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Global Economy

Record six months for securities purchases

With an inflation rate of currently 7.5 percent in Germany, the savings that are in the account are rapidly losing their value. Even if the framework conditions on the capital markets are difficult at the moment – in view of the impending gas shortage and price explosions as well as a weakening of the economy – securities are in high demand among savings bank customers. The German Savings Banks and Giro Association reported the highest net sales ever for the first half of the year at 16 billion euros. Savings bank customers thus made 23.3 percent more securities purchases than in the previous year. From the point of view of the Savings Banks Association, this is a good sign, because customers increasingly see securities savings as an alternative to depositing money in an account.

Mutual funds are the most popular

In the first half of the year, savings bank customers invested EUR 9.4 billion in securities, EUR 4 billion in fixed-income securities and EUR 2.6 billion in equities. Even if total turnover (purchases and sales) fell compared to the very strong previous year 2021, the savings banks have succeeded in winning more customers for securities savings in recent years. A development that Geldanlage editor Hendrik Buhrs from the independent consumer portal Finanztip also sees positively: "It is gratifying that private individuals continue to invest in securities, because in the long term shares are a very promising investment. In recent years, many newcomers to the stock market have also been up got the taste."

Around 40 percent of households can no longer save

But there is a trend reversal in another area: in the savings on the account. According to a spokesman for the Savings Banks and Giro Association, DSGV for short, it is clear that deposits are falling. In the customer deposit business, there were only inflows of 0.6 billion euros in the first half of the year, while in previous years due to the pandemic, 25 billion euros (2021) or 29.5 billion euros had already flowed into the accounts of savings bank customers at this time. Behind this drastic decline in savings is the simple fact that people simply need more money for everyday life in view of the rising prices for energy and food – according to the assessment of DSGV spokesman Stefan Marotzke. He told tagesschau.de that around 40 percent of households in Germany are currently unable to save any more money.

Real estate loans less in demand in July

Furthermore, the demand for real estate loans seems to be declining. According to Marotzke, the savings banks still experienced a boom in the first quarter: there was a significant increase of 8.1 percent in new lending business with private customers. The increase between January and June was mainly due to a significant increase in private real estate financing. However, inflation also increases the cost of building materials and trade services, and the rise in interest rates by the European Central Bank is also reflected in the rising borrowing costs. According to savings bank spokesman Marotzke, construction loans among savings bank customers fell in July for the first time in years.

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