Increasingly more savers are on the verge of despair due to the low market interest rates. This is evident in the savings rate, which has fallen again. While it was still at 11.5 percent in 2008, it slipped to 10.5 percent in 2011, and now stands at just 10.0 percent. Many citizens no longer find the low credit interest attractive enough that they prefer to spend their money on consumption.
The situation does not look rosy with the interest interest rates
In fact, the situation does not look rosy with the credit interest rates. In terms of overnight deposits, yields are on average less than one percent. Although the average yield for fixed-term deposits is almost twice as high, ultimately this interest rate is also not very attractive. Inflation can only be curbed conditionally.
Fortunately, there are ways to get higher returns without having to take much higher risks. A good indication came recently from the German Insurance Association (GDV). The association pointed out the attractiveness of the capital-bound life insurance.
Guaranteed interest rates have dropped significantly and there are no tax advantages anymore
Some people will now say that life insurance has long been obsolete. However, this only seems to be the case at first glance. Although the guaranteed interest rates have dropped significantly and there are no tax advantages anymore. But if one adds interest and profit sharing, annual returns from three to four percent are possible. Of course, the bonuses are not guaranteed, but at least there is a chance. In addition, the current insurance benefits should not be disregarded. Ultimately, it adds to that, resulting in an almost unbeatable package.
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