Savings Accounts
Savings accounts in Germany are a safe tool for storing money with protection up to €100,000 per depositor. There are two types: Tagesgeld (money available anytime) and Festgeld (deposit for a fixed term at a fixed rate).
Why This Matters for Immigrants
If you've experienced frozen deposits, devaluation, or a banking crisis, keeping money "under the mattress" may seem safer. The German system differs structurally: deposits up to €100,000 are protected by EU law (Einlagensicherung, deposit guarantee scheme) [1]. This protection has been mandatory for all banks in the EU since 2009.
Tagesgeld — Instant Access Savings
Tagesgeld — savings account with instant access.
| Feature | Description |
|---|---|
| Access | Anytime |
| Interest | Variable (as of 2025: 0.5% to 3.5%) |
| Risk | None (deposit protection up to €100,000) |
| Use for | Emergency fund, short-term savings |
Criteria for Choosing Tagesgeld
| Criterion | What to Look For |
|---|---|
| Interest rate | Online banks offer higher rates than traditional banks (difference can reach 0.5–1.5 percentage points) |
| Rate guarantee | Some banks fix the rate for 3–6 months for new clients |
| Minimum/maximum | Limits on amounts with promotional rates (often €50,000–100,000) |
| Protection | EU bank = legal protection up to €100,000 per person per bank [1] |
Rates change weekly. Compare current offers through independent aggregators (Verivox, Check24) [2].
Festgeld — Fixed-Term Deposit
Festgeld — deposit for a fixed term.
| Feature | Description |
|---|---|
| Term | 3 months to 10 years |
| Interest | Fixed, usually 0.3–0.8 percentage points higher than Tagesgeld (depends on term) |
| Access | Only at end of term (early withdrawal impossible or penalized) |
| Use for | Medium-term savings with known date |
Which to Choose?
| Situation | Suitable Instrument | Why |
|---|---|---|
| Emergency fund | Tagesgeld | Need instant access |
| Need money in one year | Festgeld for 12 months | Fixed rate is higher |
| Don't know when needed | Tagesgeld | Flexibility matters more than rate |
| Large sum for several years | Combination | Part in Tagesgeld, part in Festgeld |
All deposits in German and EU banks are protected up to €100,000 per person per bank under EU Directive 2014/49/EU [1]. This is a legal guarantee, not a voluntary bank program. Compensation is paid within 7 business days in case of bank failure.
What to Do
- Define your goal — Emergency fund? Saving for a specific date?
- Compare rates — Through Verivox or Check24
- Check conditions — Limits, rate guarantees, early withdrawal
- Open account — Usually online in 10–15 minutes
Sources
- Directive 2014/49/EU on deposit guarantee schemes — European Parliament and Council, 16 April 2014. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014L0049
- Verivox — Independent comparison portal for financial products in Germany. https://www.verivox.de/