- Hans Weber
- February 28, 2024
The best savings accounts already offer a five percent interest rate
Savings account interest rates have increased several times in recent months. Banks have done so in response to the Czech National Bank (CNB), sharply raising the base interest rate. Currently, the most favorable savings accounts have surpassed the five percent mark or are fast approaching it. Clients can also get more exciting interest rates on time deposits.
Bank customers will thus have more money flowing into their accounts, although, on the other hand, the depreciation of their deposits is significant due to high inflation.
The CNB left rates unchanged
At its last meeting, held on Thursday, 4 August, the CNB Board decided to keep the base interest rate at the current seven percent. Thus, banks will likely keep the interest rate on deposit products unchanged shortly.
Rates are typically higher than 4%
Over the past few weeks, virtually all banks have intervened in their savings account offerings, mostly involving interest rate hikes or other benefits.
Air Bank, for example, has increased the balance it pays customers at a higher rate since mid-July. After several years, the amount has increased from CZK 250,000 to CZK 500,000, and the current interest rate is four percent per annum.
Hello Bank!, which now pays interest on deposits up to CZK 200,000 at 4.5 percent, is preparing to make a similar move, while from 1 September it will be CZK 300,000.
Many banks started raising interest rates at the beginning of July. Clients will now receive more than four percent per year, the vast majority of them.
The best interest-bearing accounts are offered by Moneta Money Bank and mBank, where the rates have already reached over five percent a year.
However, better interest rates are not automatic. Almost all banks (except Trinity Bank, Expobank, and Fio banka) have set different conditions under which they will give clients a more attractive interest rate, whether it is the active use of other bank products or a set maximum deposit amount.
Other savings products also offer attractive interest rates
Savings accounts have the advantage that you can access the deposits in them at any time or have them immediately available. Banks don’t charge you any fees or lose interest.
The “price” for this benefit is lower than what you can get if you choose another savings product offered by banks, which is time deposits. So, if you don’t plan to move your financial reserves for a certain period, these are a better alternative for you, thanks to the more attractive interest rates.
Bank statements show that interest in term deposits has grown significantly among customers recently
Moneta offers an appreciation of 5.3 percent per year for term deposits of six or twelve months. The minimum deposit amount is CZK 40,000.
Creditas offers a six-month term deposit with an annual rate of 5.2 percent. “Another interesting product is the 1M Savings Deposit, which is an account with a 33-day notice period. This now has an annual interest rate of 4.8 percent for the part of the deposit up to CZK 350,000 and four percent for the part above this limit,” added bank spokeswoman Lucie Brunclíková.
ČSOB offers an interest rate of five percent a year on deposits for six and 12 months.
Expobank offers IQ MAXI term deposits, where the minimum deposit is CZK 100,000. “In the case of deposits for six and 12 months, the current rate is 5.11 percent per annum,” added Jakub Švestka, the bank’s spokesman.
The product Výhoda+ Dobrý klient with fixation from Trinity Bank will value deposits up to CZK 400,000 at 5.08 percent per annum and deposits above CZK 400,000 at 4.58 percent per annum. The fixation is for 12 months.
At Česká spořitelna, clients can earn 4.5 percent a year if they leave their deposits with the bank for six or 12 months.