What is a basic payment account?

A basic payment account is an account for payments that you can use like a current account but which is subject to certain protection provisions. For example, with basic payment accounts, the bank is not free to decide who it rejects as a customer or when it terminates the account.

In order for these rules to apply, you must apply for a basic payment account under the ZKG (the application form is only available in German) or explicitly agree with the bank that you want to hold such an account.

Who is entitled to hold a basic payment account?

In principle, all consumers legally residing in the European Union and not already in possession of a payment account in Germany are entitled to conclude a contract for a basic payment account. This is also the case for persons without a permanent place of residence and asylum seekers. Persons without a residence permit who cannot be deported due to legal or factual reasons (persons with a suspension of deportation) are also entitled to hold such an account.

For persons without a permanent place of residence, it is sufficient to provide a postal address for opening such an account. In other words, it is sufficient that the account applicant is reachable via relatives (family), friends or an advice centre. A place of residence within the meaning of the Federal Act on Registration (Bundesmeldegesetz – BMG) is not required. If the account applicant has a permanent place of residence, the address of this place of residence must be given.

What does a basic payment account have to offer?

The basic payment account is a payment account with which you can deposit or withdraw money and carry out direct debits, transfers and payment card transactions.

However, the bank is not obliged to provide you with an overdraft. This means that you cannot raise debt by withdrawing or transferring more money than is deposited in your account.

If a bank generally provides its customers the means to conduct online banking, it must also provide these means for holders of basic payment accounts. If, however, a bank generally does not provide the means to conduct online banking for payment accounts, it does not need to provide these means for holders of basic payment accounts.

Furthermore, holders of basic payment accounts – unlike holders of other payment accounts such as current accounts – are subject to special protection: banks may only charge reasonable fees and their ability to terminate such accounts is substantially restricted.

The basic payment account can, upon application, also be managed as a garnishment protection account (Pfändungsschutzkonto). Further information on garnishment protection accounts can be found on the website of the Federal Ministry of Justice (only available in German).

Where do I get a basic payment account?

In principle, all banks that provide payment accounts to consumers must also offer basic payment accounts. A payment account is any account with which money can be deposited and withdrawn and which allows for direct debiting, transfers and payment card transactions.

A bank may only reject your application for a basic payment account if there are legal grounds for doing so. You can find more information on this below in the section “Can my application to open a basic payment account be rejected?”

How can I make an application to open a basic payment account?

If you want to open a basic payment account, please use the relevant application form (please note that this form is only available in German). You can also obtain the form from the bank at which you wish to open the basic payment account – either directly at the bank branch, by post or on the bank's website. It is not compulsory to use this form, but it helps you to provide all the data that the bank requires in order to check your application. Moreover, it speeds up the assessment process and prevents difficulties should further documents be required at a later date.

The bank must provide you with confirmation that it has received the application.

Once you have completely filled out the application form for a basic payment account under the German Payment Accounts Act (Zahlungskontengesetz – ZKG), the bank has ten working days in which to process your application and offer you a basic payment account.

What documentation must I provide when opening the account?

The bank is legally obliged to verify the identity of the applicant. For this reason, you also need a valid identification document in addition to the application form for opening an account. This means that you must prove your identity when submitting an application. The documents you can use to do so are defined under the German Money Laundering Act (Geldwäschegesetz – GwG) and the Payment Account Identity Verification Regulation (Zahlungskonto-Identitätsprüfungsverordnung - ZldPrüfV).

Here is a list of the identity verification documents that fulfil these requirements:

• Valid official identity documents that require a photograph of the owner and fulfil the passport and identification requirements in Germany.
  Examples are passports and personal identity cards that are recognised or accepted under German or foreign law, or substitute documentation for such forms of identification. The certificate confirming permission to remain pending the asylum decision (Bescheinigung über die Aufenthaltsgestattung) under section 63 of the German Asylum Act (Asylgesetz - AsylG) constitutes substitute documentation.
• Suspension of deportation certificate (Duldungsbescheinigung) under section 60a (4) of the German Residence Act (Aufenthaltsgesetz - AufenthG),
• Arrival certificate under section 63a of the AsylG.

A provisional residence document (Fiktionsbescheinigung) under section 81 (5) of the AufentG does not meet these requirements. The Payment Account Identity Verification Regulation (Zahlungskonto-Identitätsprüfungsverordnung – ZIdPrüfV) permits the use of other documents for validating an account applicant’s identity when opening a basic payment account, but these do not include the provisional residence document.

The identity verification document must be valid.

If you fail to establish your identity with an appropriate document or the document is no longer valid, the bank may reject your application.

For persons without a permanent place of residence, it is sufficient to provide a postal address for opening an account. In other words, it is sufficient that the account applicant is reachable via relatives (family), friends or an advice centre in this case. A place of residence within the meaning of the Federal Act on Registration (Bundesmeldegesetz – BMG) is not required. If the account applicant has a permanent place of residence, the address of this place of residence must be given.

Can my application to open a basic payment account be rejected?

