Close a bank account in Germany [Bankkonto kündigen]

Key Takeaways

• Both you and your bank have the right to close your bank account in Germany.
• When opening a new bank account, you should consider using the “switching assistance service” (Wechselservice) from your new bank.
• Banks may close accounts under special circumstances without a notice period.
• You can keep your German account even after moving abroad.

This is how you do it

• If you’re closing your bank account, you must first open a new bank. You can use your new bank’s “switching assistance service” to make the switch easier.
• If your bank closes your account, you can object to the termination or open a new account.
• If you’re moving outside of Germany, you may still keep your German bank account. Just notify your bank, manage fees & requirements, and set up online banking before you leave.
• We find C24 Bank's* free checking account to be the best in Germany. However, it offers services only in German. If English service is important for you, N26* and Revolut are other options.

Table of Contents

Can you close your bank account in Germany?

According to German law (§ 675h BGB), you can cancel or close your bank account without notice. You are not required to state a reason for the closure.

However, your bank may set a notice period in its terms and conditions. The notice period must be no longer than one month; otherwise, it would be invalid.

NOTE: If you close a “checking account” at a bank, you may also have to cancel/close the credit card and any additional connected bank accounts, such as a savings or daily money account.

Process for closing the bank account in Germany

Open a new bank account before closing your current account

Before closing your bank account, you should open a new bank account.

Opening a bank account in Germany is straightforward. Pick the bank you want to open an account with and apply online.

You can even conduct the whole identity verification process online. Learn more about it in our guide on how to open a bank account in Germany.

Best bank accounts in Germany ->

Use the “bank account switching assistance service” (Kontowechselhilfe / Wechselservice) offered by your new bank

You can use your new bank’s “switching assistance” service (Wechselservice) to move your direct debits, standing orders, etc, from your old account to the new one. It’ll save you time and effort.

Moreover, per the Payment Accounts Act, banks must offer “switching assistance” service to their customers.

You can request the “switching assistance” service online on your bank’s app or website. This service can help you with:

• Handling the paperwork
• Change deposits: Informing your payment partners (e.g., employer, tenant, etc.) about the new bank account.
• Changing standing orders and SEPA direct debits: The switching assistance service will analyze your direct debits and standing orders and move them to the new bank account. This includes utility bill payments, rent payments, mortgage payments, insurance, etc.

NOTE: Double-check that all direct debits and standing orders have been changed to the new bank account as your new bank may miss some transactions.

• Transferring the old bank account balance to the new bank account. You can also transfer the balance yourself.

• Canceling or closing your current bank account. You should receive the confirmation of account closure from your old bank. If you don’t, follow up with your old bank.

Some recipients are not automatically notified of the bank account closure or the new bank account details. This is especially true of online shops and subscriptions.

Here are some examples of online businesses that require you to update your bank account information manually. 

• Amazon, Netflix, Paypal, iTunes, etc.
• Recipients of private direct debits (e.g., landlord)

You can download the checklist of things you must do before closing a bank account in Germany here.

Contact your bank for account closure

If you don’t want your new bank’s “account assistance service” to cancel your old bank account, you have the following ways to close your account.

• By letter. Here is our sample letter for closing a bank account. Your letter should have the following information.
  • Your first and last name
  • Your full residential address
  • IBAN of the current account
  • A clear and well-written request for termination. You don’t have to state the reason for the termination.
  • The termination date (or “as soon as possible”)
  • Date, place, and your signature

• Through online forms.  Check if your bank offers this option on its website.
• Via your bank’s app, if the option is available.
• By email. Send an email to your bank and attach the termination letter (duly signed) as a PDF.
• By fax.
• In person at the respective bank branch

Finalize the closure of your bank account

Before you close your current bank account, keep the following in mind.

• Keep your new and current bank accounts active for at least two months. This helps avoid problems like:
  • incorrect entries
  • misdirected payments
  • missed payments and fines

• Download all the bank and credit card statements from your old bank account, and review them for potential issues. If you find any, contact your bank while you are still a customer.
• Repay your overdraft. You cannot close a bank account if you still have an unsettled balance.
• Ensure your old bank has the details of your new bank account. This allows your old bank to transfer any remaining balance to your new account.
• Update your contact information at your old bank. Your old bank will send a final account statement and account closure confirmation via post using the contact data stored in its system. Thus, your address and contact details must be correct. 

