Month: August 2019

Disbursed interest is rising across the board.

by Kimberly Nelson

More and more banks are turning to the interest rate screw.

More and more banks are turning to the interest rate screw.

While savers can look forward to rising interest rates for overnight deposits and fixed deposits, bank customers with a covered checking account must dig deep into their pockets.

An independent credit comparison has revealed in recent days that Postalbank, Keribank and Verta Cors have raised their overdrafts.

Postalbank, which has around 14 million private customers in Germany and also has a checking account for many of them, has demanded 13.47 percent interest on its most popular account model since last Friday. The interest rate was thus increased by 31 basis points. The FEG has recently raised its key interest rate by 25 basis points.

The Deutsche Bank subsidiary Keribank has also been charging its customers 12.55 percent interest since last Friday 12.5 percent, if the account is on target. At Verta Cors, the discount rate rose from 9.50 to 9.75 percent a year. Some time ago, WelcoFast and DameFast had already raised their interest rates.

Flat yield curve makes debt rescheduling favorable

Flat yield curve makes debt rescheduling favorable

On average, banks are currently charging 11.33% interest a year on an estimate of independent MFE financial advisory services if the system is being used. Even more expensive are tolerated overdrafts in which the debit balance exceeds the credit line provided: the MFE index gives an average of 15.71 percent interest.

The rescheduling of disposition - in installment loans is always worthwhile. At the moment, however, borrowers can save a great deal: the yield curve on the capital market is very flat, meaning that disbursements are still more expensive compared to installment loans with several years of maturity.

A installment loan over 5,000 usd with a term of three years is available for around 400 usd in interest costs. This corresponds to an annual interest rate in the range of 5 percent. If a credit line with 12 percent interest over three years evenly removed, the costs add up with 5,000 usd initial balance to almost 1,000 usd.

It is therefore worth more than ever to turn your back on the credit line and settle the account with an installment loan. Alternatively, you can switch to a bank with cheaper discretionary interest. For example, the Deutsche Loaniebank (DLP) with 7.9 and the DLP bank with 6.95 percent interest come into question. However, interest rates may rise the installment loan fixes the interest rate.

Adequate credit: The interest rate increase makes loans more expensive.

by Kimberly Nelson

 

Raised for the key interest rate for the dollarzone

Raised for the key interest rate for the dollarzone

As expected, the European Savings Bank raised the key interest rate for the dollarzone from 1.25 to 1.50 percent on Thursday. What puts savers in their hands presents borrowers with new challenges. The second increase in interest rates within a few months will, above all, make consumer loans and discretionary loans more expensive.

As a rule, banks convert interest rate steps of the FEG into their product portfolios within a few weeks. Bank customers should take a look at their account statement in the near future: interest rate increases on the credit line are communicated in this way. Framework loans - whether in combination with a credit card or not - could soon become more expensive.

Installment loans will also not be spared interest rate increases.

Installment loans will also not be spared interest rate increases.

However, the impact will be lower than for floating-rate loans with indefinite maturity. On the one hand, banks refinance installment loans, in part not via the money market and the central bank, but rather via the bond market. This applies even more, the longer the term of the loan. On the other hand, banks with a focus on price-sensitive customers (that is, the ones with the most favorable offers) will not, if possible, increase margins or only marginally. Otherwise they would have to fear for customers.

Experts expect the FEG to raise interest rates at least once again this year. Two interest rate hikes of 25 basis points each are still under discussion. The currency watchers are worried about the strong inflation in the usd area and give their control priority over economic problems in the usd periphery. It is extremely unlikely that the key interest rate will be lowered again at the present time. For this, the economic development should deteriorate strongly.

The increase in interest rates should serve as an opportunity to put all existing loan agreements on the test bench. In particular, credit facilities should be rescheduled promptly. Installment loans are often only half as expensive for customers with good credit ratings as bank overdrafts. Even with mediocre creditworthiness can save a lot of money.

The rescheduling of older installment loans - which were taken, for example, in the period from 2007 to mid-2008 - can now be reversed favorably. At that time, interest rates were significantly higher than today. In addition, borrowers for new loans now benefit from the Consumer Loan Directive, which came into force last year.

