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Savings Accounts in Germany
Reviewed by
Erkan Boga
Erkan Boga is the founder and CEO of qmedia GmbH, the publishing house behind How-to-Germany.com. He established the platform with the clear vision of creating...
Edited by
Sadie Voss
Content Lead & Editor
Sadie Voss is the Lead Editor for How-to-Germany.com. As an expat who carved her own way into Berlin from the United States, Sadie is deeply...
- TF Bank Savings Account (3.25%) – Best savings account in Germany for high interest and monthly interest credits. However, the savings account is managed through the German-language web portal; the TF Bank app is only for Mastercard Gold credit card holders.
- Consorsbank Savings Account (3.4%) – Strong promotional savings account with a high introductory rate. However, Consorsbank’s banking app and web portal are in German, not English.
- Trade Republic Savings Account (2.25%) – Savings, broker, card, and current-account features combined in one English-friendly app.
- Commerzbank Savings Account (2.25%) – Savings account at a major German branch bank. Good for users who want in-person support and an established German banking relationship.
- DKB Savings Account (1%) – Savings account at a strong direct bank for permanent residents in Germany, especially if you already use DKB as your main bank.
Compare Savings Accounts in Germany
If a savings provider’s site is only in German, use Chrome’s auto-translate (right-click → “Translate to English”). If buttons or links don’t respond well in the translated version, switch back to German and try again.
Flexible Savings Account (Tagesgeldkonto)
The flexible savings account is one of the most widespread financial products among Germans due to its simplicity. The major benefit of a call money account is its flexibility. Money deposited in such an account can be withdrawn anytime, and deposits can be made without any complications. The purpose behind this account is that the investor doesn’t make any long-term commitments but can still access their funds whenever they wish and earn a good interest rate on their balance.
Funds are stored in a separate savings account. Unlike a checking account, it cannot be utilized for regular payments. Therefore, a reference account is essential to transfer money and withdraw money. When opening this account, there’s no strict requirement to open a new bank account. An existing one can generally serve as the reference account. Moreover, there are no fees associated with managing and administering this account.
Interest on Flexible Savings Accounts
The interest paid on balances in a call money account is usually higher than what’s offered on a regular bank account. Banks offering a call money account typically provide better interest rates because they’re operated online, reducing administrative expenses. Such cost savings are then passed on to the customer through favorable interest rates.
Although interest rates are influenced by the benchmark rate of the European Central Bank, many banks give an interest rate that’s notably higher. This is often due to the intense competition among banks wanting to attract new customers with enticing offers. However, it’s crucial to see the duration of these offers and evaluate if they remain advantageous after any introductory periods.
The frequency of interest payments varies from one provider to another, with periods ranging from monthly to annually. Shorter intervals can be more beneficial due to the compounding interest effect.
While some bank’s interest offers might be alluring, it’s essential to remember that flexible saving accounts have a variable interest rate that can be altered daily. Hence, they don’t provide a guaranteed fixed interest rate like fixed-term saving accounts.
Pros and Cons of Flexible Savings Accounts
- Access money at any time.
- Deposit insurance covering up to €100,000 in the EU.
- Earn interest on your balances.
- No long-term commitments.
- Stable value, no losses due to market changes.
- Typically, no account fees.
- A reference account is necessary.
- Daily changes in interest rates.
- Relatively lower returns compared to some other investment methods.
- The account can’t be used for regular payments.
- Variable interest rates.
Who Should Consider a Flexible Savings Account?
Given its inherent flexibility, a call money account suits those wanting easy access to their funds on short notice. It’s also a good choice for those with an amount they might need soon but aren’t certain when. If someone is exploring long-term investment options, an easy access savings account can be a convenient place to “park” funds in the meanwhile.
Fixed-term Savings Account (Festgeldkonto)
Fixed-term savings accounts, also known as fixed deposit accounts, are another popular investment option in Germany. These accounts offer security for the invested capital and typically provide better interest rates than flexible savings accounts.
