Where should I keep my savings in Germany?

Hello everybody.

I want to buy some land and am thinking to open a savings account. Which bank is best right now for savings accounts? Do I need to think about the fees?

Hi lunchlady,

this is quite a complicated question, and the answer depends on multiple factors.

Buying land can be quite the endeavor and saving money for real estate is a bit different than, say, saving up for a laptop.

So, first things first: When you say you’re saving money to buy land, you mean saving for the down payment? Or are you planning to buy the whole thing in cash?

Either way, we are probably talking about saving a more considerable sum.

When you’re saving money, especially long-term, one of your biggest challenges will be beating inflation.

With current interest rates, putting money into any traditional savings account means that your money will lose value.

You could start by saving money in a call money account until you have enough savings to qualify for a fixed deposit account.

There are currently a few banks with fixed deposit accounts that can help you beat inflation.

So, in the best case, you can save money without “losing money” this way.

If you are looking for financing, you might want to look into a Bausparvertrag.

A Bausparvertrag is a financial product that combines a savings plan with a real estate loan. You save up some money, usually between 30% and 50% of the total sum, and take out the remaining amount as a loan.

But a Bausparvertrag only makes sense in some instances and can also only be used if you plan to buy the land to build a residential building on it.

The alternative to all of these savings products is investing your money.

Before you even start thinking about investing your money, you need to understand that your investment will not be protected and you are undergoing the risk of losing money.

On the other hand, if you’re looking at the low-interest environment we are currently living in, an investment might also be the only way to keep your savings growth above inflation and, ideally, have your money grow at a higher rate.

You could look into an ETF savings plan for an easy and cheap way to get started.

Whichever product you choose, it pays to compare! Different banks have different offerings or special offers that fit your individual needs.

And since this was just an overview, I highly recommend sitting down with a financial advisor to make sure you don’t take any unnecessary risks.

I hope this was useful, and you have the information you need to start your research. Let me know if there is anything else you want to know!

Cheers,
Paul