German banking runs on transfers and direct debits. Rent, electricity, the phone contract and the gym all leave your account as an Überweisung or a Lastschrift, and cheques are practically extinct.
That makes a small set of words very important. You'll see them in your banking app every day, on every invoice, and in every contract that asks for your IBAN.
Everyday Money Words
money
das Geld
cash
das Bargeld
coin
die Münze
banknote
der Geldschein
price
der Preis
salary
das Gehalt
wage
der Lohn
income
das Einkommen
tax
die Steuer
invoice
die Rechnung
debts
die Schulden
savings
die Ersparnisse
inexpensive
günstig
cheap
billig
expensive
teuer
Practice these words
das Geld
Quick notes:
- Gehalt is a monthly salary, Lohn is the traditional word for wages, often hourly. In everyday talk the line is blurry, but your contract will use one or the other.
- Billig can sound like "cheap and nasty". Günstig means a good price. Shops advertise günstig far more often than billig.
At the Bank
bank account
das Konto
current account
das Girokonto
savings account
das Sparkonto
balance
der Kontostand
bank statement
der Kontoauszug
bank card
die Bankkarte / die EC-Karte
PIN
die PIN
account fee
die Kontoführungsgebühr
overdraft
der Dispo
interest
die Zinsen
loan
der Kredit
branch
die Filiale
online banking
das Onlinebanking
Practice these words
das Konto
Quick notes:
- Girokonto is the everyday account your salary goes into. Giro is Italian for "circulation", the money going round between accounts. Nothing to do with the cycling race.
- Der Dispo is short for Dispositionskredit, the agreed overdraft. Banks offer it freely and charge high interest on it. Ich bin im Minus means your account is overdrawn.
- Opening a bank account in Germany — the papers you need and the sentences for the appointment.
Moving Money
bank transfer
die Überweisung
standing order
der Dauerauftrag
direct debit
die Lastschrift
instant transfer
die Echtzeitüberweisung
payment reference
der Verwendungszweck
recipient
der Empfänger
to transfer
überweisen
to pay in
einzahlen
to withdraw
abheben
to debit
abbuchen
Practice these words
die Überweisung
Quick notes:
- Most bills are paid by Lastschrift: you give the company your IBAN once and sign a SEPA-Lastschriftmandat, and they take the money each month. You can have a direct debit reversed through your bank within eight weeks, no reason needed.
- Fill in the Verwendungszweck exactly as the invoice says, usually with an invoice or customer number. It's how the company knows the money is yours.
- Since October 2025 your bank checks whether the recipient's name matches the IBAN before a transfer goes out, and warns you if it doesn't.
Which Kind of Bank?
| Type | Examples | What to expect |
|---|---|---|
Sparkasse | your local Sparkasse | public savings banks, a branch in nearly every town |
Genossenschaftsbank | Volksbank, Raiffeisenbank | cooperative banks, also strong in small towns |
Großbank | Deutsche Bank, Commerzbank | big private banks with branches in cities |
Direktbank | ING, DKB, Comdirect | online only, often free if a minimum amount comes in each month |
Neobank | N26 and other app banks | app first, often in English |
Quick note: which bank you choose decides which cash machines are free for you. Sparkassen share one network, Volks- and Raiffeisenbanken another, and the big private banks a third.
Money in Conversation
That costs a fortune.
Das kostet ein Vermögen.
I'm broke.
Ich bin pleite.
That's a bargain.
Das ist ein Schnäppchen.
It's worth it.
Das lohnt sich.
I have to save.
Ich muss sparen.
That's too expensive for me.
Das ist mir zu teuer.
Money is no object.
Geld spielt keine Rolle.
Practice these words
Das kostet ein Vermögen.
Quick note: money is a private subject in Germany. Asking what someone earns or what they paid for their flat is unusual, even among friends. Prices of things, on the other hand, are discussed with great enthusiasm, especially a good Schnäppchen.
Reading a German Bank Statement
These are the words in the transaction list of your banking app or on a printed Kontoauszug.
| On the statement | What it means |
|---|---|
Gutschrift | money in |
Lastschrift | a direct debit, money out |
Überweisung | a transfer, in or out |
Dauerauftrag | a standing order you set up |
Kartenzahlung | a card payment |
Bargeldauszahlung | a cash withdrawal |
Entgelt | a bank fee |
Saldo | the balance |
Buchungstag | the day the bank recorded it |
Wertstellung | the day it counts for interest |
A Lastschrift you don't recognise is worth a closer look. Within eight weeks you can have any direct debit reversed without giving a reason, and for one you never agreed to, you have even longer.