200 euros interest per month – that’s how much money you have to invest

It’s worth saving again. Because the European Central Bank (ECB) has initiated the turnaround in interest rates by changing the key interest rate. More and more banks are therefore luring with lucrative returns: be it on a call deposit or fixed-term deposit account. But how much money do you have to invest to get 200 euros interest per month?

After the European Central Bank (ECB) turnaround in interest rates initiated, many banks are also increasing their interest rates. Ultimately, more and more savers are benefiting from this. Because there are now lucrative returns on numerous call money and time deposit accounts.

Overnight money: This is how you collect 200 euros in interest per month

The reason: The key interest rate is currently 3.75 percent. In addition to many banks, some neo-brokers have therefore also jumped on the interest train. Trade Republic, for example, is currently luring interest rates of two percent. At the competitor Scalable Capital it is even 2.3 percent – but only for subscribers of the Plus subscription.

ING Germany even promises three percent overnight interest, but only for six months. With the corresponding follow-up interest, the bottom line is an effective annual interest rate of 1.8 percent. Nevertheless, it is worth saving again.

However, you should not leave your money in a checking account, as this is usually interest-free. With a call money or time deposit account, however, the situation is different.

Call money account vs. fixed deposit account in comparison

Ideally, monthly salary will flow into your checking account. But it’s even better if there’s some left over at the end of the month. A so-called nest egg cannot do any harm. But above a certain amount it is worth rethinking.

Suppose you have 10,000 euros in savings in your checking account and want to put this amount aside as a nest egg. Then a money market account is an ideal option. Because even in emergencies, you can access the money within one working day.

At the same time, there is less temptation to spend the savings overzealously if it is in another account. According to a rule of thumb, you should set aside two to three net salaries as a nest egg. A fixed deposit account is currently also a worthwhile alternative or supplement.

Because German banks now pay up to three percent interest on fixed deposits – the European ones even up to 3.5 percent. The catch: With a fixed-term deposit account, you entrust your money to the bank for a limited period of time. Only then do you receive the interest. During this period, however, you cannot access your money – the returns are higher.

200 euros interest per month: A calculation example

However, if you want to receive monthly interest, a fixed deposit account is by definition out of the question. There are also differences in daily allowances. Because some banks and brokers sometimes offer different payout intervals. In addition, caution is advised, since the interest rates of many providers only appear high at first glance.

The trick: promise high interest rates, but only for a certain period of time. Example ING Germany: The bank is currently attracting a whopping three percent call money interest. The catch: The percentage is only valid for six months. Calculated over the year, with the follow-up interest, the interest rate is only 1.8 percent.

Like most banks, ING only pays out the interest after a year. Another sticking point: Many financial institutions have either a minimum deposit or a maximum amount for deposits (currently 50,000 euros at ING).

Trade Republic: 2.0 percent overnight interest per year with monthly payment

However, if you want to benefit from monthly call money interest, most banks are out of the question anyway. But the situation is different with the neo-brokers – above all with Trade Republic. The company promises monthly payments.

The maximum deposit is also 50,000 euros. However, the interest rates are comparatively high at 2.0 percent per year. Under these conditions, you won’t quite get an overnight interest rate of 200 euros per month – but theoretically you can also open several overnight accounts with different providers.

With a deposit of 50,000 euros and a savings period of one year, the interest at TR is a total of 1,009 euros – around 84 euros per month. In order to achieve a return of 200 euros per month, you would need an investment of 120,000 euros under Trade Republic’s conditions.

Open a depot at Trade Republic now

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