The money market account is a good way to put aside an emergency fund.
On average, an adult in Germany has 9,764 euros in their money market account.
The average interest rate is 0.25 percent, although savers could already pocket significantly higher interest rates thanks to the interest rate turnaround.
There are always those unforeseen moments of financial shock: the dishwasher breaks, the car won’t start or the smartphone gives up the ghost. For exactly these costs you should set aside a nest egg.
The rule of thumb says: Three to six net salaries are usually enough to absorb sudden costs. It is best to save the money in a money market account. There you are less likely to be tempted to spend your savings. Because an overnight money account serves the purpose of parking your money. You can still transfer money to your checking account within one day. In addition, you will also receive annual interest payments again as part of the interest rate turnaround.
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9764 An adult holds an average of 1,000 euros in their money market account
But how much do Germans put away on average on the call money account and do they stick to the rule of thumb mentioned? Fintech Raisin evaluated data from the European Central Bank (ECB) for Business Insider. And they show: On average, adults in Germany hold an average of 9,764 euros in their call money accounts.
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Since this is an average value, it is reasonable to assume that people in Germany have significantly less money in their call money accounts or do not have any at all. The call money account is still a popular form of investment, especially among older people, and there are likely to be some outliers that also distort the average value upwards.
In addition to the average call money account balance, the average interest rate is also interesting. The average interest rate on overnight money is just 0.25 percent and thus well below what would be possible thanks to the interest rate turnaround. With German banks up to 1.6 percent are possible, with European ones even 2.5 percent.
Saving with overnight or fixed-term deposits?
If you are among those who have already saved up their nest egg, you should not simply leave the rest of your savings on the call money account. There are now significantly higher interest rates on fixed deposits. If you invest your money for two years, you can earn up to three percent interest from German banks. But keep in mind that you cannot access your money during this time.
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If you want to save in the long term, you should also think about stocks and ETFs. Over the long term, the stock market offers good returns with relatively little risk – if you spread the money widely. However, securities are not suitable as emergency funds. There is always a risk of loss as there may be times when you need to sell your shares at the moment they are cheaper than when you bought them.
Disclaimer: Stocks and other investments are always associated with risk. A total loss of the invested capital cannot be ruled out either. The published articles, data and forecasts are not an invitation to buy or sell securities or rights. They also do not replace professional advice.