Building savings contract fees: How much does building savings cost? Overview, amount and tips

Building savings contract fees – A building savings contract is a popular way to save money for your real estate project. However, before signing a contract, it is important to get an overview of the different fees. Learn about the different fees now, so you can best prepare for the costs and make the right choice.

Are you interested in a building savings contract? Compare immediately current conditions for your building savings contract in the building savings calculator.

Fees for the building savings contract

How much does building savings cost? When concluding a bauspar contract, various fees are incurred that must be taken into account in order to enable a realistic cost calculation. These can include, among other things, acquisition and management fees, costs for insurance or processing fees for loans from the bauspar loan.

Lukinski Villas

Germany - Spain - USA

An overview of possible fees:

  1. Connection fee
  2. Annual contributions
  3. Account management fees
  4. Processing fees
  5. Early repayment fee

In addition to these fees, other fees may apply depending on the provider. Now you can find out what the fees are and when they apply.

Connection fee

Some building societies charge what is known as a closing fee when a building savings contract is concluded. The fee may vary depending on the provider and tariff. The closing fee is used to cover the costs incurred in setting up the contract, such as preparing contract documents, carrying out credit checks and processing applications.

The connection fee at a glance:

  • Contract setup fee
  • E.g. for contract documents or credit check

In some cases, these fees are not charged or are already included in the contract terms.

Annual contributions

In order to maintain a building savings contract, many building societies charge annual contributions. The annual contribution is used to cover the costs of managing and operating the contract as well as the interest on the saved capital. Some providers charge lower contributions if you pay in a larger investment amount or choose a longer term, while others charge higher contributions if you pay in a smaller investment amount or choose a shorter term.

The annual fee summarized:

  • To maintain the building savings contract
  • Annual payment from saver to building society
  • Amount depends on various factors

Account management fees

Account maintenance fees are incurred annually or quarterly and are used to cover the costs incurred in administering the contract, such as preparing statements, making transfers, and processing inquiries. The amount of the account management fees varies depending on the provider and the contract.

Use of the account management fee:

  • Preparation of accounts
  • Execution of transfers
  • Inquiry processing

Account management fees for home savings contracts are controversial. In a ruling from 2022, the Federal Court of Justice (BGH) issued a decision on the charging of account management fees for home savings. However, it is currently only valid for customers of BHW Bausparkasse. Some home savings banks therefore do not charge this fee.

Handling fee

Processing fees are mainly incurred in the event of changes to the contract. During the savings phase, you have the option of adapting the contract individually to your circumstances.

Processing fees may apply for:

  • Changes to the contract (term, savings target, amount of installments)
  • Conducting audits or reviews in connection with the contract
  • Preparation of certificates or proofs

The amount of the processing fee varies depending on the provider and can range from a few euros to several hundred euros.

Early repayment fee

The early repayment penalty is also known as a disbursement fee. It is due if you terminate a home savings contract prematurely before the agreed term has expired. It serves to compensate the provider for the lost interest and repayments that he had expected if the contract had remained in force until the end of the term.

Fees apply in the event of premature termination of the contract.

Conclusion and tips for those interested in building savings

It is important to be aware of the provider’s fee structure before signing a home loan contract. You should make sure that you take into account the cost of any additional services to be sure that you choose the offer that best suits your personal needs and goals. Comparing the terms of different providers and contracts can help you make the best choice.

Here are our tips that people interested in building savings should consider before signing a contract:

  • Find out about the provider’s fee structure and take this into account in your cost calculation
  • Compare the offers and conditions of different providers to make sure you get the best deal for your needs