WAKE-UP CALL: SINCE 1999, INVESTMENT BEHAVIOUR OF AUSTRIANS AT STANDSTILL

  • Private households in Austria: tenfold increase in overnight deposits since 1999
  • This year, the total gross monetary assets broke through €700 billion barrier for the first time
  • World Savings Day: Incentives for securities beginners, "learning how to save" for children

VIENNA, Austria - October 23, 2019 – Private households in Austria broke the "€ 700 billion barrier" for financial assets for the first time in the first half of 2019 – in 1999 the figure was around € 308 billion – but the composition of the assets has hardly changed at all in two decades, as an analysis by BAWAG P.S.K. shows. According to OeNB statistics, the share of bank deposits has remained the highest since 1999 and currently stands at 40%. There have been major shifts within the asset class "cash": while the share of other deposits - including long-term capital savings accounts - has fallen from 40% in 1999 to 14%, the share of overnight deposits has more than quadrupled from around 5% to around 23%, and in (nominal) absolute figures the volume has increased more than tenfold from € 15.1 billion in 1999 to € 159 billion at present. "Austrian households are traditionally hard-working savers, but there is a need to catch up in terms of diversification: instead of diversifying more broadly between cash, bonds and equities, the most popular diversification seems to take place within the asset class 'cash' - i.e. under the mattress, purse and savings account," explains Markus Gremmel, Head of Marketing & Products at BAWAG P.S.K.

The share of listed shares has hardly changed since 1999 (3.4% vs. 3.6%), as has the share of investment certificates (8.7% vs. 8.8%). The consequence: safety- and liquidity-oriented savings are at the expense of the achieved return. "In our advisory sessions, we notice that customers are thinking and want to invest part of their money profitably in the medium or long term - especially before such decisions are made, World Savings Days can help to create awareness for other investment opportunities," explains Gremmel.

World Savings Day Offers in Focus: Incentives for Securities Beginners, Safe&Cool Card for Children

World Savings Day seems to be getting on in years - this year we celebrate it for the 95th time. Is saving in times of record low interest rates still up-to-date? BAWAG P.S.K. answers this question with a clear "Yes!": Especially in times of low interest rates, saving is above all a question of sensible management - for example, in order to be able to react to current living conditions in the short term: The spectrum ranges from necessary purchases, fulfilling small and larger wishes, saving for future-oriented training, safeguarding the standard of living in old age or fulfilling long-cherished, really big wishes such as the dream house on the outskirts of the city. BAWAG P.S.K. will focus on various forms of saving for different target groups and their individual savings and investment solutions during the World Savings Days 2019.

BAWAG P.S.K. makes it easier for customers who want to invest over the medium or long term and take advantage of the opportunity to generate income from securities to enter the world of securities. When opening a “KontoBox” in the sizes Small, Medium, Large or XLarge (as salary, pension or business account) or changing from an old current model to a new “KontoBox”, new customers will receive a fund unit of the “KONZEPT : ERTRAG” fund from 28 October to 31 December 2019, with a balanced value of approximately
€ 100, and the custody fee for the new securities portfolio until 31 December 2020, with a value of approximately € 34. BAWAG P.S.K.'s “AnlageKombi” is a further offer for securities newcomers who are prepared to assume a medium risk with at least one part of their capital. It is a combination product of at least a 50% investment in securities in selected funds and a capital savings account with an attractive interest rate of 1.5% p.a. less withholding tax for 6 months.

BAWAG P.S.K. traditionally also focuses on small savers during World Savings Day. With the Safe&Cool card (with PIN function), children are introduced to the idea of saving in a slightly different way. The topic of saving is interpreted against the background of the digital world: The Safe&Cool card is not only a free account card for children up to the age of 13 to use for small payments for daily needs (max. € 10 per day), but also has an extremely attractive interest rate of 2.5% p.a. for pocket money (maximum amount € 1,000). The Safe&Cool card also allows parents to keep track of their children's account movements via eBanking. In addition to the Safe&Cool card, there are other advantages. For example, there is a reflective key ring for the child. Parents receive for their child a free B.free starter pack with free SIM card including a starting credit of € 9.90 and a voucher for -15% discount on Stabilo pens and markers. A leisure accident insurance for 6- to 10-year-olds is also included. If 500 Ös are cashed in between October 21 and December 31, there will be € 10 credited to the Safe&Cool card.

Contact:

Manfred Rapolter (Head of Communications, Spokesperson)
Tel: +43 (0) 5 99 05-31210

communications@bawaggroup.com

Henriette Mußnig
(Press Officer) 
Tel: +43 (0) 5 99 05-32086

communications@bawaggroup.com

Doris Unterrainer
(Communications Specialist)
Tel: +43 (0) 5 99 05-32084

communications@bawaggroup.com


Press release (PDF)


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