Many savers have not even noticed that the era of zero interest rates is over and the conditions for fixed-term deposit accounts have already reached attractive levels. Where to put your money now.
Interest rates on fixed deposit accounts are increasing. Because it has become more expensive for banks to refinance mortgages and loans on the capital market, they are now trying to collect more savings from customers. And for that they have to offer higher interest rates than the competition. In the meantime, the institutes are outbidding each other every week with ever higher offers.
BNF Bank, based in Malta, already offers 1.7 percent interest for an investment period of just six months. This applies to the year. If you withdraw your money after the 6 months, you get a de facto credit of 0.85 percent. The offer of the Portuguese Banco Itaú BBA is hardly inferior: 1.65 percent are there. At both banks, the European deposit guarantee applies to deposits of up to EUR 100,000. Nevertheless, the states must take responsibility for this. There, Malta has a credit rating of A- from the rating agency Standard
GEFA Bank offers the best 6-month time deposit of any German bank at 0.8 percent per year. With longer maturities of more than 12 months, Bank 11 and pbb are directly ahead among the German institutions. Both offer 1.75 percent for a one-year term. The best German time deposit offer over 24 months offers the Ford Bank with 2.3 percent.
Would you rather remain flexible? Then you will find the current top offers for overnight money here.
If that’s not enough for you, you should invest your money in other EU countries – at least part of it. Since this Thursday, the Banco Itaú has been luring BBA with interest rates of 2.35 percent for 12 months. The branch where customers can open an account using the link in the table below is based in Luxembourg, but the Portuguese Deposit Protection Fund is liable for deposits up to €100,000. In Italy, Banca Progetto is offering 2.30 percent, Illimity Bank, also from Italy, is offering 2.25 percent.
If you can deposit your money for 24 months, Banca Progetto rewards you with 2.7 percent interest per year. Banca CF offers 2.60 percent, illimity offers 2.55 percent. These are values that savers could only dream of just a few months ago. All three institutes come from Italy, the European deposit insurance applies up to 100,000 euros.
Do you still have credit lying around in your savings book or even in your checking account with almost no interest? Then now is the time to switch. Start with a portion, then you can add more later if interest rates continue to rise.
Of course, the higher interest rates are still not enough to offset the rising inflation rate. But doing nothing is even more expensive: With a currently interest-free credit balance of 20,000 euros, you are giving away 460 euros in interest per year, which Banca Progetto, for example, would pay you on it.
Would you like to keep an eye on interest rates for a while longer? Then you should follow the current conditions regularly in the FOCUS fixed-term deposit comparison online.
Important: With fixed-term deposits, you determine at the beginning how long you will deposit the money. A premature disposal is usually not possible.
Tip: Since further interest rate increases are to be expected in the current competition, you should proceed in stages. With the so-called staircase strategy, you divide your savings into different pots. You invest your buffer for emergencies in the call money account, the other parts in fixed-term accounts for, for example, six months, twelve months and 24 months. In this way, you always remain flexible, even if interest rates continue to rise, and you can already use the next higher offer after 6 months.
