These framework conditions are primarily conditions that affect the total cost of a loan. These include the following factors:

As a rule, these loan terms differ significantly from bank to bank. Nevertheless, these factors are subject to various legal regulations. For example, banks are obliged to state at least the borrowing rate, the net loan amount as well as the annual percentage rate of charge for promotional offers (§ 6a para. 1 PAngV). It must also be transparent, which costs and fees flow into the annual percentage rate.

In addition, although the German Civil Code (BGB) does not specify a permissible amount for interest, it has been determined that interest-bearing usury is void. Thus, if the burden on the borrower and the lender’s performance are conspicuously disproportionate – and in favor of the lender – it is a usury-like and therefore immoral business.

Credit comparison shows favorable conditions

Credit

Especially in terms of interest rates, it makes sense to make a comparison. As a result, you will not only find the best possible conditions but also recognize when a loan is clearly too expensive.

Determination of loan conditions

Determination of loan conditions

The loan conditions are usually determined by the individual banks. As credit institutions incorporate different factors into their calculations differently, conditions may differ greatly. In addition, not every bank charges account maintenance fees or other additional costs, which further influences the differences.

Amount of the conditions

Amount of the conditions

To determine the number of loan terms, there are several factors to consider:

  • The creditworthiness of the applicant
    The creditworthiness of the applicant is also an important aspect. The better the credit rating is rated, the cheaper the loan will be. On the other hand, customers with a bad credit rating, possibly resulting from negative SCHUFA entries, must expect higher interest rates.
  • running time
    Short-term loans are usually rewarded with lower interest rates: when a loan is granted for a two-year term, the risk to the bank is much smaller than the borrower can not pay his installments. However, if a loan runs for over ten years or more, it can be expensive for the borrower.
  • fees
    Usually, account and processing fees are charged. Since these are included in the annual percentage rate, the credit can be more expensive. In a conventional installment loan, the fees are usually one to three percent of the total. A building loan often sets a flat rate. In addition, for larger loans, there are often provisioning fees, which have to be paid additionally.

For most banks, however, the fees are negotiable, since neither their design nor their amount is legally defined. Some banks also engage in negotiations on interest rates. Often there are also actions on the internet where credit institutions do not pay fees or other incidental costs.

A renegotiation of the terms should be made in any case, if the fixed interest period expires soon. Even if market rates are at a relatively low level, rescheduling should be considered.

useful information

Nowadays, potential borrowers find countless loan offers on the Internet – so it’s hard to keep track and quickly find a suitable, serious offer. That’s why a credit comparison is always worthwhile. So you have the opportunity to compare the offers of various credit institutions and to look for the appropriate loan- financial reports.

You can recognize a reputable comparison calculator by listing a large number of banks and offering the opportunity to individually adjust all important loan conditions. In addition, a good loan calculator is always free and can be used without obligation. Pay attention to these aspects before starting the comparison.

For a comparison of the loan conditions succeed, you should also pay attention to the following points in the individual conditions:

  1. Effective and nominal interest rate
    Make sure that the effective interest rate is shown next to the nominal interest rate. The former is the pure interest rate, the latter, however, includes all ancillary costs.
    Nevertheless, take the nominal interest rate into account and use the market interest rate as a guide. It is advisable to find a loan, the interest rate of which is not too much above market level.
  2. unscheduled
    Check whether you can arrange special repayments with the respective bank. This gives you the opportunity to repay a higher amount in the meantime, for example, if you receive money through an inheritance or life insurance.
  3. processing fees
    In any case, make sure that the processing fees are not too high. Here, the comparison is worthwhile, because you can weigh the fees of different banks at a glance against each other.
  4. Start and amount of repayment installments
    In particular, the initial repayment should be as high as possible, so that you can pay off the loan as quickly as possible – but this also applies to the current repayment installments. But keep in mind that the repayment rate is a monthly charge: do not apply it higher than your income allows.
  5. Amount of commitment interest
    Deployment rates are not required by every bank and not every loan. However, adding them to the total cost can be expensive. So check which banks charge interest and what the interest rate is.
  6. running time
    A well-chosen term can provide a relatively cheap loan. The maturity should not be too short, especially for large sums – otherwise, there is a risk that interest rates will rise during this period, making subsequent financing more expensive. However, it should not be too long: the longer the term, the higher the risk for the bank that you may not be able to pay your installments. Accordingly, the interest rates are also adjusted upwards here. For classic installment loans, therefore, a time between two and five years is usually chosen. Finally, make sure that you can carry the monthly burden over a longer period of time.
  7. Possible discount
    A discount is a discount from the face value. The loan amount is not paid in full – the money retained by the bank acts in principle as a prepaid interest. As a result, the interest costs and thus the credit can be made a little cheaper.
    However, many experts recommend this procedure only if the borrower can deduct these costs from the tax in the payout year. In the area of mortgage lending, however, this is only possible if the property is not used by itself but rented or leased.

