Hard money Comparison

How safe is the money on the deposit account?

Within the European Union (EU) there is a statutory deposit guarantee of 100,000 euros per customer and bank. That is, regardless of the seat of the bank (within the EU), your funds are protected up to this level. If you want to invest larger amounts and spread the risk, it is advisable to split the whole and to conclude several contracts with different banks.

What costs do I have to pay for the deposit?

None, you can firmly plan and calculate the respective interest income and the return on your investment. Only then, if you want to get out early, the bank will charge already paid interest. In this case, many institutes are now showing their approval, at least they guarantee the full payment of the deposited amount. Because under the law, they are free to charge administration fees or additional cancellation fees in the case. And their height is not clearly defined. If you cancel for "important reason", for example as heir or in case of unemployment (Hartz IV), the bank must pay out the capital without notice.

What is the difference between term money and time deposit?

Time deposit is effectively a time deposit, provided that a term and at least a one-month notice period are agreed. The due date has been agreed exactly, will not be canceled in time, the whole thing is prolonged. This means that the investment will continue at the current interest rate. Or it is continued as a classic sight deposit, so it can be ordered daily without observing a notice period. However, this must be differentiated from so-called termination funds. Here, a certain period of notice applies, after which time the capital can be fully disbursed. Until then, it will bear variable interest and will have no maturity, ie unlimited duration. Only then is a fixed rate often agreed.

What tax special features should be considered when making a deposit?

Basically, there are two ways in which interest can be paid out on time deposits. Either "at the end of the year" or "at the end of the term" is paid. The final withholding tax is then always based on the respective interest income. The decisive factor is solely when this interest payment takes place. While you can use the full effect of the saver's lump sum for annual interest payments (801 euro singles / 1,602 euro joint assessment), the second option results in a higher tax burden at one go. Because this saver lump sum can not be stretched over the years – only in the year, what is covered, also be considered. Therefore, it is not recommended, especially for larger amounts and long maturities, to choose the variant with the interest payment at maturity. Because even from the compound interest effect you have nothing in the case.

For which period do I have to invest the money?

The investment period for your money varies considerably among banks. In general, however, it can be said that an investment period of at least 30 days is required. In these steps is also expected to continue: so are often fixed investment periods of 60, 90, 180 or a maximum of 360 days. With a longer term, interest income usually increases as well. For time deposit accounts, such periods are common, with day money accounts they are usually omitted, since you can not invest the money here, but can access it flexibly on a daily basis.

When am I affected by interest rate fluctuations?

In general, you are affected by interest rate fluctuations only with a money market account. These interest rate fluctuations depend on the current market interest rate. To cushion the fluctuations, at least in part, some credit institutions offer fixed interest rates for a certain period of time.

With time deposit accounts, you are disposed to worry about interest rate fluctuations. Because here the interest rates are set from the beginning. When concluding a time deposit account, you usually know very well what interest income you can expect. So pay close attention to how interest rates develop. It's best to talk to an independent, knowledgeable advisor.

What are the interest rates?

Fixing a fixed rate or general guidelines is difficult. Their interest rates always depend on the sum of the deposits as well as the duration of the investment. The differences between the individual providers are large, so that a comparison of the offered conditions in any case worthwhile. In any case, direct banks will keep their interest rates slightly higher than most retail banks do.

How much do I have to invest at least?

The amount necessary to open a time deposit account varies from bank to bank. Especially with time deposit accounts, you should expect higher investment amounts. As a minimum amount, a few banks require deposits of € 2,500, but on average this amount will be higher.

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