The Germans are bad savers

Investment The Germans know only black or white

Bizarrely, these misperceptions are just as observed when the majority of citizens, they usually earn little or medium, invest their money in everyday life. They are quite content with the low returns on often overpriced banking products and life insurance, although they could invest at least a portion of their savings much more profitably. But the risk of stocks and real estate overestimate them completely. For example, three-quarters of the German savings accounts, one in two have life insurance – but less than every tenth share.

The Germans, they know only black or white: At Graumarkt they act foolhardy and greedy, scared at the bank and humble. A reasonable middle ground leads somewhere else.

Nobel laureate Edward Prescott shows that over a century, US equities yielded on average seven percent annualized returns. By contrast, short-term interest-rate securities dropped just one percent – and were not much safer. The Bonn economist Moritz Schularick shows in 16 countries over 150 years between equities, real estate, and interest rates a similar yield gap – and also disenchanted the myth that interest rates are particularly safe.

With this data, you pay for credit gifts

<strong>With this data you pay for credit gifts</strong>

It sounds tempting: customers collect interest on a loan they take out- check these guys out. But in return, they have to reveal almost everything. By Daniel Pöhler, Finanztip more …

The consequences of the Graumarktskandale are obvious. In the four largest cases before P & R alone, the damage is estimated at more than five billion euros. The consequences of the daily fearful investment are less discussed, but they are even more serious. The European Central Bank (ECB) puts Germans’ median assets at just € 60,000, just over half the euro-zone average. This is shocking given the German economic power. And it also results from the investment behavior: The proportion of German citizens with real estate is only half the size of Spaniards and Italians. And they invest only half as much of their assets in stocks as the French.

On the other hand, if one looks at the minority of German homeowners, they have as much property as homeowners in other countries. And the percentage of Germans with more than 4,000 euros in net monthly earnings is twice as high as in the total population.

This is how the nation splits itself: nowhere in the monetary union do rich and poor diverge as widely as in the Federal Republic. A few rich households own as much as the entire poorer half of the population. 45 German families have as many as 40 million citizens. “The economic growth of the last decades,” says Stefan Bach from the German Institute for Economic Research, “essentially came in the richest ten percent”.

Could financial supervision intervene?

Because the Germans also shy away from equities and real estate in terms of old-age provision, the partial privatization of old-age provision since the turn of the millennium is likely to cause many a rude awakening. The ECB’s zero interest rate policy bluntly exposes the bankruptcy of German investment habits.

So what to do? The billion-dollar damages on the gray market as well as the bankruptcy in everyday life call for political support for the citizens. Now, the gray market has been controlled more heavily for several years now. Brokers must take an exam and brochures must be prepared, which will then be reviewed by Bafin Financial Supervisory Authority. If that is enough, the younger cases allow for doubt. If a provider such as P & R, according to research by a consumer advocate occupies lower rents but continues to pay high returns and therefore may survive only by fresh customer money: Then the question arises, whether the financial supervision could not intervene. And whether investment products should only be allowed if they have been tested in advance. That only every hundredth inspector takes care of the investor protection, let’s look deeper.

The Enlightenment, however, would have to start much earlier: at school, in order to convey the connections between risk and return in a comprehensive manner. This money-making should later be flanked by a free annual appointment with the consumer centers, which advises on the investment – funded by a levy on the financial sector.

Solve bad habits

Better education and financial advice could also persuade Germans not to let their savings completely sank in bank deposits and life insurance. But in order to really create a propensity for stocks and real estate, the state would have to do more. In asset accumulation and retirement targeted to promote these investments and not all with the watering can. Relieve the burden of taxes and charges on broad layers so that they can invest significant sums of money at all. And think about state-run or by the social partners launched privately managed funds that invest on the model of the Norwegian State Fund savings widely spread.

Of course, money remains the property of every citizen. Therefore, these proposals also show that the state can only ever play a supporting role. Ultimately, the citizen makes his decision. So the mass of Germans must already be willing to break away from bad habits that have decimated their fortunes for decades. And they would have to take care of their financial affairs as well as, say, the purchase of their car.

Otherwise, they will continue to stutter or rush through the countryside in Gelddingen with only two courses. Much of the savings will continue to languish in low-yield products. And dubious providers on the gray market will continue to cause billions in damages. In other words, most citizens will continue to reap only a meager part of the fruits that are so abundantly produced by the success of Europe’s strongest economic nation.

“Toast: 59 cents, enough for two days”

416 euros a month, so high is the Hartz IV rule set for single people. Is that poor? Four people show their receipts and tell what they can afford – and what not.

Account statement: overview and documentation

A bank statement gives you an overview of your current account balance and the transactions that have taken place in your checking account. The relevant account data, such as the account number, are also printed on it. The statement shows the balance at the beginning and at the end of the specified period, and you can track all incoming and outgoing payments made through this account. These are given with date, purpose and amount.

