Tagesgeldkonto - instant access saving accounts

Dear Friends,

Please share your views regarding Tagesgeldkonto:

I already know the advantages of Tagesgeldkonto as:
1. High Interest rates
2. Money is avalilable anytime means no Kündigungsfrist

But I would like to know if there are some disadvantages of keeping money in Tagesgeldkonto instead of Sparkonto (Saving account).

Thanks,
Ramsam

Main disadvantages are that it is sometimes not easy to move money in and out (sometimes needs your personal intervention - e.g. a visit to the bank) and that interest rates vary continuously so you need to keep on top. Watch out for annual interest calculations rather than monthly or quarterly. With rates from some institutions currently exceeding 4-4.5% these accounts can be very attractive.

So if it says it's an "online tagesgeld konto", then most probably, no personal intervention (eg visit to the bank) is required? Am I right to say this?

Comdirect have a very good ONLINE Tagesgeld Konto which you can also combine with a free current account. 3,8% for instant and unlimited access is quite good. I think there was/is an offer of 4,5% for the first 6 monts.

Yeah, and if you do have the comdirect current account as well, it doesn't take the usual 3 days to transfer between the two - more like minutes, or at most hours.

GE-Moneybank offer 5% on their Tagesgeldkonto guaranteed for one year at the moment.

here is a website where you find a good overview about what is being offered for "Tagesgeld" accross Germany right now.
http://www.tagesgeldvergleich.net/tagesgeldvergleich/

One word of caution, though: if the ammount of money you want to park in such an account is higher then 20k EUR, make sure that the bank is covered with some "Einlagensicherungsfonds" for the amount of money you want to park there in excess. The Iceland bank "Kaupthing" is currently collecting cash like crazy on the European mainland with high interest rate, but Iceland is undergoing a major bank crisis and there are circles in the finance sector who even believe a bankcrupt of the countries central bank (which backs up the three major Iceland banks) for possible, so you might want to be cautious about this with higher amounts...

Cheerio

Thank you all for sharing.

If a tagesgeld account can give 4% to 5% int rate p.a, for a guaranteed 6 mths, then it's better to put money there than the festgeld accts that offer also about the same int rate but the latter being locked, right?

I'm trying to understand all the basics of a Tagesgeld account and so far I have this:

• Expect to be able to withdraw the full amount when you want.
• There should be no account charges
• Expect current offers of about 5%
• Interest rate will vary. So keep an eye on yours, plus new offers at other banks
• Some guarantee 6 months at the offer rate for new customers. Then it drops to a lower rate.
• Some give you the offer rate only on the first 30.000. If you put in more, the rate is lower.

Can anyone add to my list?

This offer looks quite good for 6 months. But only put in 30.000 to get 7%. Put in any more and that gets only 4%

I presume you realise that the account you are looking at with DAB is not a simple Tagesgeldkonto, but a Depotkonto with Tagesgeldkonto associated for funds not invested in shares?

Hmm. Yes. I didn't think that would matter.

You didn't? Hmmm...