Is the savings account coming back now?

AndIt’s getting exciting in the world of investment products: For the first time in over ten years, the European Central Bank (ECB) wants to raise interest rates. In July it could be so far. Interest rates are already rising on the capital market. An exciting question: will everything be as it was before the era of negative interests? Or is it completely different? The first rules on negative interest rates have already been reversed in favor of consumers. ING is doing away with negative interest rates for nearly all customers – even 2014 negative interest rate pioneers, such as Deutsche Skatbank, are following it, at least for existing customers. Many others like Deutsche Bank want to abolish their negative interest rates, at least with the ECB.

Philip Krohn

Editor in business, responsible for “People and Business”.

Many savers have changed their habits during this phase of negative interest rates. The money was left in the checking account because it did not accrue any interest on the call money account, on the savings card, on the savings voucher or even on the savings book. There was so little even for fixed deposits that it was better to use the time to move things elsewhere. Strict negative interest regulations, on the other hand, have allowed savers to develop more and more sophistication in how they distribute their money across different banks in such a way that they stay below the allowances. At the same time, in the interest-free time, many people have discovered stocks as an investment: young people in particular have used neo-brokers for exciting stock speculation.

Do the top banks advertise with higher interest rates?

If interest rates return, fixed income investments may come back at least a little more attractive. Real interest rates, that is, interest on savings after inflation, remain negative. However, transferring money from checking accounts to fixed income accounts could be interesting if you lose at least a little less due to inflation. So now the calling money account or even the savings account is making a comeback?

“The savings account is dead,” says Dirk Schiereck, a bank professor in Darmstadt. “Cash deposit accounts, on the other hand, will definitely come back.” Interest rates on call deposit accounts will also not exceed inflation anytime soon. However, ING Germany, whose predecessor Diba once opened this type of account in Germany as a successor to the savings book, has now returned to the product: “Extrakonto”, their overnight money offering, will again be open to new customers from July – and should initially be open until free if the allowance is too high. CEO Nick Jue has promised more attractive interest rates if interest rates continue to recover.

It is also certain that foreign banks, and particularly lesser-known banks, which have previously tried to attract customers with slightly higher interest rates, will benefit from the ECB’s interest rate hike. “There is new interest” could be their advertising slogan. “Currently there are somewhat less well-known banks, but there is also an IKB among them that has already raised interest on term deposits a bit,” says Max Herbst of FMH-Finanzberatung: “I assume we will be able of to catch up with the ECB in the coming weeks, the increase in interest rates will already see significant increases in interest rates on fixed deposits “. beyond the banks’ short-term block offers.

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