What is interest, and where can attractive income opportunities be found?
What percentages are currently (as of 2022) offered?
- Giro account, approx. 0% to 0.10%, often even negative interest rates;
- Savings account, approx. 0% to 0.15;
- Call money, approx. 0% to 0.20%;
- Time deposit, approx. 0% to 1.50% ;
- German government bonds – “In January of 2022, the yield on ten-year German government bonds averaged about -0.06%. This is an increase of almost 89% compared to January of the previous year. At that time, ten-year federal bonds were still yielding around -0.53%.” (Statista, 2022);
- First-class bonds, achievable bond interest rates depending, among other things, on the maturity & default risk of the issuer (approx. 0% to 3%);
- High-yield corporate bonds (interest rates of approx. 4% to 9%): This is where it gets interesting for investors looking for an attractive alternative to stocks. For over 20 years, Genève Invest has specialised in high-yield corporate bonds.
Genève Invest focuses on corporate bonds
- Dates (distribution days) on which certain amounts of interest income flows into the account;
- An overview for each quarter and for the entire year
- In addition, each client receives further information on the issuers, the interest yield, the investment amount, the purchase price and the maturity of each bond.
The deposit rate & lending rate briefly defined
But there is yet another interest rate
Development of the European Central Bank's interest rate for the main refinancing operation from 2008 to 2022 (Statista, 2022):
Date: April 2022
You need to invest your money strategically! Corporate bonds & stocks can offer attractive interest rates & returns.
Inform yourself about attractive investments & interest rates!
The interest rate significantly determines the return on a financial investment. In principle, the higher the interest rate on an investment, the higher the return. Of course, the same also applies in the reverse case.
In the case of an investment in a savings account, a fixed-term deposit or a term deposit, the relationship between interest rate and return is easy to understand. The interplay between interest and return is somewhat more complex when investing money in a fixed-interest security, a bond. For in addition to the pure interest rate, the following factors also come into play:
- The maturity (or remaining term);
- The price development of the bond;
- The frequency of the interest coupon, i.e., the interest payments
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