Bank Terminology in German101

The German banking sector is a complex and highly regulated industry. As such, it has developed its own unique vocabulary. This glossary provides an introduction to some of the most important bank terminology in German.

Accounts

Girokonto: A current account, used for everyday transactions such as paying bills and receiving salaries.

Sparkonto: A savings account, used for long-term savings.

Festgeldkonto: A fixed-term deposit account, which offers a higher interest rate than a savings account but restricts access to funds for a set period.

Loans

Kredit: A loan, used to finance large purchases such as a car or a house.

Hypothek: A mortgage, used to finance the purchase of a property.

Überziehungskredit: An overdraft facility, which allows account holders to withdraw more money than they have in their account.

Investments

Aktie: A share, representing ownership of a company.

Anleihe: A bond, representing a loan to a company or government.

Investmentfonds: A mutual fund, which pools the money of many investors to invest in a variety of assets.

Other terms

Bankomat: An ATM (automated teller machine).

Bankleitzahl: A bank code, which identifies the bank that holds an account.

IBAN: An international bank account number, which is used to transfer money between banks in different countries.