In addition, you may also find on your bank statement information about the amount of the credit line granted to you. At the same time, account statements are also often used as evidence to prove payments made.

Get a bank statement

You will receive the statements with your bank card at the bank statement printers in the branches of your bank. There you can theoretically print bank statements at any time and get informed about new account movements. You can also receive the extracts by mail. This usually happens automatically if you have not picked them up from the statement printer within a period of 30 days. Banks are required by law to inform their customers at least once a month about their account transactions.

If the customer has neither picked up a printout nor downloaded an electronic account statement, the statements will be sent by post. However, banks are not allowed to charge the customer for such unsolicited account statements. Only the postage costs may demand from the customer, a processing fee is however according to a judgment of the regional court Frankfurt (Az. 2-25 O 260/10) not permissible.

Daily statement and clearance

The regular bank statement that you receive at the machine or online is also referred to as a daily statement. It provides the current status of your account and lists the last account transactions. However, bookings are not always displayed immediately, but only when they have been executed. For example, if you have paid in a debit card business, the appropriate payment will not be displayed if you print a bank statement a few minutes later.

So if you want to quickly prove a transfer, it is best to use a bank transfer receipt. With online banking, you can print them out immediately after making a transfer.

The clearance of accounts, on the other hand, takes place at regular intervals – often on a quarterly basis – and includes interest credited or billed to you, but also the fees incurred, such as account, card and postage.

That means the abbreviations on the bank statement

  • EC: Electronic Cash You have paid with your debit card and have authorized the payment by entering your PIN.
  • ELV: Electronic Direct Debit You have made a card payment and authorized it with your signature.
  • GA: ATM You have withdrawn money from a machine. Here also the machine number, date and time are given.

electronic bank statement

If you use online banking, your bank will probably offer you an electronic bank statement there. This contains the same information as the variant on paper from the statement printer, but the layout is usually different. Therefore, the electronic account statement may initially seem unfamiliar.

You can apply to your bank to convert to the electronic bank statement and receive it always at the agreed time in your mailbox in the online banking area of ​​the bank. In most cases, the online digital statements are available for twelve months, and longer depending on the bank's terms and conditions. It is strongly recommended to download the electronic bank statements regularly and to save them on a storage medium. In addition, they can of course be printed.

Note, however, that under certain circumstances a postal delivery of bank statements takes place. If you do not retrieve the statements online for a long period of time, the bank will notice that you are not aware of your current account movements. Then many banks send a letter with the current excerpts to comply with their obligation to inform.

Advantages of the electronic account statement

With the electronic bank statement you have the opportunity to quickly get an overview of your account transactions at any time, without having to visit a bank branch. Instead, simply retrieve the information via the regular online banking access. The excerpts are quickly stored and archived without you having to create large file folders. In addition, you avoid the postage costs incurred in the case of a postal delivery of the statements.

Legal Aspects

As the Federal Ministry of Finance has decided in 2006, an electronic bank statement, which is available in immutable PDF format, equivalent to an original statement from the bank. Accordingly, he can serve as evidence as well as this – for example, to the tax office. However, this does not apply to all groups of people: Anyone who is required to keep an account must be prepared for the tax office to carry out an assessment for tax recognition in the case of an electronic bank statement.

The bookkeeping obligation exists for all merchants as well as for commercial entrepreneurs and farmers and foresters from a certain annual turnover. If in doubt, companies should inquire with the tax office as to whether electronic bank statements are sufficient for them. With an electronic signature, however, this form of bank statement is equivalent to the paper variant. Because this ensures that it is a forgery-proof original document. For your safety, however, you should ask your bank whether it will create the electronic bank statements with such a recognized signature.

Legal and advisable retention periods

For private individuals, there is usually no prescribed period for which they must keep account statements. An exception, however, is for people who have more than € 500,000 in income per year: they must archive their bank statements for six years. Even if you have commissioned craftsmen, you must keep the relevant statements as proof of payment for two years from the end of each calendar year. However, it is not about your own finances, but about a means of control for the tax offices, which can thus verify the sales tax of craft businesses. In addition, since the legal warranty period for craft services is five years, archiving for this period is also recommended.

Apart from these obligations, however, it is advisable for all consumers to keep account statements for a certain time as proof of payment, especially for larger purchases. The basic limitation period can serve as a guide. It is three years from the end of the respective calendar year. So if a purchase takes place on 15 June 2012, the limitation period begins on 31.12.2012 and ends on 31.12.2015. After this time no claims can be enforced.

It is also advisable to keep account statements in order to prove the regularity of your own rental payments to a future landlord, for example. Even if you have carried out a credit comparison and apply for a loan, financial institutions often ask for bank statements as proof of the information provided in the loan application- home-page.