The bank may only refuse to conclude a contract for a basic payment account under certain conditions. This is the case if:

• you already have a payment account at another bank in Germany and you are actually able to use it.
  The question of whether you are actually able to use an account does not depend on whether you are not using your account because, for example, you are dissatisfied with the services offered by your current bank. If your previous account relationship has been terminated or you have been informed about the closure of your account, please provide this information to the bank at which you wish to open a basic payment account.
  The bank may verify the information you provide on an existing account by, for example, making an enquiry at an office that processes data for credit rating purposes.
• you have been convicted of an intentional criminal offence against the bank, one of its employees or one of its customers in the three years prior to the application,
• you have already held a basic payment account at the same bank and the bank terminated the account due to default in payment or due to the account being used for illegal purposes, or
• by commencing and maintaining a business relationship with you, the bank would violate its general due diligence obligations under the German Money Laundering Act (Geldwäschegesetz – GwG (for example, for validating your identity) and the German Banking Act (Kreditwesengesetz – KWG) or would violate its confidentiality obligations when stating the reasons for the rejection.

What can I do if my application for a basic payment account is rejected?

If your application to open a basic payment account has been rejected, you have three possible courses of action:

• you can apply to BaFin for administrative proceedings to be initiated,
  (please use our application form (only available in German) that can be downloaded in PDF format or our online form; information on how to do this can be found in the next section),
• you can take legal action in the civil courts for a basic payment account to be opened, or
• you can contact the competent consumer arbitration body
  (the competent arbitration body for your case can be found here).

How do BaFin's administrative proceedings work?

If the bank has rejected your application to open a basic payment account, you can apply to BaFin for administrative proceedings to be initiated (PDF form for downloading / online form) Please note that the form is only available in German.

Attach the following documents to your application:

• copy of your application to open a basic payment account at the bank and
• copy of the bank’s rejection notice (if available)

BaFin will provide confirmation of receipt of your application to initiate administrative proceedings.

BaFin then assesses whether the requirements for concluding a contract for a basic payment account have been met. If the bank has wrongfully rejected your application to open a basic payment account, BaFin will issue an order for one to be opened. This means that the bank will have to provide you with a basic payment account. You can then decide whether to accept the offer.

The actual conclusion of a contract for a basic payment account may only take place between you and the bank itself. This means that you must cooperate in the actual contractual conclusion process, for example by arranging an appointment with the bank for concluding the contract and establishing your identity with the bank. BaFin is not in a position to handle the contractual conclusion process for you.

You will receive confirmation from BaFin about the completion of the proceedings.

If the requirements have not been met, BaFin will reject your application. You can then file an objection with BaFin so that the decision is reviewed once more. The institution may also file an objection with BaFin against the order to conclude a contract for a basic payment account.

What costs might I incur from the administrative proceedings?

The administrative proceedings conducted by BaFin are free of charge. However, you must pay for any costs that you incur from written correspondence, for example postage costs. You will not be reimbursed for any legal costs or consultation fees.

May I hire a lawyer for the administrative proceedings?

Yes. But a lawyer is not required for such proceedings. You may, however, arrange to be represented by a third party (for instance, by a lawyer). Please note that you will be responsible for bearing the costs of legal representation yourself.

How can I contact BaFin?

If you would like to apply to initiate administrative proceedings, please use

• our online form for administrative proceedings or
• the PDF form that you can download (form only available in German) and send it to:
  Bundesanstalt für Finanzdienstleistungsaufsicht
  Referat ZR 1
  Graurheindorfer Straße 108
  53117 Bonn

You can also obtain general information on BaFin's consumer helpline. You can contact this helpline on weekdays from 8:00 am to 6:00 pm on 0800 2 100 500 (Callers from abroad: +49 (0)228 299 70 299).

You can also use the online form for complaints (only available in German).

Is a bank allowed to terminate a basic payment account?

The possibilities a bank has to terminate a basic payment account are restricted by the German Payment Accounts Act (Zahlungskontengesetz – ZKG). The grounds for terminating a contract for a basic payment account are listed in the ZKG. Banks may not terminate the account on any other grounds.

Provided it has been agreed, the bank may terminate the basic payment account (with a notice period of no less than two months) if:

• the account holder has not used the basic payment account to make any payments in more than 24 months,
• the account holder no longer fulfils the criteria for concluding a contract for a basic payment account,
• the account holder has opened another payment account which falls within the scope of the ZKG and is able to use it, or
• the account holder has rejected a declared change to the contract for the basic payment account (provided that it is a change within the meaning of section 675g of the German Civil Code (Bürgerliches Gesetzbuch – BGB), which the bank has effectively offered to all holders of the relevant basic payment accounts that it manages).

The bank can also terminate the contract for the account without any agreement on such a right to termination with a notice period of no less than two months if the account holder:

• has committed an intentional criminal offence against the bank or one of its employees or customers in relation to their being an employee or customer of the bank, or if the account holder seriously damaged the interests of the bank through any other intentional criminal actions and it can therefore no longer be reasonably expected that the bank continue the contractual relationship, or
• the account holder has not paid the bank any charges or costs for more than three months. However, the amount owed must exceed 100 euros and there must be reason for concern that continuing to manage the account would result in further claims and that the payment of such claims could not be guaranteed.

Extraordinary termination of the basic payment account contract by the bank is possible without any notice period if the account holder:

• intentionally uses the payment account for purposes that violate a legal prohibition, or
• has provided incorrect details in order to be able to conclude the contract for the basic payment account and had the correct details been provided, no such contract with the account holder would have been possible.

Reasonable charges

Banks are allowed to stipulate reasonable charges for the management of basic payment accounts (section 41 of the German Payments Account Act – Zahlungskontengesetz (ZKG)). When assessing the reasonableness of charges, particular consideration is to be given to the usual market charges and user behaviour.