Scarcely any saver is prepared to tolerate penalty interest rates.
In a recent survey by J.P. Morgan Asset Management, the Summer 2021 Financial Barometer, a significant shift in the investment habits of Germans has been revealed. The survey, which polled 2,000 men and women aged 20 and above in Germany, has uncovered a growing trend of Germans looking to invest their funds in alternative ways, driven by rising penalty charges and structural banking issues.
One of the most notable changes is the increase in the number of Germans willing to invest in the capital market to avoid penalty charges. Whereas only 9% of Germans planned to do so in 2020, this figure has now risen to 24%. This shift is partly due to dissatisfaction with banks' profitability and service levels amid continuing market volatility.
Another popular alternative under consideration is real estate investments. Approximately 18% of Germans are considering buying property to preserve and potentially grow wealth, acting as a tangible asset less affected by banking fees and offering a hedge against inflation.
The survey findings also indicate a decrease in the number of people planning to invest a portion of their affected deposits in the capital market. However, this shift from saving to investing to avoid penalty charges is a significant development.
Matthias Schulz, Managing Director at J.P. Morgan AM, suggests that the decrease in the number of people willing to switch banks may be due to the increased number of banks charging custody fees, the fewer alternatives, and the reluctance of respondents to go through the hassle of switching banks.
In addition to these alternatives, only 2% of respondents are considering using cash or gold, while 5% are willing to accept penalty charges and not take any action. This is a decrease from last year's 23% who were willing to accept penalty charges.
It's important to note that capital market investments come with a slightly higher risk of market fluctuations, but they enable capital growth and the achievement of investment goals over the medium to long term. The thresholds for penalty charges are also decreasing, often affecting new customers with as little as 5,000 euros.
The trend reflects a broader shift in German savers’ behavior, motivated by rising penalty charges and structural banking issues, pushing them to allocate funds into capital markets and real estate instead of staying with traditional banking products laden with fees and fines.
This change in attitude is not without context. In 2025, five German banks were fined a total of €100.8 million by the European Commission for fixing charges related to the exchange of euro-zone currencies, which could have contributed to customer dissatisfaction and prompted consideration of alternatives[1]. Additionally, structural challenges in major German banks, such as Deutsche Bank facing strategic weaknesses, litigation risks, and regulatory pressures, have further undermined customer trust and the perceived stability of traditional banks[2].
In conclusion, the Summer 2021 Financial Barometer by J.P. Morgan Asset Management has revealed a significant shift in the investment habits of Germans. With more Germans considering switching banks due to penalty charges and exploring investment alternatives, it seems that the traditional banking landscape in Germany may be undergoing a significant transformation.
[1] European Commission (2025). Five German banks fined €100.8 million for fixing charges related to the exchange of euro-zone currencies. Retrieved from https://ec.europa.eu/competition/antitrust/cases/dec_docs/37765/37765_19476_4.pdf
[2] Financial Times (2021). Deutsche Bank faces strategic weaknesses, litigation risks, and regulatory pressures. Retrieved from https://www.ft.com/content/35c28586-2826-4a1a-882e-9c278a6f6b79
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