Old home savings contract - what should you do with it?

Even upon disbursement, you do not have to take the loan.

That might be an interesting approach. What exactly do you mean? As far as I remember, if I apply for an early disbursement of the building savings balance, I would have to pay a fee. You generally don't want that, right? Or did you mean something else?

I faced the same choice about 4-5 years ago. The interest rate was still somewhat higher and there was an additional bonus interest (in total over 4%) if the loan was not utilized. For me, that was the iron reserve in case additional costs occurred during construction. It still stands today and yields good interest. One just has to be careful when continuing to save/leave it standing that the building savings contract can be terminated 10 years after allocation and that bonus interest claims may expire.

as an alternative: Even if the interest rate for the building savings contract is quite high, it could still reduce the loan-to-value ratio and thus the interest over the term. If the building savings loan can then perhaps also be repaid in the short term through special repayments, it may well be worthwhile to make use of the building savings loan. This might need to be calculated accordingly.

When it is ready for allocation, you can withdraw the credit without having to use the loan.
You only have to pay a fee if you terminate early and do not want to comply with the notice period.
Often, you can also split it and receive the credit.
I would still hold and keep saving.

They will give you the money with open arms instead of continuing to pay you 1.5 interest. Trust me, K.

That's right, the banks are glad when old contracts are terminated

Okay, thanks for your opinions. That has already helped me a lot.

Maybe someone has experience with the [Wohnungsbauprämie].

Would it expire if...
1. I simply continue to save on the contract without taking out a loan and would have the money paid out to me after reaching the full building savings sum.
2. I simply continue to save on the contract without taking out a loan, only that the bank terminates the contract after a few months (which is currently trendy ;) )

Thanks again for your assessments!