Loan conditions: direct banks vs. branch banks

Loan conditions: direct banks vs. branch banks

 

Borrowers always have a choice between direct banks and branch banks when applying for a loan – the difference is that while borrowers at branches in a local branch apply for a loan and deal with a contact person, this process is carried out completely online at direct banks.

However, this is also the reason why the loan terms with direct banks are usually much cheaper than with branch banks: they apply for the loan on the Internet. Since the application is received by the direct bank within a very short time, you will receive a comparatively quick acceptance or refusal. This approach saves both manpower and administration costs. This, in turn, ensures that low to no processing fees is charged. This reduces the APR and thus the total cost of the loan.

The FinanceScout24 Best Rate Guarantee

The FinanceScout24 Best Rate Guarantee

The loan comparison on financescout24.de is an offer of FFG FINANZCHECK Finanzportale GmbH (hereinafter referred to as FINANZCHECK). Should you actually receive a lower effective annual interest rate from another installer via FINANZCHECK, FINANZCHECK will reimburse you the interest rate differential, but not more than EUR 750.

  • The offer of a competing contract must be binding and the details of the credit applicant / s as well as the contractually defined services (eg loan amount, term) must be identical to the one we have arranged and disbursed.
  • The competing contract offer must be from the same bank as the loan brokered and disbursed by us.
  • The competing offer was made no later than two weeks after the conclusion of the loan we brokered.
  • Dealer, manufacturer and special conditions, as well as mortgage loans, are excluded from the guarantee.
  • The best interest guarantee applies to loan amounts of € 1,000 – € 50,000 and a term of 12 – 84 months.
  • The loan brokered by us will not be revoked by you within the contractual withdrawal period.

If you have been offered a lower rate of interest outside of the FINANZCHECK credit comparison and the above conditions are met, then please send a bank statement showing the payment of the first monthly installment of the loan we have brokered together with a full copy of the competitive offer to the address below. Please note that the documents must be received by us no later than four weeks after the expiry of the revocation period (or if the first installment has not been debited to date, at the latest four weeks after deduction of the first installment) of the loan arranged by us. We will review your records and contact you as soon as possible. Please do not forget to include your bank details so that we can pay you the interest difference.

The forward loan

A forward loan is a kind of annuity loan, which is usually used for real estate financing. In this case, the borrower is paid the loan amount only after a specified lead time. During this lead time, neither commitment nor loan interest will be paid.

In most cases, this form of a loan will be used for follow-up financing – this way the borrower can secure a low-interest rate on his loan. Although the borrower has to pay an interest premium, this is generally comparatively low. In return, he receives a fixed interest period at the lowest possible interest rate. So if you observe the market interest, you can use the conditions for the forward loan in your favor.

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Credit card purchases, advantages of financing purchases

Credit card purchases, advantages of financing purchases

Some expensive purchases will be easier to manage with a credit card because it will let you make payments over time. Find out more.

With the Después credit card you can pay for your purchases over time and make use of over 6,000 ATMsRequest information

It is sometimes difficult to pay for everything in one go. However, it is not always necessary to take out a loan, as there are other ways to finance purchases: credit card.

Banks generally offer you two different types of bank cards: a credit card and a debit card. Transactions performed using a debit card are immediately charged to the card holder’s account. However, by using a credit card you can pay for all the purchases made over the course of one month during the following month or spread payments over several months and pay interest or a deferral fee.

 Deferred payment by card

 Deferred payment by card

 

Credit card payments are made against the credit limit of the card. This means that purchases are not charged to the customer’s account immediately, but become payable the following month. By using a credit card, it is also possible to split payments for big ticket items into several installments and to use this deferral mechanism to manage your expenses more flexibly.

By using a card to defer payments you can manage your finances easily and without paperwork. When you purchase something over a certain amount (Euros 50), your card will indicate the expense in question and then, using either online banking or the bank application, you can simply decide to pay for it in one go or in different installments (which will involve paying fees or interest).

In this way, for example, you can finance the purchase of chance acquisitions, effect high payments or simply manage your current expenditure (these types of transactions are always against the card’s payment limit and entail the payment of fees and interest). It is also possible to take cash out on credit by withdrawing funds against the card’s credit limit at an ATM, which you will subsequently repay in installments.

