Dispo capping is off the table: Roll over instead of waiting for the policy

The “Dispo-cover” was in the coalition negotiations quickly off the table. Not even a symbolic limitation was included in the coalition agreement.

Bank customers with a covered checking account should not hope for the state, but should become active themselves. The low level of interest rates for installment loans makes it possible to save a few hundred US dollars with a manageable monthly additional expenditure.

A current account covered with 4,000 usd incurs annual charges of 480 usd or 40 usd per month at a standard market interest rate of 12.00 percent. With an installment loan over an 84-month maturity and an effective interest rate of 4.95 percent, 4,000 usd can be fully repaid with a monthly installment of just over 56 usd. The immediate account balance and the long-term elimination of debts is thus an additional burden of just € 16.00 per month against.

Balance account for 16.00 usd more per month

Balance account for 16.00 usd more per month

Who, despite a persistent and from the current income not to be compensated account overdraft his head in the sand / hopes for a significant interest rate cut by the bank / expected help from politicians pays the borrowing interest to the bank without reducing the account balance.

Relentless but true: the discretionary interest rates are so high because bank clients are so sluggish and undecided. Politicians and consumer advocates are happy to postpone the high costs of a lack of competition among banks. However, the fact that the competition functions on the supply side is demonstrated firstly by the significantly lower interest rates on installment loans and secondly by the quite extensive current accounts with deposit rates below 8.00 percent.

The lack of competition can be attributed to an insufficient willingness to switch bank customers. Rarely does a high disparity seem reason enough to open another account. Banks calculate this in their interest rate policy: If an interest rate increase of two percentage points does not lead to a significant outflow of customers, an unanticipated cut in interest rates by three or four percentage points can do little damage.

For alternate club: separate credit and account

For alternate club: separate credit and account

In the foreseeable future, there will be no change in the low willingness to change. Comprehensive cost savings for bank customers is therefore only realistic if payment transactions and flexible borrowing are separated. So far, the checking account combines for most of both. It would be conceivable to have a combination of a current account held in credit and a credit line, which can be used to procure short-term liquidity at much lower interest rates than the receivables loan if needed.

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