Time deposit: this is how you get the maximum interest on your money.

Fixed term is a type of investment that is concluded over a fixed term, unlike overnight money, and at a fixed interest rate. The interest on fixed deposits will be credited at the end of the investment period. At maturity, the investment can also be invested again as a time deposit or continued as a sight deposit. An option for early retirement is usually not possible. The terms vary between one month and several years. A minimum investment, the amount of which varies from bank to bank, is necessary.

Where can you invest your capital as a time deposit?

Where can you invest your capital as a time deposit?

Most branch, online banks and savings banks offer fixed deposits. Before deciding on a bank, you should make a comparison to determine the best deal. This procedure is particularly important for time deposits, since the capital remains until the end of the term at the provider of choice. A change to another provider is only possible in rare cases and associated with interest rate losses.

When choosing the provider you should also note the conditions in terms of interest credit. Investors must ensure that the interest is credited annually, ie at the end of each year. For contracts with a lifetime of many years, it can otherwise lead to tax losses. The calculation of the tax burden is subject to the date on which the interest accrued.

How to open a time deposit account?

How to open a time deposit account?

In advance, the investor must identify himself to the respective bank. Because all savings banks and banks are required by law to verify the identity of the applicant. The identity card serves as a legitimization document. In exceptional cases, the identity card can be replaced by a passport plus a confirmation of registration.

If an investor wishes to open a time deposit account with a pure online bank, the Postident procedure will be applied. For this purpose, the contract documents and the postident coupon of the respective bank must be downloaded and printed out. The applicant must complete these documents and then go to a branch of the Post Office. He must also present his identity card there. An employee of Swiss Post checks the identity of the customer based on the identification papers they have brought. Then the post office employee scans the coupon and transfers the basic data into a form, the customer must confirm this paper via signature.

The post now sends the confirmation of the identity to the provider. This procedure is always free for the customer. However, it is already working on further solutions for the identification and some credit institutions already offer their customers a videoident process. This saves the way to the post office, it only needs a computer with a webcam.

In addition to the identification and legitimacy of the applicant to an account opening and the contractual agreement on the elements of opening a deposit account. The account contract includes all contractual components. This includes the information on the investment period and the specified interest rate. All other special conditions are recorded in writing.

Bank customers should also pay particular attention to the fact that the agreed interest rate is a fixed rate. If all contractual conditions have been regulated, the time deposit account contract will be created electronically within a few minutes. With the signature of the bank customer, the contract is considered completed and the time deposit account is opened. A signed copy of the contract will be sent to both contracting parties, ie the account holder and the bank.

Now the account holder must deposit the contractually agreed investment amount on the newly opened deposit account. If it is the customer’s house bank, the amount can be transferred either from the savings account or from the current account. If the customer is a new customer with the deposit provider of his choice, then the transfer must be made from a checking account. Because other accounts are not allowed by law for payments between different banks.

It should now be made an exemption order. Because if this is missed, then reduces the effective amount to the detriment of the customer. Credit institutions must tax all proceeds of their customers and pay the share of these taxes to the tax office. Thus, as a customer, the time deposit interest can collect completely tax-free, so the exemption request is absolutely necessary.

The reference account for time deposit

The reference account for time deposit

The saver must have a reference account in order to open a time deposit account. From this account, deposits can be made on the deposit account. And at the end of the term, the time deposit plus interest is transferred to the reference account. This means additional security for the customer. Because in this way it is not possible for criminals to divert an order from one foreign time deposit account to another account.

Is the early payment of the fixed term excluded in principle?

Is the early payment of the fixed term excluded in principle?

At this point, the customer should carefully read the fine print in the documentation before concluding the contract. As a rule, it is handled by the banks in such a way that the investor has no legal entitlement to a payment before the end of the contractually agreed period of time. But due to the strong competition in the credit market, some banks are accommodating and may allow for a premature order. In such cases, however, the investor must expect interest losses, or expect to pay interest rates.

What happens at the end of the contract period?

What happens at the end of the contract period?

At maturity, the customer can directly dispose of the invested time deposit plus interest. However, also here the specific contract conditions must be considered. This is especially true for fixed term deposits with a relatively short term. Because many banks have integrated into these contracts an automatic extension. This comes into force if the customer does not cancel before the deadline.

