What Is a Notice Account?

A notice account is a type of term deposit without a fixed end date. Unlike fixed-term deposits, notice accounts do not have a predefined maturity. Instead, a notice period is contractually agreed upon between the bank and the account holder, typically ranging from 5 to 366 days. Once notice is given and the period has elapsed, the invested capital along with interest is paid out to the saver.

Similar to fixed-term deposits, funds in a notice account are not accessible until the end of the notice period. After that, the investor may choose to reinvest the amount in another savings product, such as a fixed-term deposit, overnight money, or ETFs. Alternatively, the payout including earned interest can be placed in a new notice account.

What Is the Difference Between Notice Accounts and Overnight Accounts?

The key difference lies in interest rates and accessibility. Notice accounts typically offer higher interest rates than overnight accounts but require a notice period between 5 and 366 days before funds can be withdrawn. Partial deposits or withdrawals are generally not allowed. At the end of the notice period, the full investment plus interest is paid out. In contrast, overnight accounts allow withdrawals within 1–2 banking days but usually offer lower returns. Despite the required notice, notice accounts provide a higher yield opportunity compared to overnight options.

Why Do Notice Accounts Have Notice Periods?

Notice periods exist to provide planning security for both savers and banks. Because the funds remain with the bank for a predictable timeframe, notice accounts often offer higher interest rates than overnight accounts. The longer an investor is willing to lock away their funds, the more interest they can potentially earn. Banks use this available capital to issue loans and earn interest themselves, which allows them to generate profit and pay out interest to the saver along with the original deposit at the end of the notice period.

How Does Interest Work with Notice Accounts?

Notice accounts are savings products with variable interest rates. Unlike fixed-term deposits, the interest is not locked in for the entire holding period. Instead, it fluctuates based on market developments as long as the funds remain in the account and no termination notice has been given. If interest rates rise, savers benefit from higher returns. However, if rates fall, the overall profit may decrease by the end of the notice period.

There are two types of interest agreements for notice accounts. The applicable type is agreed upon at the time of account setup:

What Is the Compound Interest Effect in Notice Accounts?

Some notice accounts allow savers to benefit from the compound interest effect. This occurs when interest is credited annually to the principal and then continues to earn interest itself. After closing a notice account, investors can easily open a new account via Allianz—ideally one with a higher rate. This strategy, known as interest rate hopping, reinvests both the original amount and the earned interest into a new product to maximize returns.

How Are Earnings from Notice Accounts Taxed?

Interest earned from notice accounts is considered investment income and is therefore subject to capital gains tax (Abgeltungssteuer) at a rate of 25%, plus a 5.5% solidarity surcharge and, where applicable, church tax.

German banks automatically withhold and forward the tax to the tax office. Since 2009, savers have benefited from the so-called saver’s allowance (Sparerpauschbetrag). As of 2025, individuals can earn up to €1,000 per year in interest tax-free, or €2,000 per year for jointly assessed couples. To take advantage of this allowance, a tax exemption order (Freistellungsauftrag) must be submitted to the bank or provider. The allowance can also be split across multiple banks and customized accordingly.

Some countries also apply a withholding tax, which is a tax deducted at source on investment income and paid directly to the relevant tax authority. The rate depends on local tax regulations and can range between 0.00% and 35.00%. Whether a withholding tax applies to your selected notice account can be clearly seen in the Allianz comparison table.

Minimum Deposit Amount for Notice Accounts

The minimum deposit for notice accounts typically ranges between €2,500 and €5,000, depending on the bank. Some banks may require a higher minimum deposit, while others offer more attractive interest rates for larger investment amounts. To compare notice periods, interest rates, and minimum deposit requirements, savers can use the notice account comparison tool on Allianz.

This allows you to quickly find the most suitable product based on your financial goals and flexibility needs.

How Secure Is Notice Money?

Like fixed-term and overnight deposits, notice accounts are covered by the EU-wide deposit guarantee scheme. This means that your funds are protected up to €100,000 per bank and per customer, including accrued interest.

How Can I Invest in a Notice Account via Allianz?

Allianz provides access to a variety of notice account offers from European banks. With just one registration, you can view all available products and compare them based on notice period, interest rate, and deposit requirements. Once you've found a suitable option, you can invest easily and securely through your Allianz account.

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Note: The content on this page is for general information purposes only and does not constitute tax advice. For detailed information or to clarify individual tax questions, we recommend consulting a tax advisor or another person qualified under § 2 StBerG.