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Germans prefer contentment to career and money

The vast majority of Germans say that having a good working environment and a secure job is much more important to them than more money or the chance of getting ahead in a career, a survey has found.

Germans prefer contentment to career and money
Most Germans aren't too anxious to move onwards and upwards out of the cubicle farm. Photo: DPA

More than three-quarters of Germans – 76 percent – said that they thought having a good working environment was more important than a high salary.

Meanwhile, 93 percent of people surveyed in the YouGov poll said that they agreed with the sentence “I work to live” – with a correspondingly tiny number saying they “lived to work”.

That might well be an influence on Germans' preference for job security over high salaries and far-off dreams of success.

A staggering 90 percent of people thought it was more important to have a secure job than to have opportunities to move onward and upward in their career.

Younger Germans were a little more ambitious than their older compatriots, with 22 percent of people aged 18-34 saying that career advancement was more important than security – compared with just two percent of over-55s.

Security doesn't mean no ambition

But the pollsters warned that we shouldn't rush to judge Germans as unambitious.

“I think it's healthy for people to think that the working atmosphere is more important than a high salary,” YouGov board member Holger Geißler told The Local. “We hear a lot about people having to take sick leave because of burnout.”

But he added that the results might suggest that German employees are getting a little too comfortable in their jobs.

“We could ask whether German employees really feel the pressure” to go the extra mile at work, Geißler said.

That willingness to go a little above and beyond could be key to keeping up with other nations as the global economy forges on in a time of ever-faster change.

“German employess have a lot of virtues, things that make us very different from other nations,” Geißler said.

“Germans have a good image of being dependable, honest, of being able to tackle new challenges. When things need to get done, then they get done. People stick to the rules – whether that's positive or negative.”

But flexibility is important too – and Geißler acknowledged that while Germany has found a secure place in the global economy for now, workers in other nations might be more ready to adapt than Germans in future.

Most Germans happy with work

The good news is that most Germans felt that their hopes were fulfilled.

Some 77 percent of people said that the environment at their workplace was “good”, “very good” or “excellent”.

Meanwhile, 60 percent of the respondents put the same labels on their work-life balance.

One difference the pollsters found was that public-sector workers were more satisfied with their work-life balance than those in private companies.

But private-sector workers were marginally more ambitious than their counterparts in public service, with twice as many (11 percent versus six percent) saying they would choose career over job security.

The YouGov poll was based on a survey of a representative sample of 519 non-management employees between January 5th and 11th.

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MONEY

EXPLAINED: How to find the best high-yield savings accounts in Germany

A savings account can be a wise choice if you want to earn some interest on your deposits and keep them secure. The Local takes a look at the high-yield savings account options available in Germany.

EXPLAINED: How to find the best high-yield savings accounts in Germany

Money left in a standard checking account, or a low interest savings account, loses value over time as inflation gradually reduces its purchasing power. 

Alternatively, deposits kept in savings accounts will increase in value over time, provided that the interest rate outpaces inflation.

With interest rates expected to remain high through 2024, now may be a good time to consider depositing some savings in an account with a high-yield interest rate.

Flexible savings accounts versus fixed-term deposits

If you want to open a high-yield savings account in Germany, there are basically two types of accounts to choose from: a flexible savings account (Tagesgeldkonto) or a fixed-term deposit (Festgeldkonto).

A flexible savings account, also called an ‘instant savings account’ or a ‘money market account’ in English, offers an easy way to earn some interest on your money while being able to access it at any time. This makes the flexible savings account ideal for holding money that you might need to use in the near future.

Interest rates on flexible savings accounts vary from bank to bank, and they can change depending on external factors such as the key interest rate of the European Central Bank, or the current market conditions. 

The central bank’s interest rates remain high so far in 2024, so it is possible to find German flexible savings accounts offering interest rates of up to 4 percent.

On the other hand, a fixed-term deposit, or term-deposit account, requires you to deposit your money for a specific amount of time, running from some months to several years. Fixed-term deposit holders aren’t able to access this money during the term in which it is being held.

Banks tend to offer higher-yield interest rates in return for their customers’ commitment. So a fixed-term deposit is a good choice for people looking to grow their money securely, but won’t work for anyone who may need to access their deposit in the short term.

Interest rates on fixed-term deposits are based on the deposit amount and the duration of the deposit. Once a fixed term deposit is locked-in its interest rate won’t change, which shields against decreasing interest rates but also prevents you from benefitting if interest rates happen to rise.

READ ALSO: ‘Move into this century’: How Germany could improve its banking system

Which German savings account type is best for me?

Banks constantly adjust the interest rates they offer customers based on factors like the interest rate set by the European Central Bank, but also based on their own internal calculations, or as a means to compete with other banks.

Also bear in mind, that many accounts will offer a higher rate in the short term, followed by a lower rate after that. For example, many banks will guarantee an interest rate up to 4.5 percent for the first three to six months for new customers, but after those months pass that rate typically drops closer to one percent.

If your goal is to securely grow a deposit in the short term, you’ll want to look for the highest short-term rate. Whereas if you plan to store your money safely in an account for a longer time, you’ll be better off looking for a higher long-term rate or considering a fixed-term deposit.

Which banks are offering the highest yields now?

Keep in mind that it’s always worth looking at some different options before choosing a bank, because the interest rates they offer are changing.

But a good resource to start with is the German economics newspaper, Handelsblatt, which recently published an article comparing some of Germany’s best performing flexible savings accounts.

According to their analysis, Trade Republic, TF Bank, Renault Bank direkt, ING, Comdirect, Consorsbank, Openbank, Commerzbank, Opel Bank, Bigbank and bunq are all offering competitive interest rates of 3 percent or more for customers in Germany at the moment.

Of these bunq, TF Bank, and Commerzbank are known to offer services in English.

Additionally, Handelsblatt looked at fixed-deposit accounts, and compared a number of the top options in Germany side-by-side. In addition to some of the banks mentioned above, they compared fixed term deposit options offered by Postbank, Klarna, Bank 11, DKB, SWK and Suresse Direct Bank among others.

READ ALSO: TELL US – What are the best banking and money saving options for foreigners in Germany?

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