Savings forms - individually tailored
Putting money aside is generally a positive thing. Money that is currently available and not needed for consumption is set aside.
Over a longer period, a small fortune can be accumulated this way. The capital can be used for purchases, as an investment, or for provision.
Financial institutions offer various savings forms tailored to the individual. Two groups of savings forms are to be distinguished: purpose-saving and provision-saving.
Purpose-saving includes, for example, saving for a vacation, for a house, or for a vehicle. The second group includes provision-saving. Provision-saving covers, among other things, saving for emergencies such as disability, unemployment, or illness.
But not only money can be saved; energy and raw materials can be saved as well. Other saving options include stocks and government savings bonds. Shopping savings opportunities include, among other things, special shopping apps on the phone.
Savings forms: which is the right one?
Savings forms are distinguished by two motives: building reserves for emergencies and purpose-saving for purchases.
Various investment forms are other possibilities for saving. These include investment, future security and retirement provision. For building reserves for emergencies or for purpose-saving for purchases, the classic savings book (passbook), savings certificates, fixed-interest savings, fixed-term deposits and installment savings can be used, among others.
Investment
Investment is a form of savings investment. This can be done, for example, by purchasing real estate. Future security can be achieved through securities saving, in particular pension insurance, stocks and investment shares.
Retirement provision
Life insurance serves as an instrument of retirement provision, as does endowment insurance. Investment criteria that influence the forms of investment include interest, dividends, and state subsidies in the form of tax credits or premiums.
Other factors such as capital gains and costs affect the profitability of the investment forms. The possibility of converting real estate into cash provides quick availability of investment capital.
Home savings
Another frequently used form of saving is home savings. In this savings form, contractually agreed regular amounts are saved. The saved capital is protected by the banks' deposit insurance and is therefore very safe.
Savings security is ensured by deposit insurance for amounts up to 100,000 euros. The returns for the various savings forms are rather low; moreover, the respective conditions of the individual credit institutions must be observed.