High-Interest Rates on Savings Accounts Expected to Decrease Next Year

In a time when interest rates on savings accounts remain high, savers are enjoying returns of over five to six percent. However, this situation may soon change depending on the decision of the central bank. Interest rates will likely decrease next year, signaling a shift in the financial landscape.

According to a comparison, Max Bank offers the highest interest rates at 6.01 percent. Komerční banka and UniCredit Bank closely follow with competitive rates. Nevertheless, potential customers must fulfill certain criteria, such as regular savings or a specific number of card payments in physical or online stores. Failure to meet these requirements may result in a significant decrease in interest rates.

These high-interest rates have remained stable for several months. Jakub Heřmánek, spokesperson for Fio banka, stated that they have not changed the rates on deposit accounts in the past year. Representatives of other banks expressed similar sentiments. Changes in interest rates occur only in exceptional cases. For example, Raiffeisenbank lowered the main rate of its Hit Plus account from 5.5 to 5.2 percent since the last comparison in May.

The current stability is primarily attributed to the policy of the Czech National Bank (ČNB). The ČNB’s decisions regarding the repo rate, one of the central bank’s three key rates, determine interest rates on savings and loan products. In an effort to curb the alarming inflation, which soared to 18 percent, the ČNB raised the repo rate to seven percent. Since then, the rate has remained unchanged.

However, inflation has gradually decreased, with a year-on-year rate of 6.9 percent in September. The ČNB predicts that inflation will reach two percent next year, while economists estimate it could be even higher.

It remains uncertain how long the central bank will maintain interest rates at the current level. Jakub Heřmánek from Fio banka suggested that the ČNB may lower rates due to declining inflation, which could lead to a decrease in interest rates offered by individual banks. The extent of rate reductions for mortgages and savings accounts will depend on potential rate cuts by the central bank and changes in the competitive landscape. Patrik Madle from ČSOB expressed similar views.

The table below showcases the current offers from Czech banks:

BankProductMain Annual Interest RateAdditional Annual Interest Rate
AirbankSavings Account, Business Savings Account5% up to 250,000 CZK4% from 250,000 to 500,000 CZK; 0.10% from 500,000 to 1 million CZK
Savings Account for Children5% up to 250,000 CZK
Banka CreditasSavings Account +5.6% up to 500,000 CZK3.1% above 500,000 CZK
Česká spořitelnaČS Savings, Premier Savingsup to 5% (1)above the limit 0.01%
ČSOBBonus Savingsup to 5% up to 250,000 CZK (2)3.3% from 250,000 to 1 million CZK, above 1 million CZK 0.15%
Fio bankaFio Savings Account4% without deposit limit
Fio Account5.5% up to 200,000 CZK0.1% from 200,000 to 1 million CZK; 0.15% from 1 million to 10 million CZK; 0.2% above 10 million CZK
J&T BankaSavings Account5.25% without limit
Komerční banka (3)KB+ App Savings Accountup to 6% up to 200,000 CZK0.01 above 200,000 CZK
Bonus Savings Accountup to 5% up to 200,000 CZKup to 0.03 from 200,000 to 30 million CZK
Max bankaSavings Account6.01% without limit
mBankmSavings5.5% up to 800,000 CZK (4)above the limit of 0.01%
eMax Plus4% up to 500,000 CZK0.01% above 500,000 CZK (applied to the entire deposited amount if the threshold is exceeded)
Moneta Money BankSavings Account5.3% up to 1 million CZK0.5% above