Are savings and loan contracts still worthwhile?

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Bauspar was previously considered a solid investment. Despite low interest rates, home loan savers were able to save high-interest rates. The banks were worried – they announced their contracts to hundreds of thousands of customers. The Federal Court of Justice (BGH) ruled on Tuesday in favor of the banks and declared the terminations to be lawful.

Building societies such as Schwäbisch Hall and Wüstenrot already started to terminate the contracts two years ago. Bauspar contracts are affected, whose allocation maturity has exceeded 10 years – in times of low-interest rates a financial burden for the banks.

In the meantime, the number of dissolved Bauspar contracts has reached around 250,000. After the ruling of the BGH is with further dismissals to be expected. According to consumer advocates could be affected this year up to 60,000 contracts.

The model “Bauspar contract”

Bauspar contracts work in such a way that the savers regularly deposit amounts over a fixed term at the end of their term and receive interest. Customers acquire the right to a favorable construction loan during the savings phase, despite formerly less attractive interest rates.

The so-called allotment maturity occurs when the Bausparer has usually paid half of the Bauspar sum.

You can now apply for payday loan consolidation. Only a few years ago, some building societies offered the customers lucrative additional interest if they waived their loan. So they made the model for savers who did not want to build, attractive – the home savings contract was a mere investment. In times of permanently low-interest rates, this business model no longer works.

Bauspar contracts as a pure investment?

If you just want to invest your money, nowadays you will not get good interest anywhere. That’s why many construction customers are keeping their old contracts running for years. “The old credit interest rates are high and therefore very attractive,” says Dirk Eilinghoff from the consumer portal Finanztip. “But the loan interest rates in these contracts are also much higher than usual today. That loans are not used, for which you would have to pay four to five percent interest is fully understandable. “