A lot of money in accounts without interest: This is how the Germans destroy their savings


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Lots of money in accounts with no interest
This is how the Germans destroy their savings

Inflation continues to eat away at consumer savings. There are complaints about that. Irrespective of this, the Germans do not take it very seriously when it comes to investing. Because the majority of savers have their money devalued in their checking accounts, as a recent survey shows.

The European Central Bank (ECB) has meanwhile reacted to the persistently high inflation rates in the euro area and the key interest rate in the euro area increased to 3.5 percent. Savers in particular should be happy about the sixth interest rate hike in a row. Nevertheless, the measures are put into perspective when you consider that inflation rates in Germany were expected to be 7.4 percent in March. Which means that the interest rates that can be earned for savings are still very negative in real terms.

However, this leaves most savers unimpressed, as a representative survey commissioned by C24 Bank revealed. Accordingly, consumers sometimes leave considerable sums in interest-free accounts. 33 percent of those surveyed stated that they had assets of up to EUR 5,000 parked in interest-free accounts.

33 million waive interest entirely

Almost every second person (47 percent) leaves even larger sums devalued in this way. Around 33 million Germans let their savings “rotten” in their checking accounts or as cash under their pillows. Since almost half of Germans even have more than 5,000 euros in interest-free accounts, they forgo a total of at least 3.3 billion euros in interest income annually – with a possible interest of 2 percent on savings on overnight or fixed deposits.

Daily money accounts in comparison

Fixed deposit accounts in comparison

Four percent of those surveyed even have more than 50,000 euros in interest-free accounts. According to the survey, 27 percent of those surveyed are currently not investing any money at all. A quarter of Germans use overnight and time deposit accounts as an investment and 23 percent save with shares and ETFs.

The willingness to save decreases with age

Young people in particular park their assets in their checking accounts. 57 percent of all 18 to 24 year olds prefer this type of investment. Cash investments (38 percent), stocks and ETFs (25 percent) and cryptocurrencies (15 percent) are also popular in this age group.

It is striking that the willingness to save decreases with increasing age. In the age group 55 and older, 36 percent have not invested – more than in any other age group. The proportion is lowest among 18 to 24 year olds. Here it is only 14 percent.

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