The providers' interest rate offensive increases the wealth of Germans - but stocks and real estate remain important.

According to a report by www.boerse-online.de, the providers' interest rate offensive has brought a considerable sum into the coffers of German households. The financial assets of private households increased by 94 billion euros to a total of 7.49 trillion euros in the second quarter. This is the third increase in a row, although stocks and real estate have recently lost value. Daily and fixed-term deposits, which are increasingly being used due to increased interest rates, play an important role here.

The impact on the market and the financial industry

The rising interest rates and the increased interest in daily and fixed-term deposits show that many German households want to invest quickly and safely. This development has an impact on the stock and real estate markets. Interest in stocks is declining significantly and investments in stocks and other equity rights have fallen to their lowest level since 2016. Interest in real estate also appears to be decreasing as household debt ratios have increased minimally.

Important factors for building wealth

Despite current developments, it is important to think long-term and not just rely on current and fixed-term deposit accounts. While these investments have the advantage of safety and liquidity, they offer limited returns and can lag inflation. In order to increase assets in the long term, investors should continue to focus on real estate and stocks. Especially in times of crisis, it becomes clear that the stock market can offer attractive entry opportunities. This is also illustrated by the chart of the S&P500.

However, it makes sense to invest money in a current account or fixed-term deposit account for foreseeable expenses or as an emergency fund. For an overview of high-interest accounts and further information, I recommend taking a look at the Börse Online daily money comparison.

(With material from Reuters)