Where do credit unions keep their money


Money is currently available for free. The aim of promoting investments is offset by the risk of investments that are becoming increasingly excessive and risky, as well as inflated markets. Savers in Germany, on the other hand, currently have to find out that their deposits are generating almost no income. New or more extensive efforts are necessary so that pension plans do not have to be thrown overboard without further ado.

“Is that still capitalism?” Asked the magazine Der Spiegel in view of the long-term and increasingly drastic effects of monetary policy and stated unequivocally: “If the ECB and other central banks reduce the price of money, they risk destabilizing the banking system and thereby torpedoing one's own intentions. ”In the long run, such a zombie economy will emerge, summarized Der Spiegel at the beginning of March this year. One thing is clear: the weird world of negative interest rates is unsettling companies and consumers, is a burden on old-age provision and increases the incentives to borrow, both for companies and private households as well as for governments.

The monetary policy floodgates are so wide open that the announcement of even more liquidity will not move the mood on the financial markets for much longer. With a steady hand - not with monetary policy reflex actions - more strength could be demonstrated.

Need for savings increases

This policy has unpleasant side effects, especially for loyal savers. The need for savings increases - especially for the Riester pension. This is the result of a study by the Munich Max Planck Institute for Social Policy and Social Law, initiated by the BVR. If interest rates remain low, the Riester pension can no longer close the pension gap as planned. After all, the concept of the Riester pension is based on the interest rate environment that was common before the crisis. This has not been the case for far too long.

In view of the widening pension gap, politicians are also challenged. An important signal in this context could be an increase in the allowance rates. It should not take place once, but regularly and should be based on the wage and salary development per employee in accordance with the income threshold. After all, the supplementary rates have not been adjusted since the introduction of the Riester pension in 2002, although the general price level has increased by more than a fifth. Likewise, an exemption for the basic security as well as lower tax and duty rates could have a mitigating effect here.