If you're an expat living in Germany, you might eventually run into a common issue - sending money from your German bank account to your home country's bank account. Whether it's about keeping your savings account in your home country open or supporting your family and friends.
Sending money from Germany to another country can be confusing, especially if you're new here. Whether you want to help your family back home, invest overseas, or just move your money around, it's important to know how to do it right. In this guide, we'll explain step by step how to send money from your German bank account to any other country. We'll also suggest some services we use since 2016.
How to transfer money abroad from Germany
Online money transfer services
If you need to send money from Germany to another country, one of the easiest ways is by using online money transfer services. These services let you do it all online with just a few clicks. You don't have to go to a bank in person, which is really convenient. They also usually have good rates and lower fees than regular banks, so it won't cost you as much to send money abroad.
Wise - formally Transferwise
We use Wise since 2016. Wise offers a special bank account that's pretty cool. You can use it for everyday stuff like getting your salary, paying rent, or shopping online. With this account, you get a free physical debit card, and they even give you unlimited virtual debit cards. These virtual cards can be used online, on your phone with apps like Apple Wallet and Google Pay, or at certain ATMs that have NFC technology.
The great thing is, you can put money into your account in 19 different currencies like AUD, EUR, or USD. When you exchange money between these currencies, they use the real exchange rate, which is a good deal.
Another neat feature is that you can receive money in 11 different currencies using your account details. There are no fees for opening or keeping this account and same currency transactions.
Revolut
Just like Wise, Revolut makes banking easy without the need for bank visits or tons of paperwork. You can open a Revolut account in just a few minutes, all from your smartphone.
With Revolut, you can send and receive money in over 30 different currencies without any hidden fees. Plus, transfers between Revolut friends worldwide are usually quick and free!
Revolut also provides discounts and cash back deals from your favourite brands, so you can save money when you go shopping. Just use your Revolut card, and the savings will add up.
One nice feature Revolute provides is, if you need to split bills with friends it’s possible in the Revolute app. You can split expenses, whether it's from dining out or paying rent, and Revolut will do all the calculations for you.
Traditional money transfer options
We're not going to talk much about the old-school methods like using bank transfers, SWIFT, and wire transfers because not many people use them these days. They're slow, more expensive, and can be a hassle. You might have to wait for a bank appointment, go to a physical branch, or hunt for international money transfer ATMs. But don't forget, these options are still around in Germany, just in case you ever need them.
How to transfer money within Germany
Online banking app (Best for one time transfers)
Using online banking for one-time money transfers within Germany is a simple and convenient way to handle financial transactions.
Most banks in Germany offer online banking either from their website or provide a mobile app. Some banks, however only has the website that is mostly only usable via a computer. Some banks on the other hand provide an app in English. But, certain features are only available in German. This is due to the legal complications.
The digital banks in Germany such as N26 offers fully English apps and every service online.
Direct debit authorisation (SEPA)
A direct debit authorisation is like giving a company permission to automatically take money from your bank account. You tell them how much they can take and when they can take it. But, they have to let you know a few days beforehand when they're going to do it. To make this arrangement, you fill out a form with the company, and together, you set up a plan for how often they can take the money, like on certain dates or every month, three months, or once a year.
This method is usually used for deduction for a loan, and services like internet, telephone invoices, etc.
Standing Order
This method is often used to pay things like rent or your mortgage – regular, fixed payments. It's not the best choice for bills that change, like your credit card or electricity bill. Basically, it's like telling your bank to send a certain amount of money to someone else's bank account on a specific date. Some folks also call it a "banker's order." If you need to, you can change things like how much money you're sending and when it happens.
Conclusion
To sum it up, handling your money in Germany has become easier thanks to online options like Wise and Revolut. These services make sending money abroad simple and cheap. They're way better than the old-fashioned methods like SWIFT and wire transfers, which are slow and expensive. Nowadays, you can do everything on your phone without visiting a bank. So, if you're in Germany, it's smart to explore these modern banking options that make managing your money smoothly.
Frequently asked questions
What are the common methods for transferring money abroad from Germany?
Common methods include bank transfers, international wire transfers, online money transfer services (such as PayPal or TransferWise), and traditional remittance services.