At Trade Republic, for example, you can get four percent interest income on overnight money. Kriangkrai Thitimakorn/Getty Images
Speculation about falling interest rates on current account accounts is a recurring topic among savers.
However, according to the comparison portal Verivox, some banks offer relatively high interest rates.
We have calculated how much interest income you can earn from the top banks over different periods of time.
The discussion about falling interest rates in banking remains current. That’s why investors will take a close look at the changing conditions for daily and fixed-term deposit accounts in February 2024.
In our interest rate report, data from the comparison portal Verivox showed which banks offer the highest interest rates. But how much money could you actually make? With a view to the daily money, we have calculated how much money you will receive in interest income from an example deposit.
For the example calculation, we assume the median income of Germans: around 43,750 euros, according to the job portal’s salary report Stepstone for the year 2024 shows. This corresponds to around 3645.83 euros per month. As a rule of thumb, savers usually invest three months’ salary in their daily savings accounts. The deposit is rounded up 10.938 Euro for our sample calculation. Using this basis, we calculated how high the interest income of the different banks would be for different terms.
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Banks abroad
The interest rates at some banks with deposit protection abroad are higher this month than at many top German banks, as the Verivox analysis shows. The highest interest rates here are at the Trade Republic bank, founded in Berlin, with a four percent interest rate. Quick note: Trade Republic offers deposit protection abroad due to its cooperation with Irish banks.
Let’s assume a deposit based on the theoretical monthly median income of 3,645.83 euros. For example, how much interest income do you get if you… three German monthly median incomes invested, specifically 10,938 euros? This is how much money comes out after a term of three, six and twelve months:
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German banks
Anyone who parks their money with German banks tends to have to expect lower interest rates than with foreign ones. The top rate is at Akbank, based in Eschborn, Hesse, as the data from Verivox shows. The interest rate is therefore 3.05 percent.
Back to our example calculation. How much interest income do you receive in the different periods? This is how much money comes out after a term of three, six and twelve months:
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Is your money safe in current account accounts?
Short answer: In Europe, yes. According to the official website of the German financial regulator Bafin The balance on current accounts in Germany is “protected at least by the statutory deposit insurance of up to 100,000 euros per customer and bank”.
And for banks abroad? According to Bafin, deposit protection also applies if you are a customer of a German branch of a foreign bank or a German branch of banks from another EU or EEA state. Due to an EU directive, it is also regulated in the same way for banks in other member states.
What does daily money offer you?
Call money accounts offer some key advantages. Because you can withdraw money regularly, you can withdraw money at any time and quickly transfer it to your main account. This way you avoid spending your savings straight away.
But there are also disadvantages. Compared to fixed-term deposit accounts, the interest rates on current account accounts are generally lower. So if you want to earn high interest income, you have to invest a larger amount – that is, deposit more money at the beginning.
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This bank is offering 5 percent interest on overnight money for the first time – with a catch