Germany, the country of savers. BUT: pandemic, low interest rates and Inflation eat up the savings.
A study by the insurance manager “Clark” and the opinion research institute “Yougov” shows: Around half of Germans get little or no interest at all: 29 percent of those surveyed use a call money account and a full 24 percent still save their money in a money box.
This year’s “World Savings Day” (“celebrated” for the first time in 1924), which is supposed to bring children closer to the value of saving in a playful way, is probably the saddest one in a long time.
▶ ︎ DENN: Gone are the days when the Germans put their money in “the safe haven of the bank”.
Gone are the days when money remained valuable in the piggy bank and in the piggy bank.
Today, when proud-faced boys and girls drag their bulging piggy bank into a bank branch to be “slaughtered” in order to deposit the groschen given by mom, dad, grandma and grandpa that they have earned themselves, an honest employee would have to tell them the credo of the year 2021 – and break so many children’s hearts:
► Who saves, loses!
The interest on checking accounts is measly, instead the account management fees are increasing at almost all banks.
▶ ︎ That means: whether the money is in a current account or in the piggy bank for years, it makes no difference. The money will definitely become worthless.
BECAUSE: The rate of price increases in Germany (4.5 percent in October) and in the euro area (3.4 percent). Means: Everything is getting more expensive. Purchasing power is dwindling because money is virtually devalued by the higher prices.
Affected by the inflation shock: our wages and pensions.
ECB is not sending out any savings signals
And the European Central Bank (ECB) is not sending any signals, instead letting savers down. It is sticking to its loose interest rate policy (base rate: 0.0 percent), the deposit rate remains at 0.5 percent – which leads to the feared penalty interest.
In addition, central bank boss Christine Lagarde (65) is pumping money into the market through the Corona emergency program (1.85 trillion euros) until at least March 2022, and has been printing more and more money for months to buy up the debts of bankrupt countries such as Italy and Greece. The goal: to revive the pandemic-damaged economy. The result for consumers: the more money there is in the market, the more worthless it becomes.
CLEAR TEXT: Inflation continues to rise, money is trickling through your fingers like sand. Instead of supporting the Europeans, the ECB is only exacerbating the situation of many small savers.