A savings plan is a way to regularly invest fixed amounts in investment products like cryptoassets to build long-term wealth.
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What is a savings plan?
A savings plan is, by definition, a way to regularly invest fixed amounts in specific financial products cryptocurrencies. The agreement with a bank, investment company, crypto broker or exchange enables investors to build wealth continuously through smaller contributions.
A savings plan is therefore ideal for investors who want to invest small amounts monthly, for example, to benefit in the long term from the performance of different cryptoasset. Now you already know what a savings plan is by definition. But how does a savings plan work and how can you set one up? What are the advantages and risks of a savings plan and who is it suitable for? You’ll find out all this in this guide.

Savings plans use fixed contribution rates, automatic debits and the cost-average effect to balance out the risk of price fluctuations.
How does a savings plan work?
A savings plan is an agreement between a bank, investment company, broker or exchange and an investor. It works by having the investor regularly invest a fixed amount into selected financial products. This method uses fixed contribution rates to build wealth continuously over time and balance out price fluctuations.
Here's how it works in detail:
Regular investments: An investor puts a fixed sum into a savings plan at regular intervals, usually monthly.
Automatic debit: The agreed contribution is automatically withdrawn from the bank account and invested.
Cost-average effect: With consistent investments, more is bought when prices are low and less when prices are high.
Performance and reinvestment: Returns such as dividends or interest can be reinvested within the savings plan.
Flexibility and adaptability: Investors can adjust the contribution and intervals to match changing financial conditions.
How a savings plan works depends on the time horizon. Short-term savings plans (one to three years) focus on building capital quickly with minimal risk, often through bank savings plans. Medium-term plans (three to ten years) strike a balance between risk and return by investing in mixed or selected equity funds. Long-term savings plans (ten years or more) are ideal for wealth building and retirement planning. Index funds are particularly attractive here, offering broad diversification and high potential returns over long periods.
You should choose your savings plan based on your financial goals and desired investment horizon.
Cost-average as the basis of a savings plan
The cost-average effect is a key strategy in savings plans. By investing a fixed amount regularly – say, monthly – you buy more units when prices are low and fewer when they're high. This lowers your average purchase price and reduces the impact of market fluctuations.
Who is a savings plan suitable for?
A savings plan is ideal for anyone looking to start with small amounts. It makes regular investing possible – even with limited funds. This allows wealth to be built gradually, step by step. Whether for retirement, saving for children, a home or a special goal: a savings plan suits many needs.
Retirement planning
A savings plan helps build wealth continuously over the long term, making it a useful option to support retirement planning With regular contributions and the compound interest effect, investors can accumulate a substantial sum that offers financial security in later life. The compound interest effect means that returns earned on your investments are reinvested, allowing your wealth to grow faster over time as you earn interest on both your contributions and previous gains.
Saving for children
A savings plan helps build early capital for children’s or grandchildren’s futures. Long-term investments can offer added financial support for future expenses like education or early career steps.
Financing a property
Those looking to buy a home need equity. A savings plan supports systematic wealth building – especially for young adults and families with long-term plans.
Saving for special wishes
A savings plan is also suited to personal goals: whether it’s a world trip, a new car or a big celebration – regular contributions bring you closer to your dream, step by step.
The Bitpanda savings plan lets you invest automatically in crypto and Bitpanda crypto indices on a weekly, bi-weekly or monthly basis – supporting you in managing short-term market fluctuations.
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How to create a savings plan
Setting up a savings plan takes just a few steps:
Define your goals: Consider what you're saving for (e.g. retirement, property, children).
Choose suitable investment products: Decide whether to invest in cryptocurrencies such as Bitcoin, Ethereum or crypto indices that align with your financial goals and risk tolerance.
Open a securities account: Select a provider and set up your account.
Set your contribution: Determine how much you want to invest monthly.
Create your savings plan: Enter your selected product and contribution in the platform.
Read the key information document: Learn about the product’s name, provider, risk and return profile.
Activate automation: Ensure monthly contributions are automatically debited from your account.
Select income option: Decide if earnings are reinvested (accumulating) or paid out (distributing).
Review regularly: Monitor your investments and adjust the plan as needed.
Conclusion
A savings plan offers a straightforward way to invest regularly and support your financial goals – whether you're planning for retirement or building a portfolio over time. By automating your contributions and applying the cost-average effect, you can take a measured approach without focusing on market timing.