Just as it used to be that mortgages were very cheap and people simply got used to it, after which they assumed that it would be like this forever, which then brought considerable problems, something similar is now threatening with savings accounts. Here, on the other hand, Czechs have recently gotten used to the fact that interest rates here are pleasantly high.
It won’t be forever
Suddenly, there was no need to invest excess funds, for example, in real estate or various risky bonds. It was enough to click twice, open a savings account in the bank, and it has already started appreciating the money at a rate of 6% per year.
Just to put it in context, this is an amount that far exceeds the yield from rented apartments in Prague and other Czech cities, where you get to about three percent. At the same time, you do not risk money in the bank and it is a completely effortless appreciation.
However, it is necessary to realize that the banks introduced higher interest rates in a period when there was inflation exceeding 15%. In real terms, therefore, the savings depreciated anyway. However, that has changed now, as the current price increase is already very low and interest rates in banks are often still decent.
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The last high interest option
But unfortunately even that is starting to change. There is a risk that people will fall asleep and lose a lot of money. It should be borne in mind that on a savings account they can reduce your interest from day to day. There is no certainty here. This is already happening. For example, ČSOB reduced the interest on its savings accounts.
This is due to the expected reduction of interest rates by the Czech National Bank, according to which commercial banks also follow. But it is possible to act now and fix the high interest, so to speak. This is what term deposits are for. Although the interest rates on them have also dropped a little, they still offer an interest rate of around five percent when saving for about five years.
Also read: Banks have started checking the accounts of Czechs. They are interested in where their money comes from and what they send to where. People are already complaining
If you would like a higher return on your funds stored in the bank, you probably have the last option. Of course, no one knows what will happen, but the assumption of further development is now quite clear. Interest rates are expected to fall.
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2023-11-05 17:05:00
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