Current interest
The current interest rate is a technical term from the insurance industry and is related to profit sharing in life insurance . It denotes the sum of the current profit participation and the guaranteed interest rate and is usually declared annually by insurance companies for the following calendar year. If the declared current interest rate is below the guaranteed interest rate of a contract, the insurer pays the contractually agreed guaranteed interest rate. The current interest relates to the savings portion that the insurer pays after deducting acquisition and administrative costs as well as a contribution for risk protection (usually death or occupational disability). The current interest plus the terminal bonuses are referred to as the total interest . The two key figures are usually announced by companies in the last quarter of a year for the following calendar year. Many life insurers are orienting themselves towards Allianz Lebensversicherung as the market leader in Germany.