With a fixed deposit account, your money is locked in for a specified period. During this time, you can’t access the funds without incurring penalties, which often includes losing the interest earned up to that point. The conditions for breaking a fixed-term deposit account vary among providers.
Terms of a Fixed Deposit
The duration of a fixed deposit can range anywhere from 30 days to 10 years. Ideally, a higher return can be earned when a substantial amount is invested for a longer period. Most banks require a minimum deposit, typically starting at €5,000.
Upon term completion, investors can decide the fate of their funds. They can either reinvest, benefiting from the compound interest effect, or transfer the capital to a reference account for easier access.
Interest Rate Considerations
The interest on fixed deposits largely depends on the prevailing market interest rate. Both the sum and the term of the deposit play roles in determining the interest rate. One advantage is that this interest rate remains constant throughout the investment period, ensuring protection against any interest rate downtrends. However, this fixed interest rate can also be a downside if market interest rates rise, as depositors won’t benefit from the uptick.
Interest Rate Ladder Strategy
One strategy to circumvent the inflexibility of fixed deposits is the “interest staircase” approach. Here, the principal is split into multiple parts (like three equal amounts), and each portion is locked into staggered durations (e.g., 1–3 years). As a result, a part of the investment matures annually. If there’s no immediate need for the funds upon maturity, the amount can be reinvested into another three-year term, continuing the cycle.
This method offers enhanced flexibility, as funds become available at least annually. It also accounts for potentially rising interest rates since the interest adjusts with every new term. Conversely, if market rates decline, the impact is inevitable.
Pros and Cons of Fixed-term Savings Accounts
- Competitive returns due to higher interest rates.
- Guaranteed interest rate throughout the investment period.
- No account management fees.
- Varied term lengths to choose from.
- Money is locked in; premature withdrawal may lead to interest loss.
- The interest rate remains static even if the market rates increase.
Who is the Fixed Deposit Account ideal for?
A fixed deposit account is best for those who prioritize safety, anticipate no short-term need for the funds, and appreciate the predictability of a set return. For individuals considering substantial investments, diversifying the amount across various fixed-term accounts or other financial instruments can optimize returns.
In essence, a fixed deposit account is a middle-ground investment—offering better interest rates than money market accounts while being less risky than broker accounts.
Protection of Deposits in Germany and the EU
Funds in a savings account in Germany are protected by the statutory deposit guarantee scheme, making it a highly secure investment.
As of 2011, statutory deposit insurance applies across the European Union. This ensures that, even in the event of a bank’s insolvency, the savings account balance for each customer is protected up to €100,000. This EU-wide rule means consumers can confidently open a savings account with any European bank.
For foreign EU or EEA banks active in Germany, the national deposit guarantee of the bank’s home country applies. For example, Swedish banks such as TF Bank are covered by the Swedish deposit guarantee scheme. Since January 1, 2026, the Swedish deposit guarantee limit is SEK 1,200,000 per customer and institution, which is designed to remain broadly comparable to the EU-wide €100,000 protection level.
A savings account advertised in Germany is not always held at a German bank. If the provider is based in another EU or EEA country, your deposit protection may come from that country’s guarantee scheme. This is still regulated, but it can matter if you want German-language support, German tax handling, or a simpler claims process in the unlikely event of a bank failure.
Taxation on Interest Payments
In Germany, interest generated from savings accounts is subject to capital gains tax. The base withholding tax is 25%, but solidarity surcharge and, where applicable, church tax can increase the effective tax burden. However, there is an exemption in place: if your investment income for the year is less than €1,000 for single taxpayers or €2,000 for married couples filing jointly, you do not need to pay tax on that amount. Only the income that exceeds this threshold is taxable.
When you have a savings account with a German bank, the bank handles the deduction of this tax automatically. If you’d like the bank to consider your tax allowance automatically, you can provide them with a tax exemption order, known in German as Freistellungsauftrag.
