What is an investment account?
And when can I receive allowances?
Think of an investment account as a digital folder holding your securities. Your cash and your investments have different places.
The essential words, explained simply.
| Term | The basics |
|---|---|
| Securities account (Depot) | Your securities are held here and your holdings are displayed. It is not a savings account paying a fixed interest rate. |
| Settlement account (Verrechnungskonto) | This holds cash for purchases or from sales. A purchase exchanges cash for securities. Cash balances and securities have different protections. |
| Custodian bank (Depotbank) | The bank that holds your securities. It may be a different company from the brand behind your app. |
| Broker | A service through which you can buy and sell securities. The documents identify the provider, contractual counterparty and custodian bank. |
| ETF | An exchange-traded fund. Many ETFs contain investments in numerous companies, like a basket holding many individual investments. Its value can rise or fall. |
| Regular investment plan (Sparplan) | A recurring purchase, for example €150 each month. The investments bought depend on the chosen product. |
A simple example: You contribute €150. The provider buys the selected fund units, which appear in your account. If their market value later falls to €120, you still own the units, but they are worth less at that point. An account does not prevent these losses.
What matters when switching providers and arranging custody · BaFin: protection of cash balances and securities
An investment account alone does not qualify you for allowances.
For a subsidised Altersvorsorgedepot, you need personal eligibility and a certified retirement contract. An ordinary securities account is not sufficient. The new products may be offered from 1 January 2027. Providers may include banks or insurers; a custodian bank alone is not a condition that qualifies you for support.
- Who may qualify? Examples include employees and apprentices subject to compulsory pension insurance. Additional conditions apply to civil servants, certain self-employed people who have filed a tax return, and compulsory members of professional pension schemes.
- How much must I contribute? At least €120 a year for the basic allowance (Grundzulage). For directly eligible savers, €1,800 of annual contributions attracts up to €540 of basic allowance.
- What about spouses? Indirect eligibility is possible subject to further conditions. Separate rules apply, with a basic allowance of up to €175.
Certification confirms statutory product requirements, not returns or financial security. The full requirements are set out in the official BMF FAQ.
Your first steps.
- Understand and check first: Which eligibility category applies to you? Resolve open questions using the official rules.
- Review the specific offer: Is this exact contract certified? Who is your contractual counterparty, and who holds the securities? Ask for evidence; a waiting list or advertising statement is not enough.
- Use the checklist before signing: Compare euro costs, subsequent prices, terms, pauses and switching options. Keep the documents.
- Clarify account opening and the allowance process: The provider explains identity checks, contributions and required information. Ask how allowances are requested, what consent is needed and how to report changes. Transfer money only to an account clearly assigned to your contract.
- Check regularly afterwards: Do contributions, allowances and costs match expectations? Have your work, family or contract terms changed? Review statements and your electronic inbox.
Consider your needs first: What money do you need for everyday life and unexpected expenses? A long-term retirement investment is not an unrestricted emergency account. Have withdrawal conditions and possible allowance consequences explained before signing.
Open the retirement checklist · Try a savings scenario · Understand losses and allowances