Best Savings Accounts in Germany (2023)

Interest rates on saving accounts in Germany and other European countries were kept low for several years to stimulate economic growth and fight low inflation. Over the last few years, the European Central Bank (ECB) has been steadily raising its key interest rates, making placing money in saving accounts more and more attractive for investors.

In Germany, you can find a wide variety of saving account options, depending on your specific needs and preferences. You can place your money in a fixed-term account with a fixed interest rate or use the alternative and place your money in a savings account with flexible access to your money but with a variable interest rate.

In this article, we will explore Germany’s best saving accounts for flexible or call saving accounts (Tagesgeldkonto) and fixed deposit accounts (Festgeldkonto). We will discuss their interest rates, management fees, investment amounts and other conditions. Additionally, we will answer the question of how to open a savings account in Germany, providing the list of requirements needed.

Best Flexible or Call saving accounts in Germany

A flexible saving account refers to a type of savings account that allows its holder to withdraw or “call back” his funds on demand without restrictions or penalties and usually without any notice period. It provides a high degree of liquidity and flexibility. The interest rate on call saving accounts is variable and depends on market conditions. In Germany, flexible saving accounts are called Tagesgeldkonto, and their specific features and terms vary depending on the financial institution’s specific offerings.

Below is a comparison of the best flexible saving accounts in Germany

Best Fixed term saving accounts in Germany

As its name implies, a fixed term savings account is a type of savings account where the funds deposited are locked for a specified period, ranging from a few months to several years. The duration is predetermined, and money cannot be withdrawn before maturity. The interest rate is typically fixed for the entire term and is generally higher than other saving accounts. In Germany, fixed deposit saving accounts are called Festgeldkonto, and their specific terms and conditions vary among different banks.

Below is a comparison of the best fixed-term saving accounts in Germany

Flexible savings account in Germany Reviewed

TF Bank Flexible Savings Account

While TF Bank primarily operates in Sweden, it also provides services to customers in Germany. It operates solely online and is the highest interest paying bank in our comparison, not only for the promotional four month period but also for the flexible base rate applied when it ends.

ING Bank Flexible Savings Account

ING Bank is a multinational bank headquartered in the Netherlands. This bank provides online banking services allowing you to conveniently manage your accounts through their website. ING offers a flexible savings account in Germany called the daily money account.

Comdirect Flexible Savings Account

Comdirect Bank, a subsidiary of Commerzbank, is an online bank in Germany that offers various financial products, including saving accounts. Their main savings account is “Comdirect Tagesgeld PLUS” (Comdirect Call Money PLUS). This account offers a variable interest rate and allows you to access your funds without restrictions.

ConsorsBank flexible savings account

Consorsbank (formerly known as Cortal Consors) is a reputable bank in Germany that offers various financial products, including saving accounts. The bank provides different types of saving accounts, including its Tagesgeld Plus (Call Money Plus) account.

Barclays flexible savings account

Barclays is a well-known global British bank that operates in various countries, including Germany. The bank has an independent German Branch that focuses on credit cards, loans and investment services and has a competitive, flexible savings account offering.

Wise Flexible Saving Account

Wise, formerly known as TransferWise, is a foreign exchange financial technology company based in the UK. It targets primarily people looking to send and receive money internationally in a cost-effective way. With Wise, you can hold your money in the form of cash, stocks or interest. By choosing the interest form, your funds will be invested in government-backed short-term loans and bank deposits, and the interest earned will be passed to you.

Fixed Term saving accounts in Germany Reviewed

Crédit Agricole Consumer Finance fixed term saving account

Crédit Agricole Consumer Finance is a division of the French banking group Crédit Agricole that focuses on consumer lending and financial services. In Germany, the bank offers a range of products, including personal loans, credit cards and saving accounts. The Crédit Agricole saving account offers competitive interest rates of up to 4.10% on amounts blocked for 2 years.

Klarna fixed term saving account

Klarna is primarily known in Germany for its “shop now, pay later” platform that provides interest-free instalment loans for shoppers. Klarna Bank AB was founded in Sweden, and it moved more squarely into the German banking sector in 2021. The bank offers saving accounts with no minimum amount required and competitive interest rates.

Holm Bank fixed term saving account

Holm Bank is a financial institution established in Estonia. It mainly focuses on loans, credit cards and business loans for SMEs. In Germany, the bank offers fixed-term saving accounts that can be easily opened without withholding tax in Estonia.

ViViBanca fixed term saving account

ViViBanca is an Italian Bank headquartered in Turin. The bank is an independent financial institution that specializes in retail financing. In Germany, ViViBanca offers saving accounts with up to 4.15% interest rate paid on amounts blocked for 2 years, with no withholding tax in Italy.

Collector Bank fixed term saving account

Collector Bank AB is a Swedish digital bank that offers financial solutions to retail and corporate customers. It is a wholly owned subsidiary of Collector AB, listed on Nasdaq Stockholm. The bank services in Germany include credit solutions, digital finance products and saving accounts.

To open a savings account in Germany, you can follow these general steps:

1 – Choose your most suitable bank by comparing each bank’s saving account offerings:

Interest rates, account management fees, bank’s reputation, funds’ access and any specific limitations that may apply.

2 – Gather the required documents:

Before you start your application, make sure you gather all the required documents. Requirements for saving accounts in Germany aren’t high, you only need the following:

• Valid identification document: German ID or passport
•  Proof of residency in Germany: Rental agreement or utility bill or bank statement that  shows your residential address in Germany.
• Tax identification number: Interest-generated income is taxable in Germany. However, you can benefit from a tax exemption order called Freistellungsauftrag of up to 1,000 euros for individual accounts and 2,000 euros for joint accounts.
• Your German checking account to use as a reference account.

3 – Open your savings account:

Physically or online by completing the banks’ application process and/or signing a contract with all the terms and conditions applied. The contract must contain the agreed interest rate, the investment period and the amount you deposited, as well as other account specifications.

4 – Money deposit:

Some banks may require an initial deposit to open a savings account. The required amount can be in cash or through a transfer from another account.

5 – Account Activation:

Once the application process is complete, your account is ready. You will receive an account number and access details for online banking.

The right savings account for you depends on your situation, financial goals and preferences. With rising interest rates in Germany, placing money in saving accounts is becoming more popular. It’s important to stay informed about economic and financial developments in Germany and keep an eye on the European Central Bank’s announcements and actions.

Thank you for reading this article. We hope that the information we provided is helpful and that the comparison we did can help you with your research on different banks’ offerings since specific requirements and procedures may vary among different banks. Remember that by making an informed decision, you set yourself on the path to financial success and achieve your saving goals.