increase in interest rates
Installment loans are becoming more expensive, fixed-term deposits more attractive
Due to the rise in interest rates, a classic has returned: investing in overnight and time deposit accounts.
Photo: Oliver Berg/DPA/DPA-TMN
Since the spring, interest rates have only known one direction: upwards. Above all, a classic savings system is becoming increasingly popular with consumers. But interest rates on installment loans are also skyrocketing.
08.07.2022, 13:54
Munich (dpa/tmn). Interest rates have been very dynamic over the past few weeks. And with it the interest on overnight and time deposits, which brings back a savings classic. But interest rates on consumer loans are also rising, which is having an impact on investments.
- Day and time deposit accounts: According to Check24 spokesman Edgar Kirk, classic investments such as money market and time deposit accounts are becoming more attractive in view of interest rate developments. Previous banks have raised interest rates, especially for the short term, but also for the medium term. A dynamic that, from the point of view of the comparison portal, should also accelerate over the course of the year. This means that interest rates of two percent or more may be possible on fixed-term deposits with a term of two years.
Following the advice of a Check24 spokesman, consumers can use the so-called ladder strategy. If you want to save, don’t put all your savings in a fixed-term deposit account, but split it up into several accounts with different maturities. That creates flexibility.
An overview from Stiftung Warentest makes it tangible. With overnight money, consumers currently receive interest of up to 0.25 percent per year, with fixed-term deposits they are between 1.30 (one-year fixed-term deposit) and 1.70 percent (three-year fixed-term deposit).
- Installment credit: At the same time, interest rates for consumer loans are rising. According to Kirk, these have since risen by 20 percent, as almost all banks have adjusted their financing offers in recent months. According to a Check24 spokesman, this means a temporary end to the historically low interest rates on loans.
Here, too, a look at the current statistics from Stiftung Warentest helps. Accordingly, the interest rates for installment loans range between 1.89 and 6.70 percent. According to Check24, many consumers are already increasing their investments. Because for the further course of the year, the comparison portal expects average effective interest rates of up to five percent. So it can be worthwhile to bring important and large purchases forward.
But not all banks are raising interest rates to the same extent. According to the advice of Stiftung Warntest, the difference in interest rates can be even greater, which is why a loan comparison can be worthwhile.
© dpa-infocom, dpa:220708-99-954859/2 (dpa)
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