Change repayment rate - bank now requires new documents

That is no problem at all. That's exactly how I do it. It is true that the offers with the highest interest rates often have minimum deposits of €5,000-20,000, but compared to the other offers starting at €500, the difference is currently 0.1%. Just took a quick look: 1-year term, €100 minimum deposit, 4.41%, deposit protection €100,000. Alternatively, €1,000 minimum deposit, 4.51%.

Yeah, if you feel like it, it's definitely doable.

Although, your interest rates do surprise me a bit, too high for Germany, too low for abroad?!

My mixed interest rate is 1.64% and I do it so that the special repayment is accumulated in the daily allowance, which currently pays 3.7% interest every month, and at the end of the year the special repayment of the loan is made. That means I always take a little daily allowance interest with me and have a good feeling because my loan is getting smaller alongside the monthly 6.4% repayment.

That of course works as well. It is basically the "light" variant; you just lose the compound interest effect.

I took the trouble to calculate the possible savings, but I am not quite sure if they are correct. Unfortunately, I am also a layman.
Please could someone take a look to see if this could be right.



The savings appear to be quite high, at least if you assume a fairly high repayment rate, strongly reduce the repayment, and all the money earns full interest and compound interest.

Yes, the calculation is correct apart from capital gains tax. Assuming that interest rates remain stably high for that long, the savings over the long term would indeed be very high and you could then make a good extra lump sum special repayment with the difference sum at once.

In the end, I have decided against changing the repayment rate for now because I want to observe the market a little longer. At the moment, most daily allowance account offers are time-limited with > 4% and maybe the conditions will get even better if you wait. It is definitely an exciting and also hotly debated topic ;) Thanks in any case for the exchange so far!

I am currently facing the same situation. Can you tell me how it turned out for you?

I am currently facing the same situation. Can you tell me how it turned out for you?

In the end, I didn't pursue it further because it's unclear how interest rates will develop over the next few years. Theoretically, you could adjust the repayment rate more frequently to account for this, but at some point the bank might get fed up or want to verify/reassess certain matters, and then you end up shooting yourself in the foot. In the end, I'm just too much of a coward.

In the end, I didn't pursue it further because it's unclear how interest rates will develop in the coming years. In theory, you could adjust the repayment rate more frequently to account for this circumstance, but at some point, the bank might get annoyed or want to verify/reassess certain facts, and then you shoot yourself in the foot. In the end, I'm too much of a coward.

Ok, so you called the bank and revoked the whole thing? Was that then settled?

I didn't follow it further in the end because it's unclear how the interest rates will develop in the next few years.

In the end, it doesn't really matter. The moment the overnight interest rates + tax <= loan interest rates, you can immediately start making special repayments again.