Inflation: World Savings Day with mixed feelings
Business
This year’s World Savings Day on Monday was also characterized by record inflation and interest rates rising only slightly. Anyone who has their money in a savings account at the bank will continue to lose money. For banks in Salzburg, World Savings Day is still a kind of “holiday”. After two years with CoV lockdowns, the rush was great on Monday.
For many bank customers, World Savings Day has two faces. The banks are reporting a rush like in the times before the politically decreed lockdowns. Now there is record inflation. According to a quick estimate by Statistics Austria, general inflation rose to eleven percent in October – not least due to additional taxes or “CO2 pricing” on fuels imposed by the black-green federal government or its majority in the National Council.
New fuel tax, inflation still higher
Experts say that the savings rate has changed significantly with inflation over the past year. After the long years with zero interest, the savings book is still in demand – classic in book form or with an online account, says Petra Fuchs from the Oberbank in Salzburg: “The savings rate has fallen. Last year it was 14 percent, today it is five. You notice the price increase strongly.”
When will interest rates continue to rise?
The days of extremely low to non-existent interest rates are over. The European Central Bank has raised interest rates for the third time. While interest rates on loans have risen sharply in recent months, interest rates on savings quickly remained consistently low. But that should change in the coming weeks, says manager Fuchs from the Oberbank: “If you leave the money for 18 months, there is 1.25 percent interest, for example.”
Christoph Leinberger looks after private and business customers at Raiffeisen Salzburg: “The ECB has announced further interest rate increases for this year.”
At least Kasperl keeps children in a good mood
In the Raiffeisen headquarters in the city of Salzburg, Montag relied on customers of the future and entertained children with puppet theater – for earlier capital formation, so to speak, as manager Leinberger added: “Today, puppets are also about saving.”
Downer on World Savings Day: even if interest rates on savings should rise in the coming weeks. With inflation at 11 percent, that should only be a drop in the bucket. The real losses are likely to continue to predominate.