Bank statement with the bank demand

Banks are required to keep their bank statements for ten years. So it is possible to ask for excerpts there if you have lost or not kept them and now you need them. However, this service often incurs charges that often increase with the age of the required bank statement. Therefore, it is advisable to keep account statements carefully.

Legal difficulties for the building societies of the day of truth is approaching

Next week, the Supreme Court decides on the dismissals of old contracts. The low-interest rates threaten the building societies.

The building societies are in a tight spot. The low-interest rate environment complicates their business, depress revenues. And now they are preparing just the most loyal customer’s legal difficulties. Many savings customers have completed in the 1980s and 1990s, contracts with annual credit interest of up to 4 percent.

Instead of requesting the savings loans from the grant date of maturity, leave many untouched the money and take the interest with. The building savings is misused as an investment, so the accusation of many building societies. You terminate the contracts because they can no longer serve the high-interest rates. According to industry estimates, they have canceled 260 000 savings contracts in recent years that are a ripe allocation for at least ten years.

Whether such termination is effective, which decides on Tuesday for the first time Federal Court (BGH) in a lawsuit against the Bausparkasse Wüstenrot (Ref .: XI ZR 272/16). A spokesman of the Association of Building Societies announced that 101 decisions in the appeals process have so far been considered in favor of building societies.

A savings agreement is not a simple construction

In four cases, however, the savings customers were right who had successfully appealed against her dismissal. decide on one now has the Supreme Court. In the case, the applicant and her late husband had been completed in 1999, two savings contracts with a contract sum totaling 200,000 DM. These were ration ripe 2,001st Both balances are an interest rate of 2.5 percent. Under the contract, the Bausparerin might even get 4.5 percent if they waived the loan or wanted a higher rate loan.

A savings agreement is not a simple construction; he is legal as a loan in under § 488 et seq. (BGB) in the Civil Code treated. In the savings phase, the customer of the building society entrusts the money, this is now the Borrower. The banks operate in this time with the balances of the customers. Beyond a certain threshold, normally it is to reach the minimum savings assets, the bank indicates the allocation maturity. This is the first date on which a customer can accept the offer on the entire contract sum – legally, he will become the borrower and will have to repay the interest loan later.

The building loan corresponds to the difference between the contract sums and the savings. If a savings customers have saved up the whole contract sum, the building society may terminate the contract. Because the purpose of the savings agreement, a soft loan, can not be achieved. These terminations are undisputed. In the case of a dispute – and also in the case against Wüstenrot – not demanding the customer contract sums to give. Wüstenrot announced the woman in 2015 and referred to a standard whereby it can withdraw not fully desperate contracts ten years after complete reception (Article 489, paragraph I no. 2 BGB). Because the wording of the law and the reality of the case do not harmonize, Wüstenrot refers to the time of allocation of maturity 2,001th

Many Courts of Appeal (OLG) follow this legal opinion. But a Senate Stuttgart presented with two decisions in 2016 against this trend. According to the judges’ statutory right of termination of ten years after receiving the loan on savings contracts does not apply. In addition, building societies are not worthy of protection in the accumulation phase. You can require customers the maximum term by contract – exactly the Wüstenrot have however failed the Stuttgart Higher Regional Court ruled.

Low-interest rates threaten the business model

A voluntary taken over interest rate risk cannot be passed on to home savings. Whether the bank’s Senate on BGH, which always meets consumer-friendly decisions, even looks like it will show next week. Last year, the building societies had already suffered a serious defeat when the Supreme Court had declared the flat-rate loan fee unlawful. Consumer advocates do not consider the savings customers in the savings phase as lender of the building society because it is for the building loan not a loan contract within the meaning of the Civil Code. Rather, the savings customers acquire the right to a loan.

The low-interest rates threaten the business model of building societies, forcing them to act. Currently wants hardly a savings customers a savings loans whose terms have been established years ago still at higher interest rates. The cheaper loan also offers the banks. Conversely, savers are glad to still to maintain high-interest rates, and therefore irritate old savings contracts made as long as possible.

Assets Question: What overlook individuals in borrowing

Low lending rates also pose risks to individuals. You should pay particular attention to the term of the loans and the amount of interest on debt rather than on low rates and annual unscheduled.

The current low lending rates are dangerous for many individuals in several ways. By far the biggest risk is the indebtedness due to poor credit rating. The second danger is the long-standing debt when the repayment is too low. And the third danger is the overpricing of loans.

This is evident in the following example: An investor is 37 years old. He needed to buy an apartment, which cost about 200,000 euros and will even be used even 150,000 euros. Loans of this size currently cost about 3 percent when the interest rates for 15 years to be committed. The monthly rate is 500 euros if the repayment is set at 1 percent. That may be tempting at first glance, because the 500 euros may correspond to the saved rent, but on closer inspection is the credit full of pitfalls.

