What is the best investment at the moment?

Last updated 19.11.2021

Something is happening in Germany when it comes to investing money in 2021. More and more people want to take their money matters into their own hands, which is a very good and necessary decision in view of the current low interest rates. This is also shown by a current survey we conducted with 1004 people: 

Best investment at the moment Survey

The clear majority of respondents want to take the issue of investing money into their own hands.

What does a little bit more inflation do to your assets? How much does inflation reduce purchasing power? Frightening realisation, isn't it? ⠀

In order to be able to make a well-founded decision in matters of investment, however, the following question must first be answered: What kind of investments are there? In this article, we would like to introduce you to the most common forms of investment and make an assessment of each investment option so that you can get an idea of your options.

So you have made the decision to take the subject of investing money into your own hands. Congratulations! But immediately many questions arise. Where do I invest my money? What is the best investment at the moment?

Savings book as an investment

For a long time, the savings account was considered the safest investment. Nowadays, however, there is hardly any interest and in some cases savers even have to pay negative interest.

With the current low interest rate, the only certainty is that your money will become less.

However, if interest rates are raised again one day, the savings account is a very safe investment option, at least up to an investment of €100,000.
If your investment in a savings account of a single bank exceeds the amount of €100,000, the deposit guarantee no longer applies to sums exceeding this amount.
In such a case, it makes sense to spread the investment amount over several banks.

Interest income:


Call money as an investment

Call money is also a safe investment and generally pays better interest than a savings account.
But here too, interest rates are currently very low, so inflation will reduce the value of your money over time.
There is no notice period and no specific term for call money. You can therefore dispose of your money on a daily basis.

In the case of call money, your investment is also protected by the state up to an amount of €100,000 per institution in the event of bank insolvency.

Interest income:

Time deposit as an investment

The time deposit also scores in terms of security.
The yield is somewhat higher than with overnight money, but your money is invested for a fixed term.
This means that you cannot access your money for this term.

You should therefore not invest in time deposits if you assume that you might need your money in between.

Interest income:

Real estate as an investment

Rented real estate (=Investment property) is also considered a safe investment and is a profitable investment. In contrast to other forms of investment, the return here is already significantly higher.
This can be attributed to the fact that an investor in real estate benefits from the principle of so-called "other people's money". By taking out a bank loan at favourable interest rates, leverage is created. This results in a good return on this investment, as less of the investor's own funds have to be used and the return on equity is therefore significantly higher than with other forms of investment.

Simply put, the real estate investor can make the bank's money work for him, because the tenant pays back interest and repayment.

Real estate should therefore only be purchased as a capital investment so that the tenant pays back the loan taken out (it is best to make a financing comparison beforehand) and the interest due for you. In this way, it is a safe investment that leads to an attractive return in the long term.
Additional potential lies in the increase in value of a property, which can generate a considerable tax-free profit if the location is chosen well.

Interest income:

Shares as an investment

Shares are interests in a company. With shares, we are moving into the realm of somewhat riskier investments. Shares are certainly not the logical answer to the question "What is a safe investment

You can achieve a very high return with shares, but equally suffer a total loss.
The risk can only be reduced if you select your shares carefully, spread them widely and have a long-term investment horizon.

If you need your invested capital quickly because of a financial bottleneck, liquidation is possible because you can sell your shares at any time. However, you may have to take a heavy loss when the market is just at the bottom.

Basically, a distinction must be made between dividend shares and growth shares with regard to risk:

  • Dividend stocks usually trade at less spectacular prices because they operate an established business model that has worked for many years, often decades. This fact that less money is put into growth leads to more money being left over for dividend payouts. Good examples are dividend stocks such as Coca Cola, Telefónica O2 Deutschland or Hochtief. 
  • Growth stocks usually do not pay dividends and instead invest masses of resources in the future of their own business model. These companies are innovative and are traded on the stock exchanges at high turnover multiples. 

Overall, it therefore depends heavily on the types of shares the investor focuses on and how broadly the portfolio is spread. 

