German Banks and Experts Advise Keeping Only 1–2 Months of Expenses on Giro Accounts
Excess cash belongs in interest-paying Tagesgeld accounts, with a separate three-to-six-month reserve.
Overview
- Sparkasse Leipzig underscores that giro accounts are designed for everyday payments rather than long‑term savings.
- Advisers including Finanztip and financial planner Marci Bair say account holders with steady income should hold only one to two months of spending in their giro account.
- Emergency funds should total three to six net monthly salaries and sit separately on an interest‑bearing Tagesgeld account, not in term deposits or securities.
- Illustrative benchmark: with €2,000 in monthly costs, keeping €2,500–€4,000 on the giro account is sufficient, with any surplus shifted to Tagesgeld for yield and immediate access.
- Statutory deposit insurance covers up to €100,000 per person and bank, so larger holdings should be spread across institutions, while Deutsche Bank survey data show typical balances range from about €1,400 to €4,200 by age group.