What is a savings deposit
BaFin - Navigation & Service
Savings deposits are investments for an indefinite period. Disposals are only possible within the contractually agreed notice periods. With an agreed period of notice of three months, amounts of up to EUR 2,000 per month can be disposed of without notice.
If an early disposal of amounts that have not been terminated is permitted, the bank can charge so-called advance interest. The amount of the advance interest and the way it is calculated is the subject of the contractual agreements between the bank and the customer.
The legal framework for savings deposits can no longer be found in the Banking Act, but can largely be freely agreed between the bank and the customer.
Savings plans also serve to accumulate assets. However, an additional agreement is made that a certain amount is paid in at regular intervals, usually monthly, for a certain period of time (savings phase). These deposits are usually made into a savings account with a three-month notice period. However, other arrangements are possible. Disposing of the "tax exemption" of 2,000 euros per month is usually contractually excluded. Disposals during the planned savings phase, if they are at all possible, lead to the end of the bonus grant.
In order to win over the saver to the mostly long-term contract, a bonus scale is agreed in many cases. This stipulates that, from a certain term, the saver receives a bonus in addition to the agreed interest rate in a percentage of the amounts paid in.
Time deposits or time deposits
Fixed or term deposits are investments with a fixed term or due date that has been agreed in advance. Common terms are three, six and twelve months. The interest rate is also fixed for the term. Payments or disposals during the term are generally excluded.
It can be contractually agreed that the financial investment will be reinvested when it falls due with the same term at the then applicable interest rate if the customer does not place another order in good time before the due date.
Investing in savings bonds is comparable to investing in fixed or term deposits. However, the term is one to several years.
It is possible that a securities certificate will be issued for the investment amount. This is a security in the name of the holder that may not be transferred to a third party or only with the consent of the bank.
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