How much money is a fortune

Net worth at a record high: Germans have never had so much money before

Despite the crisis, German wealth has risen to a record high. They owe this to their economy, but also to their increasing involvement in the stock market.

The people in Germany accumulated more wealth than ever before during the Corona crisis. The financial assets of private households in the form of cash, securities, bank deposits and claims against insurance companies rose in the third quarter of 2020 compared to the second quarter by 108 billion euros or 1.6 percent to the record value of 6738 billion euros, as the Deutsche Bundesbank said on Friday announced in Frankfurt. People kept their money together during the crisis, and at the same time they benefited from the rise in share prices.

The development was "again characterized by high savings and the sustained recovery on the capital market," declared the Bundesbank. The momentum lost its pace, however. In the second quarter of 2020, financial assets had increased by 4.0 percent compared to the previous quarter after a decline at the beginning of the year. The data do not reveal how wealth is distributed.

Germans save 16 percent of their income

According to the latest data from the Federal Statistical Office, the savings rate rose from 10.9 percent a year earlier to a record high of 16.3 percent. For every 100 euros of disposable income, households put an average of 16 euros on the high edge.

According to the Bundesbank, savers mainly relied on cash and bank deposits in the third quarter, which although the low interest rates mean that they hardly yield anything, they can access quickly.

Purchases of stocks and funds nearly tripled

At the same time, they invested in stocks or funds. The involvement of private households in the capital market has recently experienced "a rapid upswing", declared the Bundesbank. In the third quarter, private households bought stocks and investment fund shares totaling 20 billion euros. That corresponds to almost three times the average acquisitions over the past ten years.

As in the past, people are using low interest rates to borrow money cheaply, especially for home loans. After deducting the debts, the financial assets increased by 80 billion to around 4802 billion euros. When calculating, the Bundesbank takes into account cash, bank deposits, securities and insurance claims - but not real estate.