Benefit from the low interest rate with a smarter rescheduling!


Picture: Interest

Burdens of low-interest rates

Passbook and Co .: In Germany popular forms of savings such as daily and fixed money hardly throw anything. However, low inflation compensates for the negative effects of low-interest rates, emphasizes ECB President Mario Draghi. Currently, the interest rate minus inflation is higher than the average of the 1990s. “At the time you had higher interest rates on the savings account, but at the same time mostly inflation, which was far above and ate up everything,” said Draghi in a recent interview. According to preliminary calculations, consumer prices in Germany in May were just 0.1 percent up on the previous year.

Penalty/bank charges: Financial institutions have to pay penalty interest when they park money with the ECB. Penalty rates are not an issue for the average private customer. It will “do everything to protect the private savers from negative interest – in part at the expense of their own earnings,” said the head of the German Savings Banks and Giro Association, Georg Fahrenschon. But if the current low-interest-rate phase lasts for a long time, the savings banks would ultimately be unable to protect the customers from it. In addition, according to the president of the Association of German Cooperative Banks (BVR), Uwe Fröhlich, financial institutions may be forced to turn to the price screw: “Everyone must think in his bank, how he works on terms and conditions against the loss of earnings are no doubt there. ”

Pensions: Life insurers find it increasingly difficult to earn the high promises of the past. The result: the return on the old-age provision classic has been falling for quite some time. Occupational pensions are also suffering; companies have to cover more and more money for pension obligations because of the meltdown in interest rates. Many companies therefore no longer promise any concrete benefits when hiring new employees, but merely agree to pay a certain amount per month into pension funds. Interest rate risk is borne by future pensioners.

Relief from low-interest rates

Loans Consumers save on loans, whether for the new TV or for their own home. Home builders can borrow money at historically favorable terms. According to the banking association BdB, mortgage loans with 10 years fixed interest rates are currently at an effective interest rate of around 1.4 percent on average. In 2007 they were still more than 5 percent.

Expozinsen: It has become cheaper, too, the own account to coat. Five years ago, the discretionary interest rate averaged 11.26 percent. It is now an average of 9.51 percent.

Shareholders: For years, cheap central bank money has been the central fuel for the stock markets. Shareholders can benefit from rising prices. Recently, the rather stock-shy Germans once again ventured more to the stock market. Just under 9.01 million people owned shares and/or shares in equity funds last year, according to figures from the Deutsches Aktieninstitut – the highest level since 2012.

The state: By issuing bonds, the public sector finances – in addition to tax revenues – a large part of its expenses. On Monday, the so-called current yield, which is an average measure of the “interest” of government paper with a maturity of three to 30 years, fell in Germany for the first time since the founding of the Federal Republic in the negative area. The Confederation thus “earns” its own debt in such a situation instead of paying interest to the creditors – the buyers of the bonds.