Is a building savings plan worth it? An honest calculation without the salesperson

For years, building savings was the automatic answer to "where should I put my money". Times have changed: the state premium is lower, the conditions stricter, and there are more alternatives. That doesn't make it bad — it means it deserves a calculation, not a reflex.

The short answer

• The state premium is capped as a percentage and per year — with higher deposits its effect dissolves.
• Fees (contract setup, account maintenance) can eat a significant part of the premium, especially in the first years.
• It mainly makes sense if you plan to take a building loan or want forced saving with zero risk.
• For long-term wealth building there are usually higher-yielding paths (ETFs, pension pillars).

How building savings works

You save regularly into an account with a building society, the state adds an annual premium, and after meeting the conditions you become eligible for a building loan at a rate known in advance. The catch: the premium is capped, tied to conditions (saving period, purpose), and the society charges fees that reduce the return.

When it makes sense

• You plan a renovation or a home purchase in a few years and want the certainty of a building loan.
• You save for children — a long horizon, zero risk, a premium on top.
• You need discipline: a regular deposit with a penalty for early withdrawal works better for some people than voluntary saving.

When the alternatives are better

• Short-term reserve: a savings account — no contract fees and no lock-in.
• Long-term wealth building: regular investing into ETFs has a historically higher expected return — with fluctuating value.
• Retirement: a pension scheme with an employer contribution is often better than anything else — the contribution is an instant "return".

Three steps before signing the contract

• 1. Ask for a model calculation: total deposits, all fees, the premium and the final amount after the lock-in ends.
• 2. Compare the result with a savings account over the same period — the difference is the real value of the premium.
• 3. Check whether you will actually receive the premium: the conditions (deposit amount, period, purpose) change.

Compare it in the simulator

In the Ferrata simulator you can compare building savings with the alternatives using your own numbers — and see the difference after 6 years. No registration, free.