die Verzinsung
interest accrual
The process by which interest is paid or credited on invested capital.
EXAMPLE
Die Verzinsung des Kapitals erfolgt jeweils am Ende des Jahres.
Interest accrual on the capital takes place at the end of each year.
die Verzinsung
interest accrual / interest rate
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Meanings
die Verzinsung
interest rate
The amount of the interest rate paid on capital.
EXAMPLE
Die Bank bietet eine jährliche Verzinsung von nur noch 0,5 Prozent.
The bank offers an annual interest rate of only 0.5 percent now.
Usage tips
Word family
The word is derived from the noun 'der Zins' (interest) and the verb 'verzinsen' (to pay interest on / to bear interest). The ending '-ung' describes the process or result of earning or paying interest.
EXAMPLE
Die Bank verzinst mein Sparguthaben leider nur sehr niedrig.
Unfortunately, the bank pays only very low interest on my savings.
Context clue
You can recognize the two meanings from context. If the process is meant, verbs like 'erfolgen' (to take place) are used. If it is about the amount, you often find numbers, percentages, or adjectives like 'hoch' (high) and 'niedrig' (low).
EXAMPLE
Die Verzinsung erfolgt immer zum Quartalsende.
Interest accrual always takes place at the end of the quarter.
Typical collocations (process)
When the process of paying interest is meant, you often hear phrases like 'die Verzinsung des Kapitals' (interest accrual on the capital), 'die jährliche Verzinsung' (annual interest accrual), or 'die Verzinsung beginnt ab…' (interest accrual begins from…).
EXAMPLE
Die Verzinsung des angelegten Geldes beginnt mit dem ersten Tag.
Interest accrual on the invested money begins on the first day.
Typical collocations (rate)
When the amount of the interest rate is meant, typical combinations are 'eine hohe/niedrige Verzinsung anbieten' (to offer a high/low interest rate), 'eine gute Verzinsung bekommen' (to get a good interest rate), or 'die Verzinsung beträgt ... Prozent' (the interest rate is ... percent).
EXAMPLE
Für dieses Konto erhalten Sie eine feste Verzinsung für die nächsten zwei Jahre.
For this account, you receive a fixed interest rate for the next two years.
Compare with
Verzinsung vs Zins
interest
Zins refers to the compensation for invested capital and can specifically mean the amount of money credited. Verzinsung focuses on the interest rate that applies. Zins is therefore appropriate for an amount in euros, while Verzinsung is more suitable for the percentage rate.
Verzinsung
Für die Geldanlage erhält sie eine jährliche Verzinsung von drei Prozent.
The investment earns an annual interest rate of three percent.
Zins
Für die Geldanlage erhält sie am Jahresende 300 Euro Zinsen.
She receives 300 euros in interest on the investment at the end of the year.
In real life
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