Overdraft credit (Dispokredit)

Level 1 · BasicsDE · 2026 figures

German termDispokredit / Dispozins

Read firstInterest rate

Used byInterest asymmetry (repaying debt = guaranteed return)

Deep divesThe €500 Mistake: What Your Overdraft Really Costs

Overdraft credit (Dispokredit, or Dispo for short) is a pre-approved line that lets a Girokonto (checking account) go below zero, up to a limit the bank sets. The bank charges daily interest on whatever negative balance exists, at a rate agreed when the limit is granted — no separate loan application, no collateral, and no fixed repayment schedule.

Why it matters

Dispo is often the first form of credit an account holder in Germany encounters, because banks attach it to a Girokonto automatically rather than offering it as a product someone applies for separately. Reading a Gehaltsabrechnung (payslip) shortfall or a bank statement correctly means treating Dispo as an interest rate first, a spending cushion second: the same interest-rate mechanics that grow a savings balance also shrink an overdraft balance, just in the borrower's disfavor. Because Dispo rates sit far above savings rates, the gap between what a bank pays to hold money and what it charges to lend it shows up nowhere as starkly as in a Girokonto that dips below zero at month's end.

Worked example

Suppose a Girokonto sits at -€500 for a full year, at 11% per year — the 2026 average Dispo rate across German banks [1]. Interest accrues daily and is typically booked to the account quarterly, but the annual approximation is straightforward: €500 x 0.11 = €55 in interest for the year, money that leaves the account without any purchase behind it.

Overdraft balance (constant, 1 year)	Rate (2026) [1]	Interest cost
€500	7.5% (better-than-average offer)	€38
€500	11% (market average)	€55
€2,000	11% (market average)	€220
€2,000	13.7% (higher-end offer)	€274

For comparison, a Ratenkredit (installment loan) used to cover the same shortfall carried rates in roughly the 4-8% range over the same period [2]. The two differ on more than price. The Dispo trades a higher interest rate for flexibility — no application, no fixed schedule, repay whenever the account turns positive — while a Ratenkredit fixes a repayment schedule at a typically lower rate. The relevant criterion is how long the shortfall is expected to last: the Dispo's convenience is cheap for a few days and expensive as a balance that lingers for months, which is the case where the rate gap does the most work.

Check yourself

A Girokonto stays at a constant -€800 overdraft for a full year, at a Dispo rate of 12% per year. Approximately how much interest accrues over the year?

What happens if a Dispo (overdraft) balance is never paid down, as long as it stays within the agreed limit?

The bank automatically converts it into a fixed-term installment loan after a few months.It can continue indefinitely, with interest charged for as long as the balance stays negative.The bank requires collateral once any part of the limit has been used.

Which of the following are true about Dispo (overdraft credit)? Select all that apply.

Interest is charged only on the amount actually overdrawn, not on the full agreed limit.German law caps the Dispo interest rate at a fixed maximum, such as 5%.No separate loan application is needed to use it, since it comes pre-approved alongside the checking account.Simply using the overdraft, even briefly, automatically lowers a person's Schufa (credit bureau) score.

Sources

1. smava — Dispozinsen-Index: durchschnittlicher Dispozins ca. 11,3% p.a., Spanne ca. 7,5-13,7% p.a. je nach Bank und Bonität, https://www.smava.de/presse/dispozinsen/ (2026)
2. Finanztip — Dispozinsen im Vergleich (Vergleichszinsen für Ratenkredite ca. 4-8% p.a.), https://www.finanztip.de/girokonto/dispozinsen/ (2026)