Expensive Loans: The Disposable Interest is always high

According to the PRT in the top flight: Commerzbank reached with a disposable interest rate of 13.25 percent vigorously
If the account is overdrawn, the interest rates are usually double figures. The problem of high Dispo interest is not new, but very obvious in the current low-interest rate environment. Particularly expensive are large banks – but there is also the favorable provider.

W he draws his account must dig deep into their pockets – and that despite the generally favorable interest rate environment. The so-called Disposables and overdraft charges are barely fallen over previous high-yield times. Savers, however, get well meager returns. In the height of their lending rates, many institutions, however, differ significantly. It’s worth comparing.

Disposable loans are the most expensive loans form at all – except perhaps for the loans, which are sealed in smoky gambling dens with shady characters. In Germany, bank customers must currently pay an average of 11.3 percent annually to MRP interest if they fall into the red with their account. This value is obtained from the rates of 60 financial institutions that monitor the FMH financial advice.

Dispo interest: The robber’s banks
The MRP rates have barely fallen
Exceeds a customer beyond the agreed with the bank limit, it, therefore, covers its line of credit, then comes again an overdraft interest rate of 4 to 5 percent on top of it. In sum, a rate of almost 20 percent may be payable for such overdraft. By comparison, for an installment loan with the term of 36 months, German bank customers will have to pay an average of only 7.1 percent in interest.

Especially large well-known institutions long apparently too strong. According FMH are Commerzbank and Frankfurter Sparkasse with a disposable interest rate of 13.25 percent in the leading group, followed by Postbank with 13.16 percent. However, the most expensive Targobank, formerly Citibank. Here 13.99 percent are calculated annually for each negative euro-cents on the current account. but the comparison is worthwhile even within a bank. “The Targobank calls for another checking account only 10.05 percent, even less than the average,” says Max autumn FMH. The range as a whole is very large. There are more than ten banks, which charge a Dispo interest of less than 10 percent. The German Skatbank requires nationwide only 6 percent.
“As a reference for the calculation of the MRP interest rate of prime rate of the European Central Bank or the money market rate Euribor can serve,” says Herbst. Since May 2009, the key rate in the euro area is one percent. Banks can also leverage at the European Central Bank raise as much cheap money as they want (ECB). But the MRP rates have barely fallen and have moved over time more and more of their reference rates gone. Ten years ago, the ECB’s key rate still stood at 4.75 percent. The average disposable interest at that time was similar as it is today.
Banks and financial institutions defend the high-interest rates.
The problem of high Dispo interest is not new, but especially in the current low-interest rate environment particularly striking. Since June 2010, the Consumer Credit Directive of the EU, which requires at least more transparency in the setting of interest rates applicable in Germany. A cap on the interest rates on overdraft does not exist. “Although some movement has come into the market, the MRP interest rates are too high across the board, often outrageous,” says Holger Handstein, financial expert of the consumer center North Rhine-Westphalia.
In politics, there is resistance. Institutions could interest rates, although no longer increase arbitrarily, according to a small request of some Members and the SPD to the federal government for excessive Dispo interest. Because of the historically low-interest rates but a further rise in interest rates on overdrafts is possible with rising reference interest rates. Interest rate agreements are price agreements and could be taken in principle autonomously by the parties, according to the response of the federal government. It will, however, monitor the development repricing of preparing any become necessary legal regulations carefully.
Banks and financial institutions defend Meanwhile, the high-interest rates. “Disposable loans are relatively expensive for the banks because they have to maintain liquidity flexibly ready,” says Central Credit Committee, where the five central associations of the German banking industry are united: “We do not know when the credit is claimed and not know when he will be returned. “in addition, the equity and risk costs were higher than secured loans and the administrative cost is greater. Even consumer advocates acknowledge the need for higher Dispo interest because of these loans for the banks more difficult to calculate and are more expensive than others. “But that does not justify that interest rates are like now so high,” says Hanstein.