Call money, fixed-term deposits and deposit insurance: saving safely

In short: Call money is available daily with a variable rate, fixed-term deposits tie money up for a set time at a fixed rate; the statutory deposit guarantee in the EU protects up to €100,000 per customer and bank.

In more detail: For an emergency fund and short-term goals (driving licence, laptop, business start-up money) safe forms of saving fit better than shares. Rates fluctuate with the key interest rate.

In Depth

The products

• Current account: everyday, usually hardly any interest.
• Call money (daily money): available daily, variable rate, account mostly free (direct banks, mind promotional rates for new customers: often limited).
• Fixed-term deposit: amount for a fixed term (3 months to years), fixed rate, no access before the end.
• Savings book: low interest, rarely sensible.
• Money market funds/bonds/federal bonds: somewhat more complex.
• Emergency fund: 3 to 6 months of expenses in call money.

Deposit insurance

In the EU deposits are legally covered up to €100,000 per customer and bank (in Germany additionally voluntary protection schemes of banks). For banks abroad the country’s system applies, payout there. Joint accounts usually double. Caution with savings offers from unknown providers, crypto custody and “fixed deposit” platforms with high-interest promises without deposit insurance. Check banking supervision (BaFin) and the warning list.

Comparing interest correctly

• Effective annual rate and term, rate guarantee for call money (promotion ends).
• Interest income is taxed (flat-rate tax, use an exemption order: €1,000 saver’s allowance per year).
• Inflation erodes purchasing power: real interest = interest − inflation.
• Interest ladder (staggered fixed deposits) mixes flexibility and return.
• Comparison portals sometimes take commission; also check bank websites.

Practice for young savers

• Minors: account/call money with parents’ consent, plan pocket money and training pay.
• Name goals, standing order at the start of the month (pay yourself first).
• Emergency fund first, then savings plan (e.g. ETF) for long terms.
• Mind fees and termination; protect login data (phishing, 2FA).
• Banking app: set limits, notifications.
• If self-employed, keep a tax reserve and liquidity buffer separate in call money.

See also: Business and current account, Inflation, Compound interest, Stocks and the stock exchange