In recent weeks, Czech banks have once again reduced interest rates on savings products, with the highest rates now hovering around four percent. This trend follows a series of rate cuts by the Czech National Bank (CNB), which is currently deliberating further reductions to its key interest rate, presently set at 4.5%.
According to an analysis by Portu, published by the Czech News Agency, the overall decrease in interest rates is a direct response to the CNB’s monetary policy adjustments. Most banks now offer savings account rates that are significantly below the five percent mark.
Among the few exceptions, Trinity Bank stands out, offering an attractive interest rate of 5.08% for new clients on deposits up to CZK 250,000. However, for amounts exceeding this threshold and up to CZK 1 million, the rate drops to 3.58%.
VÚB Bank provides a competitive 4.6% interest on savings accounts with no upper limit. However, clients must submit a tax residency certificate to avoid a 19% tax deduction on their earnings. Starting October 2, this rate will decrease to 4.45%.
Max banka, formerly known as Expobank CZ, guarantees a 4.25% interest rate on deposits up to CZK 500,000 until the end of September. Meanwhile, UniCredit offers a four percent rate, contingent on new clients also opening a current account. Fio banka has lowered its rate to 4.2% for deposits up to CZK 500,000.
Other banks are also adjusting their offerings. Partners banka provides a 4.15% interest rate but requires monthly card payments to maintain this rate. Air Bank has reduced its rate to 3.4% for deposits up to CZK 1 million, contingent on meeting specific payment requirements.
Creditas offers a 4.3% rate for deposits up to CZK 500,000, while mBank provides 4.25%, subject to current account conditions. Moneta Money Bank currently offers a rate of 3.5% for deposits up to CZK 1 million. At Komerční banka, clients can reach up to four percent, with a basic interest rate of two percent for deposits up to CZK 200,000.
Raiffeisenbank continues to offer a competitive rate of 4.5%, available until September 30, while J&T Banka offers 3.5% with a minimum deposit requirement of CZK 1 million. Česká spořitelna offers up to 4.5% on deposits up to CZK 400,000, contingent on maintaining a Plus account and contributing to pension savings. ČSOB offers a rate of 4.25% for deposits up to CZK 250,000, but requires specific conditions for account activity.
The CNB began its interest rate reductions in December, cutting the key rate from 6.75% by a quarter percentage point. The central bank has continued to lower rates, implementing further cuts of half a percentage point in subsequent months, culminating in a quarter-point reduction in August.
As the interest rate landscape evolves, both banks and customers are navigating the implications of these changes on savings strategies.
Source: CTK
