Despite the corona crisis, Germans are overall wealthier than ever. The financial assets of private households in the form of cash, securities, bank deposits and claims against insurance companies amounted to the record value of 2020 trillion euros at the end of 6,95, as announced by the Deutsche Bundesbank. That is 211 billion euros or 3,1 percent more than in the third quarter of 2020.
According to the Bundesbank, people put money on the high edge during the crisis, while at the same time benefiting from the boom on the stock markets. "In particular, behind the increase in financial assets were the increase in cash and deposits totaling 74 billion euros as well as the valuation gains on shares and other equity rights," it said.
How exactly the almost seven trillion euros are distributed is not clear from the data. As in January a draft of the Report on poverty and wealth by the federal government showed there is a wide gap between populations. According to this, a German household had arithmetically an average of 2018 euros in net wealth in 163.000, but half of the households only had a maximum of 49.000 euros - an indication of how much wealth is accumulating in rich households.
Savers are increasingly investing
According to the Bundesbank, savers in Germany, who are actually more reluctant to go on the stock exchange, are increasingly investing in stocks or funds. "Private households remained very active on the capital market in the fourth quarter," declared the Bundesbank. In the period from October to the end of December 2020, private households bought shares and investment fund shares totaling 21 billion euros.
As in the past, people are taking advantage of low interest rates to borrow cheap money, especially through home loans. After deducting the debts, the financial assets rose by 187 billion to around 4,99 trillion euros. Real estate is not taken into account in the Bundesbank's invoice.