die  Verzinsung

B2

Estimated CEFR level.

/fɛɐ̯ˈtsɪnʊŋ/

📈 What does 'die Verzinsung' mean?

Die Verzinsung describes the process by which interest (Zinsen) is paid on invested capital (Kapital) or incurred on a loan (Kredit). It refers to the act or result of interest accrual or interest charges over a specific period.

• Main meaning: The return (or cost) generated by lending capital, expressed as a process or outcome. You talk about the Verzinsung of a savings account (Sparkonto), a bond (Anleihe), or a loan (Darlehen).

Because the word ends in "-ung", it's feminine: die Verzinsung. ⚠️ Don't confuse it with 'der Zins' (the individual interest payment or the interest rate) or 'die Zinsen' (plural, the sum of interest payments).

Article rules for der, die, and das

🧐 Grammar in Detail: Die Verzinsung

The noun "Verzinsung" is feminine.

Note: The plural "Verzinsungen" is rarely used; usually, one speaks generally of "die Verzinsung" in the singular or describes it differently.

Example Sentences

1. Die jährliche Verzinsung meines Sparkontos ist leider sehr niedrig.
   (The annual interest accrual on my savings account is unfortunately very low.)
2. Bei diesem Kreditmodell erfolgt die Verzinsung quartalsweise.
   (With this loan model, the interest is applied quarterly.)
3. Wir müssen die Effekte verschiedener Verzinsungen auf das Portfolio analysieren.
   (We need to analyze the effects of different types of interest accrual on the portfolio.)
4. Der Vertrag regelt die genaue Art der Verzinsung des Darlehens.
   (The contract regulates the exact manner of interest calculation for the loan.)

💡 Usage and Context

The term die Verzinsung is central to finance and banking (Finanz- und Bankwesen).

• Contexts: Savings (Sparen), investments (Geldanlage), loans (Kredite), bonds (Anleihen), financial mathematics (Finanzmathematik), business news (Wirtschaftsnachrichten).
• Typical uses:
  • "Die Verzinsung des Kapitals": How interest is earned on an investment.
  • "Variable vs. feste Verzinsung": Distinction for loans or investments, whether the interest rate can change (variabel) or is fixed (fest).
  • "Effektive Verzinsung": The actual interest yield/expense considering compound interest and fees.
• Distinction from similar terms:
  • Zins/Zinsen: Refers to the amount or rate itself (e.g., "Der Zins beträgt 2%." - The interest rate is 2%. "Ich habe 50€ Zinsen erhalten." - I received €50 in interest.).
  • Verzinsung: Describes the process or principle of compounding and interest growth (e.g., "Die Verzinsung erfolgt jährlich." - Interest is applied annually.).

🧠 Mnemonics for Verzinsung

Article Mnemonic: Words ending in -ung in German are almost always feminine (die). Think of: die Rechnung (the bill), die Meinung (the opinion), die Übung (the exercise)... and therefore also die Verzinsung!

Meaning Mnemonic: Imagine your money having little 'interest babies'. Die Verzinsung is the process ('-ung') related to Zins (interest) – how these 'interest babies' are generated and grow. The prefix 'ver-' often implies a process or making something happen.

🔄 Synonyms and Antonyms

⚠️ Similar but Misleading Words

• Besteuerung (die): Refers to taxation, not interest, although interest income may be taxed.
• Abschreibung (die): Depreciation of assets over time, not an interest process.

😄 A Little Joke

Banker fragt den Kunden: "Möchten Sie Ihr Geld mit hoher Verzinsung anlegen?"
Kunde: "Nein danke, lieber mit hoher Sicherheit! Wenn schon Zinsen, dann bitte Zins und Zinseszins und Zinseszinseszins... ach, lassen Sie uns über die Verzinsung reden!"

(Translation: Banker asks the customer: "Would you like to invest your money with high interest accrual?"
Customer: "No thanks, I'd prefer high security! If there has to be interest, then please interest and compound interest and compound compound interest... oh, let's just talk about the Verzinsung!")

📜 Poem about Verzinsung

Das Kapital, es ruht nicht gern,
es sucht den Zuwachs, nah und fern.
Durch kluge Anlage, Jahr für Jahr,
wird mehr daraus, das ist doch klar.

Die Verzinsung, sanft und leis,
\vermehrt den Einsatz, alter Preis.
Ein Euro hier, ein Cent dort dann,
\so fängt das Wachstum langsam an.

(Translation: Capital doesn't like to rest, / it seeks growth, near and far, put to the test. / Through wise investment, year by year, / it turns into more, that much is clear. / The interest accrual (die Verzinsung), gentle and low, / increases the stake, the old price you know. / A Euro here, a cent there then, / thus growth slowly begins again.)

❓ Riddle

Ich bin ein Prozess, kein fester Betrag,
ich lasse Kapital wachsen, Tag für Tag.
Banken lieben mich, Sparer auch,
mal bin ich fest, mal weich wie ein Hauch.
Ende auf -ung, feminin dazu,
was bin ich, sag du!

(Translation: I am a process, not a fixed amount, / I let capital grow, day in, day out. / Banks love me, savers too, / Sometimes I'm fixed, sometimes soft as dew. / Ending in -ung, feminine to boot, / What am I, tell me the truth!)

Solution: die Verzinsung

🧩 Other Information

Word Composition

The word "Verzinsung" is derived from the verb "verzinsen" (to pay interest on / to yield interest).

• ver-: A prefix often indicating a process or causing something to happen.
• zins: The core of the word, related to Zins (interest, from Latin 'census' = assessment, tax).
• -ung: A suffix used to form nouns from verbs, describing the process or result, and making the noun feminine.

Related Terms

• Zinseszins (der): Compound interest (interest earned on previously credited interest).
• Zinssatz (der): Interest rate (the percentage at which capital is accruing interest).
• Kapital (das): Capital (the money invested or borrowed).
• Anlage (die): Investment.