Difference between revisions of "Germany/Banking/Savings"
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=== Which type of saving account is right for me? === | === Which type of saving account is right for me? === | ||
| − | * Money market | + | It depends on how accessible your money shall be: |
| − | + | ||
| − | * Fixed-term or fixed deposits ( | + | * 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 Money Market Accounts (''Tagesgeld'') == | ||
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== List of Fixed Deposit Accounts (''Festgeld'') == | == List of Fixed Deposit Accounts (''Festgeld'') == | ||
{{FA-DE-Festgeldrechner}} | {{FA-DE-Festgeldrechner}} | ||
| + | |||
| + | == See also == | ||
| + | * [https://germantaxes.de/tax-tips/capital-gains-withholding-tax/ Withholding Tax (Abgeltungsteuer) on Capital Gains] by ''[https://germantaxes.de germantaxes.de]'' | ||
{{Notes}} | {{Notes}} | ||
[[Category:Banking]] | [[Category:Banking]] | ||
Revision as of 14:25, 24 May 2022
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