If you live in Germany and you're looking for a safe, low-risk way to save money, you’ll have seen offers for Sparkonten (savings accounts). These are staples in German financial planning and offer a reliable alternative to riskier investments.
Depending on your needs, these can be appealing to savers who want steady returns.
What is a Sparkonto?
In Germany, the term Sparkonto refers to savings accounts.
These accounts are popular because they offer a safe way to earn interest without exposing your money to the volatility of the stock market. They're also protected by Germany’s deposit insurance scheme, which secures deposits of up to €100,000 per bank, per person.
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Savings accounts have several advantages over riskier assets. They are simple to understand and manage, come with a number of tax advantages, and offer steady – if modest – returns.
The two most common types of savings account are:
- Tagesgeldkonto (flexible savings account)
- Festgeldkonto (fixed-term deposit account)
A Tagesgeldkonto offers anytime access to your money at a higher rate than a current account. This feature means these types of accounts are useful for money you could need immediate access to – such as an emergency fund.
By contrast, a Festgeldkonto locks your money away for a fixed term, usually between six months and five years, in return for a guaranteed interest rate. Because the bank has access to your money for longer, returns are typically higher than instant-access accounts. In general, the longer the term, the higher the interest.
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Many Tagesgeldkonten offer promotional rates that are actually higher than flexible accounts. However, these rates often last for just a few months, so over the long term choosing a Festgeldkonto will usually offer better returns.
Capital gains tax of 25 percent is due on investment gains, including interest from savings accounts. However, you can use the so-called saver’s allowance (Spararpauschbetrag) to exempt some of this income from capital gains tax.
In 2025, the rate was set at €1,000 for singles and €2,000 for married couples, divided as they wish.
The best flexible savings accounts
Nominally, the highest rate we could find was Consorsbank's 2.8 percent for three months with a signup bonus of €40. However, the website makes it very difficult to find the non-promotional rate, making us a little suspicious of this offer.
The next highest is Norisbank, with a rate of 2.52 percent for new customers until September. However, the account costs €3.90 a month.
Volkswagen Bank is currently offering new customers a promotional rate of 2.4 percent for six months. The account has no ongoing costs.
Finally, PSD Bank has a non-promotional rate of 1.5 percent on deposits of up to €437,500, without ongoing costs.
The best fixed-term deposit accounts
The Local compared offers from several banks for one-year fixed terms.
The best rate we found was Crédit Agricole, which offers 2.4 percent returns for a one-year period on investments from €5,000 to €500,000.
The next best was GEFA, at 2.1 percent on investments from €10,000.
PEAC offers 2 percent interest over one year. Investments must be between €5,000 and €437,500. The account has no ongoing costs.
Rates are usually higher the longer the term, so make sure to pick the longest horizon you can afford to get higher returns. For example, Crédit Agricole's five-year rate is currently 2.65 percent, up from 2.4 percent.
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