Overnight money account
In banking, a call money account is an interest-bearing account without a fixed term , which is used exclusively for financial investments and the account holder can use any amount of their credit on a daily basis.
General
Call money accounts, like sight deposits, are due on a daily basis , but unlike sight deposits they are used exclusively for financial investments and always earn interest. Credit interest is credited at certain time intervals (end of quarter or end of year ), the amount of the interest rate - in contrast to a fixed-term deposit - is not fixed for a certain period of time, rather it changes as a variable interest rate due to the current market development . The account is managed as a pure credit account and cannot be overdrawn . It is also not intended for general payment transactions .
interest
The interest rate specified for a call money account usually refers to a year (Latin pro anno, per annum , abbreviated p. A. ). Depending on the provider, the interest is credited at different time intervals: monthly, quarterly or annually. The shorter these intervals, the more noticeable the compound interest effect. However , this effect is negligible when interest rates are low .
Naturally, the amount of overnight interest depends on the key interest rate (more precisely: the main refinancing rate ) of the European Central Bank .
The interest on a call money account is usually significantly higher than that of a classic savings book . This is partly because many money market accounts solely as online account offered and thus the administrative costs decline, which can then be passed on in the form of higher interest rates to customers. On the other hand, the offensive marketing of many credit institutions can be named as the cause, trying to win new customers with (at least temporarily) favorable overnight money conditions. Sometimes a call money account can only be opened together with a current account and / or a deposit account .
Change in interest rate
The bank may change the interest rate on a daily basis ( interest escalation clause ). This is how a call money account differs from a fixed-term deposit that fixes the interest for a certain period of time. The customer buys the possibility of having his money at his disposal every day by foregoing a guaranteed interest rate.
Occasionally, banks guarantee new customers a fixed interest rate for a certain period of time (usually three to twelve months). After the guarantee has expired, interest is paid on the credit at the then usual interest rate.
Availability
The credit on a call money account can be accessed on a daily basis. This means that part or all of the balance can be transferred on any bank working day .
A transfer is often only possible to a previously specified reference account (usually the current account). The transit times for electronically submitted transfers are set by law and must reach the payee within one business day. Only then can the amount z. B. withdrawn or transferred.
Occasionally there are also offers from institutes that equip a call money account with a bank card ( Cirrus from Mastercard or PLUS from Visa): This can then be used to access the balance at an ATM . A payment function similar to that of a girocard (formerly an EC card) is also excluded here.
Notice periods
By definition, there are no notice periods for call money accounts.
Occasionally institutes use the term “call money” in connection with products that are actually not call money accounts at all, but rather represent modern savings books: Direct banks in particular offer savings books that offer high interest rates, similar to overnight money accounts, but on their credit like a classic savings book can only be used daily within a defined framework. If this is exceeded, advance interest will be charged .
Tax allowance
Investment income , including the interest on a call money account, must be taxed. The final withholding tax is 25%, plus the solidarity surcharge and, if applicable, the church tax . With an exemption order , the bank can be exempted for income up to a certain amount from the otherwise automatic payment of the withholding tax. As a result, slightly higher income can be achieved, as part of the interest is not “dormant” for a while at the tax office until the tax is refunded, but instead continues to earn interest immediately.
Deposit insurance
Like all bank balances , call money accounts at German credit institutions are at least subject to the statutory deposit protection and often also to the voluntary deposit protection of individual banking associations. According to Section 4 (2) No. 1 of the Deposit Protection and Investor Compensation Act (EAEG), deposits of up to € 100,000 are guaranteed, which are paid out in the event of compensation if a bank is unable to repay deposits under Section 5 EAEG. Deposits within the meaning of the EAEG are (to put it simply) credit balances with banks that arise in the course of the bank's business activities and are to be repaid by the bank on the basis of legal or contractual provisions. This also includes claims that the institute has securitized by issuing a certificate, but not bearer and order bonds. This provision also includes sight and call money deposits. In addition to this statutory deposit guarantee, the individual banking associations have an additional deposit guarantee that goes beyond this amount. The credit institutions are legally obliged to provide information about the type and amount of deposit protection if their customers reveal a particular interest in the nominal security of an investment.
Since deposits on call money accounts are subject to deposit protection, they are gilt-edged according to § 1807 BGB . In the EU , the statutory deposit protection limit has been 100% of the deposit amount since June 30, 2009, up to a maximum of € 100,000.
In addition to the minimum legal requirements, banks in many countries offer additional security. In Germany, these are the deposit protection funds of the respective banking associations, which protect customers' deposits far beyond the legal requirements. However, bank customers do not have a legal right to compensation, which means that security can be made cheaper and easier (otherwise it would be an insurance company with stricter and more cost-intensive regulations).
Compared to other private accounts
The overnight money account differs from other accounts for private individuals in a few ways:
- A fixed-term deposit account can usually only be canceled on a certain date , otherwise there may be a risk of an interest discount. But it offers u. U. a higher interest rate.
- A savings book or account typically only has a limited monthly availability limit and typically has to be canceled with a period of three months' notice in order to have credit that goes beyond this. In addition, the interest on savings accounts is usually lower.
- In contrast to the current account, the overnight money account is intended for investing money and not for processing payment transactions . Transfers are therefore usually only possible to a specific reference account (usually a current account), in return it offers more interest than this.
Effects on the money supply
Call money accounts have no term and are due daily; they therefore belong to the sight deposits of the money supply M1, which is a subset of the money supply M2. In contrast to this, savings accounts are so-called savings deposits ; that is, they have a notice period of usually three months and are therefore part of the M2 money supply, but not the M1 money supply. The switching of funds from savings books to overnight money accounts only changes the money supply M1, the other money supplies M2 and M3 remain unaffected. Such a reallocation process therefore has no impact on the monetary policy of the central banks.
Individual evidence
- ↑ ARD-Börsenlexikon: Tagesgeldkonto ( Memento of the original from October 4, 2012 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. , accessed September 28, 2012
- ^ BGH, judgments of July 14, 2009, Az .: XI ZR 152/08 and XI ZR 153/08
- ↑ Banking Association: FAQ Deposit Protection (accessed on May 14, 2013)
