How safe are the money deposits…..

Under no circumstances can the security system withstand every conceivable financial crisis. At the very most, however, the supervisory authority is entitled to contractually guaranteed. further reduce benefits and accumulated surpluses to bring them back into line with diminished capital. In the most extreme case, this could lead to that life insurance savers lose more than half of their paid-in capital.


Life insurance policies as junk bond paper.


state guarantee.

When a government promises bank customers that every euro is safe at the bank, this is initially a reassurance. But if this then does not end up as a legal claim in a law, rather worrying? One says “politically resilient” – this may then mean that the expectations raised can no longer be fulfilled, the government takes responsibility and resigns. And you don’t have to be a cabaret artist to realize that all citizens, as taxpayers, are in fact liable for the speculation of under-supervised board members of some financial institutions. If you are internationally oriented, you can compare financial centres, the protection schemes and above all the creditworthiness. Also in Germany, you can invest your money directly with the state – for this the Federal Finance Agency – formerly known as the Federal Debt Administration.


It is a good long-term decision to take a close look at your credit institution.

Does my bank distribute dubious media funds? Is the remuneration of the Management Board appropriate? Has my bank decided not to sell my loan to “Moscow Debt Collection”? What professional training do administrative and supervisory boards have? How often does my contact person change through job rotation? Are interest and fees correctly accounted for? How important is banking secrecy to me? Are the guarantee certificates offered as a supposedly “safe” investment for conservative clients? When does it make sense to spread the risk, i.e. to invest your money at several banks, even abroad? This is the ideal way to invest money for people who do not want to make a quick buck but want a high level of security. KAPITALFORUM shows which banks are suitable for this purpose at


fuse devices are an indication of uncertainty.

Safety devices are available where there are dangers to safety. State supervision is also a sign of distrust, not trust. Who would feel safer where they are transported in a mine-proof armoured vehicle and work in a sodium wire fenced and heavily armed office?

Whether the safety devices will hold in an emergency is questionable.

In the UK, for example, 90 per cent of insurance policies are protected by a security system – but in reality, the settlement can take so long and is itself subject to such uncertainties that insurers or their liquidators may be able to make voluntary settlements with their policyholders that are sometimes less favourable.

This makes it all the more important to know the actual load-bearing capacity of the safety devices in an emergency. and above all to regularly check the business model and the creditworthiness of the financial institution Because even long-term, non-terminable contracts can be terminated without notice in the event of a significant economic downturn – before the company goes bankrupt.



by Dr. Johannes Fiala and Dipl.-Math. Peter A. Schramm


by courtesy of (Published on 26.11.2016)



and (Capital Forum 03/2009, page 9)

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Dr. Johannes Fiala Dr. Johannes Fiala

Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
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