Obligation for all new citizens as of early 2026: Compliance with citizenship requirements
Germany to End Cash and Check Payments for Citizen's Allowance in 2026
Starting January 2026, citizens in Germany receiving Bürgergeld (citizen's allowance) will no longer have the option to receive payments via cash withdrawal by check. Instead, payments will be made only via bank transfers, requiring a valid bank account with an IBAN [3][4].
This move towards digital disbursements is part of a broader government initiative to streamline and modernize the process of receiving social benefits [5]. The change aims to make payment transactions more modern, secure, and efficient.
For those who do not have a bank account, this change presents a significant challenge. The authorities expect recipients to have a bank account to receive their benefits. While no alternative payment methods besides bank transfers are indicated in the new regulations, individuals without an IBAN will need to open a bank account to continue receiving their Bürgergeld payments.
If unsuccessful in opening a basic account at multiple institutions, experts advise contacting a consumer arbitration board [6]. It's important to note that everyone legally residing in the EU has the right to open a basic account [1].
The Postbank is also ending the special service for receiving citizen's allowance as cash using payment orders for settlement (ZzV), starting January 1, 2026 [2]. Therefore, it's crucial for individuals who currently receive citizen's allowance in cash to adapt to the new system.
To ensure a smooth transition, it's recommended that recipients inform themselves about their options now. It's also important to collect all evidence, including rejected applications, as the responsible job center may request them [7].
In summary:
- Cash or check payments for Bürgergeld end by January 2026 [3][4].
- Payments will require an IBAN linked to a bank account.
- Recipients without bank accounts must open one to continue receiving payments.
- No alternative payment methods besides bank transfers are indicated in the new regulations.
- Support in opening accounts is likely available through social services or Jobcenters.
This change is intended to modernize and secure social benefit payments across Germany [5]. It's essential for those receiving citizen's allowance to take action soon, as the deadline for this change is approaching.
- Given the impending change in 2026 where cash or check payments for Bürgergeld will no longer be an option, individuals currently receiving payments in this manner must adapt to the new system and open a bank account with an IBAN to ensure continuity of their personal-finance.
- As part of Germany's initiative to modernize the process of receiving social benefits, the new regulations for Bürgergeld payments mandate bank transfers and thus, individuals without a bank account may encounter challenges but have the right to open a basic account as specified by EU law.
