FVB Tagesgeld

Introduction

Frankfurter Volksbank Rhein/Main's FVB Tagesgeld differs from many other offers by paying a tiered rate based on balance size rather than a flat promotional rate. It is particularly suited to savers who want to deposit a mid-sized amount between EUR 5,000 and EUR 20,000 and value clarity about the actual return they can expect.

Interest Rate

The interest rate is tiered rather than a single flat rate:

• Up to EUR 4,999.99: 0.00% p.a.
• EUR 5,000 to EUR 20,000: 1.55% p.a.
• EUR 20,000.01 to EUR 100,000: 0.20% p.a.
• Above EUR 100,000: 0.00% p.a.

The most attractive rate of 1.55% p.a. therefore applies exclusively to the portion of the balance between EUR 5,000 and EUR 20,000. Smaller balances under EUR 5,000 earn no interest at all, and above EUR 20,000 the return drops significantly as well. This is not a time-limited new-customer rate, but a permanent tiered structure.

Terms

The tiered structure effectively defines a sensible deposit range of EUR 5,000 to EUR 20,000 to make the most of the account; the bank does not state an explicit upper limit for account management. The account can be conveniently opened and managed online, and there is no mention of a monthly account management fee. Notably, a checking account with Frankfurter Volksbank Rhein/Main is explicitly not required for the FVB Tagesgeld.

Pros and Cons

• 1.55% p.a. on the portion of the balance between EUR 5,000 and EUR 20,000
• No checking account with this bank required
• Convenient online account opening and management
• Permanent tiered rate rather than a time-limited promotion

Verdict

FVB Tagesgeld is worthwhile mainly for savers with a balance between EUR 5,000 and EUR 20,000, which earns 1.55% p.a. Anyone depositing less than EUR 5,000 receives no interest at all, and anyone depositing significantly more than EUR 20,000 will quickly see their average return shrink due to the lower rate on the higher tranches. For the right deposit amount, however, the account is a solid and uncomplicated choice with no checking account requirement.