How the Germans invest their money

FRANKFURT / M – The savings interest is in the basement – but most Germans shy away from investing the risk. What are people doing with their money?

Picture: Money 

shares

 shares

The collapse of the “people’s share” Telekom and the bursting of the New Economy bubble on the New Market around the turn of the millennium have deterred many retail investors long term. Although the number of holders of shares and / or equity fund units in Germany increased by 560,000 last year to just over nine million. This is the highest level since 2012. Nevertheless, only 14 percent of over-14-year-olds are involved in the stock market – and thus significantly less than in other countries. According to Bundesbank figures, equities accounted for just one tenth (€ 540.7bn) of the € 5,401bn of private household wealth in Germany at the end of the second quarter of 2016.

Cash and bank deposits

 

Cash and deposits with banks are after the Bundesbank numbers with well 2128 billion euro still the largest item of the financial wealth of the private households. Savings accounts as a parking space for liquidity are still high in the price, although they hardly pay interest.

Bausparen

 bausparen

The Germans are eager bauspar. According to figures from the Association of Private Bausparkassen, in 2015 there were just under 30 million Bauspar contracts in Germany. This means that every second household has at least one contract. 2.7 million contracts were signed last year. However, several building societies try to get rid of customers who still have very high interest old contracts.

Gold

 gold

Private individuals in Germany now own the record amount of 8,672 tonnes of precious metal – more than half of that (4,705 tonnes) in the form of bars and coins, and just under 4,000 tonnes are jewelery. Researchers at the travel agency’s Steinbeis College have compiled these figures. From 2014 to 2016, the gold treasury of private households grew accordingly by 477 tons. Value at the time of the study in August 2016: 375 billion euros. According to the study, three-quarters (2014: 67 percent) of the adult German citizens own gold in the form of jewelry, bars, coins or securities.

property

 

Low mortgage rates are fueling demand for houses and apartments. In the first nine months of 2016, more homes were approved than in 1999. Many investors also speculate on further price increases and invest in “concrete gold”. The Bundesbank still sees no dangerous exaggerations on the German real estate market. However, the low interest rates also tempt debts. The Bundesbank warns of a shock with rising interest rates: “Financing, which seems appropriate under the current circumstances, could then turn out to be unsustainable.”

Life insurance

 life insurance

The German Insurance Association (GDV) had 91 million life insurance contracts nationwide at the end of last year. Thus mathematically each German citizen has at least one life insurance – a retirement savings classic. But new contracts are no longer as attractively attractive interest rate as at the turn of the millennium.

passbook

 passbook

The good old savings account has lost its charm in the security-oriented Germans, despite currently puny interest rates by no means. 44 million savings accounts were the only 413 savings banks nationwide at the end of 2015 alone. In the second quarter of 2016, private households had invested a good 603 billion euros as savings deposits and savings bonds, according to the latest Bundesbank figures.

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Loan term 12 months 24 Months 36 months 48 months 60 months 72 months 84 months 96 months 108 months 120 months
use used cars New cars motorcycle Rescheduling / credit repayment Balance checking account renovation Furniture / Furniture / Kitchen move travel PC / TV / phone / audio Commercial / self-employed Free use Compare now! Verivox