That’s how much interest you get with 10,000 euros
There is still no interest on most checking accounts. But with the fixed deposit account, things look different after the turnaround in interest rates. We’ll tell you why you shouldn’t leave your savings in your checking account and how much interest you can alternatively look forward to. A calculation example.
With the change in the key interest rate, the European Central Bank (ECB) has gradually Interest rate turnaround initiated. Since then there has been lucrative interest on many fixed deposit accounts. But if you want to benefit from this, you shouldn’t leave your savings on the checking account – with the exception of a freely available reserve.
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Fixed deposit account: This is how much money you lose on the checking account
Ideally, you will receive your wages monthly in your checking account. It’s even better if there’s some left over at the end of the month. A reserve on the checking account can undoubtedly do no harm. But above a certain amount it is worth rethinking.
Because almost all checking accounts are still interest-free. However, if your savings are in a fixed-term deposit account, things are different. Call money accounts can also be an additional alternative so that you can gradually build up your savings.
Fixed deposit interest: You can get this interest rate – an example
An example: Suppose you have 10,000 euros in your checking account and want to invest this amount in order to receive interest. Then a fixed deposit account is an ideal option. Because the interest rates are significantly higher than on a call money account.
The downside: With a fixed-term deposit account, you entrust your money to the bank for a fixed period of time. Only then do you get the interest. During this period, however, you cannot access your money – the interest rates are higher.
Many German banks, for example, offer a fixed deposit interest rate of around three percent – some European banks even offer up to 3.35 percent. If we assume three percent, an amount of 10,000 euros per year would result in interest of 300 euros.
Fixed deposit account: This is how high the interest is with 10,000 euros in savings
However, if you want to set aside a nest egg that you can access at any time, then an overnight deposit account is an additional alternative. Because even in emergencies, you can access the money within one working day. At the same time, there is less temptation to spend your savings unnecessarily if they are in another account.
Incidentally, a rule of thumb says that you should set aside two to three net salaries as a nest egg. As far as the call money account is concerned, many German banks are currently luring, for example, with a call money rate of around 1.6 percent – some European banks are even up to 2.5 percent. In addition, some neo-brokers have jumped on the interest train.
Trade Republic is currently attracting interest rates of around two percent. At the competitor Scalable Capital it is even 2.3 percent – but only for subscribers of the Plus subscription. Let us therefore assume an overnight interest rate of two percent.
Suppose you split your 10,000 euros in order to benefit from the higher fixed deposits on the one hand and to be able to access a nest egg of 5,000 euros on the other. Then the bill looks like this: 100 euros interest for the share in the call money account and 150 euros for the 5,000 euros in the time deposit account. Makes a total of 250 euros, which you will lose with a current account.
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