The date of cancellation should be noted down and set to resubmission at the correct date. With an automatic extension one speaks in the financial industry of a prolongation. If the time deposit account created under such a contract clause is not terminated on time, then the customer must accept the extension. This extension is then subject to a changed interest rate. It is always kept at the current interest rate.

Does a maximum investment or minimum investment amount need to be considered?

Does a maximum investment or minimum investment amount need to be considered?

Yes, that is what all credit institutions insist on. The amount of the minimum investment varies from provider to provider. The lower limit is between a few hundred and several thousand euros.

What advantages does fixed deposit offer?

What advantages does fixed deposit offer?

Time deposit is one of the most popular forms of investment in Germany. Because for the majority of the local savers, the safety of the system is at the top. Only in second place are the considerations about the amount of the return. Bank customers are on the safe side with a fixed-term contract. For the laws of the European Union dictate that up to a maximum sum of EUR 100,000 investment per customer and bank, the capital is 100% hedged by the national income protection systems.

Another advantage of investing in fixed deposits is the high degree of planning security. Because the interest rate is fixed over the entire term of the contract. If interest rates on the capital market fall, then this has no effect on the fixed interest rates. Part of the high level of planning is that the investor knows exactly what interest will be credited to him at the end of the term in euros and cents. And of course, at the end of the term, there is also the legal claim not only on the payment of interest, but also on the complete repayment of the invested amount of money. In addition, the fixed-income investor incurs no fees for account management or administration. These costs are already factored into the distributed interest income by the banks.

It is a secure form of investment. Especially in times when the financial market is often shaken by crises, this security is worth gold. Therefore, this form of investment is particularly suitable for savers who value security. And since the return can be calculated accurately in advance, this investment is also suitable for investors who have high planning certainty first.

Trainee Credit: apply for fair credit for trainees

Young people who have just graduated and are now beginning their careers as trainees are often in the situation of having to reorient themselves and make new acquisitions. These purchases include, for example, various items for a new apartment that wants to be purchased, a separate mobile pedestal or many similar things.

Of course, to get all this, you need money. However, the salary of a trainee or apprentice is often insufficient to pay for all the necessary purchases. A possible way out: Special loans for trainees, apprentices or job entrants.

Trainee loans from banks and savings banks

Trainee loans from banks and savings banks

Basically, apprentices, apprentices and career entrants are a special (welcome) target group of banks and savings banks. Gaining them as a customer and retaining them over a longer period of time is often an important task for them. When providing a current account with gratifyingly good conditions, this customer loyalty already begins.

However, since many trainees and apprentices have little opportunity to put too much money on the side and “let them work for themselves,” banks also special loans are offered loans – so trainees and apprentices right at the beginning of their careers all Can do things that are not only nice-to-have, but really necessary.

Requirements for a trainee loan

Requirements for a trainee loan

The conditions for granting a special loan for trainees are very similar to those that apply for the application for a normal consumer or installment loan. On the one hand, the apprentice or apprentice should be able to prove that he has a permanent residence in Germany. On the other hand, he should be of legal age. Furthermore, it is important for banks that the applicant does not have a negative credit bureau score. If there is a negative credit bureau entry, the loan application is usually rejected.

Of course, a trainee who wants to apply for a special loan for apprentices should also have a proof of income. A reference to pay in the form of payroll is normally sufficient here.

Of considerable importance when applying for a loan apprenticeship can also be circumstances that make the payment of monthly installments more probable and thus significantly reduce the bank’s default risk. For example, co-applicants or guarantors should be mentioned in this context.

It can also be important at times whether the apprentice, apprentice or entry-level person still lives at home with their parents or has already moved into their own apartment, for which he has to pay monthly rent.

Lending to trainees, apprentices and workers during the probationary period

Lending to trainees, apprentices and workers during the probationary period

In most cases, loans for trainees are not awarded during the probationary period, but only after the end of the probationary period. Banks and savings banks are basically the reduction of default risk of great importance. That is why it is important to them that the employment relationship is as safe as possible. Many a house of money even demands at least a six-month employment, even if the probationary period is already over.

Obtaining a loan in the early months as an apprentice or apprentice is therefore often associated with higher hurdles. But as already mentioned, for example, the addition of co-applicants or guarantors can still apply for an apprentice loan. A detailed consultation on all options seems appropriate.

