Prices in all areas of life have been rising for months, while wages in most sectors remain at the pre-crisis level. Do people have any money left to save? And how can investors perhaps even benefit from the uncertain economic situation? Bankers and board members of credit institutes in the district of Ebersberg provide answers.
Anyone who goes to a supermarket these days knows the dilemma: the same products in the shopping trolley have become significantly more expensive than they were a year ago, at least since the outbreak of war in Ukraine and the resulting problems in the global supply chains. And the big chunk is still ahead of people in autumn and winter anyway, with the expected increases in heating and energy costs. This mixed situation also causes uncertainty among bank customers in the district. “We are observing that people are acting more cautiously and driving more on sight,” says Bernhard Failer, CEO of Raiffeisen-Volksbank Ebersberg.
Many bank customers are worried about expensive heating bills
This is particularly evident in investment funds and insurance savings, as Günter Fichtner, head of private banking at Kreissparkasse München Starnberg Ebersberg, confirms: “Many customers cancel their fund savings plans or suspend the monthly payments and also have to fall back on their savings.” The significantly increased cost of living and concerns about the next electricity or heating bill would make a decisive contribution to this development. “The geopolitical situation is also unsettling our savers,” said Fichtner.
Johannes Wutz, a member of the board of directors at the Alxing-Brucker Genossenschaftsbank, has something similar to report. It’s true that accounts aren’t going to be emptied by the dozen now, but people are now acting much more cautiously when it comes to new investment funds. “Ongoing investments are often continued, but we have far fewer new deals,” says Wutz, who has observed a clear change in his customers’ investment strategies: In the past, people always said that money shouldn’t just be left lying around. In the meantime, however, people would rather go over to simply not doing anything with their savings for the time being.
Saving on the checking account makes little sense because of the zero interest rates
Raiffeisenbank customers proceed in a similar way, as Bernhard Failer observes. The bank has recently stopped charging the custody fee for the current account. “So you can leave the money back in the account without anything being deducted from you,” explains Failer. Against the background of zero interest rates, however, one cannot really save, as industry colleague Johannes Wutz from Bruck adds.
But is there any way at all to invest your money profitably despite the general economic situation? Definitely, says Sparkassen banker Günter Fichtner: “There have also been crises in the past. Anyone who can and wants to invest money now should do so, taking into account their risk capacity, risk tolerance and investment horizon.” Investments that are designed for a longer period of time could therefore pay off in the current situation, as Fichtner explains. There have often been uncertain economic situations with recessionary tendencies and associated phases of weakness on the stock markets. “However, they were usually of a temporary nature,” says the bank consultant. “A look in the rear-view mirror shows that investments in broadly diversified global equity funds have usually paid off in the long term, especially in times of crisis like these,” says Fichtner, who refers to the expected upswing on the stock market.
Panic selling of securities should be avoided at all costs
As uncertain as the times may be, the bankers are appealing to their customers not to lose their nerve now. Anyone who has already invested money and does not need it for investments should keep calm, according to the Sparkasse, for example. Customer advisor Günter Fichtner adds: “Panic sales of securities investments and the cancellation of long-term savings plans should be avoided at all costs.”
At the same time, the representatives of the Ebersberg credit institutions are also aware that some people are simply running out of money these days. And the situation could worsen significantly in the coming months, as Raiffeisen boss Bernhard Failer fears. In his opinion, the growing caution of customers is more due to the general economic situation and not yet directly to inflation. At least the number of overdrafts, i.e. overdrafts for the current account, is not yet increasing. But that could change in autumn and winter, says Failer. The ancillary heating costs have yet to be settled and high increases can also be expected in the electricity price adjustment. “Then we will feel the effects even more.”