Credit cards are also insured to protect you against unforeseen events. For example, in some cases your card can notify you about transactions in real time, offer you free insurance in the event you are held up at an ATM and protect you against potential fraudulent use of your card. New technologies also enable you to pay without swiping your card by using a “contactless” system and to access interesting programs that let you earn points on your expenditure. There are a whole range of advantages that justify using your card to make payments.

The Despúes card is BBVA’s credit card: pay for your purchases over time and make use of more than 6,000 ATMs: more information

Expenses, fees and the most common credit card conditions

Expenses, fees and the most common credit card conditions

 

Having said all that, perhaps the easiest way to illustrate the advantages of a credit card is to discuss a specific product in greater depth. In order to issue a credit card, a bank will usually demand that the card holder has a regular income and owns a bank account.

In BBVA’s particular case, customers who meet these two requirements can, for example, access a financing product such as the “BBVA Después Tarjeta ” [BBVA Later Card], which they can use to pay for goods in stores or withdraw cash from their credit account at ATMs worldwide. This specific card is highly flexible as regards repayments, as you can either defer payment for one month (in this instance, on day 5 of the month following the month in which the payment was made) or repay in easy installments. You also have the option to customize payments into the installments you choose (up to 36 monthly installments). There is even an option called “zero payment”, which allows you to defer payment into up to two monthly installments per year. One of the most notable costs of this specific product is, for example, an annual card ownership fee of €40. This annual fee can be waived if the cardholder meets the requirements of the “Adiós Comisiones” program [“Goodbye Fees” program]. For more information about this card, please go to BBVA’s website: BBVA.es. 

If you have chosen to repay purchases in full using your card, any purchases you have made with it will be debited to your account on day five of the following month. If you choose to withdraw funds on credit from BBVA ATMs, the bank will charge the relevant fee and interest. If you choose to defer payments you will pay either a fixed amount, or a percentage of the amount spent, as well as the relevant deferment interest. In summary, as a BBVA customer you can benefit from both a credit card and flexibility as regards paying for purchases.

Go to BBVA.es to see an overview of our different credit cards ranges and a description of the characteristics of each. The card comparison tool is a very useful means to find the best card for your requirements.

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Private accident insurance: These rates are recommended for children

Private Unfallversicherung: Diese Tarife sind für Kinder sinnvoll Dangers lurk everywhere

  • The statutory accident insurance does not pay for children after every accident.
  • It therefore makes sense for accidents during leisure time when parents secure their offspring with private accident insurance.
  • Which insurers offer the best price-performance ratio, shows a recent test of Focus-Money.

Whether on the road, at leisure or in the home – accidents happen constantly. Frequently affected people get away with the horror and minor injuries. But some accidents also lead to serious injuries and have long-term consequences . Since the statutory accident insurance does not pay in every case, the additional protection of a private accident insurance makes sense. “This also applies to children and adolescents,” writes the business magazine Focus-Money. Because with them permanent health restrictions can determine the whole life , if they can not learn a profession.

Why is private accident insurance useful for children?

Why is private accident insurance useful for children?

The statutory accident insurance jumps in children only for consequences of accidents that happen in kindergarten or school and on the way there and there. Tobt the offspring after the kindergarten in the garden and crashed there, he runs during a Sunday walk in front of a car or falls down the stairs at home, does not pay the statutory accident insurance usually.

But just when the accident has permanently damaged the health of the child, financial support for the parents is important . They receive this from a private accident insurance. For example, the insurer’s lump sum can be used to finance refurbishment measures so that the child can move as independently as possible within their own four walls.

Accident insurance for children in the test: What services are important?

Accident insurance for children in the test: What services are important?

Which private accident insurance is specifically recommended for children, Focus-Money has tested by the rating agencies Franke and Bornberg. The experts only considered tariffs that provide for certain minimum benefits. This includes, for example, that dislocations, strains and fractures are also covered, which result from increased exertion . By default, this is not covered by a private accident insurance.

Parents should also make sure that even infections are insured by an insect bite or a vaccine. Also for accidents under the influence of drugs should pay a good private accident insurance.

In addition, the testers advise to set the sum insured to at least 100,000 euros . Depending on how severely disabled the children are by the accident, the insurance pays a pro rata amount. Their height also depends on the agreed progression. The more serious the disability caused by an accident, the higher the payout. For example, in the event of total disability and a progression of 500 per cent, the insurance benefits increase to 500,000 euros.

