Prepayment Penalty for Loans vs. Current Interest Earnings

Hello forum members,

the following scenario:

A loan of 140k from 2018 with a 15-year fixed interest period and 1.67% interest, 3,x repayment (I don't know exactly). Due to special repayments (max. 14k annually possible), only about ~86k is currently outstanding. Let's assume we have 86k in the account to theoretically redeem the remaining debt. According to the loan contract, the settlement in case of early repayment is done according to the Aktiv-Passiv method. Is there currently any interest loss on the part of the bank to be claimed if the credited investment form is more lucrative? We estimate the administrative fee for the act itself at a flat rate of €750. What do the bankers among you say about the issue of the bank’s interest loss and the amount of the administrative fee for this process?

Does it even make sense to redeem the loan or is it better to invest the money with the bank at 3.2% fixed for 5 years (then the first termination right exists – after 10 years)? Due to joint assessment, the double exemption amount for capital gains tax applies and there are no other interest earnings otherwise. I have the feeling that I am forgetting something (serious) in the calculation, which is why I am asking the question here.

Thanks in advance for your suggestions/answers.

Invest the amount for 10 years (until the end of the loan term) at a fixed rate and then repay it directly, and enjoy the few thousand euros you earned more in interest than you paid.

Between 5 years and 10 years investment duration, there is only a small 0,x % difference and of course I want to get rid of the monthly "burden" as soon as possible to make the money available for the [house loan]. The interest rate here is 1.3%, which is why I naturally want to repay the [land loan] first.

Does it even make sense to pay off the loan or is it not better to invest the money for 5 years

No, better not to invest for 5 years. Do it only for one to two years until the investment interest rates have risen further. For two years, you can already get about 3%!

And regarding the VE: Currently, costs between 500 and 1,000€ are due. No more. If the bank even accepts the money at all. It is not obligated to do so.
And I think the mentioned asset-liability method (also stipulated by the BGH) only applies in the case of a justified repayment = sale. In the case of voluntary repayment, the bank may add a price at its reasonable discretion.

We are fully aware that the bank does not have to accept the termination without a special reason. The consideration was rather: Why should the bank lend someone money at 1.67% when it can easily get 3-4% at the moment. That is why I thought they would probably accept the repayment comparatively easily.

As you already say, you have no right to terminate, so any further consideration is obsolete without the bank's willingness.