Czech banks are adjusting interest rates: What does this mean for you?

Several banks in Czechia have decided to slightly drop their interest rates in response to the Czech central bank's decision to cut the base mortgage rate. Staff

Written by Staff Published on 12.02.2024 13:05:00 (updated on 12.02.2024) Reading time: 3 minutes

On Thursday, the Czech National Bank announced a reduction of the base rate by half a percentage point, to 6.25 percent. Czech banks have begun to adjust their savings account offers in response to the decrease in central bank interest rates, according to an analysis by investment platform Portu.

This is good news for consumers, but not entirely. With interest rates on savings accounts still above 6 percent (lower than the current inflation rate), consumers can earn a real return by keeping savings in these accounts.

However, many banks are lowering rates or adding more conditions to earn the highest rates. This means consumers have fewer attractive savings options without meeting extra requirements like minimum deposits, monthly transactions, and so on.

The analysis given by Portu offers an overview of interest rates at several major banks in Czechia:

Trinity Bank: Offers the highest interest rates

Trinity Bank currently offers the highest interest rate on savings accounts. You can earn up to 6.3 percent interest on balances up to CZK 250,000, and 5.69 percent on balances above that limit. If you open a new account at one of the bank's new branches in certain cities, and you have a permanent residence there, you can earn an interest rate of 6.08 percent.

VÚB Banka: Unlimited interest rates

If you’re looking for a savings account with a high interest rate and no limit, VÚB Banka offers the best deal. It provides an interest rate of 6.05 percent. However, consumers should note that this is a Slovak bank, and if you don’t provide a tax domicile certificate from the tax office, the bank will deduct a 19 percent extra tax.

Max Banka: No deposit restrictions

Max Banka, previously known as Expobank CZ, offers an interest rate of 6.01 percent with no deposit restrictions or other conditions.

Air Bank: Combines saving with card usage

Air Bank offers a 5 percent interest rate on deposits up to CZK 250,000, with any amount exceeding this limit earning a 6 percent interest rate. However, to qualify for these rates, making at least five card transactions in the previous month is necessary.

UniCredit: Exclusive rates for new clients

UniCredit has recently reduced the interest rate on its savings account to 5.75 percent. However, this offer is exclusively available to new clients. The interest will be paid on deposits of up to CZK 2 million, provided that the account holder makes at least three card payments per month.

UniCredit guarantees that the interest rate will not be reduced until the end of February. For previous clients, the standard interest rate of 2.5 percent will apply up to a limit of half a million.

Moneta Money Bank: Graduated interest rates

Moneta Money Bank provides an interest rate of 5.3 percent for deposits up to CZK 1 million, and any deposit above CZK 1 million earns interest at 0.5 percent.

Creditas: Tailored savings options

Creditas is offering an interest rate of 5.5 percent for deposits up to CZK 500,000 and a rate of 3.1 percent for deposits above this limit. On the other hand, mBank offers a 5.5 percent interest rate, but the condition is to have a current account and choose one of the four regular savings options.

Fio Banka and KB: Competitive rates for deposits up to CZK 200,000

Fio Banka offers an interest rate of 5.5 percent on deposits up to CZK 200,000. Komerční Banka, on the other hand, provides a maximum rate of 5%, with a basic interest rate of 2 percent on deposits up to CZK 200,000. An additional bonus rate of 3 percent can be obtained until Feb. 29 with no conditions attached.

Raiffeisenbank and J&T Banka: 5-percent interest rate offer

Raiffeisenbank is now offering its clients a chance to earn a rate of 5 percent. This rate is a combination of the basic interest rate of 0.1 percent and a bonus interest of 4.9 percent. To avail this offer, clients need to use their card for payment at least three times a month.

Meanwhile, J&T Banka has also introduced a new 5 percent interest rate offer. However, the condition for this offer is that clients must make a minimum deposit of CZK 1 million. This offer is effective from Feb. 8.

Česká spořitelna and ČSOB: 5 percent, with conditions

At Česká spořitelna, you can earn a 5 percent interest rate, but it is only available for deposits up to CZK 200,000. To be eligible, you must have a Plus account Internet banking George and commit to investing at least CZK 300 per month through a regular order.

On the other hand, ČSOB offers a similar 5 percent interest rate for deposits up to CZK 250,000, but with different requirements. To qualify, you must use your card for purchases at least five times a month and check the ČSOB Smart application at least once every three months. This interest rate is valid until April 5.

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