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 own home. The information available here, as well as the comparison calculator also available here, will show you which variants are suitable for you and which providers you can expect to get the best terms from.

The principle of a home loan

The home loan and savings contract is a combination of a savings contract and a loan that can be used for a residential purpose. The building society 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 savings account and earn interest. The savings and loan association where you take out the savings and loan agreement has a lot of customers and basically it can be said that all the savings and loan customers are one big community who pay into a common pot from which the later loans are disbursed.

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

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The terms of the teachers' home loan contract

Building society contracts are filled with the most different conditions, which lead to the fact that no contract can be called flatly the best, but only a comparison and a tuning to the 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, there is a rule of thumb 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 the loan is drawn down.

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 in the investment of assets. Depending on the building savings 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, an allotment is made when a certain proportion of the building savings sum has been saved up. This can be 60 percent for one contract and 40 percent for others. 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 include in your financial planning at all times.

You should also take into account the fact that the interest earned during the savings phase is subject to income tax or the final withholding tax of 25 percent as income from capital assets. In this case, it is worthwhile to submit an exemption order to the building society in order to be exempted from the tax obligation and to be able to enjoy the return without restrictions. Annual allowance of 801 euros or 1 euro for married couples within the framework of the saver's allowance.602 euros in interest are 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 taking out a home savings contract

There is hardly any other form of savings that offers as many different options for state subsidies as a 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 various options and obtaining the most comprehensive information possible, in order to know exactly which state subsidy one is entitled to and which also brings the most advantages with it.

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 with a building society savings contract. This requires the financing of an owner-occupied house as a prerequisite, which is why the Wohnriester is perfectly suited as a financial investment that has as its goal your own four walls.

The state subsidies available here consist of an annual allowance and an attractive tax break. The allowances consist of the basic allowance of a maximum of 154 euros per year, which is due to anyone who is eligible (teachers are in any case part of the eligible group) to take out a Riester contract. 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. Lower amounts mean that the allowances are reduced proportionately, but are still paid out. At the same time, contributions or installments up to an annual amount of 2 euros can be deducted from the taxable income.100 euros can be claimed as a 100 percent tax deduction, reducing the tax burden to a tremendous degree.

The employee savings allowance is another variant of the state subsidy, which comes into effect if the building savings contract is concluded as part of the 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 or 35.800 euros for married couples to be respected.

The housing subsidy honors the privately saved building savings contract. Here too, income limits must be respected, but these are set at 25.600 euros 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 opportunities and, in addition, a not inconsiderable number of government subsidies. 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 at the same time can also provide a very favorable loan if this money is used for modernization, renovation or even the purchase of one's own property.

Since the number of different tariffs continues to grow and, in addition, there are always different individual requirements for the optimal contract, it is worth taking 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 society savings plan for teachers a long outdated savings vehicle?

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

After this savings phase comes the allocation by the building society, which gives you the opportunity to move to the loan phase to take out a loan for housing purposes at very favorable conditions. Such purposes are for example the acquisition of an own real estate or also renovations and modernizations, which can be financed in this way pleasantly.

In addition, there are various possibilities to take advantage of state subsidies within the framework of the building savings contract. For example, the Wohnriester offers the opportunity to decorate a home savings contract with the allowances and tax benefits of the Riester pension, if the funds from the home savings contract are used for the construction or purchase of a then owner-occupied property.

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

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