Hardly any funds and shares

Austrians are conservative when it comes to saving

Austrians primarily rely on traditional investment options such as savings accounts (symbolic image).

(Bild: APA/BARBARA GINDL)

Despite continuing high inflation, many Austrians are conservative in their savings behavior. According to a Marketmind survey, three quarters of all respondents rely on traditional investment options such as savings accounts. Around a quarter (23 percent) use funds.

Shares are only used by 17 percent of the 1044 respondents. "The reasons for the low use of the capital market are the fear of losing money and value, the uncertain economic situation and a lack of financial knowledge," said Gerald Resch, Secretary General of the German Bankers Association, on Friday.

More than one in three people surveyed (35 percent) do not realize that high inflation will make their savings worth less despite interest rates. At the same time, however, seven out of ten respondents are very concerned that their savings will be worth less due to inflation.

Terms unclear
The survey generally shows that there is room for improvement in financial knowledge in Austria. Just over a fifth are familiar with the compound interest effect, 29% of respondents can correctly explain the difference between shares and equity funds. Only eight percent still know what the term ETF (exchange-traded fund) means.

In contrast, more than one in two people (53%) stated that they felt well informed about savings products, while the figure was significantly lower for securities (17%). Another result is that the clear majority (80 percent) of survey participants would like to invest significantly more money or save in general. To this end, many (42%) would like more advice and help.

This should come from bank advisors or, alternatively, from independent financial coaches. Far fewer people rely on information from friends and acquaintances.