Bremen – Those who sign a building society savings contract often don’t know what they want to use the saved and borrowed capital for later. The reason: the contract is often signed years before the payout. But how can the money actually be used?
In principle, the building savings sum is earmarked and is primarily intended for the construction or purchase of residential property. But it can also be used to finance renovations or modernizations. For example, smaller sums can be used to replace doors, windows, the heating or the roof. This is why Roland Stecher from the Bremen Consumer Advice Center also calls the building savings contract a “health insurance certificate for the house.”
If you don’t want to buy or renovate a home at the end of the savings phase, you can simply have the savings paid out. You can then do whatever you want with the money – for example, go on holiday. However, the building society loan is no longer valid.
If you don’t have any specific purchase or construction ideas in mind, you can basically continue to save for the contract. However, because there is usually little interest on the savings account, this form of investment is not worthwhile.
