Higher interest rates make saving more attractive. According to a current survey, more than half of Austrians want to save at least as much as before, despite tight budgets in the coming months. 6 percent even plan to set aside more. The main drivers are the iron reserve and the pension scheme.
“Almost all households in Austria are currently tightening their belts and almost every sixth household has to take out a loan to cover fixed costs,” says Martin Spona, head of consumer finance at the comparison portal durchblicker. For anyone who can put money aside, saving becomes more attractive again. Some building societies currently offer special terms of up to 3 percent fixed for the first twelve months and up to 4.7 percent with floating interest for the remaining term to the end of the year.
savers get humble
After the long interest rate lull, savers have become modest. “There will probably be no positive real interest rates for a long time to come,” Spona says. According to the durchblicker survey on the occasion of World Savings Day, interest rates of up to 3 percent are already making traditional savings attractive for a fifth of Austrians. At an interest rate of up to 4 percent, 37 percent find saving interesting again, at an interest rate of up to 5 percent, that is 59 percent.
In general, according to durchblicker, interest rates on deposits tended to rise more slowly than interest rates on loans. The earlier interest rate hikes by the European Central Bank (ECB) have been passed on by the banks to varying degrees. Banks specializing in savings deposits would have responded more quickly.
Nestei, commission and vacation
The main motives for saving are the iron stock and the provision for old age. Three quarters of the 500 respondents indicate that they save in order to fall back on an emergency fund. Retirement provisions (48 percent) rank second among savings reasons, followed by holiday travel (38 percent). By far the most popular form of saving is still the savings account, the research shows that every second household has one. Four out of ten people have life insurance and about the same number have a savings contract.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
