One-fifth or 20% of Latvians do not want to entrust their savings to banks or other financial service providers, choosing to keep their savings at home, in cash, according to a survey conducted by AS “Expobank” in cooperation with research company “Norstat”.
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Almost a third of the surveyed respondents (30%) indicated that they simply make their savings in a bank account without using any deposit or investment opportunities. 11% of respondents believe that the best way to save money is to invest in real estate, 9% have chosen to save money at the 3rd pension level, 7% of the population have a deposit account with a bank, the same amount is used by savings insurance.
Deposit accounts are more often chosen by people aged 40 to 49 (10%), people with higher education (8%) and people living outside the cities (10%). Examining the answers provided by the respondents about the occupation, it was concluded that pensioners most often entrust their money to deposit accounts (10%).
On the other hand, cash savings are most often made up of young people under 30 years of age (30%), urban residents (23%) and persons with primary education (49%).
According to Rolands Legzdins, Chairman of the Board of Expobank, although 20% of the population do not want to entrust their money to banks or other financial service providers, 66% of respondents say that they would trust a completely remote term deposit process in the bank – starting an account and concluding a contract, ending with the receipt of earned interest.
Respondents were also asked whether a completely remote term deposit process would encourage them to save money in a bank, to which more than 30% answered that it would encourage them to save in full or in part.
According to the bank’s representative, “there is a certain paradox here – people are happy to choose and support the services of banks and other companies remotely, including non-cash payments and electronic document circulation, but money will still be better stored in a sock.” He urges the population to study banks’ offers for term deposits more carefully and not to be afraid to use this service, moreover, the security of investments in banks is ensured by the Deposit Guarantee Law.
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