New interest rate landscape: The world of investments is changing - expert opinion

New interest rate landscape: The world of investments is changing - expert opinion

How www.faz.net reports, a year ago it was extremely attractive for private investors to invest in short-term German government bonds. The interest rates were 3.2 percent for a loan to the German state over two years. However, banks have gradually increased their interest rates for existing customers, so that there are now average interest rates of 1 to 2 percent for overnight money, and even offers of up to 4 percent. Fixed-term deposits for one year have an average interest rate of 3 percent, while federal bonds for two years only yield 2.6 percent.

These changes in interest rates have a significant impact on the investment market. While security-oriented investors previously only had a few attractive alternatives to invest their money, there is now a larger selection of lucrative offers. This can lead to more investors investing their money in overnight and fixed-term deposits or in other safe asset classes such as ETFs and bonds in order to achieve higher returns.

However, as interest rates on bank assets rise, it also becomes more expensive for banks to cover their own interest costs. This could have a long-term impact on their profitability and potentially lead to changes in their business models to compensate for rising interest costs.

Overall, the changed interest rate situation could change the dynamics of the financial investment market and influence various players, including investors, banks and financial institutions. It remains to be seen how the situation will develop and what the long-term impact of rising interest rates will be.