The beauty of building savings

Fri, June 03, 2022 12:11 PM By Logan

Just four good reasons why building savings programs are especially rewarding right now.

there is still time to take advantage of the changes in 2021
This Article in Brief
  • More than a classic: Especially in the current low-interest environment, building savings show their strengths - flexible, plannable and state-subsidized.
  • Find out here how you can use home savings to realize and finance your housing goals.
  • Building savings is also recommended for a sustainable savings and investment strategy.

" Oldie but Goldie": For a long time, building savings were considered conservative and uncool. Yet it is precisely in the current situation that this classic product is showing its strengths - flexible, plannable and state-subsidized. The terms and conditions of home savings contracts are transparent and clearly defined for the future. This makes building savings particularly interesting for savers as well as future property owners.

This is how you can use building savings:

1. Lock in long-term, competitive interest rates with flexible financing options

The unbeatable advantage of building savings is the interest rate guarantee with fixed loan interest rates: With building savings, you build up equity, secure favorable loan interest rates starting at 0.95%*, for example, and thus make yourself independent of the interest rate market for later real estate financing.


This means that your financial expenses remain stable and can be calculated and planned throughout the entire term.

2. Build up your (housing) security in a flexible and reliable way.

Owning your own property provides security and independence. But over time, owners face additional expenses, for example for new housing needs, maintenance or modernisation.
Whether your property needs a new coat of paint or a new heating system, the roof needs to be repaired or you want to install a modern solar system - as a building savings customer, you are ideally equipped for the future: You can build up reserves today for rising construction costs or energy-efficient modernisation and secure the option of a low-interest, low-repayment-rate loan.
car airbag
Financial airbag - you'll be glad you did!

3. Protect your savings and investment strategy with a "financial airbag"

Building savings can be a highly recommended addition to your savings and investment strategy. Especially in view of volatile markets that are subject to volatility, a building savings contract provides a safety buffer.

With building savings, you can secure a financial disposal framework with the option of a favorable loan. If you need money at short notice, you can fall back on your building savings contract and do not have to sell any existing investment.

4. Save with government subsidies and the housing construction grant

Especially in times of low interest rates, government subsidies are becoming even more important. The employee savings allowance and the housing subsidy provide double support for home savings. This simultaneously supports the accumulation of reserves and makes the dream of home ownership more realistic for many people. As a result of the new income limits, the Housing Construction Grant has been available to even more people in Germany since 2021.

Find out more about this classic savings product, which can be particularly worthwhile right now, and get personal, expert advice.

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*Representative example in accordance with § 6a (4) PangV: ViaBadenia 20 Rate; Low Interest Variant; Home Loan Savings Amount €25,000; Saved Balance approx. €12,512; Net Loan Amount of approx. 488 €; 73 monthly interest and repayment installments for the home savings loan of 175 € each; repayment period 6 years and 1 month; annual borrowing rate (fixed) 0.95 %; annual percentage rate of charge (from expected allocation of the home savings contract) 1.48 %; total amount to be paid 13,065 €, of which 577 € total costs (incl. pro-rata one-time closing fee 400 € and borrowing rate for the home savings loan); account fee in the savings phase 15 € per year. We assume that the loan will be secured by a mortgage. Costs incurred for this are not known and are not taken into account here. Blank loan possible up to loan amounts of € 30,000; further conditions apply.

Offered by Deutsche Bausparkasse Badenia AG, Badeniaplatz 1, 76114 Karlsruhe. Status: May 2022.