Which bank offers the best interest rates

Overnight and fixed-term deposits: These banks offer the highest interest rates

The Germans save in the crisis like the world champions. But with many day and time deposit accounts, the interest rates are low. We'll show you where you can currently get the best conditions.

During the corona pandemic, Germans saved more money than ever before. From 100 euros they put around 17 euros on the high edge. But instead of investing it, most of it was left in the account.

However, there is little income there because of the sustained low interest rates. In the summer of 2019, top banks paid twice as much interest on overnight money as they currently do. In addition, inflation is back: in April it reached 2 percent, its highest level in two years.

It is all the more important to have a look at the best offers, which we have summarized for you here - always up to date at the beginning of the month.

Daily and fixed-term deposits: the best offers

According to an evaluation by the comparison portal Verivox, the highest interest rates for fixed-term deposits with a one- and two-year term are currently (as of April 30, 2021) at banks in the Czech Republic and Italy, with a Spanish bank leading the way for overnight money. With fixed-term deposits of more than two years, even higher interest rates can be expected. However, investors should not commit themselves for too long.

Because if interest rates rise again, part of the assets will be stuck in long-term investments with lower interest rates. Verivox managing director Oliver Maier therefore recommends dividing the money: one part into a two-year fixed deposit account, the other part a year later into another fixed deposit account. "Each year one of the two systems is due and the money can be invested again," explains Maier.

Some banks lure with special interest rates

When it comes to overnight money, banks occasionally recruit new customers with special conditions. Such special offers are not always worthwhile for savers.

Because you often get the same or higher interest rates even for fixed-term deposits with a six-month term from banks with a top rating. However, overnight money has the advantage that you can freely dispose of it over the entire investment period.

These alternatives to the daily and fixed deposit account can be worthwhile

"Top banks pay at the top 0.5 percent on the overnight money. Those who can invest their money for two years receive up to 1.20 percent interest," says Maier. Particularly in the age of low interest rates, investors should not miss out on such interest income.

However, for the part of the wealth that you can invest long-term, you should also consider investing in the stock market. So-called ETFs are particularly suitable for those who are new to the stock market. These are funds in which a computer algorithm replicates a stock index such as the Dax.

The advantages for you: The costs are low, you spread your risk widely and there are comparatively high returns. "Anyone who has invested in a broadly diversified index like the MSCI World and has held their shares for at least 15 years has never been in the red and can look forward to an average return of 7 percent per year," says Maier.

The highest interest rates for overnight and fixed-term deposits at a glance:

Top fixed-term deposit offers, 24 months term

Top fixed-term deposit offers, 12 months term

* The İşbank offers are only available to customers with a current account at the bank.

Top fixed-term deposit offers, 6 months term

* The İşbank offers are only available to customers with a current account at the bank.

Top overnight money offers

* The Openbank offers are only available to customers with a current account at the bank.

About the method: All daily and fixed deposit offers in the Verivox database were evaluated for an investment amount of 10,000 euros. All offers can be concluded from Germany. And the EU-wide deposit protection of 100,000 euros applies to all accounts (there are deviations from this for non-euro countries). This means that funds up to 100,000 euros are secured in the event of a bankruptcy.
For the "top rating" evaluation, only banks from countries that have been given top credit ratings by the major rating agencies were taken into account. These currently include Belgium, Germany, France, Great Britain, Ireland, Luxembourg, the Netherlands, Norway, Austria and Sweden.