Interest income:

Bonds as an investment

Bonds are also securities.
With the help of bonds, a state or a company borrows money from investors and pays this money back at the end of a fixed term plus interest.

Even though bonds are considered a safe investment, the risk of corporate insolvency or government bankruptcy remains.
The yield here is slightly higher than the fixed deposit level, but depends on the reliability of the issuer. For example, if you want to lend money to the German state by means of a bond, you even have to pay a negative interest rate due to the state's high credit rating.

Interest income:

Funds as an investment

A fund company takes money from several investors and invests it bundled in different assets.

Since this form of investment does not put all its eggs in one basket, funds are less risky than individual shares, but there is still a great deal of risk here too.

Funds can achieve an acceptable return - despite a high fee for active management by the fund company.

Interest income:

ETFs as an investment

ETFs(Exchange Traded Funds) are basically also funds. However, ETFs are not actively managed, as is the case with the funds mentioned above.

As a result, the fees are very low.

ETFs track indices such as the Dax or the S&P 500. If the index performs positively, the ETF also performs positively.
The risk is spread and thus kept within limits.

Interest income:

In reading these brief descriptions, you will already have established that in most cases you have to choose between between security and a high return. and a high return. For the most part, only real estate fulfils both criteria at the same time, which is why we have specialised in precisely this form of capital investment.


If you want to invest your money properly, however, it can also make sense to make the decision dependent on the time horizon. That is why we would like to give you a brief overview here as well.

Invest money: Comparison

In order to grasp the topic of "investing money" at a glance, we have listed the advantages and disadvantages of all the investment options examined. This helps all those who ask themselves: What is the best investment at the moment?   

Interest incomeSecurity
Call money(0/5) (4/5)
Fixed-term deposit(1/5) (4/5)
Rented property(5/5) (4/5)
Shares and ETFs(3/5) (2/5)
Bonds(0/5) (3/5)
Fund(3/5) (3/5)
ETFs(3/5) (4/5)

Investment according to time horizon

You have now considered which investment option is most attractive to you. Finally, however, you should ask yourself whether your choice is also compatible with your time horizon: 

Form of investmentShort-term

(available daily)


(5 years)


(10 years or longer)

Savings accountX
Call moneyX
Fixed-term depositX
Real estateXX

Investing money with small amounts

A large sum of money is not always available to invest diligently. Don't worry. There are also ways to invest with small monthly amounts.

  1. A monthly savings plan:
    You set up a standing order so that each month an amount you specify flows into a savings account or custody account.

    In the meantime, there is a very large selection of savings plans.
    For example, you can invest in ETFs for 25 to 50 euros per month. Nevertheless, there is a risk of incurring losses here.

  2. Rented property as an investment:
    This may come as a surprise to you. We find that most people assume that buying a property is a high monthly burden. However, this is only true for owner-occupied property.

    With an investment property, the property is rented out so that the tenant pays off your financing instalment for the most part.
    This gives you a monthly cash flow of -50 to +50 euros.

    And after the tenant has paid off the property, it belongs to you.
    The long-term cash flow then corresponds to the rental income - like a second pension, so to speak.

Conclusion: What is the best investment?

This is ultimately a subjective question that you can only answer yourself. To do this, you would first have to ask yourself the following questions:

  • Do you want to invest your money for the short, medium or long term?
  • Do you place more value on security or on a high return?
  • Would you like to have flexible access to your money?

For us, real estate is the perfect investment because it combines security and return. As we noted above, savers are currently receiving very low interest rates.
But if you change your perspective for a moment, you will see that little interest is paid on loans as well. The interest rate on an average construction loan is around 1.2%.
In combination with no or very low monthly charges, an attractive return in old age and a high level of security, a property is therefore the best way to invest your money in a return-oriented and secure way.

If you are now curious and would like to learn more about investing in real estate, we would be happy to answer your questions. Arrange a free Information talk with us and we will show you the individual steps to owning your own income property from a net income of €2,000 per month.

Real estate as an investment

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