Accident insurance in comparison: Many top rates for children

Accident insurance in comparison: Many top rates for children

Focus-Money’s accident insurance test is based on a 15-year model customer. The overall grade consists of 30 per cent of the contribution amount and 70 per cent of the assessment of the benefits. All rates offer a sum insured of 100,000 euros and a progression of 500 percent.

Of the 32 insurers surveyed, two have an excellent rating :

  • GMO – Tariff “Top VIT”
  • HanseMerkur – “Top with articulated taxi I”

Another twelve accident insurance companies achieve a very good rating in comparison, for example:

  • Domcura – “Top Protection”
  • Ammerländer – “Exclusive”
  • LBN – “Better +”
  • Ostangler Brandgilde – “Exclusive Fair Play”
  • VHV – “Exclusive”

All top rates offer an excellent or very good level of performance. The price, however, there are major differences . The annual fee for these offers varies between 61 and 109 euros. Parents should therefore check with the free rate calculator, which private accident insurance offers them the best value for money for the important protection of their child.

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Combined Deposit Investment Funds

Combined Deposit Investment Funds

Combine a deposit and an investment fund: allocate an investment fund between 30% and 70% of the total amount initially invested and get up to 0.65% APR (0.65% TIN) in your deposit.

This number is indicative of the risk of the product, being 1/6 indicative of lower risk and 6/6 of higher risk.

  • This risk indicator refers exclusively to the deposit. The combined investment fund has its own level of risk that can be found in the DFI
  • BBVA is a member of the Deposit Guarantee Fund for Credit Institutions in Spain. The maximum guaranteed amount is € 100,000 for all deposits made in BBVA per person.
  • ** The reimbursement, redemption or early repayment of a part or all of the principal invested are subject to commissions or penalties.

Requirements to contract Combined Deposit Investment Funds

This deposit combined with funds allows the contracting of a 13-month term deposit with an investment fund, with the following proportion:

  • Minimum 30% of the investment in an Investment Fund (see linked funds available).
  • Maximum 70% of the investment in a deposit.

You need to have an account open in BBVA and be the owner of it; both the deposit and the investment fund with which it is combined admit a single holder (it will have to be the same) and both will be associated to the same BBVA account that you indicate.

If you do not have any account open in BBVA, you can open one now from here.

Anticipated cancelation

You can cancel the deposit totally or partially, before the expiration of the same. The cancellation of one of the products does not imply the cancellation of both.

You will receive a 0.01% TIN of the amount you cancel, during the days that the deposit was contracted.

You will never lose the capital invested in the deposit, cancel it totally or partially.

Investment funds offer a variable return that will depend on the evolution of the assets in which the fund has invested the capital. Past performance is not indicative of future results and the valuation may be less than the initial investment.

If you would like to cancel the linked investment fund, you must request it from us and we will proceed to the reimbursement of the shares at market value, which could involve incurring losses with respect to the initial investment.

Renewal

Non-renewable to expiration automatically.

The fund has no expiration. Once the deposit has expired, you can keep the fund or reimburse it. If you would like to cancel the linked investment fund, you must request it from us and we will proceed to the reimbursement of the shares at market value, which could involve incurring losses with respect to the initial investment.

Maximum date to contract this deposit combined with investment funds

You can hire it until 08/31/2018.

Type of interest

Depending on the distribution you have between the deposit and the associated investment fund, the rate will be:

Combined Deposit 30% + Investment Fund 70% = Deposit up to 0.65% APR (0.65% TIN).

Combined deposit 50% + Investment fund 50% = Deposit up to 0.40% TAE (0.40% TIN).

Combined deposit 70% + Investment fund 30% = Deposit up to 0.15% APR (0.15% TIN).

The expressed returns correspond only to the deposit. The profitability of the fund will depend on the evolution of the markets.

The payment of these rates will be made provided that at expiration of the deposit you maintain in the fund the minimum participations required for each modality. If not, the interest will be liquidated at 0.01% TIN (0.01% APR). You can consult the representative example that we show you.

Amount

Deposit from € 600 up to € 500,000. It will have to be at least 30% of the total investment, and at most 70% of the total investment. The total investment is the sum of the amounts invested in the Investment Fund + Deposit.

Term

The term of the deposit is 13 months. The funds have a minimum recommended term for the investment that can be consulted in the Fundamental Data Document (DFI).

You can contract the Combined Deposit by hiring one of the investment funds that we indicate below. The amount you allocate to one of these funds must be at least 30% of the initial total amount invested.

