Building societies want to get rid of expensive old contracts: how to save your bonus
Building savings has always been one of the most popular forms of investment in Germany. Many customers took out home savings contracts many years ago and still enjoy the attractive bonuses and interest rates today. But building societies are currently struggling with a problem: the high costs of old contracts are weighing on their balance sheets and causing difficulties.
To reduce this burden, many building societies rely on the cancellation of old contracts. But for many customers this comes as a shock: not only do they lose their bonuses, they also lose their chance of a favorable building loan.
How customers can save their bonuses and still benefit from low interest rates? In this article, you’ll learn what your options are and how best to proceed to maximize your return on investment.
Old contracts at building and loan associations – what’s behind them??
Building societies are still very popular in Germany, as they are seen as a safe way to save money. However, many customers have been concluding contracts for years that are now no longer up to date. These contracts are called old contracts.
Old contracts often still have very high interest rates, as they were concluded in times when interest rates were still very high. For the building societies, however, the old contracts are becoming more and more of a problem, as they have high costs as a result and can only compete with new offers with difficulty.
To get rid of expensive old contracts, many Bausparkassen try to convince their customers to cancel their contracts. However, customers should always check whether a change of contract is actually worthwhile. With many old contracts there are still very attractive bonus offers, which would be lost with a notice.
Anyone who wants to save their bonus with a building society should think carefully about whether it really makes sense to change contracts. It may well be that the old contract is more worthwhile in the long term than a new contract with lower interest rates.
- Building societies want to get rid of expensive old contracts
- Old contracts often still have very high interest rates
- Customers should check whether a change of contract really makes sense
- Bonus offers may be lost in the event of termination
- An old contract can be worthwhile in the long term
Why building societies try to get rid of old contracts?
Building societies have suffered greatly from low interest rates in recent years. However, many old contracts still offer interest rates of 3 or even 4 percent. For the building societies, this means that they have to pay out a lot of money to fulfill the contract. At the same time, they can no longer earn enough interest themselves to compensate for the payouts.
In order to improve their balance sheet, the building societies therefore try to get rid of the old contracts. To do this, they use various options, such as.B. A termination due to alleged breaches of contract or a change in the terms of the contract. Often, they even take legal action to terminate the contracts.
For customers, however, this means the loss of their home savings contract and thus also of their bonus. Because in many contracts a bonus is provided for regular payments or a long term. This can amount to several thousand euros and is an important incentive for many customers to continue the contract.
To save the bonus, customers should be well informed and, if necessary, seek legal advice. There are ways to challenge the termination or change in the terms of the contract and thus preserve the contract and the bonus. An early payout can also make sense in some cases in order to close the contract and secure the bonus.
- Conclusion: Building societies want to get rid of expensive old contracts for economic reasons. For customers, this often means losing their building savings contract and the bonus. However, there are ways to preserve the contract and bonus by seeking legal advice or paying out the contract early.
What are the consequences for home loan and savings customers with old contracts??
In recent years, building societies have repeatedly tried to get rid of their existing customers with old contracts. These contracts are a thorn in the side of the savings banks, as they had to guarantee high interest rates for a long time. However, with the current low interest rates, they can no longer service these conditions. As a result, the building societies offer their customers high redemption premiums to lure them out of these contracts
But for customers, this means that they have to give up part of their bonuses if they terminate the contract prematurely. An alternative is to let the contract rest and only later decide on a continuation or termination. However, there are also trade-offs to be made here, as many old contracts are linked to conditions that are no longer up to date nowadays or are virtually impossible to find again.
With this unpopular measure, the building societies want to clean up their balance sheets and prepare for the future. For customers, this means immense uncertainty and high costs, as they have to realign their financial planning. It is advisable to seek advice from an independent advisor to find out what alternatives and options are available to save the old contract without having to forego the guaranteed bonuses.
- The bausparkassen want to get rid of expensive old contracts in order to clean up their balance sheets.
- This brings immense uncertainty and high costs for building savers with old contracts.
- To save the old contract without giving up the promised bonuses, it makes sense to seek advice from an independent advisor.
- Alternatively, customers can leave the contract in abeyance and decide later whether to continue or terminate it.
- However, cuts must be made, since many old contracts are attached to conditions, which are nowadays no longer up-to-date or are practically hardly to be found again.
Save bonus on building society contracts
Building societies promise high savings interest rates and a state subsidy when taking out a building savings contract. Many old contracts have the advantage that a bonus is granted when the bauspar contract is fully saved up. But building societies want to get rid of expensive old contracts and urge customers to cancel them early. How bauspar customers can save their bonus?
- Check your building savings contract: check whether your contract provides for a bonus and what conditions must be met for this to be possible.
- Do not accept termination: Do not let the building society put pressure on you and refuse to terminate the contract prematurely.
- Seek legal advice: Seek support and get advice from a specialist lawyer for banking and capital market law.
- File an objection to termination: If you have already been sent the notice of termination, file an objection within the specified time limit.
It is important that building savers know their rights and do not allow themselves to be put under pressure. In the case of an old contract with a bonus, it is often worth fighting for the bonus and, if necessary, taking legal action.
Tips for new contracts with building savers
Since building societies want to get rid of expensive old contracts, building savers should pay attention to a few things when signing new contracts. On the one hand, they should find out which providers have attractive conditions and which building society loans offer the best financing option.
Another important tip is to pay attention to the building savings amount. One should not choose sums that are too large or too small, but rather adapt to individual needs. In addition, it makes sense to choose flexible rates that allow upgrading to higher conditions or additional services.
Another way to save the bonus is to transfer old contracts to family members. However, various tax and legal aspects should be taken into account.
- Find out about attractive conditions
- Choose a suitable building savings amount
- Flexible rates can pay off
- Transfer of old contracts can be useful
It is therefore worthwhile to do thorough research and seek advice before signing any new contracts with home loan and savings institutions. This is the only way to benefit from a favorable construction loan in the long term and to secure the bonus.