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- More on the subject: The number of building savers is at its lowest level since 1997
Boring for sure
If you think of me as boring and conservative when it comes to financial matters, my son was given a building savings contract and a few gold coins on the day he was born.
This only produces manageable returns, but it is also safe. In the past few decades, enough people who thought they knew something about trading on the stock exchanges have speculated on their entire fortune. It’s an obvious impulse to want to be on the safe side.
Don’t be blinded by the few success stories where some lucky people happened to buy a few Google shares 20 years ago and are now multimillionaires. The building saver is bland – and that’s exactly why it’s good.
Discontinued Model
In my childhood, “a building saver” was as commonplace as a baptismal certificate and citizenship certificate. My father took out building savings contracts “on the side” with friends, which was easy because everyone wanted and had one.
Today, this regulated form of savings with a six-year minimum commitment and a comparatively unattractive effective interest rate is not my first choice, especially because inflation is still at 4.5 percent and long-term interest rates are lower than short-term ones. If I take out a new home savings account, my bank offers me 3.0 percent interest in the first year (plus 1.5 percent state bonus this year). I get 3.35 percent for regular savings deposits. After that I’m free and look for new offers.
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David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