The most sensitive issue is the credit rating of the investor. If the 500 Euros are to lift only with great difficulty, there is a risk that the borrower falls over at the first gust of wind. If the man in five years needs a new car, or in ten years, some time will be unemployed, he can get into financial difficulties. Either the car is not affordable or apartment loan is in default. Also looming in the distant future – specifically in 15 years – the risk that the connection interest rates are higher than the current contractual interest. In a Prolongationszins of 6 percent, the new monthly rate will climb a high probability of at least 719 euros, and the investors may be charged when the fund will bear no more than 500 euros, be fatal.

share working life into two halves

The other circumstances give cause for thought: The investor is 37 years old. At this age, an initial repayment is smoother madness. Lending rates of 3 percent and repayments of 1 percent result in maturities of 46 years so that the private citizen until the 83rd birthday would have to scroll down on the table of bank credit rates. There may be cheerful natures, who see it as a problem, but sober observer will wonder what these borrowers with their money.
If any financial surpluses are available on the monthly loan installment addition, the apartment should not be bought because it exceeds the possibilities of the investor. This inevitably leads to the question of how much money should be for the interest and repayment of the loan available. The answer is simple, but the consequences are difficult. The investor is faced with two tasks: he wants to buy the apartment, and he wants so he has to save up free capital for retirement. Against this background makes sense to share the remaining work life in two halves. It was not until the loan is repaid, then the free capacity is built.

Excessive borrowing rates for flexible repayments

In this case, the investor will work for another 30 years. Consequently, it stands for the two tasks every 15 years available. The specification of the runtime has in a loan of 150,000 euros and a target rate of 3 percent per year total of 180 installments of 1,036 euros result. If the credit rate does not exceed a quarter of disposable income, net income of 4500 euros is required. These are gross Euro 7500, so that clear that low-interest rates may be a gift, but maybe an invitation to people who earn less. Otherwise, the financial collapse is imminent.

Making More Money On Your Money

Now an individual one mistake that ought to be avoided with instant approval loans cards. Beneficial get your application approved, remember it may be the credit aspect that is instant, not the physical card. It usually requires an internet business week or two for any card genuinely arrive the actual planet mail.

Presently these short-term loans are available only towards the permanent citizens of Indian. A borrower should stop less than 18 yrs. Old at the time of student loan. He or she also has to be having a valid checking account in any bank of UK. The moment has come to these family savings which to be credited the actual loan amount once it can be approved.

If you have the market for a loan, you may wonder precisely how you’re imagined to figure out what you’re looking for and which loan you should choose.

The Barter system was prevalent before the origin of fiat forex trading. In this method, commodities were exchanged for supplies. For example, if one person needs rice and also the other one needs coconut, the one that has cultivated rice always be search and the person having grape. Only then the exchange will are held. This itself was the severe disadvantage of barter software. For sometimes the different commodities acted as money later they were named as commodity money. Nevertheless, the origin of funds solved each one of these issues. Initial form funds were distinct metal coins like gold and silver coins. Virtually these coins served the purpose of money.

In you may have heard coming up to the election this year investment firms spent $141 million buying influence in Washington while classification of banks split $34 in campaign contributions between agreement. When blue collar workers needed help – as on the inside auto industry – Congress not only demanded oversight in the contour of Czar (a Czar?), the executives were berated and ridiculed like children and sent away empty-handed. And allow wanted a paltry $34 billion – 5% products Bush dropped into Wall Street.

Besides, you are grazing off of land to get not yours despite what your deeds may tell you, plus in your pockets, you carry money naturally not yours, for is not property for this general put away. Sure you can borrow against it, or buy things with it, in fact, that’s back as they want. All of them again their IOU’s furthermore, as you haven’t got enough for that item or service you don’t need, well to provide a credit, so you can go from having a promissory note to pay out the commission money how the banking systems don’t have, to owing the bank definition money you would not have.

MMFs are usually incredibly liquid. They’ll be merely put converted to hard cash. It is much like a deposit in a bank. To entirely make it look precisely like deposits, many money-market funds have a certified check writing facility. You will write a cheque on money market fund and only buy whatever you want. So they would be an incredibly risky competition for the banking contractors!

It’s a simple, efficient way of obtaining money when you need it most. You need to make one’s payments and do so on-time to be able to reduce the all inclusive costs of the title lending product. The key to managing title loan payments isn’t to operate outside of your means. If you understand you must make a payment this month, and the situation is tight, you may have to go a long time without buying new clothes and see the movies. No one wants to make sacrifices like that, but we all need to tighten our belts throughout tough financial times.