Home » Business » Investing money in a fact check: savings book, overnight money, fixed-term deposits or bonds: What is really worthwhile?

Investing money in a fact check: savings book, overnight money, fixed-term deposits or bonds: What is really worthwhile?


Halle (Saale) –

When it comes to their money, most Germans prefer not to dare to experiment. When investing, they pay particular attention to the security of the system (33 percent) and to low prices and fees (29 percent), as a recent survey by Deutsche Bank shows. And many savers still associate security with interest rate products offered by banks.

And in fact, customers can rely on a security at banks. Because your money is protected as a result of the state deposit protection – at least up to a maximum amount of 100,000 euros per person. If a bank gets into financial difficulties, the state is responsible for the amount. But with which products does the deposit insurance apply? An overview:

The savings book

The savings account is a classic that grandparents often use to build up their wealth. In fact, many German citizens still have a savings account, because it is easy to use and usually free of charge.

In addition, the savings book scores with relative flexibility. “The saver can withdraw 2,000 euros a month or cancel larger amounts with a three-month notice period,” explains Uwe Döhler, financial expert at Stiftung Warentest. There are no minimum deposits.

Big disadvantage: a savings account hardly brings any interest. According to the independent financial consultancy FMH, the interest rate averages 0.01 percent. That means: The credit is even gradually losing value because inflation is gnawing at it.

The overnight money

The overnight money account offers an investment without a fixed term and with variable interest rates. It can be seen as a supplement to the checking account. Credit is usually available on a daily basis. “As an iron reserve, two to three monthly salaries should be in a daily money account,” says Uwe Döhler.

Even if you have bigger plans, the overnight money account is ideal. “A savings account for purchases” is what Stefan Adam from the consumer center calls it.

The overnight money account is popular because of its flexibility: Withdrawing money, depositing it, switching it, no problem. However, the interest rate is also flexible. It depends on the market. If interest rates go down, the return on overnight money will also be lower. But sometimes investors don’t even notice.

That is why Uwe Döhler advises: “Check the interest rate development of your overnight money account at least once a year, compare it with other overnight money accounts and, if necessary, reallocate.”

The interest rate is usually higher than with the savings book, but still low. Even those who search for a long time and invest abroad, according to FMH, do not even get 0.4 percent interest a year at the moment. The overnight money account is safe and inexpensive. As with the savings book, the state deposit insurance applies. There should be no account management fees.

The savings bond

It is one of the oldest financial investments and one of the fixed-income securities. With a savings bond, a certain amount is invested for a fixed period of time at a fixed interest rate. The interest rate can also be staggered. In addition to the annual interest payment, savers can also choose the so-called accumulation investment, in which the interest is reinvested and interest paid next time.

The advantage is that you know exactly when and how much money will be paid out. “The savings bond is a safe investment with no exchange rate risk when paying out,” says consumer advocate Adam. In times of high interest rates, it can make sense to conclude long-term savings contracts and secure the high interest rates. In the current phase of low interest rates, things look different. The system is also inflexible because it cannot be terminated.

The fixed deposit

“The fixed-term deposit is the modern savings bond,” says Hermann-Josef Tenhagen, editor-in-chief of the non-profit consumer guide “Finanztip”. In this way, a certain amount is also invested in a fixed-term deposit account for an agreed term at a fixed interest rate. Low costs, no risk of loss and precise predictability are in turn among the advantages. But the disadvantage also remains: the low interest rates. The low interest rate phase makes a decent return impossible here at the moment. “Currently, only direct investment banks offer interest on fixed-term deposits,” says Adam. As a rule, the longer the term, the higher the interest.

But even with a one-year term, the saver currently gets less than one percent interest. Uwe Döhler from Stiftung Warentest advises against longer terms: “Due to the low interest rate, we recommend terms of less than five years.” Once the money has been invested, you cannot exit the contract, or only with loss of interest.

The government bonds

With a government bond, the investor lends the government money for a fixed period of time and receives interest in return. Government bonds have terms of between a few months and 30 years.

Rating agencies assess how creditworthy the states are. The range goes from AAA to D, depending on the financial resources of the state. Category D is the one with the lowest creditworthiness. Federal government bonds are among the safest in the world.

Bonds are usually traded on the stock exchange. Therefore, there are additional fees for the investor. “A custody account must be kept for the government bond, which can sometimes cost something,” explains Uwe Döhler. Fees are also due for buying and selling the bond. These costs currently reduce the interest income. The statements of some experts are correspondingly clear: “At the moment we cannot recommend government bonds for small investors,” says Tenhagen, for example. (dpa)

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.