As of: February 22, 2024, 4:00 p.m
By: Laura Hindelang
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Foreign banks often outbid domestic providers when it comes to interest rates on fixed-term and overnight deposits.
However, investing is not equally safe in every country.
You can also invest your savings abroad.
This can be worthwhile because foreign banks often offer significantly higher interest rates for fixed-term deposits and overnight deposits than local financial institutions.
However, investing money abroad can be associated with a number of pitfalls.
If you're thinking about opening an account abroad, you should primarily look at the creditworthiness of the country in question, recommends
Stiftung Warentest
in a current evaluation by
"test.de".
How safe are daily and fixed-term deposits abroad?
In principle, the security system of the respective country applies in other EU countries.
As a rule, fixed-term deposits and daily money accounts are insured for up to 100,000 euros per customer and bank.
However, investing in countries with poor credit ratings involves a certain amount of risk.
Creditworthiness refers to financial reliability when it comes to repaying debts.
According to the comparison.de
portal, this is
evaluated based on two factors.
On the one hand, mathematical models are used that evaluate the key economic figures such as the gross domestic product within a country.
On the other hand, the political situation and social stability are taken into account in the calculation.
A country's credit rating gives investors an indication of how safe the money is invested.
© Bihlmayerfotografie/Imago
The creditworthiness is indicated using a grading system from AAA (highest creditworthiness) to D (insolvency).
Countries that receive a poor rating may not be able to compensate for all damages in the event of a major bank failure.
If a credit institution goes bankrupt, the nation state usually takes over the security.
However, if the latter has to declare national bankruptcy, compensation can be difficult.
The difference between daily deposits and fixed-term deposits
With a current account, you invest the money in a specific bank at a variable interest rate.
You can access the money every day and make deposits and withdrawals at any time.
With a fixed-term deposit account, the money is invested over an agreed period of time.
The interest rates here are usually higher than for overnight money.
However, you cannot get the money before the end of the term.
The creditworthiness of the individual countries is determined by so-called rating agencies.
These evaluate how safe it is to lend money to countries, cities, companies or for financial projects.
The largest agencies are Standard & Poor's (S&P), Moody's and Fitch Ratings.
Safe savings tips can be derived from this.
Stiftung Warentest
only considers countries that have been awarded the highest rating (AAA or AA)
to be so stable that investors could be compensated as quickly as required by EU law in the event of a major bank failure.
Countries with good and bad credit ratings
According to the financial portal Trading Economics, the countries with the highest creditworthiness are:
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Denmark
Germany
Liechtenstein
Luxembourg
Netherlands
Switzerland
Norway
In addition to Ukraine and Russia, the countries with the worst credit ratings are:
Moladvia
Bosnia and Herzegovina
Türkiye
Montenegro
Albania
San Marino
North Macedonia
There is increased risk for investors in these countries.
If the economic situation worsens, payment defaults may occur in these nations.
Stiftung Warentest
also advises against Spain (rated A) and Italy (rated BBB).
If you concentrate on the countries with the top ratings, you can save money with relatively little risk.
Would you like valuable money-saving tips?
Merkur.de's “Clever Save” newsletter always has the best money-saving tips for you every Thursday.
Investing outside of Europe can involve even greater risk.
It is therefore absolutely necessary to find out about the deposit insurance of the respective state before opening an account.