Passbook savings account (Sparbuch)

For decades the Sparbuch (passbook savings account) was Germany's number 1 savings product. You went to the bank, paid money in, and the interest was entered in the little book. Simple, safe, familiar.

The problem today: savings books hardly pay any interest any more (often below 0.5%), have a 3-month notice period for amounts over €2,000 and offer no online banking. Overnight money accounts are better in almost every respect: higher interest, immediate availability, online access.

Conclusion: as an educational tool for children, a savings book can still make sense – the trip to the bank and the physical book make saving tangible. For serious saving, an overnight money account is the better choice.