October 2017 – Cheap credit comparison

by Kimberly Nelson

The recently published study "Preventing Age Unequality" by the Organization for Economic Cooperation and Development (OECD) does not bode well. As people get older, the gap between rich and poor continues to widen. Germany is below the average of the member states.

Education has a significant influence on the amount of the pension

Education has a significant influence on the amount of the pension

The main factor influencing this is training. This has an effect on the professional life and its continuity, and thus on the level of income and thus on the pension.

The study shows that people with better education have more continuity in their professional life. Lower-skilled workers change jobs more often in combination with periods of unemployment. Towards the end of working life, between the age of 55 and 60, the gap is greatest within a generation.

The newspaper "Die Welt" wrote in the context of the study that low earners rank pension in Germany significantly below the median of the OECD countries. They received only 55 percent of their last income as a pension. In the OECD average, however, it is 75 percent. The Research Center for Generational Contracts at the University of Freiburg assumes that at least 60 percent of the last income is needed as a pension to maintain the standard of living. Men with a qualified education have a pension loss of 17 percent compared to their last salary. In the case of their unqualified mates, the loss of income is almost twice as high at 33 percent.

Inequality is already rooted in childhood, according to the OECD. Children from poorer households or families with lower education levels have significantly worse chances of later qualifying school-wise and academically for better-paid jobs.

"Gender Gap" is slowly leveling off in Germany

The gender gap, the difference in salaries and pensions is slowly getting smaller in Germany, but there is no question of leveling for a long time. On a nationwide average, women receive a 46 percent lower pension than men. The reasons are obvious. The professional life with real payments into the pension fund is often interrupted by parenting and later by family care. The credit periods can compensate for a real contribution payment only conditionally.

In the OECD, women receive a "only" 27 percent lower pension. The Federal Ministry of Family Affairs makes a good face to the bad game. After all, the difference in pensions since 2011 has reduced by 11 percent from 57 percent to 46 percent.

Life expectancy also has to do with education

Life expectancy also has to do with education

The OECD study reveals a different matter. There is obviously a direct connection between the life expectancy of a person and his educational level. Looking at life expectancy in terms of education across OECD member states, a 25-year-old high-educated man has eight years longer life expectancy than a peer without qualifications. For women, qualified training increases life expectancy by 4.6 years on average.

How to save on vacation | Request up to € 750 in 15 minutes

by Kimberly Nelson

Finally the day has come! It has been a long day at the office, but you know when your vacation is going to be. That means starting to think about suitcases and heading towards that dream destination, but will we know how to manage our economy?

In Good Finance, leading secto microcredit company in Spain, we know it can be difficult to hold when traveling, so we give you some tips so that when you look at your checking account around do not take his hands to his head.

Set yourself a budget limit

Set yourself a budget limit

We are aware that it costs, but the clearer we have what we want to spend, the more we can enjoy everything and the less we will regret it later. If you do not want to be thinking too much, we recommend that within this budget you include a small amount for whims or unexpected expenses, so you will not exceed your maximum.

Buy airline tickets in advance . According to one study, the ticket reaches its minimum price if it is purchased eight weeks in advance for domestic flights and 24 weeks for international flights. If you are already out of time, opt for the cheapest airlines or do not check your bag. If you travel by car , try to avoid tolls and, whenever you can, to refuel at service stations where the fuel costs less.

Take travel packages

Take travel packages

Hotel and flight , hotel and activities , hotel with full board … If you do not mind being tied and having to stick to schedules, there are many options at a closed price that, in the long run, will compensate you and help you save.

Travel in a group 

Travel in a group 

We know that it is much more romantic to travel as a couple, but with a group of friends, apart from having a great time, you will spend less money, since the expenses are distributed among more people. In addition, if you take an apartment you can also save meals in restaurants. If you organize themed dinners you will have a great time!

If you still want to have a vacation and without worrying about money , count on us. In Good Finance you can get up to € 300 to spend on whatever you want. Quick and easy. You want to know more? Click here and find out.