Is a daily savings account worth it?

Hello everyone,

for most of us, a lot of money is probably transferred back and forth during the construction project, now my consideration on this,
1. Based on your experiences, does it make sense to set up a "house account" into which the money from the lenders goes and from which you pay the outstanding invoices? And later on, have the repayments and annually due amounts like e.g. the ancillary costs debited.
2. Is it sensible to use a day-to-day money account for this, since considerable sums would be on it temporarily, especially during the construction phase?

Best regards

Frank

We built with Hauskonto and can only recommend it. Purely for interest reasons, a [Tagesgeldkonto] hardly pays off anymore. The only thing that was worth it to me was the separation of money flows.

However, a [Tagesgeldkonto] is not intended for payment transactions. So you won’t be able to pay bills with it.

In my opinion, the ideal option is a checking account with the financing bank. That’s where you gather your equity, the bank no longer requires separate proof of equity, and disbursements from the loan to the account occur on the same day.

It may be that this eventually costs 60 euros a year, but that shouldn’t be a reason to fail at building a house.

We also have a construction account, which is free of charge during the construction phase and through which we can pay for everything. For interest reasons, it is not worthwhile, but it provides a nice overview.

We had a construction account for the renovation; all disbursements from the renovation loan went there, and only payments or transfers for renovation-related expenses were made from it. Otherwise, you completely lose track. The construction account was neither with the house bank nor with the bank that handled the home financing. There was automatically a savings account linked to the checking account. We then temporarily placed the disbursements into the savings account and transferred some amount to the checking account every few weeks, and payments or debits were made from there. There were some interest earnings. Now that the construction account is empty, it is used as a savings account.

It may be that it ends up costing 60 euros per year

For this purpose, that would be much too expensive for me!

I find the question more interesting whether to keep a separate daily allowance account after completion to save reserves. Or whether that ends up in the same pot as the general life reserves. I don't have a final opinion on that yet (we are still in the construction phase).

It is about 1-2 years. I know other positions (all others?) that are significantly more expensive. This is probably the cheapest part of the entire construction.

Of course, there is nothing against having a separate fund for reserves later. Whether now savings account, daily allowance, or piggy bank... negligible from a yield perspective.

It might make sense, under certain circumstances, to consider savings plans for long-term reserves (> 10 years). There are still reasonably decent returns (inflation compensation) possible.