  • BBVA Bolsa, FI
  • BBVA Bolsa Europa BBVA, FI
  • BBVA Bolsa USA (Covered), FI
  • Quality Best Ideas, FI
  • Quality Conservative Investment, FI
  • Quality Decided Investment, FI
  • Quality Moderate Investment, FI
  • Quality Selection Emergentes, FI
  • BBVA Consolidation 85, FI
  • BBVA Mi Objetivo 2021, FI
  • BBVA Mi Objetivo 2026, FI
  • BBVA Mi Objetivo 2031, FI

If none of them fit your profile, you can consult the full catalog of investment funds to choose the one that best suits your needs. If the fund you choose is not one of the indicated, it would not be possible to combine it with this deposit.

Go to the complete catalog.

  • Check the possible combinations you can choose:

Example for an investment of € 10,000

Modality of the deposit Minimum investment in funds Deposit amount Type of interest
Combined Wallpapers 30F-70D € 3,000 (30%) € 7,000 (70%) 0.15% TAE 0.15% TIN
Combined Wallpaper 50F-50D € 5,000 (50%) € 5,000 (50%) 0.40% TAE 0.40% TIN
Combined Wallpaper 70F-30D € 7,000 (70%) € 3,000 (30%) 0.65% TAE 0.65% TIN

 

Example of combined deposit if you initially allocate € 10,000 and choose to allocate 30% to the deposit:

  • Initial minimum amount that you will have to allocate to the linked investment fund: € 7,000.
  • With the amount allocated to the linked investment fund, some shares are acquired, which if you keep them in that linked fund until the expiration of the deposit, you can have a higher remuneration in your deposit.

For this example the remuneration of the deposit would be:

Example of calculating the Annual Equivalent Rate (APR) FULFILLING REQUIREMENTS

Amount: € 3,000

Term: 390 days

Gross interest: € 20.84

APR 0.65% (TIN 0.65%)

 

  • If you do not maintain those initial participations in the investment fund, for this example the remuneration of the deposit would be:
Example of calculating the Annual Equivalent Rate (APR) WITHOUT FULFILLING REQUIREMENTS

Amount: € 3,000

Term: 390 days

Gross interest: € 0.32

APR 0.01% (TIN 0.01%)

 

The fund offers a variable return. The profitability will depend on the evolution of the assets in which the fund is investing the capital. Past performance is not indicative of future results.

Deposits:

  • The remunerative interests of your deposit will be entered into your account.
  • The remuneration interests will be considered as income from movable capital. For this reason, the remuneration you receive will be after having withheld the corresponding taxes according to the law.
  • You have the right to desist from the hiring of the deposit within 14 calendar days following the contracting. The Bank will proceed to cancel this contract with payment of the amount deposited in your account in BBVA. Even if the right of withdrawal is exercised over the deposit, the fund will remain in force and if you would like to cancel it, the conditions described in the section of early cancellation will apply.

Investment Funds:

  • Funds are a diversified investment alternative , since they invest in numerous assets, which reduces the risk of investing in a single asset.
  • There is a wide variety of investment funds with very different risk profiles.
  • The funds allow you to invest in different types of assets, geographic areas, currencies … You can choose the one / those funds that best suit your objectives and needs.
  • Investment funds allow access to the advantages of professional management for amounts within the reach of the individual investor .
  • One of the characteristics of mutual funds is their liquidity since, normally, shares can be bought and sold at any time without a subscription or reimbursement fee. However, in some products this availability can be limited by applying subscription or reimbursement commissions in certain periods or for certain amounts. Therefore, you should consult the documentation and characteristics of each fund.
  • In accordance with current legislation, you will only have to pay taxes when you sell / reimburse all or part of your investment fund . For individuals with fiscal residence in Spain, transfers from one investment fund to another do not have a tax impact on IRPF provided that the requirements of tax regulations are met.
  • As with any other investment product, investing in funds implies assuming a certain level of risk . Each fund, depending on its specific characteristics and the assets in which it invests, will imply a level of risk and, in any case, the possibility of incurring losses on the invested capital. You can consult the specific risks of each fund in the brochure available at bbva.es

Glossary

Nominal Interest Rate (NIT): It is the percentage that is applied to the amount deposited taking into account the term contracted.

Annual Equivalent Rate (APR): It is the result of a mathematical formula that incorporates the nominal interest rate, the commissions and the term of the transaction and expresses the effective yield of the deposit. The APR allows you to compare this deposit with other financial products.

SEPA debits (Single Euro Payments Area): SEPA direct debits have replaced the direct debits of receipts, it is a payment service or instrument that allows collections in euros, owing (ie, decreasing the balance) of the debtor’s account (or person who pays).

 

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