Building savings contracts for teachers

One of the oldest and most popular forms of savings, which have been on the market for many decades and have not been shaken by any financial crisis, are the building savings contracts. They form a perfect harmony between security, attractive returns during the savings phase and the favorable interest rate in the loan phase. Depending on your contract and income, you may also have access to various government subsidies for financing, renovating or modernizing your home. Which variants are suitable for you and with which providers you can expect the best conditions is shown by the information available here as well as the comparison calculator also available here.

The principle of a building savings contract

The building savings contract is a combination of a savings contract and a loan, which can be used for a residential use. In this case, the building savings contract is divided into two phases. At the beginning there is the contribution phase, in which you pay the agreed savings installments into the building savings contract.

These are credited to the corresponding building society account and interest is paid on them. The bausparkasse with which you conclude the bauspar contract has a very large number of customers, and basically it can be said that all bauspar customers form a large community that pays into a common pot from which the subsequent loans are disbursed.

In order to prevent this pot from being completely empty all of a sudden because all home savings customers suddenly want to take out a loan, each loan is only granted after a certain period of time, which usually depends on how much money has already flowed into the home savings contract as a savings balance. If a sufficiently high savings balance has been accumulated, the building savings contract can be allocated and the loan can be paid out during the loan phase.

Hauke Simonsen


The conditions of the building savings contract for teachers

Building savings contracts are filled with a wide variety of conditions, which means that no contract can be described as the best across the board, but only a comparison and an adjustment to personal wishes and needs can lead to an individually optimal product. Thus an important tariffing characteristic lies naturally in the height of the interest, which must be considered both for the saving and for the loan phase.

In the case of a building savings contract, the rule of thumb is that a low credit interest rate also means a low debit interest rate in the loan phase, and a more attractive return in the contribution phase leads to a higher burden when taking out the loan.

Therefore, it is important to consider in advance whether the need for the loan will arise in the foreseeable future or whether the priority is rather the investment of assets. Depending on the bauspar contract, the requirements for the allocation and thus the disbursement of the loan are also different. As a rule, a building savings contract is concluded for a certain building savings amount, which is the sum of the savings balance and the loan amount.

In most cases, the allotment takes place when a certain share of the building savings amount has been saved. This can be 60 percent for one contract and 40 percent for another. Depending on how urgent the financing requirement is, this difference can play a major role in financial planning.

Use the comparison calculator for building savings contracts available here to see what options are available and which conditions best meet your requirements as a teacher for the investment of money. Regardless of whether an attractive return is claimed in the savings phase or your own house is financed with a favorable loan, the building savings contract is an excellent financial investment that you should always include in your financial planning.

You should also take into account the fact that the interest in the savings phase is subject to income tax or the final withholding tax of 25 percent as income from capital assets. Here it is worthwhile to submit an exemption order to the building society in order to be exempt from tax liability and to be able to enjoy the return without restriction. An annual tax exemption of 801 euros (or 1 euro for married couples) is possible within the framework of the saver's allowance.602 euros of interest will be exempt from taxation. However, this figure applies to all financial investments, so the exemption orders at different banks together may not exceed this amount.

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State subsidies for teachers when concluding a building savings contract

With hardly any other form of savings are there so many different options for state subsidies as with the building savings contract. These differ not only in their amount or type, but also in the requirements that must be met for them. This is another reason why it is worth comparing the different options and obtaining as much information as possible, so that you know exactly which state subsidy you are entitled to and which also brings you the most advantages.

For example, for a few years now there has been the so-called wohnriester, in connection with which the state subsidies of the riester pension can be used in conjunction with a building savings contract. For this, financing of an owner-occupied house is necessary as a prerequisite, which is why the wohnriester is perfectly suited as a financial investment, which has as a goal the own four walls.

The government subsidies available here consist of the annual allowance and an attractive tax break. The allowances consist of the basic allowance of a maximum of 154 euros per year, to which everyone is entitled who is eligible for a riester contract (teachers are in any case among the eligible group of people). In addition, there is the child allowance for parents entitled to child benefits.

This allowance amounts to a maximum of 185 euros per child and per year, or even 300 euros per year for children born since 2008. The maximum subsidy is paid into the contract by the state precisely when the amount of the savings installments in the contribution phase or the loan installments in the loan phase is at least 4 percent of the previous year's income. Smaller amounts provide for proportionally reduced, but nevertheless paid allowances. At the same time, contributions or installments can be paid up to an annual amount of 2.100 euros can be claimed at 100 percent for tax purposes and thus reduce the tax burden to an enormous extent.

The employee savings allowance is another variant of the state subsidy that comes into play when the building savings contract is concluded as part of capital-forming benefits. The employee savings allowance is 9 percent on a maximum annual savings rate of 470 euros. However, income limits of 17.900 euros for single persons or 35.800 euros for married couples are respected.

With the housing subsidy, the privately saved building savings contract is honored. Here, too, income limits must be complied with, but these are set at 25.600 euro for singles or 51.200 euros for married couples lie. The housing subsidy amounts to 8.8 percent on up to 512 euros in annual savings installments.


The building savings contract offers not only attractive conditions, but also many possibilities and in addition also a not to be despised number at national promotions. No wonder that the building savings contract has been one of the most popular forms of investment for generations. It is suitable as a pure form of savings, but can also bring a very favorable loan at the same time, if you use this money for modernizations, renovations or even the purchase of your own property.

Since the number of different tariffs continues to grow and also individually always different requirements for the optimal contract, it is worth a look at the comparison calculator available here to find the best personal solution at any time.

Frequently asked questions (FAQ)

Isn't the building savings contract for teachers a long outdated form of saving??

Without question, the building savings contract is a way of investing money, which has existed for a long time, but despite its long-standing form has not lost its attractiveness and popularity. This attractiveness can be seen in several advantages, which are combined into an optimal unit within a building savings contract. On the one hand, it is the secure and appropriately interest-bearing savings deposit, which is built up to an attractive sum by the savings contributions during the contribution phase.

After this savings phase comes the allocation by the building society, which gives you the opportunity to move into the loan phase to take out a loan for residential purposes at very favorable conditions. Such purposes are, for example, the purchase of their own property or renovations and modernizations, which can be financed in this way pleasantly.

In addition, there are various options for claiming state subsidies within the framework of the building savings contract. For example, the wohnriester offers the opportunity to decorate a building savings contract with the allowances and tax benefits of the riester pension, if the funds from the building savings contract in the construction or purchase of a then owner-occupied property flow.

In addition, a building savings contract can be concluded through the capital-forming benefits, in order to also use the state subsidies in the form of the employee savings allowance for himself there under certain conditions. But that's not all, there is also the so-called housing construction premium.

This also belongs to the government subsidies for building savings contracts, if they are financed with private funds and other conditions are met. The conditions for receiving the employee savings allowance or the housing subsidy are, in particular, compliance with specified income limits, the residential use and certain maturities. All information about the building savings contract as well as all possible subsidies and their conditions you can find on these pages and use for yourself and your plans for an optimal investment of money.