More than 100 regional and supra-regional banks offer credit and investment products. The interest and conditions for the customers are very varied and therefore almost unmanageable. The reasons for the different bank interest rates lie in the cost structure, which is different for each bank, and in the different refinancing options on the capital market. Bank interest on loans is not only based on the situation on the interest market, but also on the personal creditworthiness of the bank customer. Customers with very good credit ratings can get a loan from their bank with particularly low interest rates.
Credit and investment interest
With a personal installment loan of over 20,000 dollars, an interest rate differential of 1 percent results in savings of around 600 dollars over a period of 6 years. With a building loan that is taken out over 100,000 dollars and more, builders can save even more with an interest rate differential of 1 percent. Due to the particularly long terms of mortgage lending of 25 to 30 years, every percentage point saved means cash. In contrast, the interest for financial investments is not linked to the creditworthiness of the investor. They apply to all investors to the same extent. Depending on the type of investment, investors can also receive different interest rates from the banks. The interest offers depend, among other things, on the duration of the investment and the amount of the investment.
For example, there may be interest rate differences of up to 3 percent for popular overnight money. There are differences in credit and investment interest, especially between traditional branch banks and the new direct banks, which mainly offer their products on the Internet or by telephone. They work more cost-effectively and can pass the savings on to customers, while the big banks have to maintain and pay for an expensive branch and personnel network. Before taking out a loan or deciding to invest, it is worth comparing interest rates. These are offered by numerous websites on the Internet and are usually free of charge. After entering a little data, several offers are listed, which also show the interest income from an investment or the interest cost of a loan.
What you need to know while comparing the loan
When comparing loans, the desired loan amount and the term in months are sufficient. When comparing financial investments, the investment amount and the desired investment duration are sufficient. If an offer is particularly interesting, you can click directly on the homepage of the provider bank. The loan can then be applied for immediately or the investment account opened directly. When comparing interest rates on the Internet, it is also worth looking at special offers. For loans, for example, it makes sense to take out a loan that is granted without processing fees. When investing, the focus on offers for new customers of the respective bank is worthwhile. You then usually grant an interest bonus that is only valid for a certain time. The comparison pages for interest also offer additional information, for example about a possible minimum investment amount for investments or about collateral for loans.