Bad news for World Savings Day: According to financial experts from the Tyrolean Chamber of Commerce, the real loss of value of savings accounts due to high inflation is higher than in 50 years. A trend reversal is not in sight.
Since 2011, savers have been losing money on fixed-income savings deposits due to falling interest rates. But 2022 will be “Annus Horribilis”, according to the specialized group of financial service providers in the Tyrolean Chamber of Commerce. Given the rapid rise in inflation, despite rising interest rates, the worst year in 50 years is ahead. This is due to inflation, which has recently spiraled out of control.
The Austrians save a lot, but not really
The calculation is simple: the higher the inflation, the lower the real interest income on the savings account. “Austrians still save a lot”, says Michael Posselt, chairman of the Chamber of Commerce, “but unfortunately not in the right shape.” Posselt sees an investment on the stock market as a way out of the interest rate dilemma. In the long run, the chances of winning there are high, he says.
“The capital market structure in Austria is underdeveloped. That has to change, otherwise there will be little left for savers in the end,” Posselt advises to inform himself about alternative forms of investment for savings accounts. The expert advises newcomers to finance savings plans with risk spreading.
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.
