Community account comparison 2022

adminonJanuary 19, 2023February 19, 2023Leave a Comment

Jointly opened current accounts, which are used for example, in order to settle common expenditures together, are called joint accounts. The variety of joint accounts is as great as the useful applications. Here you can find out all the pros and cons of this form of account, as well as the best tips around deciding on the right bank offer.

What is a joint account?

Probably almost all people in Germany are very familiar with the use of current accounts. Joint accounts are current accounts that differ in that they are opened jointly by two people. So two account holders are on record. For example, there are partner accounts designed for couples to cover joint fixed costs. Accounts for shared apartments also fall into this category, which are also used for common expenses related to housing.

In principle, two people must not only be users but also account holders, so that an account is considered a joint account. The account can then be used by both without constant consultation.

As practical as this form of account can be, it also comes with risks. Because even if the account is overdrawn, for example, both persons are equally liable.

Open a jointly managed checking account

Most joint accounts in Germany can be opened online directly via the banking institution's website. First, however, you should find out exactly which bank you want to do this too. For, depending on the requirements, there are different rates and costs, which can sometimes make up considerable differences.

Whether ING-DiBa, Deutsche Bank or Comdirect joint account – the offer in Germany is huge. To determine the ideal provider, we recommend using our joint account online comparison. No matter whether you live in the country or in the city – it helps you to get an overview of the offers of different institutes and thus facilitates your decision.

Community account comparison

Different requirements in a community need different accounts. Therefore, when you start comparing different offers online, you should then keep in mind different aspects, features and services. As a first step, it is advisable to create a list of functions that your bank account should have and sort them by relevance:

Free or fee-based bank account

For communities, which as joint account holders only rarely want to use the services, a free checking account may be sufficient. However, banks require regular cash inflows for free account management. Month after month a different minimum amount is expected as entrance with the free account management from bank to bank. ING-DiBa, Deutsche Bank, Sparkassen or Comdirect – every institution in this country comes up with different solutions for a free checking account. For younger people, such minimum deposits are often set lower, so that the accounts can remain free of charge for young people.

With fee-based joint accounts are monthly basic fees to pay, but transfers, bookings and other aspects are not infrequently cheaper than the alternative free joint account.

Functions and services

Aspects such as free cash withdrawals and payment options are also important points to consider. Free cash withdrawals are especially important if you want to settle daily expenses with the account, which are not to be made by standing order or direct debit. This also includes the overdraft interest, if you plan to overdraw the bank account from time to time. Here, of course, the interest rate is the most important criterion. This is usually negotiable directly with the bank. If one would like to have thus a free joint account, an overdraft facility at low interest rates is possible, provided that the finances are correct.

Fees are not everything, of course. Benefits and services play a major role. Among the services now offered with many such jointly managed checking accounts:

Get a free debit card (Visa debit card or Mastercard)
Use via app
Withdraw money for free
Budget planning tools for the household
Online banking
Attractive overdraft interest rate
EC card
Desired pin
Special deals for WG account
Services such as payment V-Pay

Who may open such an account?

To hold joint accounts, a variety of joint groupings can be registered as account holders. No matter whether it is a free joint account, or one with a basic fee. Possible constellations include, for example:

Married couples
Project partner
Flat communities
Couples who are not married
Associations
A group of friends

Advantages and disadvantages

Should you now set up a joint current account or rather not? One thing is clear: if you plan to keep a shared budget in order to have an optimal overview of the household finances, then such a bank account is definitely an advantage. However, such a bank account also has disadvantages.

First of all, it is essential to mention the trust issue. Because the power of attorney to close such an account is no longer available to an individual, even in the event of conflict. So you should definitely open such a bank account with someone only if you actually trust that person. After all, it would sometimes have serious consequences if financial arrangements were not honored. Having to clarify ownership in the event of a rift also carries a certain risk. To distinguish one's own money from the partner's money is impossible with this bank product. Such potential disputes about the amount in the account can of course also arise after a separation, when it comes to closing such a bank account.

Good overviews of joint finances
Spending can be done by anyone without complicated approvals
Cost savings by eliminating individual accounts

WASHINGTON, 26. January (Reuters) – The U.S. economy likely maintained its strong pace of growth in the fourth quarter as consumers boosted spending on goods, but momentum appears to have slowed considerably toward the end of the year as higher interest rates curb demand.

The Commerce Department's early fourth-quarter gross domestic product report could mark the last quarter of solid growth before the delayed effects of the Federal Reserve's fastest monetary tightening cycle since the 1980s kick in. Most economists expect a recession in the second half of the year, albeit mild compared to previous downturns.

Retail sales have weakened sharply over the past two months, and manufacturing appears to have joined housing in the recession. While the labor market remains strong, business sentiment continues to cloud, which could ultimately hurt the hiring rate.

"This looks like it could be the last really positive, strong quarterly print we'll see for a while," said Sam Bullard, senior economist at Wells Fargo Securities in Charlotte, North Carolina. "The markets and most people will go through this number. Recent data suggest that economic momentum is slowing further."

According to a Reuters poll of economists, GDP growth likely rose 2.6% annualized in the latest quarter after accelerating 3.2% in the third quarter. Estimates have ranged from 1.1% to 3.7%.

Robust growth in the second half of the year would offset the 1.1% decline in the first six months of the year.

Full-year growth is expected to be about 2.1%, down from 5.9% in 2021. The Fed raised its benchmark interest rate by 425 basis points last year from near zero to a range of 4.25% to 4.50%, the highest since late 2007.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, is expected to have grown faster than the 2.3% rate recorded in the third quarter. That would mainly reflect an increase in goods spending early in the quarter.