If your savings account is held with a foreign bank that does not automatically deduct German tax, you usually have to declare the interest income yourself in your German tax return.
Suppose you are single and earn €850 in interest during the year. If your Freistellungsauftrag is set up correctly, no German tax is deducted because the amount stays below the €1,000 saver’s allowance. If you earn €1,200 in interest, only €200 exceeds the allowance and becomes taxable. If you use multiple banks, split your Freistellungsauftrag carefully so the total exemption across all banks does not exceed €1,000.
Best Savings Accounts in Germany
| Provider | Promotional Interest | Standard Interest | Language Support | Tax Handling | Best For |
|---|---|---|---|---|---|
| Commerzbank | 2.25% | Check current rate before opening | English app and customer service support may be available, with branch support depending on location | German tax withholding and Freistellungsauftrag available | Expats who want a major German branch bank |
| Consorsbank | 3.4% | 1.0% from June 16, 2026 | German-only app and web portal | German tax withholding and Freistellungsauftrag available | Users comfortable with German online banking who want a high promotional rate |
| DKB | 1% | Check current rate before opening | App interface may be usable for English-speaking customers, but core banking communication is often German | German tax withholding and Freistellungsauftrag available | Permanent residents who want a strong German direct-bank setup |
| TF Bank | 3.25% | 1.45% after the promotional period | German-only savings web portal; the TF Bank app is for Mastercard Gold credit card holders, not savings customers | No German automatic withholding; interest must usually be declared in your German tax return | Rate-focused savers who can handle German-only account management and self-declare interest |
| Trade Republic | 2.25% | Variable rate linked to current conditions | English-friendly app | German tax withholding and Freistellungsauftrag available | Expats who want savings, broker, card, and current-account features in one app |
TF Bank Savings Account
The TF Bank Flexible Savings Account is one of the strongest savings accounts in Germany for users focused on interest and monthly interest credits. With its primary operations in Sweden, TF Bank offers its services in Germany as an online savings provider.
For the first 4 months, new customers are greeted with a promising 3.25% interest rate. An advantage is the interest paid every month, which means the money grows faster because of compounded interest. After this period, the interest rate becomes 1.45%, ensuring a continued growth of the savings.
Another benefit is the absence of account maintenance fees. So, the money in the account grows without any deductions. When it comes to safety, deposits are protected under Swedish state insurance up to SEK 1,200,000 per customer and institution, broadly comparable to the EU standard of €100,000 per depositor.
However, TF Bank is not the easiest option for every expat. The savings account is managed through a German-language web portal. The TF Bank mobile app is reserved for Mastercard Gold credit card holders and cannot be used to manage the TF Bank savings account. Potential language challenges can arise because the savings portal and customer service are not fully English-friendly.
There is also a tax difference. Since TF Bank has no German branch that automatically withholds German capital gains tax for this product, interest taxes aren’t withheld automatically. You must usually declare and pay taxes on earned interest yourself in your German tax return.
Consorsbank Savings Account
Consorsbank is a strong option for savers who want a German bank with a high promotional interest rate. The main advantage is that it handles German tax withholding automatically and allows customers to submit a Freistellungsauftrag, which makes tax handling easier than with many foreign-based savings banks.
The Consorsbank savings account is especially interesting for customers who are comfortable with German online banking. Its promotional rate can be attractive, and the standard rate increased to 1.0% on June 16, 2026. However, the app and web portal are in German. The page should not describe Consorsbank as having an English-language banking app, because this is misleading for expats who need full English account management.
Trade Republic Savings Account
Trade Republic combines savings, investing, a card, and account features in one mobile-first app. This makes it one of the most convenient choices for expats who want an English-friendly interface and a simple digital setup.
The main advantage is usability. Trade Republic is easier for English-speaking newcomers than many traditional German banks. It also handles German tax withholding and allows customers to set a Freistellungsauftrag. The main limitation is that it is not a classic branch bank. It is best for users who are comfortable with app-based financial management and understand that the savings rate can change over time.
