Lowering Interest Rates – What Savers Can Do

Hardly anyone would have expected years ago that the low interest rate policy of the central banks would continue for so long and at the same time assume such extreme proportions. After all, in the past week the European Central Bank has persisted in lowering the key interest rate again. The already very low 0.25 percent interest rate has been lowered to 01.5 percent – and according to the central bankers, he will stay there for quite a while. This is necessary so that the financial markets in the southern European countries do not collapse.

Money accounts or savings accounts

Money accounts or savings accounts

The victims of this policy are the savers. When it comes to making savings safely, it looks bad. It does not matter if funds are deposited on overnight money accounts or savings accounts. Either way, only a low interest rate is offered. The European Central Bank finds this justifiable because inflation is so low.

Nevertheless, savers are well advised to take the issue of investment seriously and ultimately seek to achieve the best possible returns. For inflation to be no danger, there is no choice but to invest. In the following, we would like to show what possibilities exist.

Checking account and passbook 

Checking account and passbook 

It makes little sense to hoard large sums of money on checking account or passbook. The interest offered there is simply too low.

Daily allowance 

The overnight money environment offers returns that provide reasonably viable inflation protection. However, it is important to compare the terms of individual banks exactly. Interestingly, this form of investment is primarily for those who want to have their savings at short notice.

Time deposit Currently, the deposit is regarded as a king among the safe investments. Compared to overnight money deposits attract relatively high yield premiums. But even here it is important to compare conditions of the providers. In addition, there must be a willingness to commit the money for at least one to three years.

Stock markets 


No question, in the stock markets (eg through the purchase of equity funds) attract the highest returns. However, large bubbles could have already formed, which soon burst and cause late losses for late risers. Anyone who wants to invest should therefore be extremely careful and better only use a small part of their savings for this.

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