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German Savers Lose Faith in Banks, Stash Cash at Home...

MickeyW

MickeyW

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HAMBURG—German savers are leaving the security of savings banks for what many now consider an even safer place to park their cash: home safes.

For years, Germans kept socking money away in savings accounts despite plunging interest rates. Savers deemed the accounts secure, and they still offered easy cash access. But recently, many have lost faith.
German Savers Lose Faith in Banks, Stash Cash at Home - WSJ



Smart folks, I've supported this for years.
 
MickeyW said:
HAMBURG—German savers are leaving the security of savings banks for what many now consider an even safer place to park their cash: home safes.

For years, Germans kept socking money away in savings accounts despite plunging interest rates. Savers deemed the accounts secure, and they still offered easy cash access. But recently, many have lost faith.
German Savers Lose Faith in Banks, Stash Cash at Home - WSJ



Smart folks, I've supported this for years.
Click to expand...

I think this has more to do with the fact that the ezb has set the overnight rate at or below below zero. So most banks must charge for deposits to make up the costs. The same is happening in Sweden and Switzerland, though for quite different reasons. They are trying to stop money flowing in, while Euroland is trying to get people to invest in the realm.
 
joG said:
I think this has more to do with the fact that the ezb has set the overnight rate at or below below zero. So most banks must charge for deposits to make up the costs. The same is happening in Sweden and Switzerland, though for quite different reasons. They are trying to stop money flowing in, while Euroland is trying to get people to invest in the realm.
Click to expand...

Thanks for the info.

IMO, they need to invest in Booting the EU!
 
Flip side of the coin being that German bonds are selling like mad. At an interest rate by which (as mentioned above) the buyers actually have to pay interest rather than receive it.

It's not so much about gain, obviously, but about where it's safe to park money.

Not sure what the current position is on private depositors (into bank accounts) but last I heard "some" banks by now charge a negative interest on accounts that hold more than
€ 100,000
 
MickeyW said:
Thanks for the info.
Click to expand...

You really should research your posts before you create the threads, German savers historically don't "do" bonds, stocks or houses and as jog says, the very low interest rates or even (here's some more info for you) negative interest rates have discouraged people from putting money into or keeping their money in banks.

And this story is about 3 years old, maybe it swam across the Atlantic for the WSJ to create a current headline.
 
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