GER Premium Savings: Interest Rate Changes & Limitation Periods Clarified

Oct 3, 2025 Benn-Ibler Rechtsanwälte

The German Federal Court of Justice (Bundesgerichtshof, hereinafter BGH) addressed matters regarding premium savings agreements, including interest rate adjustments, the limitation period for additional payment claims, and termination rights.

Savings Bank Sued Over Premium Savings Contracts

A consumer protection association initiated a model declaratory action against a savings bank that has been providing premium savings agreements with variable interest rates and a staggered premium structure since the 1990s. As the agreements did not specify clear criteria for adjusting interest rates, the association alleged that the savings bank paid lower interest amounts over the duration of the agreements.

A declaration was sought regarding the invalidity of the interest rate adjustment clauses, the identification of appropriate reference interest rates, the inadmissibility of specific terminations, and clarification concerning the statute of limitations for claims related to additional payments. The lower court partially upheld the action, leading both parties to file appeals.

The BGH ruled as follows:

The motion to declare the interest rate adjustment clause invalid was dismissed as inadmissible, as the respective BGH Senate had already ruled in 2004 that clauses of this kind are invalid. With regard to termination rights, the BGH clarified that effective incorporation of the general terms and conditions can also be achieved through implied conduct on the part of consumers, meaning that active consent alone is not required. However, the interpretation of individual termination letters cannot be the subject of a model declaratory action, as these are individual declarations.

Furthermore, the BGH affirmed that the reference interest rates published by the Deutsche Bundesbank are to be applied. The Court also reiterated the use of the proportional method, which preserves the relationship between the contractual interest rate and the reference rate, thereby upholding the principle of equivalence. This approach guarantees that advantageous interest rates continue to benefit the parties, while less favourable rates remain unchanged. According to the Senate, any claims for additional interest payments do not lapse during the contract period, but only at the earliest upon the effective termination of the savings agreement.

Press Release No. 174/2025 zu BGH XI ZR 29/34