The return on investment in this specific scenario is consistent with the other three options.
In Germany, managing your finances involves two key types of accounts: the Girokonto and the Tagesgeldkonto. While both serve different purposes, they work together to provide a comprehensive financial solution.
A Girokonto, often referred to as a current or checking account, is the central hub for managing your daily finances. It's where you receive your salary, pay bills, make transfers, and withdraw cash. Typically, a Girokonto does not offer interest on the balance, making it less attractive for long-term savings [3][4].
On the other hand, a Tagesgeldkonto, or call money or instant access savings account, is designed primarily for saving money with the benefit of earning interest on the balance. This account complements the Girokonto and usually requires linking to a Girokonto as the reference account for deposits and withdrawals. Unlike the Girokonto, the Tagesgeldkonto has no fixed term and allows flexible access to funds while offering higher interest rates, though typically variable and usually not as high as fixed deposits (Festgeld) [1][2][3][5].
Here's a comparison of the main differences between the two:
| Feature | Girokonto | Tagesgeldkonto | |-------------------------|---------------------------------------------|---------------------------------------------| | Purpose | Daily payments, salary, bill payments, cash withdrawals | Saving money with interest earnings | | Interest | Usually none or very low | Variable interest, generally higher than Girokonto | | Access | Immediate for payments, debit card available| Flexible, instant access but no payment cards | | Contract term | Usually ongoing, can be closed anytime | No fixed term, money can be withdrawn anytime | | Linked to | Independent account | Must be linked to a single Girokonto (same owner) | | Usage | Payment transactions | Saving and earning interest, separated funds |
The Tagesgeldkonto serves as a more attractive, interest-bearing savings account linked to the Girokonto, helping users separate their spending money from their savings [1][3][5]. Currently, Tagesgeld interest rates range from 0.10% to 3.00%.
It's important to note that a Tagesgeldkonto is intended for saving and keeping liquid funds, not for daily transactions. The consumer center advises investing in ETFs only with a long investment horizon of at least 15 years due to the potential volatility of the stock market [6]. High savings interest rates are often offered by foreign online banks, and new customer bonuses are sometimes provided, offering higher savings interest rates for a limited period [7].
When opening a savings account, a valid ID document is required for both the PostIdent procedure and the VideoIdent procedure. Cash deposits or check deposits are not possible for a savings account [8].
In conclusion, the Girokonto serves as the main transactional account, while the Tagesgeldkonto acts as a more attractive, interest-bearing savings account linked to it, helping users separate their spending money from their savings. With the right management and understanding of these accounts, you can effectively manage your finances in Germany.
[1] Girokonto vs. Tagesgeldkonto: Was ist der Unterschied? [2] Tagesgeldkonto: Was ist das und wo kann man es eröffnen? [3] Girokonto vs. Tagesgeldkonto: Was ist der Unterschied? [4] Girokonto: Was ist das und wo kann man es eröffnen? [5] Girokonto vs. Tagesgeldkonto: Was ist der Unterschied? [6] Konsumentenzentrale: Warum ETFs nur für langfristige Investmenthorizonte geeignet sind [7] Tagesgeldkonto: Wo findet man die besten Renditen? [8] Tagesgeldkonto: Was ist das und wie funktioniert es?
- What about investing some part of your personal-finance into Tagesgeldkonto to earn interest, while keeping the rest in the Girokonto for daily transactions?
- By understanding the differences between finance tools like Girokonto and Tagesgeldkonto in personal-finance management, you could be investing wisely in your future.