Once everything is settled, your old bank must provide a written confirmation of the account closure and a cancellation notice. If you don’t receive it, follow up with your bank.

Some banks may also ask you to return or destroy your debit card upon account closure.

Can your bank close your “checking account” in Germany? 

Yes, banks have the authority to close your checking account. However, they must give you at least two months’ notice.

According to the German Civil Code (Section 675h, Paragraph 2), the conditions for such closure are:

• The contract has no end date.
• The right of termination is allowed under the contract.

Meanwhile, account closures are slightly more difficult for certain types of bank accounts:

• Savings accounts (Sparkonto). Some federal states in Germany require banks to open a savings account for everyone.
• Basic accounts (Basiskonto). These accounts may only be terminated for reasons stated under the German Payment Accounts Act (Zahlungskontengesetz).

Can your bank close your account without providing any reason?

Yes, banks may close your account without providing any reasons (Federal Court of Justice, ruling of January 15, 2013, case number XI ZR 22/12)

While no explanation is often given, common reasons for account closure include:

• Inactivity of the bank account
• Using a private checking account for business purposes
• Irregularities that may be linked to money laundering 
• The bank does not profit enough from you as a customer

What is an extraordinary termination of the bank account?

Under certain conditions, banks reserve the right to close or terminate bank accounts without following the required notice period. This is called the extraordinary right of termination. The legal basis for this is Section 490, Paragraph 1 of the German Civil Code (BGB). 

These are some of the situations that may lead to an extraordinary termination:

• Providing false statements about your financial situation
• Serious deterioration of your financial situation
• Failure to provide additional collateral
• The bank account is used for criminal or prohibited activities 
• Violating contractual obligations

What can you do if the bank closes your account?

The first thing you can do is to ask the bank why your account was closed. Once you know the reason, here are the next steps you can take.

Open a new bank account and transfer your balance

After being notified of the account closure, you should open a new bank account immediately and transfer your balance to the new account. Here is why.

• Your bank account and card may be blocked. This will make it difficult to access your funds again.
• If you don’t have a new bank account before the bank’s notice period expires, your balance will be transferred to a court. You’ll then need to prove the funds belong to you before they can be released.

Everyone should have at least two bank accounts in Germany. This way, if your one account is closed or blocked, you can continue paying your bills via another account.

Review the steps and requirements to open a bank account ->

Best bank accounts in Germany ->

Object to the bank account termination

If you think the account closure was not done in good faith. You can object to the bank’s decision. You have the following options.

• Contact an “insurance ombudsman.” It is advisable to contact an ombudsman when you have a savings, cooperative, or basic account.
• Contact a lawyer who specializes in banking law for advice. If you have legal insurance, the insurance will cover the legal costs.

Best legal insurance plan in Germany ->

English-speaking lawyers in Germany ->

FAQs

References

• https://www.finanztip.de/girokonto/girokonto-kuendigung/
• https://www.finanzfluss.de/girokonto/kontowechsel/
• https://www.finanzfluss.de/girokonto/konto-kuendigen/
• https://www.vonferber-langer.de/rechtsgebiete/kreditrecht/kreditkuendigung-durch-die-bank/
• https://www.bafin.de/EN/Verbraucher/Bank/Produkte/Basiskonto/basiskonto_node_en.html;jsessionid=04CD203C40E51CC88CBFE591F8CA2B54.internet972#doc19584910bodyText13
• https://support.n26.com/en-de/account-and-personal-details/personal-information-and-data/how-to-close-my-account
• https://wise.com/gb/blog/can-i-keep-my-german-bank-account-after-leaving-germany
• https://www.deutsche-bank.de/pk/service-und-kontakt/services/fragen-antworten/konto-und-debitkarten/wie-kuendige-ich-mein-girokonto.html