Best Savings Account Interest Rates in Germany 2026
Tagesgeld or Festgeld? Where your money actually grows depends on what you need it for and how long you can leave it alone. Here is what you need to know.
If you moved to Germany and opened a Girokonto (current account), you probably noticed it pays close to zero interest. That is normal. In Germany, your checking account is for paying rent and buying groceries, not for growing your savings. For that, you need a separate Tagesgeld or Festgeld account.
The European Central Bank raised rates significantly in 2023 and 2024, which meant savings accounts in Germany started paying real interest again for the first time in years. Rates have come down a bit since then as the ECB began cutting, but they are still far better than the near-zero era. If you have money sitting idle in a checking account, moving it to a bank account with better terms or a dedicated savings product is one of the simplest financial moves you can make.
Compare Bank Accounts with Savings Features
Many German banks bundle Tagesgeld options with their current accounts. Compare offers below.
Tagesgeld vs. Festgeld: Which One Do You Need?
Most people benefit from having both. Tagesgeld for the money you might need next month. Festgeld for the money you are saving for something a year or two away.
Tagesgeld | Festgeld | |
|---|---|---|
| Access | Withdraw anytime | Locked until term ends |
| Interest rate | Variable, changes with ECB | Fixed for the full term |
| Typical rate range | 2% to 3% (varies) | Higher for longer terms |
| Minimum deposit | Usually none | Often 500 to 5,000 EUR |
| Best for | Emergency fund, short-term | Money you won't need soon |
| Risk | Rate can drop | Can't access money early |
Rates are approximate and vary by provider. Always check current offers before opening an account.
When to Choose What
Use Tagesgeld when...
- You are building an emergency fund (aim for 3 to 6 months of expenses)
- You might need the money for a planned purchase soon
- You want flexibility without locking anything up
Use Festgeld when...
- You have money you will not touch for 6 to 24 months
- You want to lock in a rate before it drops further
- You prefer knowing exactly how much you will earn upfront
What About Deposit Protection?
EU law guarantees deposits up to 100,000 EUR per customer per bank. This applies to all banks in the EU, whether they are in Germany, France, or the Netherlands. German banks additionally participate in voluntary protection funds that cover amounts above this limit in many cases.
If a comparison portal shows you an offer from a bank in another EU country with a higher rate, the 100,000 EUR guarantee still applies. Just be aware that claiming from a foreign deposit guarantee scheme can take longer if something goes wrong. For most people, sticking with German or Western European banks is the safer choice.
Common Questions About Savings in Germany
What is the difference between Tagesgeld and Festgeld in Germany?
Tagesgeld (call money) works like a savings account you can access anytime. The interest rate changes with the market. Festgeld (fixed deposit) locks your money for a set period, from 3 months to several years, but you get a fixed rate for the entire term. Think of Tagesgeld as your emergency fund and Festgeld as your "don't touch this" savings.
How much interest can I earn on savings in Germany in 2026?
Rates depend on the provider and term length. Call money (Tagesgeld) accounts typically offer between 2% and 3% per year. Fixed deposits (Festgeld) for 12 months can go a bit higher. Rates have come down from their 2023 peak as the ECB cut rates, but they remain better than what most banks offered before 2022.
Is my money safe in a German bank account?
Within the EU, deposit protection covers up to 100,000 EUR per customer per bank. German banks are also part of additional voluntary deposit protection schemes. If you use a foreign EU bank, the 100,000 EUR guarantee still applies, but check the financial stability of the country in question.
Can foreigners open a savings account in Germany?
Yes. You need a German address (Anmeldung), a valid ID or passport, and a tax identification number. Some direct banks let you open accounts entirely online. If you already have a Girokonto (current account), adding a Tagesgeld account with the same bank is usually straightforward.
Should I lock money in Festgeld when rates might drop further?
If you have money you will not need for 6 to 12 months, locking it in now means you keep the current rate regardless of what happens. When rates fall, your Tagesgeld rate drops too, but Festgeld stays fixed. A common approach is to split your savings: keep some liquid in Tagesgeld and lock the rest in Festgeld at different terms.
Do I pay taxes on interest income in Germany?
Yes. Germany charges 25% capital gains tax (Kapitalertragsteuer) plus solidarity surcharge on interest income. However, the first 1,000 EUR per person (2,000 EUR for couples) is tax-free under the Sparerpauschbetrag. File a Freistellungsauftrag with your bank so they do not withhold tax on amounts below this threshold.
Your money should work for you
If your savings are sitting in a regular checking account earning nothing, even a small move to a Tagesgeld account makes a difference. The comparison above is free and takes a couple of minutes.
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