Building savings are making a comeback, but how much should you pay in each month? Our expert explains how you can determine the optimal savings rate for your building savings contract while keeping your financial goals in mind. Find out what really matters when designing your building savings plan.
Are you unsure how high your monthly payments should be into a building savings contract?
For many people, a building savings contract is an important building block in realizing their dream home. But how high should the monthly deposits be in order to achieve the best possible result? In this article we look at the key factors that influence the amount of monthly payments and give practical tips on how you can get the most out of your building savings contract.
What is a building savings contract and how does it work?
A building savings contract is a savings contract that consists of two phases. In the first phase, the saver saves regular contributions in order to reach a set building savings amount. This sum is made up of the savings contributions paid, interest and any government subsidies. As soon as the required minimum savings amount is reached, savers are entitled to a low-interest loan for real estate financing. The savings phase typically lasts between seven and ten years.
How much should you deposit monthly?
The amount of monthly payments depends on various factors: your personal savings goal, the contract structure and your individual financial situation. One principle states that you should achieve around 40-50% of the building savings amount in the savings phase. This means that the higher the desired building savings amount is, the higher the monthly contributions should be. For example:
- With a building savings sum of 50,000 euros, around 167 euros should be paid in per month (with a ten-year savings phase).
- For a building savings sum of 100,000 euros, around 333 euros per month is recommended.
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Consideration of state funding
Another aspect when determining monthly contributions is possible government funding. Depending on their income and family situation, building savers can benefit from the housing bonus or the employee savings allowance. Capital-forming benefits from the employer can also be included in the building savings contract. These subsidies should be taken into account when calculating the monthly savings rate in order to exploit the full savings potential.
Flexibility in payments
Many building savings contracts offer the option of flexibly adjusting the amount of deposits or even making withdrawals in between. This flexibility can be beneficial when financial situations change. Please note, however, that irregular payments can extend the duration of the savings phase and influence the amount of the loan that is ready for allocation.
Should you make special payments?
Special payments can be an attractive way to reach the minimum savings amount more quickly. Especially in the case of bonus payments or unexpected income, an additional deposit can make sense in order to benefit from lower loan interest rates. It is advisable to check the contract for possible fees for special payments.
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Checklist – optimal use of the building savings contract:
- Achieve around 40-50% of the target building savings amount in the savings phase.
- Include state subsidies and employer benefits in the calculation.
- Pay attention to and use flexible payment options.
- Regular review and adjustment of the savings rate to current financial circumstances.
- Consider special payments to reach your savings goal more quickly.
Conclusion – Find the right savings rate for your building savings contract
The optimal monthly payments into a building savings contract depend on individual goals and financial possibilities. Forward-looking planning, taking into account all available subsidies and regularly adjusting the savings rate to changing living circumstances are crucial in order to successfully use the building savings contract. So nothing stands in the way of your dream of having your own four walls.
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