World Savings Day approaches: Why savings books are losing value
Published
World Savings Day is just around the corner. On 31 October it is also celebrated in Austria, and many families think of the classic savings book when they hear about it. The Kronen Zeitung reports, however, that large sums are being lost in value on savings books in recent years. The money is indeed safe in the account, but as a result it can buy less.
The reason for this is inflation, that is, the general rise in prices. When the interest on a savings book is lower than the inflation rate, the saved money loses purchasing power in real terms. The journalist explains that this effect is often hard for savers to notice, because the account balance at first glance stays the same or even rises.
For many savers, this raises the question of which alternatives exist. Mentioned are, for example, securities, funds, and other forms of investment. These often bring higher returns, but they also carry risks, because their value can fluctuate. The newspaper therefore recommends informing oneself well before making a decision.
Overall, the article shows that saving alone is not always enough to preserve wealth. Anyone who thinks about their finances on World Savings Day should therefore pay attention not only to the account balance, but also to the development of prices and interest rates.
Sources: Kronen Zeitung
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