List of German Savings Accounts
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Savings accounts pay interest on your money. There are two types:
- money market account (German: Tagesgeld) and
- fixed-term deposit account (German: Festgeld).
Frequently Asked Questions (FAQ)
Which type of saving account is right for me?
It depends on how accessible your money shall be:
- Money market (Tagesgeld) deposit accounts let you add and withdraw money all the time.
- Fixed-term or fixed deposits (Festgeld) let you access your money only after the term ends.
However, fixed deposits usually offer a higher interest rate.
Are the interest rates fixed?
- With money market accounts, the interest rate is not fixed. It can change from day to day.
- Fixed-term accounts offer a fixed interest rate.
Are interest payments taxed?
- Yes, in Germany capital gains from savings accounts are taxed with the Withholding Tax (Abgeltungsteuer).
- Basically, you pay 25% flat on your earnings.
- However, there's an allowance of €801 per year. It means that if you earn less than €801 on interest payments, you pay no Withholding Tax on this sum. Only earnings above will be taxed.
- When using a German bank for your savings, the bank automatically deducts your tax payments. If you want them to automatically respect your allowance,
you can give them a exemption order (Freistellungsauftrag).
List of Money Market Accounts (Tagesgeld)
List of Fixed Deposit Accounts (Festgeld)
See also
Notes