Money. Life. Looman.: Building savings or ETFs? How to optimally save money for your own home
The savings and loan phase of a building savings contract can also be recreated with other financial products - without any closing costs. A simple calculation shows when which alternative is worthwhile.
A 29-year-old machine engineer earning €5,100 per month is looking to save and invest for a home in Brandenburg. He is considering three options: a Bausparvertrag with Landesbausparkasse (LBS) NordOst, a savings plan with Deutsche Bank, or index funds. The Bausparvertrag requires 108 monthly payments of €600, resulting in a €62,427 savings and a €87,573 loan with a 1.65% interest rate.
In comparison, a Deutsche Bank savings plan with a 2% interest rate yields a €70,861 savings after 9 years, while index funds with bonds could result in a €76,278 savings, but with a higher interest rate risk.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
