Germans Favor Liquid Savings Amid Economic Uncertainty, But Experts Warn Against stashing Cash
Frankfurt – A recent analysis of German savings habits reveals a growing preference for readily accessible deposits, fueled by economic anxieties, though balances remain relatively modest for most citizens. The Bundesbank noted the trend, attributing the shift to a pervasive sense of economic uncertainty.
Despite this focus on liquidity, substantial savings are uncommon. A spring 2025 survey conducted by smava and Civey found that 23.3 percent of German adults hold €1,000 or less in their current accounts, while only 11.2 percent possess over €10,000. Significant disparities exist based on age, geographic location, and individual saving patterns.
the 30-39 age group demonstrates the highest proportion of individuals with over €10,000 in their accounts (16.3 percent), while the 40-49 demographic reports the lowest, with just 7.9 percent maintaining such reserves.This suggests a potential wealth gap emerging across generations.
Financial expert timo Halbe of Finanztip cautions against keeping excessive funds in current accounts, citing the erosive effects of inflation.”Money parked in a current account loses value over time due to inflation,” Halbe told BILD. He recommends diversifying assets, maintaining a daily expense fund in a current account, and allocating three to five months’ salary to a readily available savings account.
For those with additional savings capacity,Halbe advocates for investment in broadly diversified equity ETFs. “This approach can even outpace inflation,” he stated. halbe is an investment expert with Finanztip, a non-profit financial advice association.
