ECB on World Savings Day

Demand for savings products remains high

A World Savings Day under the sign of inflation.

(Bild: Uta Rojsek-Wiedergut)

The interest rate cut recently implemented by the European Central Bank (ECB) marks another reversal. Long-term savings deposits in particular are already less profitable than they were a few months ago - a trend that is likely to continue. 

But savers in Austria are not letting this put them off: just in time for World Savings Day on October 31, demand for savings products remains high.

After a long phase of zero interest rate policy, the ECB tightened its monetary policy measures from 2022 in order to combat inflation. As a result, loans became more expensive and savings products became more attractive again. However, the high interest rate policy came to an end a few months ago when the ECB eased its restrictive course in the face of falling inflation.

For savings products, this means a gradual adjustment of interest rates by the banks, meaning that consumers have to adjust to lower returns.

For savings products with a commitment period of three years (36 months), a maximum interest rate of 2.95 percent is currently being offered - less than at the beginning of the year (maximum 3.375 percent for branch accounts). 

Nachfrage nach Sparprodukten ungebrochen

BAWAG speaks of "robust" demand, Raiffeisen Stadtbank Wien and Volksbank Wien of "high" and "strong" demand respectively. Many consumers are currently still securing offers with comparatively higher interest rates. Oberbank has observed a similar situation, where fixed-interest products, i.e. investments with a fixed interest rate, are currently in high demand.

The monthly amount that Austrians can set aside has increased this year, and saving is very important to the population, while at the same time more and more people are recognizing the value of alternative forms of investment.

"Saving is attractive now and will remain so in the future," explains Franz Rudorfer, Managing Director of the Banking and Insurance Division of the Austrian Federal Economic Chamber (WKÖ). Especially in uncertain times, the need for a financial cushion is great - even if interest rates are currently falling slightly.