Best savings accounts Germany: 4,1 % interest rate  for 1 year  (2024)

Compare savings accounts in Germany

A current account is not always the best place to hold spare cash, because inflation can effectively erode the value of savers’ deposits. A savings account is a much better option. A good fixed-rate savings account (Festgeldkonto) usually pays enough interest to overcome the effect of inflation, and money market savings accounts (Tagesgeldkonto) can significantly restrict the extent of any losses.

The Verivox comparison tool shows you which banks offer the best interest rates for money market and fixed-term savings accounts. After performing the comparison, you can open the desired account on the provider’s website. To ensure that the comparison tool delivers reliable results, the interest rates are updated daily.

How the comparison tool works

To compare high yielding savings accounts in Germany, use the Verivox comparison tool.

1. Start the comparison

First enter the amount in euros you wish to invest (Anlagebetrag) and the desired term (Laufzeit) in days, months or years according to your choice in the drop-down menu. Then click on "Jetzt vergleichen” (compare now) to start the comparison.

Sparkonto

2. Filter the results

Using the tabs at the top of the page you can set a filter to show both money market and fixed-rate savings accounts (Tages- und Festgeld), only money market accounts (nur Tagesgeld), or only fixed-rate accounts (nur Festgeld). The three additional tick boxes are:

• Only show offers that don’t require you to have a current or share dealing account
• Only show offers that allow direct online applications
• Only show offers that pursue ecological and/or ethical policies

Below the tick boxes is another box in which you can enter a postal code (Postleitzahl) in order to show any additional regional offers. After setting the filters, click on "neu berechnen” (recalculate) to perform a new search with the filters applied.

3. Select offer

The search results give a summary of the products and providers that match your criteria, sorted by highest yield. After you decide on the best savings account for your needs, the button "weiter” (continue) will take you to the provider’s website.

What is a savings account?

A savings account is a secure place to put money aside and earn interest. It is one of the most popular forms of investment in Germany. Most banks and financial institutions offer several types of savings accounts. The conditions differ significantly depending on the provider and the account type, but normally a savings account is intended explicitly for setting aside money and cannot be used for everyday transactions. Similar accounts often have similar names containing the word "Sparbuch" (passbook), "Sparkonto" (savings account), "Tagesgeld" (money market account) and "Festgeld" (fixed-rate savings account) alongside the name of the provider.

Because savings accounts cannot be used for third-party bank transfers, account holders have to name a linked account (Referenzkonto) for transferring money to and from themselves. In most cases, the linked account can be held with a different bank.

Which savings accounts are available in Germany?

• A traditional passbook savings account (Sparbuch) usually allows the account holder to withdraw a maximum amount of 2,000 euros a month. They can deposit any amount of money as often as they want. The account comes with a passbook or card (SparCard) for recording deposits and withdrawals.
• A money market savings account (Tagesgeldkonto), also known as an easy-access savings account, is a flexible option. You have instant and unlimited access to your funds and can deposit any amount at any time.
• A fixed-rate savings account (Festgeldkonto) can be useful for predictable expenses – the holder can deposit a lump sum for a fixed amount of time. However, they cannot access their funds at all until maturity. This type of account usually offers a higher interest rate – the longer the term, the better the rate.
• Some current accounts (Girokonto) and credit cards also pay interest on credit balances.

How to open a savings account

You can open a savings account either online or in a branch of a high street bank. In both cases, the bank requires you to sign a contract. When opening a savings account online, you must print out the application and then sign and send it to the provider by post.

To open a savings account, the applicant must be at least 18 years old. Children can open an account only with the written consent of their parent or carer. Some savings accounts also require the applicant to deposit a minimum amount of money immediately upon opening.

Identity check when opening an account

When opening an account, applicants who are not yet customers of the bank in question must present proof of identity via one of the following methods:

• You can show your ID card or passport in person at a high street bank.
• If you are opening a savings account online, you can use the Postident procedure. In this case, a post office employee verifies your identity by checking your ID card or passport.
• The VideoIdent procedure enables you to prove your identity by showing your ID card or passport to a webcam or smartphone camera.

Children’s savings account

Parents can open a savings account for their child either in the child’s name or in their own name. If you open it in the name of your child, you are authorised to operate the account until the child reaches the age of majority. In order to access the account, you must demonstrate that the money is to be used for the child’s benefit. If the account is opened in your name, only you can access the money. Your child can be registered as the beneficiary and then, for example, receive the balance on their 18th birthday.

Which savings account is best for your child depends on the reason for saving and on when you will need the money.

• A money market savings account allows you to manage relatively small gifts of money flexibly.
• A fixed-rate savings account is particularly suitable for investment periods spanning several years. Money deposited at a fixed rate could be set aside to fund driving lessons or university studies, for example, but access is barred until the account matures.

For a long time, a passbook savings account was the most popular choice for children, but the interest rates now offered by their providers are lower than those available with money market and fixed-rate savings accounts.

How to close a savings account

• You can close a passbook savings account at any time by giving three months’ notice and withdraw up to the monthly limit of 2,000 euros straight away. If you withdraw a larger amount before the end of the notice period, the bank generally charges an early withdrawal penalty (Vorschusszinsen) in the amount of one-quarter of the credit interest rate.
• You can close a money market savings account at any time without notice and withdraw the entire balance.
• Most fixed-rate savings accounts cannot be closed before the end of the term without losing the interest. However, some contracts include this option. Additionally, some providers may grant their consent as a goodwill gesture.