Types of accounts

There are different types of account – and the choice has considerable legal and financial consequences.

The 5 most important account types (Germany):

1. Individual account:

• Holder: 1 person. Only you have access (others by power of attorney if needed)
• Standard for salary, everyday spending, savings accounts

2. "Either-or" account (joint account):

• 2+ holders. EACH can access the entire balance alone
• Ideal for couples and shared household costs
• Watch out: joint and several liability if it's overdrawn – even after a separation!
• Can be converted into a "both-signatures" account if one partner unilaterally revokes it

3. "Both-signatures" account (Und-Konto):

• 2+ holders. Transactions can ONLY be made JOINTLY
• Typical for: communities of heirs, civil-law partnerships (GbR)
• Impractical in everyday life (every transfer needs everyone's consent)

4. P-Konto (garnishment protection account):

• Protects the subsistence minimum in the event of an account garnishment (€1,560/month)
• Only individual accounts can be converted – joint accounts can NOT

5. Trust account (escrow account):

• The holder manages money for a third party (the trustor)
• Typical: a notary holds the purchase price in property purchases

Recommendation for couples:

• 1 joint "either-or" account for rent and shared costs
• + an individual account each for personal spending and financial independence