Better save than pay off in Germans

Better save than pay off in Germans

Better save than pay off in Germans

Many Germans save like crazy. There are deposits of less interest than you must spend for lending rates. Those who made loans primarily degrades, thus more profit.

In the crisis put the Germans prefer saving for uncertain times. On average, the German savings rate in the first half of 2009 was a record-breaking 11.2 percent. On the other hand, many people borrow money at the bank - after all, the cost of borrowing relatively modest. What's often overlooked, the loan commitments generally cost more money as interest-bearing savings accounts bring in return. So to reduce debt brings higher return than accumulating savings.

 

Many households have debt from open car or real estate financing. Such loan commitments often cost five or six per cent interest. "Every credit repaid early almost a return € brings the level of the effective interest rate loan," said Thomas Bieler, financial expert of the ING-Diba. And the completely tax free. In contrast, focuses on current interest rates of time deposits or savings bonds credits from two or three percent. Assuming a savings bond brings three percent interest, a car loan costs six percent, then the waiver would bring the savings interest rate while paying off the credit that is at least a surplus of three percent.

Subtracting one of the flat tax in the bill, increases the gain. The bottom line is it pays not to serve for a loan at six percent interest and to buy savings bonds simultaneously with two or three percent interest rate credit. To lose this dual strategy, no money would have to bring six percent return on savings certificates!

by http://www.geldsparen.de/sparen/Kredit_Geldanlage/geldanlage-tilgen-geht-vor-sparen.php