A small ray of hope in dreary zero interest times: German banks are making better offers again for savers. There is also something to be gained abroad.
Sor a good year now, Deutsche Bank has been guiding its customers to other banks with great success. The brokerage takes place via the platform called “Zinsmarkt”, on which four different financial institutions offer a range of fixed-term deposits with a term of one month up to seven years. A saver who wants to invest his money for six months can currently find three offers on the interest portal. The most attractive comes from the French MyMoney Bank, which attracts with 0.45 percent per year. That’s not bad. But there is still more to be found elsewhere than on the Deutsche Bank interest rate marketplace: for example at Deutsche Bank itself.
Germany’s largest financial institution currently offers 0.75 percent interest per year for a fixed-term deposit over six months. If you invest the minimum amount of 2500 euros, you will receive 9.38 euros in interest. That sounds puny at first, but in these times of low interest rates it is stately compared to most other banks. Especially since the offer is not only aimed at new customers. Regular customers can also benefit from this up to an investment amount of 100,000 euros – provided that the money is not already in an account or custody account with Deutsche Bank, but with another institute. So should the savers take advantage of the “access interest”, as Deutsche Bank is promoting its offer on all advertising channels?
Even if the interest rate of 0.75 percent is well below the inflation rate of 2 percent and the real interest rate is therefore negative: Much more cannot be expected in the foreseeable future. The European Central Bank is postponing a key interest rate hike, if not until never before then at least until next year. The German saver, who likes to invest his money safely, is still poor: the real interest rate of minus one percent that can be expected in this country this year, according to calculations by DZ Bank, will result in a loss of value on interest-bearing financial assets (deposits, bonds) , Insurance) of around 47 billion euros.
It is impossible for conservative savers to make up for this loss of wealth. It doesn’t work at all with overnight money. There is no more than one percent interest, and only for new customers and temporarily for three or four months.
There is more to be gained abroad
Fixed-term deposits are less flexible, but more lucrative. ABC Bank has the best offer among the German banks: for a term of six months, it offers 0.8 percent per year – with the same security, a bit more than Deutsche Bank -, 0.9 percent for twelve months, for two Years 1.05 percent. The Kölner Bank is part of the Werhahn conglomerate, which primarily earns its money with building materials and consumer goods.
There is more to be gained abroad, mostly from Praxia Bank, a digital bank from Greece founded two years ago. Via the “Weltsparen” portal, the bank offers 0.9 percent interest per year for a six-month term, 1.4 percent for twelve months and 1.5 percent for two years, and there is also a contract bonus of 50 euros each. But savers have to accept that Praxia Bank appears less crisis-proof than established financial institutions, which have a better reputation and come from a country with a better rating.
Deposit protection is uniformly regulated in the European Union, so that up to 100,000 euros per saver are protected at a bank. But the deposit protection is incumbent on the respective countries in which the savings money is invested. While Germany guarantees the highest level of security, Greece’s credit rating falls into an area known as junk. Nonetheless, Max Herbst from FMH-Finanzberatung considers the risk to be manageable: “I don’t see any problem now for an investment over six months. And if the deposit insurance in Greece should no longer be able to pay out savers, the EU will probably help out. ”In terms of taxation, things can get complicated with foreign banks: savers often have to report interest income to the tax office themselves, while financial institutions with a German license pay the withholding tax Pay it directly to the tax office.
Like all other institutes with bait offers, the Deutsche Bank also relies on its “access interest” so that savers become sluggish after the change and no longer take their money elsewhere. But that has its price. Anyone who already has their money with Deutsche Bank receives just 0.05 percent on fixed-term deposits up to a term of five years.