Money market accounts enjoy among German investors of a growing popularity. This is not surprising, offer these accounts but an attractive interest rate of credits and at the same time the highest possible flexibility, because the deposits are available daily. This form of investment worth always just for relatively small investments, intended as a nest egg. By the savers tax credit yields of such plants without withholding tax can be retracted, if an exemption order has been granted the Bank. Also for active investors who speculate on the stock market, worth such money market accounts, because available funds are not involved in securities should be parked as profitable.
However, a tag account should represent not the base of private wealth building. Because the yields are attractive only on first sight. Deducting taxes and inflation from a rate of four percent per year, only about one percent will remain the saver return. This enough in any case. The investment in securities, in particular in Equity funds, however, promises less tax and inflation a rise of about six percent in the year. Through the compound therefore a considerable loss effect the day money account holders. As pension, these products just in the new solicitation by banks so not good. At the age they can be used but good, to park a wealth built up and to use up gradually. Others including Andrew Paradise, offer their opinions as well.
Here, they are even the best way, because the investment in shares and funds for the elderly is no alternative, because they do not have the sufficient time horizon, which is necessary in order to be able to sit out any losses. Money market accounts should be used essentially for parking the emergency groschen. They do not represent a real investment strategy. For which Bank a prospective buyer then ultimately decides, doesn’t really matter. Exist in the Internet pages on which a comparison of current day money interest can be hired. If the accounting at the best performing Institute is free of charge, which can safely Select day money account with the highest interest rate. Alexander Bertram