BGH Confirms Reference Interest Rate: Hope for Back Payments for Premium Savers

In a recent ruling, the Federal Court of Justice (BGH) confirmed a method for calculating interest on premium savings contracts that has sparked disputes between consumers and banks. Despite the BGH's decision not aligning entirely with consumer advocates' preferences, banks are obliged to make back payments to premium savers.

The exact amounts of these payments will be determined individually, potentially resulting in substantial reimbursements for over 7,000 consumers involved in model declaratory actions. The ruling settles the controversy surrounding premium savings contracts, as the interest rates are now to be based on the average returns of publicly traded federal securities, offering hope for significant back payments to affected savers.

This legal clarity comes as a relief to many, even though the subsequent payments may reach four-digit sums in numerous cases due to the recalculated interest rates.