Federal Republic

Information about the account book; Purchase of U.S. Treasury bonds. German bunds are securities of the Federal Republic of Germany that it emits as a permanent issue. And when those securities to proceed according to a fixed plan with annually rising interest rates. There is then spoken by the “interest rate stairs” (“Step-Up” bonds).

The minimum investment amount is 52 euros. A competition of Treasury bonds with the deposits with the private Banksparplan occurs when the investment. A federal Treasury letter can be offered in two variants, it is not traded on the stock exchange. The federal Treasury letter type A has a term of 6 years. This interest is paid annually to investors. The customer may apply and the interest in new Federal bunds.

The federal Treasury letter type B has a term of 7 years. All interest rates are created automatically. Seven years, so the repayment of all principal, interest and compound interest occurred. What is especially good on the federal Treasury bonds, which are rising interest rates on fixed schedule. Increasing the duration, growing interest. And this is a great incentive to hold the securities for the investors best until final maturity. The market position is constantly changing, and the emission of current expenditure will be adjusted. But taking the sale of new spending. The issuer has no extraordinary or premature termination. You can buy securities of the type “German bunds” basically fees – and free of charge at the banks and all savings banks. Falling map accrued interest will be charged at the time of purchase. You can get an application form on “persistent” requests at each savings bank and Bank. The custody is carried out also in banks or savings banks. Then, however, a very large fee is due. If you want, can purchase these securities directly from the Federal Republic of Germany, the financial agency. A book account is built to the customers. The purchased securities are listed on the book’s account. You can create a book account online at the German finance agency, it is carried free of charge. In the documentation, you will find even the term state federal securities administration. But nowadays, it is the German finance agency. And she has assumed the tasks of the federal securities management.2006 since first August. The German bunds are perfectly suitable for a liquidity-oriented financial cushion. There’s benefits. Everyone there can be already with a small contribution. You should know from the tax advantages for investors. For a repayment of Treasury bonds of the type B, there are the lower tax rate. If the market interest rate rises, so it is no problem, to replace the titles at any time against hoherverzinsliche papers. But you must allow the period of one year. A savings with increasing interest is in competition with the yield of U.S. Treasury bonds. The German food bunds have a competition with the yields of other savings plans. The Festgeldanlage would be another alternative, it is also safe and highly recommended.

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