Klarna dubs itself "the Swiss army knife" of apps as launches savings account in Germany

Klarna has dubbed itself the “Swiss army knife of consumer apps” after the buy now, payer later firm bolstered its offering in Germany with a new savings account.

Called Festgeld+”, Klarna says the “highly competitive" interest rates of up to 1.15 per cent it offers ranks “among the highest in Europe”.

The savings account offers four fixed term deposits of 12, 24, 36 and 48 months and savers can open the in-app savings accounts with just €1.

Klarna said that “an entire generation of German savers has been deprived of fair returns on their hard-earned savings” amid interest rates dwindling towards zero in Germany.

“This demand has been blatantly disregarded by traditional banks, who instead have started to charge consumers simply for holding an account,” the Swedish fintech added.

Klarna traditionally launches products into secondary markets should they prove successful. 

But it’s unlikely that it will launch an in-app savings account in the UK soon, given that it would first need a UK banking licence.

Klarna, which is primarily known as a buy now, pay later firm, currently has a full banking licence from the Swedish Financial Supervisory Authority, under which Festgeld+ has been launched.

In Germany, Klarna also offers a desktop fixed deposit offering as well as its partnership with the deposit marketplace Raisin.

Felix Würtenberger, card & banking lead at Klarna said: “The Klarna App is the Swiss army knife of consumer apps. 

“You can easily handle your day-to-day banking, manage your payments, shop at all your favourite brands and now also earn outstanding interest rates on your savings - all without leaving the Klarna app.”