Interest (Zinsen)
The price of borrowed money: lenders receive interest, borrowers pay it.
In short
As of 8 October 2026Interest is the price of borrowed money. If you lend money, for example in a savings account or through a bond, you receive interest; if you take out a loan, you pay it. It is usually quoted in percent per year and depends heavily on the ECB's key rate. Unlike a stock's return, interest is agreed in advance. Deposit 5,000 euros at 2.5 % and you get 125 euros a year.
Interest (German: Zinsen) is the price of money over time. If you put money into an account or buy a bond, you lend it and receive interest. If you take out a loan, you pay it. Interest is usually quoted in percent per year.
How high it is depends heavily on the ECB's key interest rate, as well as on the term and the borrower's credit quality. Interest is not the same as return: the interest rate is agreed in advance, while a stock's return only emerges afterwards from price and dividend. When interest is reinvested, compound interest kicks in.
Example: you deposit 5,000 euros for a year at 2.5 % and receive 125 euros of interest before tax. With inflation at 2 %, only a small real gain remains. What this adds up to over time is explained in the chapter on compound interest.
Related terms
As of 8 October 2026 · Educational content, not investment or tax advice.