Overdraft interest rate trap: How to save hundreds of euros with debt restructuring!

Overdraft interest rate trap: How to save hundreds of euros with debt restructuring!

In the current financial environment, bank customers have to expect high interest rates, especially when it comes to tolerated overdrafts and overdrafts. Loud Morning post In the worst case, consumers pay up to 20% interest if their account goes into deficit. An analysis of Verivox shows that the average overdraft interest rate is currently 11.19%, while interest rates for tolerated overdrafts can even rise to 12.87%.

The highest overdraft interest rates are offered by VR-Bank Landsberg-Ammersee at 15.37%. When it comes to tolerated overdrafts, Sparkasse Freyung-Grafenau takes the lead with an interest rate of 19.84%. Experts therefore recommend that if your account is permanently in deficit, you should look for alternatives such as installment loans, which have an average interest rate of 6.67%.

Debt restructuring as an option

According to a calculation, refinancing an overdraft facility of 4,000 euros could save costs of up to 379 euros in interest. Despite the high interest rates for overdrafts, there are increasingly better conditions for installment loans on the market, especially through providers like Verivox, who offer a “nowhere cheaper guarantee”. If a customer finds a better interest rate even with a cheaper provider, Verivox will reimburse the interest difference up to 300 euros.

Verivox reports that, on average, customers have received 42.18% lower APR rates over the last ten years. The median interest rate for loans in the range of 10,000 to 30,000 euros and a term between 36 and 84 months was 6.67% in June 2025.

Developments in building interest rates

In parallel with developments in the credit sector, Allianz is again reducing building interest rates. The fixed interest rate for building financing over 150,000 euros is now 4.18%, while the effective annual interest rate is 4.28%. The monthly rate for this form of financing over 25 years is 772.50 euros. Dr. Klein also recorded a top interest rate for ten-year real estate loans of 3.24%.

Building interest rates are currently showing inconsistent developments: some banks are increasing their interest rates, while others are lowering them. The loan-to-value ratio was 86.37% in May, indicating less equity among property buyers. The repayment rate also remains constant at 1.72%, while the average fixed interest rate is 10 years and 7 months. Future forecasts indicate that building interest rates will fluctuate in the short term, while a slight downward trend is expected in the long term.

In summary, consumers not only have to deal with the high interest rates for overdrafts, but should also closely monitor developments in the building interest market. It is advisable to actively look for cheaper financing options and, if necessary, consider refinancing.