Deutsche Bank set out product terms and fees for Germany’s planned state-supported retirement savings account. It intends to launch a digital DWS account through Deutsche Bank and Postbank on 1 January 2027. Only exchange-traded fund costs of 0.10% would apply for the first two years because the regular 0.18% contract fee would be waived. Regular total annual costs would then rise to 0.28%.
The bank also plans an advised product with a wider investment range and an annual fee of 0.99%, plus possible transaction costs. Insurance options with and without guarantees, developed with Zurich, are intended to complete the range. Deutsche Bank said the products would be available through digital, telephone and branch channels, depending on the option selected.
BANKS PREPARE FOR A NEW SAVINGS MARKET
The retirement account is intended to give German savers access to exchange-traded funds, equity funds and bonds within a subsidised framework. DPA reported that eligible annual contributions would range from €120 to €1,800, with government support of up to €540 a year and as much as €300 for each child.
Capital gains would remain untaxed during the accumulation phase, according to the report. Existing Riester contracts could continue or be transferred, although Deutsche Bank cautioned that any change should reflect the fees, guarantees and objectives of the existing arrangement.
PRICING WILL TEST CUSTOMER DEMAND
Dominik Hennen, head of Personal Banking Germany at Deutsche Bank, said the bank was focusing on choice rather than a one-size-fits-all solution. Competitors including Scalable Capital and Dekabank have also set out low-cost offers.
The law allows providers to raise prices later with four months' notice, according to DPA. The next concrete milestone is the planned 1 January 2027 launch.