Good news on World Savings Day: interest rates are rising. But there’s also bad news: it might not be the right time to put your savings in the bank just yet.
On October 31, banks want to lure people back to their branches with gifts on World Savings Day. Interest rates are rising again for the first time in years. The European Central Bank has raised its key interest rate several times since the summer – but that is only noticeable for consumers when it comes to loans. A rise in the savings rate will only happen with some delay, as banking expert Bernd Lausegger of the Consumer Information Association explains in the Ö1 “Tomorrow Journal”: “Unfortunately you have to say that in some cases nothing has changed at all.”
A comparison of the different offers is worthwhile. There are large differences in fixed interest rates on savings, ranging from 0.01 to three percent depending on the term, the comparison portal Durchblicker found. It may be worth waiting a little longer before entering into a bond. “If I commit now, I’m committing to a low interest rate and interest rates continue to rise,” Lausegger said. He advises to follow the development a little further.
Savings book very unpopular with banks
Anyone who wants to use their savings account is in good hands, especially with online banks. “It is hoped that in the future there will be more competition between banks when it comes to savings,” says financial expert Christian Prantner of the Chamber of Commerce. The offer was thinned out in the zero-interest phase. Some banks would only allow existing customers to open a savings account – this could still be difficult in the future. Banks prefer to sell a fund savings plan because there are higher commissions and fees. In the case of securities, these are custody and purchase fees, and in the case of actively managed funds, the banks also receive ongoing commissions in the form of bribes.
Expert: ‘Saving has become luxury’
For many Austrians, such considerations are not an issue at the moment anyway: high inflation and rising prices make it impossible for many people to put some money aside. “Savings have become a luxury product,” says Clemens Mitterlehner, Managing Director of ASB Schuldberatungen GmbH. People with low incomes are especially affected.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
