Run on lockers in Germany

Lockers are hard to come by in Germany, because due to extremely low interest rates and the threat of negative interest rates, fewer and fewer savers see reason to leave money in a savings account. Instead, they take their money out of the bank and put it in a safe deposit box at home.

In recent years, it has been quite common for the thrifty Germans to put the money in a bank account, but today that yields virtually nothing. Add to that the flood of rumors about the problems at Deutsche Bank and the arrival of negative savings rates and it suddenly becomes interesting to keep cash.

Lockers not to be dragged

Manufacturers of safes have increased their production to meet the increased demand. Burg-Waechter KG, Germany's largest locker manufacturer, saw its sales increase by 25% in the first half of this year compared to a year ago. This increase can largely be attributed to the extremely low interest rates on savings, because it is mainly private individuals who buy a safe more often.

"Manufacturers of safes are working almost at maximum capacity. Some producers are already working in three shifts to keep production running non-stop," Thies Hartmann of a safe-seller in Hamburg told the Wall Street Journal.

Flight to cash

One of the main causes of the flight to cash is the monetary policy of central banks. They have been cutting interest rates all the time to boost the economy. A small German savings bank recently decided to pass on the ECB's tax to customers with more than €100,000 in savings. With cash, it is easier to avoid the penalty interest and it is more difficult for the authorities to trace the money.

The latter is also very important in Germany, because the German population is very attached to its privacy. For example, 80% of payments in Germany are still made with cash, while in the United States only 46% of payments are made with cash. Germans are also more likely to withdraw money from ATMs and on average withdraw more than twice as much money from the wall as Americans.

Buying gold

It is not only private individuals who are looking for alternatives to avoid negative interest rates. Germany's Commerzbank has also considered keeping part of its reserves in cash. At the beginning of this year, insurer Munich RE even Cash and gold in the vault as a form of diversification.

In addition to cash, bullion is also a way to avoid negative interest rates. Gold and silver fit easily in a safe and represent a high value. According to the World Gold Council, negative interest rates are even a reason to buy more gold.

Germans are more likely to put cash in a locker