Becoming an expert statement by Michael Kramer the fear of a bad economy and significantly increasing costs is expanding in the German population. This affects the consumer. According to the society for consumer research (GfK), the latest GfK index fell more than expected from 1.9 to 1.5 points. The weakness of the consumer stops now already much longer than a year and was triggered by the recent VAT increase. Against the background of this rather bleak future Outlook, consumers show little willingness to spend their money on the daily needs. You save.
Because medium – and long-term financial burden is difficult to estimate, investors are looking for short-term, safe investment opportunities with an attractive interest rate considerably higher than the current inflation rate of more than three percent. In this situation, the investment on a day money account is actually ideal. Interest rates reach a height of up to 5.65 percent. In addition, the money is at any time without prior notice available. For many people, this is crucial. They want inflation certainly put their money and keep the necessary liquidity for unexpected expenses, such as for example, the expected high costs for the year 2008, at the same time. Money market accounts are an ideal parking for the required liquidity reserves of consumers in the current economic situation. With interesting interest rates, they meet the inflation, and the money remains accessible at all times in other words: money offers flexibility and security in times of economic instability. (Michael Kramer is Managing Director and Permanent Representative of Kaupthing Bank based in Frankfurt. He gained his experience in the banking industry over 26 years with various international financial institutions.)