Commerzbank Savings Account
Commerzbank is a good option for expats who want a major German branch bank rather than a purely online provider. This can be helpful if you prefer in-person support, already use Commerzbank as your main checking account, or want a more traditional banking relationship.
The advantage of Commerzbank is convenience and local presence. German tax withholding is handled automatically, and you can use a Freistellungsauftrag. The downside is that branch-bank savings rates are not always the highest on the market. Commerzbank is best for users who value support and integration with a German current account more than chasing the highest rate.
DKB Savings Account
DKB is one of Germany’s most established direct banks and can be attractive for permanent residents who already use DKB as their main bank. Its savings account can be convenient if you want to keep your checking account and savings account in one direct-bank environment.
The main limitation for newcomers is onboarding. Some expats may find DKB harder to open than fintech-style accounts, especially if they are new to Germany, do not yet have a strong German credit or address history, or use a passport that is not accepted smoothly in the VideoIdent process. DKB is therefore best for users who are already settled in Germany and want a long-term direct-bank setup.
How to open a Savings Account in Germany
Opening a savings account in Germany involves some specific procedures and requirements. Let’s break it down:
Requirements
- A valid identification document, such as a passport or national ID.
- A German address and, depending on the bank, proof of address such as a Meldebescheinigung, rental contract, or utility bill.
- A reference account, usually a checking account in your own name.
Online vs. in-person Account Opening
- Online: Most modern German banks offer an online application process. This can be more convenient, but be prepared to upload your documents in the prescribed format and complete identity verification.
- In-Person: Traditional banks usually require you to come in for a face-to-face meeting. This can be more time-consuming, but it can offer more personalized service, especially if your documents are difficult to verify online.
Verifying your identity
Opening a savings account online requires identity verification if you’re new to the bank. Two primary methods are:
- PostIdent: Visit a post office where an employee will check your ID card or passport.
- VideoIdent: Display your ID card or passport to a webcam or smartphone camera for verification.
Before applying, check whether the bank accepts your passport or national ID through VideoIdent. Some non-EU passports may fail online verification, even if the bank generally accepts foreign customers. Also check whether the provider requires German tax residency, a German IBAN reference account, or a German mobile number. If the account is with a foreign bank, confirm whether you must declare the interest yourself in your German tax return.
In a typical VideoIdent process, you open a video call with an identification agent, show your passport or ID card, tilt the document so security features can be checked, confirm your personal data, and receive a code by SMS or app. Keep your document, phone, good lighting, and a stable internet connection ready. If the process fails, ask whether PostIdent or in-branch verification is possible.
Conclusion
Having a savings account in Germany is a secure way to grow your money. Whether you want a fixed deposit account or a flexible savings account, understanding the options helps you make an informed decision. Always remember to consider the interest rate, promotional period, account fees, language support, deposit guarantee, and tax handling of the account you choose.
For expats, the best savings account is not always the one with the highest headline rate. A German bank may be easier for tax purposes, while a foreign EU bank may offer a better rate but require you to declare interest income yourself. English-language support also matters: Trade Republic is more English-friendly, while TF Bank savings customers and Consorsbank customers should expect German-language account management.
Frequently Asked Questions
A savings account is a type of bank account where individuals can deposit money to earn interest. In essence, a savings account allows individuals to grow their money over time by accumulating interest.
Yes, many German banks offer the option to open a savings account online but will require identity verification, which could be done either through a video call (VideoIdent) or by visiting a post office (PostIdent).
German savings accounts are covered by the deposit guarantee scheme up to €100,000, so your money is safe up to that limit.
The required documents can vary by bank but generally include your passport, proof of address in Germany, and a German bank account.
Some banks offer multi-currency accounts, but these usually come with additional fees and lower interest rates.
You can transfer money from your bank account to your savings account using online banking or by making a transfer at a branch. International transfers can be made using services like Wise to save on fees.