Munich Interest rates are rising, and fast. How fast is shown in fixed deposit accounts with a term of one year. At the beginning of the month, the highest interest rate was 2.5 percent, now the major French bank Crédit Agricole is offering 2.7 percent, and the interest broker Zinspilot has 2.77 percent at Ebi Bank, which is also based in France.
The situation is similar with overnight money. At the Advanzia Bank from Luxembourg, savers can currently get 1.6 percent. Around World Savings Day at the end of October there was 1.5 percent.
According to industry experts, this rise in interest rates will continue. Ania Scholz from FMH Finanzberatung believes it is possible that overnight money in January will yield almost two percent at the top. With a one-year fixed deposit, the accounts with the highest interest rates could promise three percent interest this year. Although these interest rates are far from enough to make up for ten percent inflation, they can at least cushion the loss in value somewhat.
After there were a few “lighthouses” in the prime interest rates, interest rates are now rising across the board. This is shown by a look at the overview provided by the intermediary Zinspilot, in which six offers alone offer 2.7 percent and more. The same applies to daily allowances.
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There are now many offers with an interest rate that is significantly higher than one percent. German institutes are also involved:
- At “meine Bank”, the online brand of Raiffeisenbank Hochtaunus, there is currently a 1.5 percent guarantee for four months.
- The insurer Alte Leipziger offers the same interest rate, guaranteed for six months.
Flex money accounts as an option
That begs the question of whether it makes sense to tie in longer with this rate hike. The difference between a one-year fixed deposit and an overnight deposit is one percentage point. There are also offers for fixed-term deposits with a six-month fixed interest rate that exceed the highest overnight interest rates by 0.2 to 0.3 percentage points. In order to secure high interest rates on the one hand and to remain flexible on the other, a combination of call money and fixed-term deposit accounts is a good idea.
If you invest a third of your savings in an overnight deposit with a very good interest rate of 1.5 percent and fixed-term deposits with a term of six and twelve months at 1.9 and 2.7 percent, the bottom line is that you save and keep many options open. For those who find this too time-consuming, there are flexible money accounts such as that of Bank11. It offers 1.11 percent and all or part of the money can be withdrawn every 33 days.
The interest is credited. With the offer from Banco Portugues Gestao, which is available through the intermediary Weltsparen, there is an interest rate of 2.65 percent, but that is only available if the money is at the Portuguese bank for a year. If it is deducted before then, there is no interest.
This also means that the new offer must be so high that it compensates for the lost interest.
More: Combined money – as flexible as overnight money, as secure as fixed-term deposits