For which customers are call deposits best suited?

Call deposits are suitable for customers looking for a more conservative, safe investment as a means to preserve wealth, with higher interest rates than those of a traditional passbook savings account. Call deposits can be useful as a short-term investment, for example if you are interested in “parking“ money but already know that you will soon be requiring the funds for an investment.

Is there any kind of protection for the money held in my call deposit account?

In Germany, the statutory deposit guarantee schema protects call deposits and other customer deposits up to 100,000 euros per customer and bank in total. This also applies if you are a customer of a German branch of a foreign bank or of a German branch of banks from another EU or EEA member state. The deposit guarantee is regulated similarly for banks in other members states by way of an EU Directive.

For amounts in excess of this, in Germany the voluntary deposit guarantee schemes of the particular banking associations may offer protection. We strongly advise that you make your own enquiries regarding this in order to avoid any risks. You should also think carefully before investing money in call deposits with providers outside the European Union due to the insolvency risk.

How quickly can I withdraw the money from my call deposit account?

Unlike a savings account, for example, you can make withdrawals from a call deposit account at any time and do not need to comply with a notice period. However, you may not make payment transactions from a call deposit account. For all payments to and from a call deposit account, you require a reference account, which is usually your current account.

For amounts in excess of this, in Germany the voluntary deposit guarantee schemes of the particular banking associations may offer protection. We strongly advise that you make your own enquiries regarding this in order to avoid any risks. You should also think carefully before investing money in call deposits with providers outside the European Union due to the insolvency risk.

Where can I invest in a call deposit?

You can invest in a call deposit at a credit institution. Information and advice can be obtained at the branches, online or by telephone at the respective provider. Give careful thought in advance to how long and for what purpose you intend to invest your money.

If the euro is not the currency of your investment, you should also bear in mind that a currency risk can arise from exchange rate changes.

Are the returns on a call deposit account subject to taxation?

The interest credited to your call deposit account classifies as investment income and is therefore subject to taxation. In order to benefit from tax-free allowances, you can apply for a tax exemption at your credit institution.

In what way are providers of call deposit investments supervised?

Domestic banks require authorisation from BaFin for conducting deposit business if they want to offer call deposit investments. German banks are supervised by the Deutsche Bundesbank and BaFin and, if they exceed a certain size, also by the European Central Bank (ECB) within the scope of solvency supervision.

BaFin does not check whether the credit institutions are offering favourable conditions for call deposits. BaFin is also not responsible for checking the contractual provisions.

Customers of foreign banks or of banks which are not subject to supervision in Germany may experience certain restrictions. For example, complaints might only be accepted in the local language, or there may be different legal provisions and liability limits.