Term for loans for trainees or apprentices

Term for loans for trainees or apprentices

The term of an apprentice loan usually does not go beyond the training period. This is because it is not certain that the trainee will be taken over by his company later. An apprentice can quickly become unemployed. Longer durations are possible with a trainee loan, but only if the default risk of the bank is minimized by other means.

On the other hand, apprentices and trainees, who already hold a clear commitment to take over, can hope for a loan with a longer maturity.

Mini loans and small loans for trainees and apprentices

Mini loans and small loans for trainees and apprentices

Of course, there are also loans for trainees and apprentices in the form of mini or small loans. With this type of loan, the net loan amount is usually only a few hundred euros, which means that the default risk of the lender is lower from the outset than for loans with higher sums. As this is the case, mini-loans and small loans for trainees are also issued more frequently, even if the trainee or apprentice is still in the probationary period. The term is often not more than a month.

Conclusion on the subject of credit for trainees and apprentices

Conclusion on the subject of credit for trainees and apprentices

Anyone who is a trainee, apprentice or career starter and is in urgent need of a loan or a loan at the moment should make sure to learn about loans for trainees and apprentices. Most banks would like to attract apprentices as customers and therefore offer them not only current accounts with great conditions, but also attractive loans – provided certain conditions are met.

Trainee loans for every need

Trainee loans for every need

Loans for trainees and apprentices are available in a variety of forms. On the one hand, these special loans can be applied for at banks and savings banks, on the other hand for private lenders and investors. Loans for trainees are granted by domestic credit institutions, and of course by foreign ones.

There are not only loans with a loan amount of several thousand euros, but also mini and small loans. In general, there are suitable loans for trainees for every need. The loan seeker should only search intelligently. If co-applicants or guarantors are added, as a rule the annual percentage rate of interest decreases due to higher creditworthiness.

Credit comparison and examination of all conditions

Credit comparison and examination of all conditions

Of course, looking for the right trainee loan, one should not sign the first offer “blindly”, but check and compare many different loan offers. High-quality credit comparison portals can help. Important here is the careful examination of all conditions and paragraphs that are in the credit agreement to be signed.

Only those who know all terms and components of the contract in detail will be able to decide best which trainee loan is most suitable for him. Who wants to get a loan shark or make a contract with black sheep that can cost a lot?

What to do if you cannot repay a mini loan online?

A mini-loan is a practical way to obtain a cash advance, which is usually for a much smaller amount than a bank loan, and is intended to cover very specific needs. The amount requested through a mini credit must be returned in a period between 6 and 12 months, at most. Therefore, before requesting a mini credit we must analyze our ability to pay, that is, if we will have the necessary income to return it easily and in a fairly short time. The interests of a mini online loan tend to be high, and if we incur delays, it becomes more difficult to pay.

Mini-loan results

Mini-loan results

Failure to return a mini-loan results in certain actions on the part of the lender. First, they proceed to contact us by not paying the first monthly payment. From there, they start to apply late payment interest, which increases as the days and unpaid installments pass. Also, they proceed to collect a commission of claim for non-payment of fees, an amount that also adds to the initial debt. Additionally, our name can be included in delinquent lists, which would not allow us to have access to bank-type products, and of course, the possibility of obtaining new credits would be almost non-existent. Another possible scenario is that the lending institution chooses to go to court to recover the borrowed amount, interest and late fees, also charging the fees derived from the legal claim.

Maximum of 30 days to pay the mini credit

Maximum of 30 days to pay the mini credit

The most responsible thing before requesting a mini credit is to analyze our finances very well so that we have the assurance that we will be able to pay in the stipulated time; However, we may be presented with certain contingencies that prevent us from returning the mini credit on time. In this scenario, the first thing we should do is contact the lender with the intention of explaining our situation. Starting from there, we can request an extension through which we are granted additional time to stabilize our income, and be able to meet the payment of the mini credit. When we request an extension we have 15 more days to return the debt. We can request up to two extensions, which represents a maximum of 30 days to pay the mini credit. Extensions or deferrals of debt also carry an amount, but significantly less than those we would incur if we delay in returning the mini credit.

In summary, the recommendation is to organize the budget very well so as not to incur defaults of fast online mini loans, and in case of unforeseen events, extensions or deferrals of debts constitute the most viable alternative to continue with our intention to pay the debt assumed.