Savings interest continues to fall: savers have to adjust to the bitter decline

Savings interest continues to fall: savers have to adjust to the bitter decline

The interest for daily and fixed deposits in Germany have decreased on average. This development is primarily due to the continuing interest rate policy of the European Central Bank (ECB). Forecasts by Oliver Maier, Managing Director of Verivox Financial Compensation GmbH, indicate that further reductions in savings interest can be expected as long as the ECB continues its rate of interest rate cuts. On Thursday, the eighth interest rate reduction of the ECB has been expected since summer 2024, with a possible reduction in the deposit interest from currently 2.25 percent to 2.0 percent. The decision about the ECB tariff will be announced in the afternoon.

The causes of the decline in interest rate

The decline in interest rates has been classified as particularly strong since the data collection began in January 2012. The decline is closely associated with the constantly changing key interest rates of the ECB, which influence the conditions that banks borrow money and what offers they can ultimately make their customers. A lower key interest rate means that banks can give money cheaper and are therefore also willing to pay less for savings deposits.

at the end of 2024 there were more than 3,406 billion euros on overnight accounts, which corresponds to more than a third of the private households in Germany. At the same time, the inflation rate in Germany was 2.1 percent in May, which further impairs the purchasing power of the savers. It is becoming increasingly difficult for savers to achieve earnings that can compensate for inflation.

The importance of interest development

Interest development is not only important for savers, but also for borrowers. In addition, the choice of investment duration should also be carefully covered for fixed deposits. For example, a decision for a three -year fixed -term deposit facility compared to a one -year, which leads to several interest reductions, can give significant differences in the possible yields. Inspectoring plays a crucial role, especially with high loan sums in building finance.

In times of falling interest rates, savers may benefit from changing from the checking account or savings book to fixed deposits in order to achieve a better return. Nevertheless, it is advisable to choose the right time for investments in order to benefit from the best offers, for example when opening a call money account or lending a fixed deposit.

In order to continue to benefit from good offers, savers should observe the current interest rate development and, if necessary, adapt their investment decisions, since the interest often remain constant for a few days or even weeks.

Merkur reports on the falling interest that affects the earnings of the savers. Additional information on interest development can be found at Finanztip and on the role of the ECB-interest rates at Finanztip .