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There are many different ways of investing money today. Which form you ultimately choose depends on your personal situation. But also about the risk you are ready to take. Here are the most popular savings options.
How should I best invest my savings? Would you prefer to be conservative, but with a high level of security, or is it a little more risky and with the prospect of a high return? It all depends on what you're up to in life. Do you want to save for the future or do you want to invest in a nest egg that is always available? Get an overview of the best forms of savings here.
Plannable. The goal is to build small fortunes with regular monthly payments. One possibility would be to use the classic savings account to deposit a certain amount every month. There is a clear drawback: the extremely low interest rates of no more than 0.5 percent are not exactly motivating. It is more advisable to link pension plans to stocks or funds. In other words, interest a part with a monthly savings sum, invest the other part in securities, stocks or funds. The advantage: minimization of the risk with higher yields at the same time.
That's what we prefer to invest in
Most dream of owning their own home, and the tried and tested home loan and savings contract is still in the running. The cryptocurrency is far behind (source: Statista).
Fixed deposit. Here you invest a fixed sum over a longer period of time at an agreed fixed interest rate. You can do this at any bank, but be sure to compare the interest rates. It really pays off! They are currently around 1.2% per year. The payment is made with a one-time amount. So best suited if you want to park a larger sum profitably. You are not flexible with it, but you can count on a certain amount after it has expired.
Home savings. A classic for decades and still suitable for those planning to invest in a property. Because the investment is earmarked and can be used for renovation or construction financing. In comparison, the money earns attractive interest (the fixed interest rate is currently around 1.0 to 1.5% per year, the variable interest rate fluctuates between 0.1 and 4.0% per year). The usual duration of this contract is six years. Disadvantage: fees are due upon conclusion of the contract, and those who terminate the contract prematurely have to reimburse the premium amount already paid out.
Saving account. Ideal for the nest egg. For example, you could transfer monthly surpluses via standing order from the salary to the savings account. This way you are not tempted to spend it. Tip: Ideally, put a cushion of three to six monthly salaries aside so that you don't fall into a deep hole if the washing machine breaks or an unexpected car repair is due. The interest rate is currently only around 0.01%, but the money is available daily. Small consolation: In contrast to the current account, there is interest.
Property. They are considered to be a conservative form of investment because they retain their value. Nevertheless, you should definitely do a thorough check before making a purchase. It is essential to pay attention to the location, the condition of the property and a positive market development. Otherwise there is no point.
Funds. They are managed by companies that distribute the investors' capital over several areas. Compared to stocks, this diversification offers greater security. As a result, the amount of the return also depends on their composition and whether you opt for a conservative or risky performance. Tip: Check the administration fees and compare the providers.
Precious metals. Gold or platinum are considered a safe and stable form of investment in times of crisis. It is advisable to use gold primarily as a long-term investment. More detailed information can be found on other pages in this booklet.
Shares. They are a rather risky investment, as the return depends on market fluctuations and the respective development of the company. So don't just buy something naughty, but get detailed information or good advice before making a purchase. Good stocks bring the chance of high returns.
Material assets. Have you ever thought of investing in a work of art, a vintage car or jewelry? Admittedly, this is a somewhat unusual form of investment. And whether a high return will be achieved remains uncertain, as there are no benchmarks for the increase in value. Therefore, the following also applies here: Before making an investment, seek advice and consider whether it is worthwhile.