Half of Czechs Save Less Than Two Thousand Each Month, Survey Reveals

A new study conducted by Ipsos for Creditas Bank has revealed that each month, each sixth person in the Czech Republic can only put aside a maximum of five hundred. Half of the respondents do not save even two thousand a month. A third of households have savings ranging from one hundred thousand crowns to half a million.

The study also revealed that nearly half of the respondents admitted their savings would not cover a three-month interruption in income. About one in five are trying to save for their housing. However, those who hold often do not handle their savings correctly, thus depriving themselves of returns. “Seven in ten respondents keep savings in cash or a current account,” added Ivana Pícková from Creditas.

She warned that a million crowns deposited in a non-interest-bearing current account would earn nothing in a year. The amount deposited in a savings account will yield around 50,000 crowns annually at today’s average interest rates.

The most popular saving tools are cash, in which 71% of people have savings, and savings accounts are used by 69% of respondents. This is followed by state-subsidized products, such as pension savings, building savings, and investment funds. Pension insurance is held by 64% of respondents, and making savings by 39%.

The survey also revealed that women save less than men. Residents of Prague hold the highest savings. However, in the capital, there is also the highest proportion of those who do not save anything: every tenth Prague citizen. The most frugal age group, in terms of monthly deposits and the volume of savings, are people between 45 and 53 years old.