Spending was supported by the resilience of the labor market as well as excess savings accumulated during the COVID-19 pandemic. But demand for durable manufactured goods, which are mostly bought on credit, has stalled, and some households, especially low-income ones, have depleted their savings.

Economic growth also likely received a boost from business spending on equipment, intellectual property and nonresidential buildings. But as demand for goods fell, corporate spending also lost some luster at the end of the fourth quarter.

Despite clear signs of a weak transition into 2023, some economists are cautiously optimistic that the economy will avoid an outright recession, but rather suffer a rolling downturn in which sectors decline sequentially rather than all at once.

ROLLING RECESSION

They argue that because of advances in technology and Federal Reserve transparency, monetary policy is now acting with less of a lag than before, which they believe has led financial markets and the real economy to act in anticipation of rate hikes.

"We will continue to have positive GDP numbers," said Sung Won Sohn, finance and economics professor at Loyola Marymount University in Los Angeles. "The reason for this is that the sectors are taking turns falling off, not declining at the same time. The rolling recession started with housing, and now we're seeing the next phase related to consumer spending."

Indeed, factory output has fallen sharply for two months in a row amid slumping demand for goods. Job cuts in the tech sector were also seen as weakening corporate capital spending cuts.

While housing starts likely suffered their seventh consecutive quarterly decline, which would be the longest such decline since the collapse of the housing bubble that triggered the Great Recession, there are signs that the housing market may be stabilizing. Mortgage rates are trending downward as the Fed slows the pace of its rate hikes.

Inventory accumulation contributed to GDP last quarter, but as demand slows, companies are likely to focus on reducing inventories rather than placing new orders, which would undermine growth in coming quarters.

Trade, which accounted for the bulk of GDP growth in the third quarter, either made a small contribution or detracted from GDP growth. Strong growth is expected from government spending.

While the labor market has proven remarkably resilient so far, economists argue that worsening business conditions will force companies to hire fewer and lay off workers.

Companies outside the tech industry, as well as interest-rate-sensitive sectors such as housing and finance, are hoarding labor after struggling to find workers during the pandemic.

According to a Reuters poll of economists, a separate Labor Department report on Thursday is expected to show that initial claims for state unemployment benefits for the week ended 21. January to a seasonally adjusted 205.000 have risen from 190.000 in the previous week.

"We expect initial jobless claims to rebound at some point after their recent decline, which will be accompanied by an eventual drop in payrolls and an increase in the unemployment rate," said Kevin Cummins, chief economist at NatWest Markets in Stamford, Conn. "In turn, we expect spending to slow as consumers will be less willing to draw down savings in the face of a deteriorating labor market."

Banks are relatively choosy when it comes to granting loans. Only if you appear creditworthy to the bank can you get a loan. Therefore, there are certain securities, through which it is possible to get a loan.

In the case of collateral, there are 3 criteria to which the fiancers attach particular importance. They should be easy to sell, hardly lose value and be easy to value. The most important thing for the bank is that the collateral does not lose its value so quickly. The following are common forms of collateral.

The guarantee as security

In the case of a guarantee, another person is liable for the loan that the borrower has taken out with the bank. The bank can require the guarantor to repay the loan should the actual borrower get into payment difficulties.

Normally, the default guarantee is chosen. In this case, the bank must first file a lawsuit against the borrower before the guarantor is required to pay the loan. Furthermore, there is the directly enforceable guarantee.

With this guarantee, the bank can demand payment of the loan installment from the borrower and the guarantor. In this guarantee the guarantor must reclaim his money from the borrower himself. As a guarantor are mainly business partners or close people come into question.

The mortgage as security

The very most important components of the security right over real property are the mortgage and, of course, the land charge. The lien of the land or property is transferred from the borrower to the bank in the case of a mortgage. In the event of default, the lender may foreclose on the property or land and collect the proceeds.

Who collects the proceeds from foreclosure is critically dependent on who is first in line on the land register. That is why banks usually insist on an initial registration of a guarantee. Even more widespread is an entry of the guarantor's debt in the land register. This form of mortgage can be used for as collateral for any loan. This also means that the land charge remains, even if the loan amount has been paid off.

The letter of comfort as collateral

To improve the creditworthiness of a subsidiary, other companies can act as guarantors for it. Especially for public corporations, this form of credit enhancement is often used. The guaranteeing company gets the name patron with this form of guarantee.

The Lombard loan as collateral

By the delivery of a valuable thing one can receive a so-called Lombard credit. The valuable item is pledged and becomes the property of the creditor. The borrower remains thereby owner of the valuable thing. The Wechselsellombard is often used. Securities of the borrower are pledged in the process.

If a collateral assignment is made, the borrower can also continue to use the thing. In this case, the borrower remains the owner, but must transfer the property rights to the bank. Especially in the case of company machinery or carts, this loan security is good for the borrower, because he can continue to use the things.

The assignment as security

In the case of assignment, the borrower gives existing claims, which he still receives from other persons, as security to the bank. Often, in the case of employees, the assignment of earnings is also carried out.

However, assignments can also be taken as collateral from insurance policies. This includes, above all, residual debt insurance or life insurance policies.

A negative declaration as security

With the negative declaration, the borrower promises the bank that he will not lend or sell any of his valuable assets without the bank's permission. It is even often the case that an entry in the land register is no longer necessary. In return, the bank receives a written negative declaration from the borrower.