Call money is an opportunity of flexible interest rates without a fixed term. This means that the bank can raise or lower the interest rate at any time.
When can it make sense for me to invest as overnight money?
Overnight money is usually suitable for a rather short-term investment , for example if you want to “park money” but already know that you will soon need it for an investment. But you can also use it to build up your wealth . However, the interest rates are usually lower than for investments in the form of fixed deposits. However, they are usually significantly higher than, for example, with the classic savings account. The reason is that many call money accounts are only offered as online accounts, which means that there are lower administrative costs, from which the customer can benefit in the form of higher interest rates.
What are the risks?
Price risk / business risk: This risk does not exist with an investment in the form of overnight money. Because losses cannot generally arise, your capital is preserved. However, the rate of return can change because the interest on overnight money is based on current developments and market rates.
Foreign currency risk: Those who opt for a call money investment in euros avoid this risk.
Availability: Funds on call money accounts are available at any time without prior notice, such as in a savings account. However, no payment transactions can be processed via the overnight money account. The credit balance or part of it must first be transferred to the relevant reference account, usually the agreed current account, and can only be forwarded from there. So take into account the duration of the transfer.
How are the daily allowance’s efficiency, profit and benefits structured?
You can receive an interest rate based, among other factors, on the respective market interest rate, i.e. the credit institutions’ refinancing rate. The interest rate ranges from one entity to another and can be changed at any time by the banks. Look out and compare the criteria for exclusive deals!
BUT BE CAREFUL: after the efforts to gain new clients are finished, following such a business offensive, favorable interest rates will initially deteriorate dramatically.
What obligations do I have towards the bank?
You need a so-called reference account for all deposits and withdrawals from your call money account. The reference account is usually your normal checking account.
When and how quickly can I dispose of the overnight money?
At any time, you can move part or all of your credit balance to your bank-agreed reference account . Usually the money is available within one working day. When you have to reach a payment date yourself, you should take into consideration the delay caused by the length of the move.
Where can I invest overnight money?
Day money you can with a credit institution to create. You can get information and advice in the branches, online or by telephone from the respective provider . Think in advance how long and, above all, for what purpose you want to invest money. Due to the many different offers, it is not always easy to find the right call money account with the best return. So check the conditions carefully.
Who is the overnight allowance suitable for? Call money is suitable for customers who are looking for a more conservative, secure investment to preserve their assets with more attractive interest rates than with traditional savings accounts. Under certain circumstances, the overnight money can even offer a higher interest rate than the fixed-term deposit for a short time. For a longer-term investment, for example one year, the fixed-term deposit usually earns a higher intere