Top investments in Germany 2020 - Current account new leader
For years, the savings account was considered the preferred and secure investment for Germans. This changed for the first time in 2020, but saving on a current account is now at the forefront. In addition, real estate is becoming increasingly attractive as an investment for many German savers, which is probably also due to the low interest rate policy of the European Central Bank. We will introduce you to the most popular investments currently being made by Germans.
Top investments 2020: The savings account loses 1st place
The Association of Private Building Savings Banks e.V. carries out a representative survey every year, in which respondents are asked to express their opinion on the popularity of various savings investments. More than 2,000 citizens were recently interviewed on behalf of the Association of Building Societies. The results of the survey have recently revealed some trend reversals in Germans' saving behavior. For years, Germans regarded the savings account as the safest and most popular form of investment. According to the survey, however, its popularity has lost by as much as 7% compared to the previous year and is now in 2nd place at 37%. At 40%, the current account is the current account, which neither gained nor lost its popularity compared to the previous year.
Trending real estate — concrete gold is gaining popularity
More and more people are also interested in real estate as a capital investment. The so-called concrete gold has recently received increased media attention. Both rents and purchase prices rose sharply, particularly in major cities and prime locations, such as Munich's city center. The good return and appreciation prospects motivated 25% of the savers surveyed to name real estate as the most popular investment. That is at least 3% more than last year.
The building loan agreement — downward movement persists
At the beginning and middle of the 2010s, the building loan agreement received well over 30% entries, and is now stagnating at 27%. The low interest rate policy, among other things, could play a significant part in this. Most banks now offer absolutely cheap loans for home builders and real estate buyers. Even if you only have small amounts of equity available, you can hope for attractive loans. So if you want to finance a property, banks now often offer you better credit offers than you could save with building loan contracts.
No too big changes in high-risk investments
However, the changed financial conditions are far from being able to explain all developments. Although current accounts and savings accounts are still Germans' undisputed favorite investments, the actual savings potential of these investments is absolutely negative. Due to the vanishingly low interest rates on current accounts, fixed-term deposits or savings accounts and the simultaneously high inflation rate, money saved in bank accounts effectively loses value. Regardless of this, investors remain relatively skeptical of high-yield alternatives such as stocks with 16% popularity or investment funds with 21% popularity. As a country of savings accounts and fixed-term deposits, Germany has always found it difficult to invest on the capital market.
Continuously popular: capital and life insurance
Capital and life insurance remains unchanged from external conditions. With a percentage of 28%, it is still one of the favorite investments of Germans in 2020. The Riester pension is even up one percentage point and is in midfield at 21%.
