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Daily money: Erste Bank offers 5% interest – with a catch

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Daily money: Erste Bank offers 5% interest – with a catch

The Oldenburgische Landesbank (OLB) is offering private customers an interest rate of five percent for overnight money for the first time since the interest rate change. Picture Alliance

According to Bloomberg, the ECB could cut key interest rates up to four times in 2024.

The Oldenburgische Landesbank still offers new customers a promotional interest rate of five percent on current accounts for three months.

According to Brakow Consulting, OLB is the first bank since the interest rate turnaround to offer such a high interest rate for private customers in Germany.

Given speculation about a possible fall in interest rates in 2024, the situation could become more challenging for savers. Experts expect the European Central Bank (ECB) to potentially cut interest rates up to four times over the next year, according to a report by “Bloomberg“ emerges. This could result in interest rates for current and fixed-term deposit accounts peaking in the first half of 2024, before a decline is forecast.

Despite this speculation, the Oldenburgische Landesbank (OLB) has announced a special offer: a promotional interest rate of five percent on current accounts – for a period of three months. This offer comes in an environment in which interest rates for fixed-term deposits already recorded a slight decline in December 2023 and the growth of interest rates for current account accounts has slowed noticeably. Comparison portals have already noticed a decline in overnight interest rates in the current year.

The OLB offer is aimed exclusively at new customers. On the Page The bank defines these as people who have opened a checking account via the OLB banking app in the last 14 days and have not previously used any OLB products.

“Numerous requirements†for new customers

According to the consulting firm Brakow Consulting OLB is the first bank since the interest rate turnaround to offer such a high interest rate to private customers in Germany. In order to receive the promotional interest rate of 5.00 percent pa, new customers must open one of the current account models M, L or XL via the OLB banking app and open a current account within 14 days of opening the account in compliance with the OLB conditions open.

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The promotional interest applies to deposits up to an amount of 50,000 euros and is granted for three months from the day the account is opened. Deposits that exceed this amount will bear interest at the current variable conditions. After the promotional period has ended, interest will be paid on the entire investment amount at the variable conditions listed in OLB’s current price list. This promotion cannot be combined with other offers from the bank.

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