Coronavirus crisis – penalty interest on accumulated personal assets

The development is unambiguous: people are now being penalized for a thrifty lifestyle, as more and more banks are demanding penalty interest on accumulated personal assets. Negative interest is being levied on accounts at a total of 201 lending institutions, partly even on assets parked in money market accounts which are normally free from charges.[1]The exemption amounts fluctuate, and the interest levied is sometimes substantial depending on the bank.

The commercial banks justify this serious negative trend by referring to the charges running into billions of euros which the banks incur when monies are parked with the ECB. These parked amounts currently attract interest amounting to 0.5%, which is ultimately passed on to the customer, either partly or completely.

In the Coronavirus year 2020 in particular, people were afraid of unemployment or short-time working and therefore preferred to hold on to their assets, and the closures of retailers also curbed consumption, so that the savings rate reached a new record level. In 2020 the savings rate was around 17%, far exceeding the previous record year 1991 (12.9%).[2]Naturally huge amounts are generated in this way across the entire economy. It is estimated that of the around 7.1 trillion euros of financial assets in total, people have parked a good 2 trillion for the meantime in the form of demand deposits which can be rapidly restructured. And it is precisely this money which the financial institutions have parked with the ECB. The aim of the negative interest is to induce consumers to place their savings into circulation again, in other words to spend them, and is thus an attempt to stimulate the economy again.

But the ECB is forgetting something crucial here. They do not question in any depth why people prefer to hold on to their money. The answer is quite simple: at times of uncertainty the basic need for security becomes more and more central. What will happen if people can no longer pay their mortgage as a result of short-time working, or even losing their job? By now it has probably become clear to everyone that the Coronavirus crisis will still have serious consequences, in particular for the many SMEs (3.5 million companies) which are repeatedly referred to as the backbone of the economy. As a result of the closures which are frequently taking place, precisely these companies will be weakened, and more and more people will have to worry about their professional future. And there is no end in sight for these measures either (written in January 2021).

Now these measures to contain the pandemic are not going to change, nor will we be able to change the ECB’s interest policy. This raises the question of how every individual person can free themselves from these circumstances, yet still stay out of harm’s way.

The answer to this question is also relatively simple: invest the saved assets in tangible assets. These include not only real estate, but naturally also precious metals. The important thing is that they are physical items. ETFs, for example, are again only paper, which ultimately could be worth nothing.

At Ahlden Gold we can help you build up your security. We constantly have physical items in stock, both bars and coins, in a wide variety of sizes for every wallet.

Anyone who wants to get to grips with building up assets and security in the long term will love our new system of saving by the gram. Every month at least one gram of physical pure gold is placed in your piggy bank in the form of gold flakes, so you save at least 12 grams a year. It is not a fortune, but at least it is a good start and the sky is the limit. We would be pleased to present our new concept to you – we have already won over many customers for it. Speak to us!

[1] See also:

[2] Vgl.

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