Guide to Currency in Germany
Germany is one of the most sought-after tourist destinations in the world. German cities like Berlin, Munich, and the Black Forest top the list when it comes to attracting tourists and travel enthusiasts. Berlin has become a fan-favourite with its lively nightlife, enthusiasm for arts, and fashion.
In addition, it’s also home to the Brandenburg Gate. Munich is long associated with the international beer festival Oktoberfest. Finally, the outstanding beauty of the Black Forest attracts many nature lovers.
If you are too planning to check out Germany and bask in its glorious diversity, you need to make sure you’re familiar with the concept of currency in Germany. By doing so, you can make your savings go even further with a few smart choices; including how to exchange the currency of Germany and pay for things in Germany.
We have listed the following to better help you understand the currency of Germany and the different ways to save the same.
What currency is used in Germany?
The official currency of Germany is the Euro. The currency sign for the euro is € while the code is EUR. In Germany, it’s more common to see the symbol written after the numeral, as in 10€. Germany is a part of the eurozone — 19 European countries that use the euro as their official currency.
Issued by the European Central Bank, the Euro is the second most traded currency on the world’s foreign exchange markets. German banknotes have 7 denominations: €5, €10, €20, €50, €100, €200, and €500. While the 8 coin denominations are €2, €1, 50cent, 20cent, 10cent, 5cent, 2cent, and 1cent.
What does the Euro look like?
There’s no such thing as a ‘German’ euro. Even though Germany mints its own coins with a national design on one side, these coins can be used everywhere in the eurozone. Also, any coins minted with national designs from other eurozone countries can be used in Germany.
They come in the standard eight denominations: one cent, two cents, five cents, ten cents, 20 cents, 50 cents, €1, and €2. The ‘common’ side of the coin used across the eurozone features the numerical value of the coin and a map of the European Union.
On the reverse ‘national’ side, all coins bear the same design. Although this design has been modified three times since Germany adopted the euro. Euro banknotes come in denominations of €5, €10, €20, €50, €100, €200, and €500. The designs are the same throughout the eurozone with different sizes and colors denoting the different bill values.
You’re unlikely to come across a €500 note but it’s a good idea to avoid even the €100 and €200 bills as some merchants are reluctant to accept these higher denominations.
How to manage German currency?
The first thing you would want to know about is how to exchange German currency. Places like Berlin and Munich receive great numbers of tourists, so there are facilities to cater to money exchanges. Beyond these major destinations, it’s best to get cash before you venture into a remote territory to be on the safer side
1. ATMs
ATMs are one of the best options to withdraw cash without a hassle. You can find ATMs everywhere in Germany, particularly in larger towns and cities like Cologne and Hamburg, so you’ll have no problem finding one when you need to withdraw cash. ATMs are called ‘Geldautomat’ in Germany.
Another beneficial thing about ATMs is that Even better, ATM providers rarely charge fees for ATM use. Just remember, you may still have to pay fees to your home bank for using an ATM overseas and for currency conversions.
When given an option to be charged in Euros or your home currency, always choose Euros to avoid costly exchange rates. Some ATMs in Germany give you the option to choose. Always let your bank know that you’re traveling. Your bank might freeze your account if they detect a foreign transaction but aren’t aware that you are overseas.
2. Currency exchange in Germany
There are many currency exchanges in Germany, but the fees and rates can vary dramatically. Currency exchange counters at airports and hotels are known to give poor exchange rates. It’s better to wait until you can compare options in town.
Also, bureaus in popular tourist destinations, especially around famous landmarks, often give poor exchange rates and add on high or hidden fees. Make sure the notes you bring from home are in good condition. Some exchange services reject defaced or damaged banknotes.
3. Traveler’s cheque
In today’s time, traveler’s cheques are considered outdated. Very few banks accept such cheques. They can’t be used as a direct payment, so the only way to use them once you’re in the country is to swap them for currency at a bank or bureau de change office. Even then, very few banks will accept traveler’s cheques if you don’t have an account with them. And exchange services apply exorbitant fees and rates to them.
4. Your bank card
Most German businesses are well set up to receive card payments. However, it’s wise to read up on the fees and the charges you might incur. Debit cards can be used across Germany. Just beware, your home bank may impose high rates and fees if you use your card overseas. These fees might cover ATM withdrawals, overseas transactions, and currency conversions.
You can use debit cards across Germany. However, keep in mind that your home bank may impose high rates and fees if you use your card overseas. These fees might cover ATM withdrawals, overseas transactions, and currency conversions.
Below are the cards that offer more competitive rates and lower (or even no) fees include:
The ING Direct Orange Card
The Citibank Saver Plus
Revolut
The TransferWise Debit Card
Credit Cards, on the other hand, come with some enticing perks. This includes added security, loyalty programs, and even free travel insurance. However, it’s debatable if they are actually worth it. Major local businesses, including hotels, restaurants, airline offices, and department stores, accept credit cards. But you might have to pay a surcharge.
Mastercard and Visa are widely accepted while American Express cards may only be accepted at few select places.
Additional charges may incur for foreign transactions, which include international transaction fees, high exchange rate margins, ATM fees, potential ‘cash advance fees if you use an ATM. If you still prefer credit cards over any other payment, consider going with a company that offers cards that waive certain travel fees.
The average cost to travel around Germany
To give you an idea of a reasonable budget, we’ve listed the average prices of some common items and experiences you’ll have while in Germany.
€60–140 — A room in a guesthouse
€40–50 — Two-course meal at a nice restaurant
€2–4 — A German beer
€20–30 per day — Car rental
€5–15 — Museum entry
Conclusion
With the above guide, you can manage your German currency and finances easily for a memorable and comfortable time in the country.