List of German Savings Accounts

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

• Withholding Tax (Abgeltungsteuer) on Capital Gains by germantaxes.de

Notes