Branch banks have already been facing stiff competition from the new direct banks for several years. This is hardly surprising, since the direct banks often offer very attractive conditions for credit cards and the associated current accounts. However, these providers also show great differences among themselves in some cases.
There are various direct banks, all of which offer their customers a current account with credit card, which is often much cheaper than with traditional branch banks. But how can consumers really find the best offer for their individual situation? The following article provides helpful answers.
The most important services of direct banks
There are some characteristics that an account with a direct bank should definitely fulfill these days.
Free current accounts are hardly taken for granted nowadays. As a rule, branch banks in particular charge monthly fees for account management. At many branch banks, this results in a high, three-digit amount per year. These are costs that consumers can easily avoid by choosing the right provider for a current account with a credit card.
A comparison of different current accounts may therefore help to save a lot of money. Consumers should generally opt for offers that do not include an annual fee. This criterion is met by the majority of direct banks. There are only restrictions for individual service providers, which, for example, require a fixed monthly amount of money to be credited to the current account in order to avoid fees.
The range of services offered by a recommended direct bank usually includes a free credit card for the respective current account. This is offered by ING-DiBA, comdirect and DKB. However, there are also a number of other banks that offer this to their customers.
It is particularly important to have a free credit card with direct banks, as this is often used as the primary means of payment. Credit card issuers are usually Visa or Mastercard, although this is not decisive for the consumer. The most important thing is that no annual fee is charged for using the credit card.
Withdrawals made using the credit card should also not incur any additional charges. Normally it is not possible to make withdrawals from direct banks at an official ATM of the respective bank, as these machines do not exist. For free withdrawals, customers of direct banks therefore have to use their credit card or Giro-Card. As a rule, the direct banks offer that a certain number of withdrawals at ATMs are included and therefore no costs are incurred up to this limit.
There are, however, some differences in this practice: for example, comdirect offers the possibility of withdrawing money free of charge with the Giro Card within the euro zone. With ING-DiBa and DKB this is only possible with a credit card, according to finanzendirekt.de.
Are there alternatives to the large direct banks?
Those who do not wish to opt for the large direct banks can of course choose another alternative for an uncomplicated way of obtaining a current account with a credit card. A practical comparison of current accounts and credit cards on the Internet is a great help here.
Other classic, albeit less well-known, direct banks are for example Norisbank or Netbank. Relatively new on the market, however, are mobile banks. Their popularity has risen sharply in recent years. Most of their services can be carried out simply and easily via smartphone. Popular providers here are for example N26 or O2 Banking.
Of course, as with other banks, there are individual advantages and disadvantages. When comparing the various offers for a current account with a credit card, consumers should pay particular attention to whether the decisive criteria are met.
These include the fact that no account management fee is charged for the current account and that the use of the credit card does not entail any additional fees as far as possible. Free withdrawals should also be free of charge, at least up to a certain amount. Some banks are already falling through the cracks in this respect, as free account management is linked to certain conditions, such as regular cash receipts or other special activities.
The number of free withdrawals is limited at some banks and the use of credit cards is not always completely free. There are also often restrictions beyond these limits, which consumers should bear in mind when choosing a current account with a credit card. The fact that the most popular current account offers come from ING-DiBA, comdirect and DKB is, of course, quite telling. Nevertheless, the small print should always be examined in detail so that the small differences between the offers for a current account with a credit card can also be revealed.
Which offer for a current account and credit card is the best?
Which offer is ultimately chosen depends, of course, on the individual consumer and his or her life situation. There is therefore no universal answer to the question of which offer is really the best of all. There are different advantages and disadvantages between the individual providers. The individual needs and requirements of the consumer also always play an essential role.
For example, there are people who very often use their overdraft facility – they should make sure that the interest rate for the overdraft facility is not too high with the respective provider. If the respective consumer needs cash on a regular basis and therefore very often has to withdraw money from an ATM, a current account should be chosen which allows free withdrawals without restrictions and in unlimited numbers. Perhaps the focus should also be on the interest on the overnight money, which again makes another offer most attractive.
In general, however, the offers of the major direct banks are all recommendable. In principle, there are only differences in the small details of the conditions. However, for people who travel a lot and are abroad, the best choice is probably the current account and credit card offer from the DKB, as it waives the foreign currency fee. This means that it is possible to withdraw cash free of charge from almost all ATMs around the world.
The most important thing is that consumers make a comprehensive comparison of all available offers before making their decision. In principle, it can still be said that switching from a branch to a direct bank usually always means cost savings. Often a practical service is even offered for changing accounts, which makes it easy and uncomplicated to change providers.
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