The call money is an equally flexible and lucrative form of investment. It allows the investor to access his savings deposit 24/7 and receive interest on the best overnight money .
In contrast to the time deposit, there are no binding terms or notice periods in this form of investment. The overnight interest rates in Germany are subject to natural fluctuations on the financial markets and can be redefined daily by the banks. In practice, the daily interest rate is often based on the key interest rate of the European Central Bank. In order to protect against unpleasant interest rate cuts, one should prefer offers with a multi-month interest rate guarantee.
Some banks grant new customers a guaranteed daily interest rate for a period of up to six months. The investor is well advised always to keep an eye on interest rate developments, for example by using a free overnight interest rate comparison on the internet.
As a rule, no charges are required for account maintenance or deletion, which invites a quick change of provider as soon as another bank offers much better conditions. Often, the opening of a call money account is rewarded with a lucrative cash bonus, which can certainly be a major reason for a change of banks for smaller investment amounts.
Savings deposits on overnight money accounts in Germany are subject to statutory deposit insurance. This is liable for a minimum amount of 50,000 euros per investor. As a further safeguard, all banks have merged into various deposit insurance funds: In the event of bankruptcy, they are liable to each other with millions of euros in deposits from their customers.
For high investment amounts, it is worth taking a look at the time of the interest distribution. Depending on the provider, this varies between monthly and annual intervals. Provided that the accruing daily interest rates are immediately charged, one should select offers with a monthly interest capitalization in order to benefit from the compound interest effect.
A completely different type of investment is the investment in classic cars. Especially in times when yields on overnight deposits are falling, a thoroughly worthwhile option – the classics nevertheless have an increase in value of 8-9% on average. For detailed information on classic cars, visit www.oldtimer-eu.com . But beware – not every car is suitable. Especially for cheaper vehicles, the fixed costs for subordination and maintenance often exceed the increase in value. As a rule, the investment is only worthwhile for high-priced classic cars. It is also an investment with a relatively uncertain return. So if you choose this option, you should primarily enjoy classics and see the potential return as an additional but not guaranteed goodie.