Costs for checking accounts, ATM cards and other services are rising. The banks respond to inflation. Contracts linked to the consumer price index (CPI) can be adjusted accordingly.
According to Statistics Austria, inflation in 2022 was 8.6 percent. According to “Press”, Erste Group will increase its account costs by exactly this percentage from July 1. As of May 1, the costs at Bank99 of the Austrian Post will increase by 8.5 percent.
The Raiffeisenbank Niederösterreich-Vienna, which already raised rates by 10.59 percent on April 1, is significantly higher. At Bank Austria, the step will be the same on July 1 at 10.10 percent. With an increase of 11.55 percent, the Bawag (also as of July 1) is even higher. All three banks used the 2000 CPI as the basis for the 2021-2022 period, leading to higher values, the newspaper report said.
The customer must agree – caution is advised
“The customer must be informed of the change in writing by letter or e-mail at least two months before the planned deadline,” says Christian Prantner of the Labor Chamber. Equally important, the customer must agree to the change. This can also be done silently, through the so-called explanatory fiction. “All Austrian banks use a corresponding clause in their terms and conditions,” says Prantner.
Anyone who disagrees with the increase at their bank and reports this in writing in good time has two options, according to Prantner: either you switch to a cheaper product from your house bank or you change banks. The Chamber of Labor expert recommends using comparison portals and checking your own usage behaviour. And that quickly, because: In the event of an objection, the house bank can also close the account of its own accord.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
