Advance interest
Interest penalty are in banking , the bank charges that a saver the account-holding bank has to pay when it before the due date of its savings deposit will come.
General
Unlike the sight deposit, the savings deposit is not due on a daily basis and is therefore not available daily. Rather, credit institutions can grant the saver in the savings contract the right to dispose of a maximum amount of € 2,000 per calendar month without prior notice , provided the savings deposit has a notice period of 3 months. If the credit institutions allow a higher amount than the agreed amount to be disposed of in individual cases, or if the savings deposit is based on a different notice period, interest on advance will be charged. The calculation of advance interest is due to the fact that a savings deposit is not used for payment transactions , but for the accumulation of assets , which, however, can no longer be assumed in the case of frequent disposals.
Until June 30, 1993, there was even a statutory regulation in Section 22 (3) KWG ( old version) , according to which the debit interest (advance interest ) had to exceed the credit interest to be paid by at least a quarter. The legal obligation to calculate advance interest has no longer been upheld in Section 21 (4) RechKredV , so that the amount of the advance interest is now individually agreed.
The advance interest charged as a fee is a fraction of the agreed savings interest rate specified in the contract and is calculated for the period that exists until the end of the notice period. If the amount has not been canceled, the period is set to the full notice period.
A distinction must be made between the notice period and the notice blocking period, which completely excludes termination for a certain period of time.
example
The customer receives 2% p.p. on a savings deposit with a 3-month notice period. a. Interest, the interest rate set by the bank for the advance interest is 1/4 of the credit interest (= 0.5% with 2% credit interest). He has a maximum interest-free amount of € 2,000 per month.
The calculation is carried out like that of the interest according to the interest calculation (interest formula). This can be done using the so-called 90-day method or the exact day method.
- Credit interest: Z have
- Advance interest rate: Z before
- Advance interest rate factor: i before
- Amount charged on advance interest: K
- Duration (in days): t
(If the amount charged on the advance interest has not yet been cleared by the end of clearing, the remaining amount will be charged again by the end of the next clearing end. In the example, this applies to an amount over € 4,000!)
In the example here, the 90-day method is used for calculation: A customer has € 4,500 on his savings account with an agreed interest rate of 2.0%. After the money had been without disposal for 2 months, he would like to withdraw € 2,500 (without notice) on June 17th. The bank calculates interest for € 500. However, since the customer is again entitled to an exemption limit of € 2,000 in July, this € 500 is only calculated for the remainder of the month of payment:
In the next month, it should be noted that only € 1,500 allowance is left, as € 500 allowance was already used in June.
Some banks or savings banks do not take into account in the calculation that there will be another exemption limit of € 2,000 in the next month, and therefore generally count on 90 days:
Others
Since the advance interest is calculated like normal interest, the advance interest is strictly speaking not a fee, but a term-dependent penalty interest that is payable on an advance payment .
