Money under the Pillow and in the Account: Czechs as Conservative Savers

Czech citizens are relatively conservative regarding savings, with a significant amount of money kept in bank accounts or even physically stashed at home. They often opt for certain commodities such as building savings, pension savings, or mutual funds.

Common and savings accounts are typical for domestic savers. However, this is more about saving rather than investing in the real sense of the word. Martin Řezáč, the chairman of the Association for the Capital Market of the Czech Republic, expects a higher share of mutual funds, which, considering their horizon, variability, and regulatory protection, are an ideal investment instrument.

Domestic investors in the Czech Republic are also interested in real estate. “Real estate has had an unprecedented long period of previous price growth, and in the Czech Republic, it is also perceived as a safe and certain investment about the inclination towards homeownership,” summarizes Řezáč.

According to him, however, investing in children, specifically their education, is undoubtedly an investment in a better future. He would also expect more interest in stocks.

Compared to Western European countries, Czech households hold more money in cash or low-interest accounts. They also have significantly less money in products designed for pension savings, such as pension insurance, pension savings, or life insurance. According to Martin Pohl from Generali Investments CEE, we still lack greater use of offensive assets, especially investments in stocks and investment funds.

To protect and evaluate our savings as best we can, we should spread them across various products. “Western Europeans are more active and courageous in managing their finances. They use offensive products much more often, typically investments in stocks and investment funds,” added Pohl.

According to Generali Investments CEE, Czechs hold almost two-thirds of their financial assets in cash and bank accounts, while Germans hold only 42 percent.