Most popular form of investment

Good interest rates lead to renaissance of the savings account

Higher interest rates make traditional savings accounts more attractive.

(Bild: blende11.photo - stock.adobe.com)

The good interest rate trend of the last two years has made the already very popular savings account more attractive again. Around seven out of ten Austrians use it. We even set a new record for securities savings. According to a study by UniCredit Bank Austria, Austrians invest an average of 200 euros per month. 

Austria is a country of savings account savers. Around seven out of ten Austrians have a classic savings account. In the ten years or so of the zero interest rate policy, however, they have lost many billions of euros in purchasing power because inflation has eaten away at the miniscule returns. The ECB's increase in key interest rates from mid-2022 changed the situation somewhat. "The rise in interest rates has made saving more attractive again in 2024. The high savings rate shows that many bank customers are putting more money aside again," emphasizes Robert Zadrazil, Country Manager Austria UniCredit.

The rise in interest rates has made saving more attractive again in 2024.

Robert Zadrazil, Country Manager Österreich UniCredit.

Bild: Gilbert Novy

According to WIFO researchers, the savings rate is likely to be a whopping 11.4% this year - up from just 8.7% last year. "Incomes have risen sharply as a result of the wage settlements in recent years. However, the savings rate shows that these increases are being used more for saving than for consumption," analyzes Gerda Holzinger-Burgstaller, CEO of Erste Bank Österreich.

However, the savings rate shows that these increases are being used more for saving than for consumption.

Gerda Holzinger-Burgstaller, CEO Erste Bank Österreich

Bild: Erste Bank/Marion Payr

The bottom line is that this simply means that Austrians are currently spending significantly less money. According to a Bank Austria study, 200 euros a month is being invested in savings products. This is an increase of 50 percent compared to the previous year. In the latest savings study conducted by Erste Bank and Sparkassen, respondents even stated that they were "putting aside" an average of EUR 308 per month this year - whether in the form of a savings account, fund savings, the classic piggy bank or hidden in a "pillow".

(Bild: Krone KREATIV/stock.adobe.com)

The most important motive remains the nest egg. If something happens, people want to have a euro or two available. This is important for 56 percent of respondents. However, according to the financial experts, it should not be more than three months' salary that is always and immediately available on the edge.

This year, the point "So that I can afford something in the future" (54%) has increased significantly, followed at some distance by "Retirement provision" (43%) and "Holidays/vacation" with 33% (see chart).

Alternatives to savings accounts increasingly important
At the same time, more and more investors have also realized that other forms of investment are needed to build up assets. According to the Erste study, numerous forms of savings are enjoying strong growth. For example, 44% have a life insurance policy (2023: 36%), 36% already own securities (2023: 32%), 27% have a pension plan (2023: 20%) and 23% own gold or other precious metals (2023: 19%).

Almost every second young man already uses securities
There is a big difference between young men and women when it comes to securities, which are important for long-term provision. While almost half (46%) of men under the age of 30 already use securities (for example in the form of fund savings), this figure is just 22% among young women, according to the Bank Austria study.

New low-cost custody account models at Erste Bank and Sparkasse
In order to make securities savings even more attractive, Erste has not only lowered the minimum possible monthly savings amount for fund savings from EUR 50 to EUR 30, but has also launched new securities custody account models. With the new "s Young Depot", you pay no custody account fee and only low buying and selling fees up to the age of 27. The "s Active Depot", on the other hand, is "all inclusive" for 0.04 percent of the securities account value per month. There is also the new "s Depot" and the "Selfinvest Depot".

The new offer is not only intended to appeal to young people who might otherwise use a cheaper online competitor, but also to attract other customers who do not yet invest in shares or funds, for example, according to Maximilian Clary and Aldringen, Erste's board member for private customers. In order to increase the attractiveness of securities in general and to promote the topic of pension provision, the company continues to call for the abolition of the securities capital gains tax of 27.5 percent on price gains on shares & co.