Friday, February 4, 2022

Safe Deposit Box Instead of a Saving Account?

 Focus brought up this curious discussion point today.

Because of rising fees in banks for deposit accounts (Savings or Checking), and negative interest rates being used.....some Germans are eyeballing the idea of quitting basic accounts, and just renting a safe-deposit box.

Normal costs for a regular small box?  Banks differ but most offer it in the range of 50 to 70 Euro a year.  Some offer the bigger boxes, with insurance.....going up to the 200 Euro range.

From the view of this being 'smart'?  Well.....this would get to the discussion item that you had some gold coins, maybe some expensive jewelry and you were getting screwed on a 100,000 savings account with negative interest rates.  

Normally, I'd tell you to avoid the savings accounts if you had 'real' money, and go invest it into mutual funds or EFT funds.  Most all banks in Germany today (especially into 2021) have gone to the negative interest rates.  The term of 'just parking' your assets is now a forbidden topic with most banks....even if you were just talking 20,000 Euro.

Likely chance that things will change in 2022?  No.  This landscape looks long-term.  

I might even go and suggest that the business of safe deposit boxes will expand in 2022, with more banks adding additional boxes.  

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