The best interest rates are often found outside Germany. It is not uncommon for foreign banks to offer more attractive conditions for fixed term deposit accounts than domestic institutions. However, we only recommend investing in countries whose economic strength reaches the top rankings of the three leading rating agencies. Anyone who has found a safe bank abroad and transferred their savings to a term deposit account must report this to the Deutsche Bundesbank if they invest more than 12,500 euros and for more than twelve months.
Violations of reporting obligations will be subject to sanctions
The background is the AWV reporting requirements originating from the Foreign Trade Ordinance (Article 67 AWV). This in turn is based on the Foreign Trade Act (AWG). Reports on fixed-term deposits and other transactions are needed to compile balance of payments and international investment statistics. Therefore, this may be referenced in account statements following transfers from or to other countries. Anyone who ignores the reporting obligation commits an administrative violation. Violations are punishable by up to 30,000 euros.
Who and what must be reported
Incoming and outgoing payments of 12,500 euros or more or equivalent value in another currency must be reported. According to the Bundesbank, this applies to transfers, cash payments, payments by direct debit and check as well as the transfer of property and rights into the company. This means that investments in foreign credit institutions in the form of fixed term deposits are also affected – but only for terms longer than twelve months. Investors do not need to report overnight funds.
Our advice
Report. You only need to report financial transactions with foreign banks if the amount exceeds 12,500 euros. You only need to declare an investment in a fixed term deposit account if the contract runs for more than twelve months. You do not need to report daily allowances.
Deadline. To avoid penalties, inform the Bundesbank no later than the seventh calendar day of the month following the transaction.
Comparison. If you want to invest with interest, use our comparison to find the best interest rates for call money and fixed term deposits.
Also with an interesting portal
Anyone who invests money through interest portals must also report it themselves. According to Weltsparen, the name of the sender and recipient, amount and currency, reason and purpose of payment as well as the date of the transaction must be reported. This must be done no later than the seventh calendar day of the following month, or no later than the fifth calendar day for securities.
Report to the Bundesbank by telephone or online
Individuals can simply call for free: Monday to Friday from 9 am to 3 pm on the telephone number 0800 1234 111. However, this number can only be called from German landlines.
Online reporting is carried out in the following steps: 1) On the Bundesbank website, select the “Services” menu item and then the “Reporting” item. 2) Click on “Foreign Trade”. 3) Click on “General Reporting Portal Statistics”. Here you will find the option to register (“initial registration” or “report submission”). Bundesbank recommends registering if you report more frequently. If you do not know your registration number, you can request it by email – AMS@bundesbank.de – or by telephone on 069 956 637 707.
What exceptions apply?
Excludes, among other things, payments on loans and fixed term deposits with a term of up to twelve months. Payment for goods ordered overseas does not need to be reported. Customs is responsible for this.
