Editor in chief at IamExpat Media
The coronavirus pandemic may have finally forced retailers to accept payments by card, but Germany as a country is still crackers for cash. A new survey from the Bundesbank shows how much the average person is hoarding.
On average, each person in Germany has 1.364 euros in cash stashed away at home or in a safe deposit box in a bank. This does not include money kept in wallets - and the average German also carries around a further 107 euros in cash. These figures come from a study by the Bundesbank, published this week.
Hoarder tendencies are not, however, evenly distributed across the population. Of the 2.000 people surveyed, 22 percent said they had no cash reserves at all. 50 percent held 200 euros or less and only around five percent had more than 5.000 euros. The highest value mentioned was 100.000 euros. According to the study, you’re much more likely to keep cash tucked away if you’re self-employed, older, or earn a comparatively high salary.
All of which begs the age old question: why exactly do Germans prefer to keep their money in cash rather than depositing it in a bank account?
Well, according to the survey, interest rates are one reason to hold onto notes and coins. 58 percent of respondents said that the current negligible interest rates were a reason why they hadn’t deposited their money in a bank. 55 percent also said that cash is a common means of payment in Germany, making it useful to have it about.
The third-most cited reason was a lack of confidence in the security of technical infrastructure, for example concerns about hacker attacks. Other respondents said that their motives were “no fees” and “anonymity”. 12 percent said that “hiding assets from the state” was a possible reason why they chose to hoard cash.