Payments in Germany are made, as in most countries, with cash or with cash cards (EC cards) and credit cards. Almost all everday money transfers are nowadays made directly via a bank account: salary, rent, telephone, credit card payments, etc. The euro is the accepted currency when paying cash in Germany.

Bank account

If you plan to stay in Germany for a longer period you should open a bank account (see: Opening a bank account). The most widespread type of account in Germany is the current account.

A current account includes the following services:

• Payment of salary
• Withdrawal of money and payment of goods with a debit card (EC card) with immediate charge to the cardholder via the current account,
• Transfers,
• Establishment of standing orders for regular payments like rent or instalments
• Establishment of direct debit authorisation for payments that are regularly due but are of differing amounts, like telephone bills, electricity, etc. (direct debit system),
• Payments on a credit card issued by the bank,
• Use of an overdraft facility (contractually agreed to) and
• Internet banking

Every bank offers a wide range of financial services with current accounts: current account with online banking, free credit card without account fees etc. In order to choose the right account, a personal meeting at the bank of your choice is recommended. The following questions could help you when choosing a bank for opening a current account:

• How high are the account fees?
• Does the account generate interest and if so, how much?
• Is it possible to establish standing orders?
• Is an overdraft facility available? If yes, how high is the interest?
• Is it possible to name an authorised account user?
• Is it possible to withdraw money immediately after opening the account?
• Where can money be withdrawn free of charge?
• Is it possible to apply for a credit card? If so, how long does the process take?

An overdraft facility allows the account to be overdrawn up to a certain point, generally up to three months salary. First, however, regular salary deposits must be made. For the overdraft service the bank charges higher interest.

The following documents may be required to open a bank account, depending on the bank:

• Passport, residence permit, work permit
• Registration of address certificate.

Customers can close the current account at any time without a notice period. The bank cannot charge fees for closing an account. The bank also has the right to cancel an account.

As well as the current account there are other types of accounts. For information on all the options, inquire during the meeting at the bank of your choice.

Credit cards

Once you've opened a current account, you can apply for a credit card. To do this you need to have sufficient financial means, which is often proven in the form of regular incoming payments. Normally you have a choice between Master Card and Visa. Payment via credit card is less common in daily life in Germany because the network of businesses accepting this form of payment has only recently started to grow. Furthermore, the use of a credit card doesn't really amount to credit, but rather the postponement of payment for one month. This works as follows: a purchase is made and the credit  card is presented for payment. Your bank sends you the current amount by post for your information, or makes it available on line. The payment of the total credit takes place within a 30-day period. For foreign travel and internet shopping the possession of a credit card is essential.
Importing cash

There are restrictions on the import of cash into Germany. Please ask at the consulate or German customs about the exact regulations before you com to Germany.
Exchange of foreign currency

It is not always simple to exchange cash in foreign currency for euros in every bank. It may be necessary to wait. Find out about this in a meeting. In Reisebanken, which are bank especially for travellers, foreign money can be changed immediately into euros however. There are no long waiting periods.

Source: http://welcome.dresden.de/en/life/banking.php