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I’ll save, you’ll save, we’ll save… The increase in interest rates in banks again attracted Czechs to save

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Czechs have fallen in love with savings accounts and term deposits again and are transferring an increasing part of their savings to them. The reason is logical: over the past year and a half, interest rates on these products have risen significantly. However, even the current rise in prices of four to six percent is far from covering the current double-digit inflation.

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Let’s start a little non-standard – with a historical comparison. If two years ago you had 250,000 kroons deposited in a bank current account with an interest rate of 0.01 percent then, you would receive approximately 2 kroons per month on your deposit. If you deposit the same amount into a savings account now and fulfill the prescribed conditions, the bank will lend you every month at an interest rate that is actually available today, five percent, and after taxes, approximately 885 crowns.

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At first glance, it may seem that these are some lines in such a short time or deceptive advertising of scumbags, but such is the reality. Over the past year and a half, the situation in the banking market has changed beyond recognition. Banks have returned to their traditiol role and provide their depositors with (already really adequate) interest on invested capital. And domestic savers are hearing about this change. From a statement that Reflex provided by representatives of the largest domestic banks, it follows that the Czechs have in recent months massively transferred tens of billions of kroons from current accounts to savings accounts and time deposits, and banks already store hundreds of billions of kroons in these products. Their motivation is clear – they want to get at least some benefit from their savings.

Giant Savings

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Source: Blesk

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