A significant number of Germans are unaware of the concept of negative interest.
In the current financial landscape, German savers are grappling with low-interest rates, with the European Central Bank (ECB) maintaining a deposit rate of 2.0% as of July 2025 [1]. This environment, marked by declining interest income and occasional negative rates, has led many Germans to explore alternative investment avenues [4][5].
A recent survey conducted among 2,055 German adults by Visualvest sheds light on the public's understanding and response to this financial climate. The findings reveal that a considerable proportion of Germans (65%) express anger at the thought of paying penalty interest rates, which usually apply above a certain threshold, typically €100,000 [6].
However, the survey also highlights a degree of ignorance about negative interest rates, particularly among young Germans (ages 18-34) and female respondents. Approximately 43% and 41% of these demographics, respectively, admitted they did not understand the concept [2]. Despite this, 14% of respondents acknowledged that their bank was charging or had announced negative interest rates [3].
Interestingly, one in three Germans (33%) are unaware of the financial term 'negative interest rates' [3]. Furthermore, after being informed about negative interest rates, 27% of respondents remained unsure if they were paying them at their bank [3].
In response to the potential application of penalty interest rates, almost three out of four respondents (72%) would either switch banks or spread their money across multiple accounts to keep the amounts low [7]. However, 16% of respondents choose not to change banks due to complexity and lack of alternatives [8].
German savers prioritise quick access to their money, high security, and low costs [9]. Among those who would consider investing some or all of their checking account money in securities, only 18% were identified in the survey [10].
The survey also revealed that the prospect of potentially paying penalty interest rates makes 59% of Germans fear a reduction in their savings [11]. Among male respondents, 19% admitted they were unaware of negative interest rates [12].
A significant number of Germans (59%) fear that penalty interest rates will reduce their savings [11]. However, it's worth noting that 14% of respondents understand that banks might pass on the negative interest rates they have to pay to the European Central Bank [3].
These findings underscore the need for further targeted surveys or studies to gain a more comprehensive understanding of the comprehension and behavioural responses among young and female German savers to negative interest rates.
In the context of exploring alternative investment avenues due to low-interest rates, some Germans might consider diversifying their personal-finance portfolios, as many are interested in understanding the concept of 'other finance' such as negative interest rates [3, 11]. However, it appears that a significant portion of young Germans and female respondents need further education on 'personal-finance' topics like negative interest rates [2].
