Check Your Finances At The End Of The Year

The year 2019 is drawing to a close. It can be worthwhile to check your finances carefully beforehand so that you do not miss out on possible benefits and savings. Important: Financial check at the end of 2019 can bring money!

The Banking Association would like to point out the advantages of a financial cheque at the end of the year to customers of banks and savings banks. The following steps should be taken:

  • Check exemption orders,
  • Apply for a loss certificate,
  • Secure Riester allowances,
  • Use the special repayment right for real estate loans and
  • Apply for construction child benefit.
  • Check your exemption orders

Especially if you have several bank details, you should check before the turn of the year whether you have distributed the exemption orders sensibly. Depending on the income situation in the individual accounts and securities accounts, it makes sense to adjust the exemption.

Important for fund investors: Since 2018, a new tax law has applied to investment funds: Income not distributed by a fund – for example from reinvesting funds – is now calculated at a flat rate (so-called “advance flat rate”). The bank must collect and pay the tax amount due on this from the investor’s account balance. The bank is also entitled to do so if the account is overdrawn as a result. If this happens, you can object, but you must then take care yourself that the tax debt is paid to the tax office. If necessary, this deduction can be avoided with an exemption order for the corresponding amount.

Apply for a loss certificate

Investors can apply to their bank for a loss certificate for share or fund losses by 15 December. This is useful if you have custody accounts at several banks and wish to offset profits at one bank against losses at the other.

As 15 December this year falls on a Sunday, it is recommended that you submit your application by 13 December.

Secure your Riester allowances

If you have concluded a Riester contract, you should make sure that your deposits are sufficient to receive the full subsidy. At least four percent of the previous year’s pensionable income must be credited to the contract, and a maximum of £ 2,100 is subsidized. If necessary, take advantage of the opportunity to set up a permanent allowance application.

Use special repayment rights for real estate loans

In the case of a real estate loan, unscheduled repayments are often agreed but then not used. You can usually make use of this option once a year. This can be worthwhile, because early repayment saves interest.

Apply for construction child benefit

Until 31 December 2019, families and single parents who want to build or buy their own home can still apply for Baukindergeld if they moved in after 30 June. The annual allowance of 1,200 GBP per child is paid for a maximum of ten years. There is a maximum income limit: the taxable household income may not exceed 90,000 GBP for one child and an additional 15,000 GBP for each additional child.