoming increasingly rare in this country. The same applies to accounts that are managed free of charge without the customer having to meet any special requirements such as monthly payments.
As a consumer, it is difficult to get an overview of the costs of an account because you have to pay for many of the current account services. “In addition to the monthly fee, there are a few other things you have to pay for with a checking account. These would be, for example, the fees for the cards, i.e. the checking card or the Visa and Mastercard,” explains Josefine Lietzau, an expert from the consumer portal Finanztip. “There are often fees for withdrawals or fees for paying in a 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 TANs with a second device. “
Even free withdrawals are not always free of charge
Many of the fees are hardly noticeable over the course of the year. However, they add up if paid cash deposits are made more often or if the checking account is overdrawn and an overdraft facility results in high interest payments.
The same applies to the use of credit cards abroad, says the expert: “There are costs that customers probably won’t expect. Many banks advertise that they have free withdrawals, for example in the Eurozone or worldwide, but by that they only mean the fees that they themselves charge,” says Lietzau. “And if you then stand at an ATM, the ATM operator may charge fees themselves. You won’t get the money back either.”
Determine your own account usage
If you want to reduce your checking account costs, you should first check which services you actually want to use. Is a direct contact person in a branch necessary? Am I already comfortable with online banking or would I like to use it in the future? Then the checking account model will usually be cheaper.
In the second step, the smaller fees can be put to the test: for example, whether transfers, cash withdrawals or even the creation of TANs for the existing account cost money. Here, consumers can roughly estimate how often they actually use such services.
If you know the costs and services of your current checking account and are not satisfied with them, you may need to reorient yourself. When looking for a suitable new account, you should also look at the fine print of the conditions, advises Christian Urban from the North Rhine-Westphalia Consumer Center: “For example, can I only get the free checking account if I have a minimum incoming money? Often the minimum incoming money may have to be met even be a salary receipt. These are aspects that I have to take into account.”
Change the account model or bank
Once you have finally found a fee model that suits your needs and is cost-effective, there are two options: negotiate with your own bank or change your account, according to consumer advocate Urban. “If you have an account model that is too expensive or are otherwise not satisfied with your bank, you should urgently think about changing. But there is also a ‘light’ account change, you should at least ask your own bank whether it is not possible 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 cheaper or better account model at another bank. A step that many account users shy away from, but which can quickly have an impact on their wallet.
Three Moving options
There are several options for managing the account change: If you want to set up the new account yourself, you should completely set up standing orders or direct debit procedures. Many banks offer a digital account service that usually makes this happen smoothly.
There is even legally anchored account switching assistance. You can apply for it using a form at both banks that are responsible for changing the account. 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 has been completed.
Andreas Braun, HR, tagesschau, April 19, 2024 8:28 a.m