According to the newest Integral survey on behalf of Erste bank(survey of austrian savers), an Austrian banking institute, nearly 80% of Austrians residents are saving some money of their salary. From that 80% almost 60% put their savings into saving accounts at an annual return of 0,01-0,6% before taxes! Another 28% are willing to put their money in pension plans which have a very long run-time but at least some serious amount of return in the lower single-digit area and some tax bonuses. 15% of the savers are planning to put some money into real estate and only 11% would be willing to invest in the stock market.
In my opinion that’s a very frightening development. On the one hand the central European area especially Austria and Germany have already a very high amount of tax burden, additionally inflation is increasing and due to the worsening development of the financial markets ECB is forced to reduce the base interest rate to almost zero. On the other hand people don’t start to change their behaviours of saving or investing their money and therefore are extradited to a tremendous loss of their saving’s respectively their buying power.
To conclude the situation, I think that it’s necessary to bring education about money and how to handle money, especially savings and investment more into focus of the broad public. I don’t think that it’s the responsibility of banks to tell you as a citizen what to do. One obvious truth about that is that banks are acting in reality as profit making companies they are always acting in their own interest. To support this statement think about the fact that in recent years so many electronic currencies like Bitcoins or Litecoins were developed and that with great success, moreover think also about the new Fintech age we are facing now in the start- up scene.
In my opinion, Investing is the new way of saving.
Austrian savings account comparison: https://www.bankenrechner.at/