Account hopping – is it really worth it?

Anyone who visits the bank at regular intervals or at least changes their account is doing so-called “account hopping”. The incentive for this is often special exchange offers or particularly high interest rates at the new bank. Anyone who only rarely changes and also with the good intention of wanting to benefit from the better conditions for a longer period of time often actually benefits from it. But is it really worth it to actually do account hopping?

Time waster account hopping: Is it financially worthwhile?

As expert Roland Elias from “Control with Head” explains on his YouTube channel, the amount of many exchange offers and bonuses is based on the size of the depot. Accordingly, it is financially more rewarding to do account hopping if you also move a lot of money from one bank to the next. Even if the offer is the same for all deposit or account sizes, interested parties with a deposit of around 1,000 euros must consider whether an interest rate of, for example, three percent (that would correspond to 30 euros) is worth the effort.

Because account hopping is a time waster: Changing banks always involves a certain amount of paperwork, signed documents have to be sent – the procedure is time-consuming.

Switch bonuses are “other income” and – depending on the amount – must be taxed

In addition, exchange bonuses from banks are considered “other income” by the tax office: These are tax-free up to an amount of 256 euros per year, if this limit is exceeded, according to Roland Elias, the bonuses from account hopping must be paid according to Section 22 Article 1a of the Income Tax Act (EStG ) are taxed at the personal tax rate – i.e. individually zero to 45 percent – in “Annex SO”.

Many account hoppers also apparently use a sophisticated system to make the most of the premiums and interest rates. The amount of the premiums often also depends on the amount of the account or deposit receipts within a certain period of time, explains Roland Elias. Some account hoppers would therefore regularly transfer their money from different accounts or depots in a circle by standing order in order to manipulate the receipts. If such actions, mostly in violation of the contract, were discovered by the bank, the bank could reclaim the premiums and the entire procedure was in vain.

Account hopping as a commercial activity: income tax, sales tax, trade tax

The expert also explains that such systems are to be classified as commercial activities for tax purposes. This means that you have to make your own income tax return for this activity and pay trade tax and sales tax, which is even more time-consuming. In the worst case, however, those who do not do this could be accused of tax evasion. It is also important to note that the 256 euros is a tax-free limit, not a tax-free amount: Anyone who registers 257 euros in “other income” must also pay tax on 257 euros and not just the one euro that exceeds the goes beyond the limit.

Account hopping is therefore time-consuming, but can bring in high income – provided one is willing to tax the premiums of the credit institutes in accordance with the law or to classify them as a commercial activity.

Account hopping vs. call money hopping

Incidentally, account hopping is not to be confused with so-called call money hopping: According to a definition by the Federal Financial Supervisory Authority (BaFin), call money is an “investment without a fixed term with variable interest rates. This means that the bank can increase the interest rate at any time or allowed to lower.” The money would be parked, so to speak, but is always accessible – a call money account does not have to be terminated with a three-month notice period like a savings account. This allows call money hoppers to rebalance their investments at very short intervals and always benefit from the best interest rates. Accordingly, the concept is similar to that of account hopping, but it is not quite the same.

Editorial office finanzen.net