Why does the subsidy make home savings interesting?
With new home savings contracts, you receive practically no interest . The Bausparkassen still state a credit interest rate. However, it is often at a sympolic 0.01 percent. The interest rates are thus well below the best offers for call money . In addition, there are the closing costs of at least 1 percent of the building savings contract with the building savings contract. The only advantage of the home savings contract: To compensate for the low interest rates during the savings phase, savers can later apply for a home savings loan at a guaranteed interest rate.
On the other hand, overnight money savers who later need a construction loan must request an offer at the current interest rate level. Interest rates can still be as low as they are now, but they can also be significantly higher. Whether a home savings contract was worth it in the end depends on the development of mortgage interest rates . This is shown by our calculation at the end of this guide.
Building savings subsidies as a substitute for good interest rates
In this world of savings and savings without interest, the state subsidy serves as a kind of substitute interest. However, if the state intervenes in private finances through taxes or subsidies, the advantages and disadvantages for the consumer shift. There are four subsidy pots for the home equity savings contract: the employee savings subsidy, the housing subsidy, capital- forming benefits and the Riester subsidy . A Riester home savings contract is the best-known variant of the so-called residential Riester .
In all of these cases, a home savings contract is at least a simple and secure solution. Whether it is the best solution in each case depends on what the home savings contract is to be used for.
In any case, make sure that the building society sells you a cheap building savings contract . A home savings contract is particularly cheap if you keep the home savings sum low .
If you want to use the employee savings allowance, the housing premium or capital-forming benefits, a home savings sum of 10,000 or 12,000 euros is usually sufficient . It shouldn’t be more than 20,000 euros. Choose the savings sum so that the contract is ready for allocation in seven to ten years , based on the monthly savings amount .
How do you find the right home savings contract?
The tariffs of the individual building societies sometimes differ significantly from each other. Pay attention not only to the loan interest, but also to the interest on the credit balance. In addition, there are other key data that you should consider.
But even with all the data, it is difficult to compare the individual offers of the building societies. This is mainly due to the different loan interest rates in combination with the expected savings and repayment periods. For example, an offer with a significantly higher loan interest rate can sometimes be the better choice, since the time until the loan is allocated is shorter than with other variants. We therefore always recommend a comparison of home savings contracts : Obtain offers from different providers for a certain home savings sum.
We have been able to calculate the advantages for a few important situations and are therefore making a limited recommendation : for savings contracts for young people, for later financing of modernization and for using the Riester subsidy.
The housing premium improves interest
State subsidies can improve the interest on home savings contracts. The example of the housing premium shows how the subsidy works. You can apply for this subsidy directly through the building society. If you meet the requirements – the income limits and a minimum age of 16 are particularly important here – the tax authorities have credited the contract with a maximum of 70 euros since 2021 (for individuals). For married couples and registered life partners, it is twice as much, i.e. 140 euros.
For maximum funding , singles will have to pay in an amount of 700 euros per year from 2021, married couples 1,400 euros (previously it was 512 or 1,024 euros). With these additional amounts, the total interest on the contract increases to an acceptable level.