Bank Accounts
The most common form of account in Germany, whether at a bank or Sparkasse, is a "giro account", also called a checking account or current account. Most banks demand to see a residence permit before an account can be opened. Most financial transactions are done using this type of account. Employers transfer wages to these accounts, for instance. Payments for rent, electricity, etc. are also made using these accounts.
The term used to define the transfer of money from one account to another is called "Überweisung". A special form called an "Überweisungformular" is filled out for this purpose. Transfer costs are usually lower, or non-existent, at banks and Sparkassen where the account is held.
If you want to place a regular automatic transfer of money (for instance apartment rent, electricity bills, etc) the bank or Sparkasse can pay these bills at a set date automatically. This is called a "Dauerauftrag". This continues automatically until the amount is changed or the standing order terminated.
The direct debit authorisation ("Einzugsermächtigung" or "Lastschrift" / "Lastschriftverfahren") allows certain companies to deduct varying sums of money directly from your account and is a practical way of paying invoices such as telephone bills. The company is given a written direct debit authorisation ("Einzugsermächtigung"). Then the bills (for instance telephone bills) are deducted automatically from your account. You normally do not have to worry about misuse from legitimate companies as money deducted falsely from your account can be demanded back within a few weeks of the mistake occurring and the direct debit authorisation can be stopped at any time. It is, however, prudent to check your bank account statements and your bills.
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