Even if interest rates are currently only in the lower single-digit percentage range, their effect on savings should not be underestimated: “When it comes to interest rates, differences after the decimal point make a big difference in the long term,” says Frank Kuczera from Postbank. Almost half of savers (45 percent), however, seem to be hardly interested in this, as they invest their money regardless of the interest rate or not at all. This is the result of a recent YouGov survey commissioned by Postbank. Low-income savers in particular forego generating returns on their reserves: 43 percent of respondents with a monthly net household income of less than 2,500 euros park the majority of their savings in a checking account or keep it in cash. For respondents with higher incomes, however, this only applies in just under 22 percent of cases; the average is 30 percent. “It is fatal that people with lower incomes primarily use non-yielding forms of savings. It is particularly important for them to invest money as profitably as possible,” says Frank Kuczera from Postbank. “Interest-bearing investments are ideal for this because they are easy to plan. Savers can also earn interest with a short-term, flexible investment – such as a call money account.” It is not just the interest that can contribute to the steady growth of savings, but also state subsidies, for example in the context of “capital-forming benefits” (VL). The employer makes voluntary payments into an employee’s VL savings contract. The state also helps savers with lower incomes: it provides a maximum of 80 euros per year in employee savings allowances for a VL securities investment and 43 euros for a VL building society savings contract. The prerequisite is that the taxable income in the calendar year for singles does not exceed 40,000 euros. “The income limit for the employee savings allowance has more than doubled since the beginning of the year. It is therefore worth checking your own entitlement,” adds Frank Kuczera.
