It is an almost annual phenomenon: With the beginning of spring, many lower banks , the interest rates for loans to boost the buying mood of consumers. At the same time, the interest rates for overnight and time deposits are rising – again, the goal is to win new customers. Although this business policy is usually to the detriment of the company’s own margin , as the Financial Times Germany recently noted, is running just against the background of the current dazzling consumer sentiment a fierce battle of financial institutions for the favor of new borrowers and deposit savers.
The main beneficiary of the ongoing competition for even more attractive interest rates on installment loans and time deposits is the consumer itself, at least in this current spring rally: for example, the effective interest rates on consumer loans with a 36-month maturity have fallen from 7.31 to 7.22 per cent since September 2010. At the same time, the rates for fixed-term deposits with a twelve-month term rose from 1.3 to 1.6 percent. This is the result of calculations by the renowned financial consultancy Max Herbst (FMH) , whose consumer indices are also a valuable orientation aid for many banks.
Some credit institutions are promoting consumers’ increased willingness to spend at interest rates that until recently were mostly reserved for consumers with the highest credit rating. In addition, more and more providers are beginning to stagger the interest rates of their credit products by the credit score of each individual customer, but to provide equal conditions for all borrowers.
An example: The credit-independent effective interest rate for the car loan of ING-DiBa was only a few days ago reduced from 5.85 to 5.25 percent. This is the cheapest rate of interest for this form of auto financing for 20 years. The deposit rates were also increased by many banks, in some cases significantly: at SWK Bank, for example, there are currently for deposits from 10,000 euros with a term of 72 months, a whopping four percent.
All in all, a comprehensive check of the current offers is now worthwhile for many consumers : Independent loan calculators on the Internet enable a quick yet reliable comparison of all eligible loans and time deposits. For too long, but consumers should not let more time: the competition-driven spring boom in interest rates is over quickly, and a general rise in interest rates by central banks with all their then probably following negative implications for the credit – the market can no longer be probably to Santa Never move.