3.3 million Austrians have a construction savings contract. Thanks to the higher interest rates, the interest rate is higher again. Many people save starting capital with monthly deposits. The “Krone” shows what needs to be taken into account and where interest rates apply.
In the years of low interest rates, building savings was not very attractive. But in recent months there has been talk of a comeback. “The boom has only just begun,” says Hans-Christian Vallant, head of the Raiffeisen Bausparkasse, with 1.3 million customers the largest domestic provider before the s-Bausparkasse (Erste). According to him, demand is currently 20 percent higher. And the increasing interest started as early as 2022. “We have noticed increased demand since the interest rate hikes began. In the first quarter of this year there were even 75 percent more contracts than in the first quarter of 2022,” says Marcus Kapun from s:Bausparkasse, currently chairman of the construction association.
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.
