BERLIN: German savers face a tough question that’s about to get tougher to park their 1.95 trillion euros ($2.3 trillion) in cash and deposits as the European Central Bank (ECB) lowered interest rates hit them hard.
German savers accounted for 17 percent of the euro area’s 11.1 trillion euros of deposits by non banks at the end of November, are already among the hardest hit by the ECB’s record low interest rates.
Higher deposit rates seem a distant prospect as ECB President Mario Draghi weighs more radical steps such as buying government bonds to revive the economy.
Pensioner Alois Weber has decided to leave his on the shelf. It’s better to be safe than sorry, said the 69 year old resident of the southern German town of Schwaebisch Gmuend. We have our money in savings certificates. I don’t know what interest they pay exactly, but it’s almost nothing.
