The Federal Ministry of Finance is back: Investors can now invest money directly with the Republic of Austria and buy federal bonds with an interest rate of up to 3.5 percent.
“It is the safest investment in Austria,” said Finance Minister Magnus Brunner. Another benefit for customers is that there are no costs or fees. A deposit at a bank is not necessary; the bonds can be purchased directly online. One difference with other forms of investment: deposit insurance is, as it were, unlimited, as the Republic is 100 percent liable for it.
A distinction is made between “classic federal treasures” and “green federal treasures”. They were issued specifically to revive the federal treasury. For classic federal government bonds, an assessment period of one month (3.5 percent interest), twelve months (3 percent) and ten years (2.5 percent) is possible. The fact that interest rates are lower for longer terms has so far been unusual, but that is because everyone currently expects interest rates to fall soon. Anyone who buys a federal bond now can protect themselves with a longer bond. Over a ten-year period, even a low-looking interest rate of 2 to 3 percent could provide protection against inflation.
‘Green’ federal government bonds with an interest rate of 3.25 percent
The green federal funds may only be used to finance climate-friendly investments. B. to expand renewable energy or a growing rail network. The interest rate is 3.25 percent for six months and 2.75 percent for four years.
The minimum deposit for all forms is 100 euros. The interest rate is fixed daily. If you have opened a Federal Treasury account, you can then transfer the corresponding savings amount to your own bank account.
The prerequisite is ID Austria, the digital signature of the federal government. Bond savers need these to be fully functional to fully authenticate themselves. Although this is a disadvantage for some seniors without a smartphone, for Brunner it is the best option due to security and many seniors already have a digital signature.
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.
