Avoid penalty interest on bank deposits?

She has been losing significantly more money due to inflation for years than she will lose through penalty fees. But you just don't see that on the bank statement.

Just spread it across multiple accounts at different institutions. It can be sensible anyway because of deposit insurance.

She has been invested for decades and not just a little. The woman basically knows how to handle money, but this is a new situation for her. Still, thank you.

It's a simple economic calculation: How high is the penalty interest and how long will it be parked? 0.5% penalty on €200,000 results in a fee of €1,000 per year. A good hourly wage if you open a few accounts and spread it out.

It's a simple economic calculation: How high is the penalty interest and how long is it going to be parked? 0.5% penalty on €200,000 equals €1,000 fee per year. A good hourly wage if you open a few accounts and spread it out.

I would have said the same. Just split it. 3 German banks

Rent a safe deposit box (from 30 euros p.a.) and withdraw.

Rent a safe deposit box (from 30 euros p.a.) and withdraw.

By the way, I would have suggested that too, even though I am actually fully digital with money. In case of potential need for care, it would also have the advantage that the money could be declared as spent.