Insurance & Banking
In the Federal Republic of Germany, health insurance (Krankenversicherung) is mandatory and proof of adequate coverage must be presented when applying for a visa. Visa requirements differ from nation to nation; therefore, we ask you to please refer to section on "Visa and Residence" to find out more on this topic, so that you can make the necessary preparations for you and your family prior to your arrival in Munich.
If you are coming here based on an employment contract, you are required to have a policy with an insurance provider licensed in Germany. Please be aware that most insurance policies do not cover preexisting conditions or their related medication; therefore, you should seek consultation before closing a new contract for medical coverage. When travelling during your stay in Germany, it is advised to purchase travel insurance, especially when travelling outside of the EU.
The German health insurance system is characterized by the dual system of statutory, i.e. public health insurance (GKV), and private health insurance (PKV) (DE). The previous links as well as the Euraxess homepage can provide you with more detailed information on the characteristics of each system. Statutory health insurance is one of five insurances included in social security benefits in Germany. The others are as follows: a pension scheme, unemployment insurance, accident insurance and nursing care insurance.
Health insurance must cover the following:
- doctor and dentist treatment
- supply of medication, dressing and aid
- hospital treatment
- medical services for rehabilitation
- assistance through pregnancy and labor
- Make-it-in-Germany - description of the health care system and different types of insurance in Germany
- City of Munich (DE) - list of insurance companies and types of services offered
- Euraxess - general information for mobile scientists coming to and leaving Germany, including detailed information on statutory and private health insurance as well as the German social security system
Welcome to Germany - general information on health and preventative care
In Munich there is an extensive network of banks with varying fees, therefore you should be sure to gather information on which bank is able to offer you the best conditions to suit your needs.
It is advisable to register at the Bürgerbüro before trying to open a bank account as you will need to show proof of a German address in addition to your national identification documents and, sometimes, your residence permit.
Important points to consider when opening a bank account:
- Current accounts (Girokonto)
- Before choosing a bank
- Savings accounts (Sparbuch)
- Withdrawing cash and cashless payment
- National and international transfers
The most common form of account in Germany is a Girokonto (checking or current account). Most financial transactions, such as receiving wages or paying rent, are completed using this type of account. In general, a current account allows you to:
- withdraw money from your bank using an EC-card. In fact, the EC-Karte is more widely accepted in Germany than credit cards. It is normally free of charge when withdrawing funds from cash points (ATMs) belonging to your bank, but a fee may be charged for withdrawing cash from other banks' ATMs.
- transfer one time payments from one account to another
- set up regular fixed payments, e.g. your rent, to be made by standing order (Dauerauftrag)
- allow regular payments of variable amounts to be withdrawn directly from your account through direct debit authorization, e.g. telephone bills and health insurance contributions (Einzugsermächtigung)
At many banks you can choose between several current accounts with various features at different rates, e.g. online banking, credit card at no charge, etc.top
- Once I have opened the account, can I immediately withdraw money from the ATM?
- Where can I withdraw money free of charge?
- Can I set up standing orders and authorize direct debits?
- Will I receive an EC card immediately?
- What is the limit for cash withdrawals per day/week?
- Am I able to get a credit card?
- When can I apply for the card and how long will it take to process?
- What are the fees associated with my bank account?
- Do I get an overdraft facility, and what are the fees for this service?
If you would like to put money aside, you can set up a savings account to get a higher interest rate. If you plan to travel, verify whether you are allowed to withdraw funds throughout Europe and/or beyond Europe.
A savings account may also be used as a blocked account needed if you are required to prove that you have sufficient funds during your stay in Germany.
You generally receive an EC Card (Electronic Cash) for your account, as well as an associated four-digit PIN code. Both will be sent to you separately by mail. You can use an EC Card to withdraw money from cash machines around the clock. Please note that withdrawing money from third-party financial institutions may be subject to fees.
When selecting your bank, please be sure to review the costs for national and international transfers. Online transfers are usually free of charge.
SEPA transfers (Single European Payments Area) can be used for international transfers within EU member states, as well as transfers to Lichtenstein, Switzerland, Iceland, Norway and Monaco. The uniform account number needed for doing so is the IBAN (International Bank Account Number) and BIC (Bank Identifier Code).