Savings Interest Calculator
Compute your interest income with compounding – optionally including German capital gains tax, the saver allowance and church tax.
- Interest (gross)
- €1,854.54
Show details table
| Year | Balance |
|---|---|
| 1 | €20,600.00 |
| 2 | €21,218.00 |
| 3 | €21,854.54 |
Comparing interest correctly – gross and net
The advertised rate is only half the story: the real return only shows after tax. With the tax option you can see what remains net after the saver allowance and tax – the realistic basis for comparing offers.
The calculator also accounts for compounding: with instant-access savings interest is credited monthly and reinvested, with fixed deposits usually yearly depending on the contract. Even that makes a small but real difference to the final amount.
Instant-access or fixed deposit – which when?
Instant-access savings (Tagesgeld) are available daily and flexible, but the rate is variable and can be adjusted by the bank at any time. It suits your emergency fund and money you might need at short notice.
A fixed deposit (Festgeld) locks your capital for a fixed term at a guaranteed rate. In return you usually get a slightly higher rate, but you cannot easily access the money during the term. A so-called interest ladder – several fixed deposits with staggered terms – combines predictability with partial availability.
How German capital gains tax works
In Germany, investment income is taxed at 25 % capital gains tax, plus a 5.5 % solidarity surcharge on that tax and – depending on denomination and federal state – 8 or 9 % church tax. The 25 % thus effectively become around 26.4 % to 28.0 % (church tax slightly reduces the assessment base).
Up to the saver allowance of €1,000 per person and year (€2,000 for jointly assessed couples), however, interest remains tax-free. With the tax option the calculator factors in the allowance, tax and solidarity surcharge automatically and shows the net return.
What to watch out for when comparing
Always compare the effective rate and the crediting period, not just the nominal rate. With teaser offers, check the conditions: guaranteed rates often apply only to new customers and for a few months, after which the rate drops.
Deposit protection also matters. Within the EU, deposits are legally protected up to €100,000 per bank and customer. With offers from abroad it is worth checking the responsible protection scheme.
Frequently asked questions
Difference between instant-access and fixed deposits?
With instant-access (Tagesgeld) your money is available daily and the rate is variable. With a fixed deposit (Festgeld) you commit the capital for a fixed term at a guaranteed rate.
How is the capital gains tax calculated?
In Germany, investment income is taxed at 25 % plus a 5.5 % solidarity surcharge on that, plus optional church tax. Up to the saver allowance (€1,000 per person) interest is tax-free.
What is the saver allowance?
The saver allowance makes investment income up to €1,000 per year tax-free. With an exemption order it is applied automatically.
What is an exemption order?
With an exemption order (Freistellungsauftrag) you instruct your bank to keep investment income tax-free up to the saver allowance. Without it the bank automatically withholds tax, which you would have to reclaim via your tax return.
Is my money safe at the bank?
Within the EU, statutory deposit protection covers up to €100,000 per bank and customer. Many banks are additionally members of voluntary protection funds that go beyond this.
Is instant-access worthwhile despite inflation?
If inflation is above the interest rate, your balance loses purchasing power in real terms even though the nominal amount grows. Instant-access savings are therefore mainly suited to reserves and money needed short term, less to long-term wealth building.