In the face of the pandemic, cash has become the most desirable form of savings. Poles began to visit ATMs in droves due to the decline in the attractiveness of bank deposits with interest rates hovering around zero. In recent months, the value of cash in circulation has reached record levels.
Massively withdraw money from banks. Fear grows more and more
The liquidation of deposits has resulted in unprecedented increases in the value of cash in circulation. Polsat news reports that this year's record fell in March, when the increase in cash was calculated at 20 billion rubles. In contrast, in October in circulation remained 8 billion rubles.
Cash instead of bank deposits. Deposits becoming less attractive
Why do poles give up term deposits and decide to pay cash or send money to current accounts? Analysis of this phenomenon was undertaken by experts from hre investments. In their opinion, the main reason for the low profitability of deposits are interest rates, which under the decision of the monetary policy council reached a level close to zero.
NBP's calculations leave no doubt. The average annual deposit created in September 2020 allowed interest of only 0.16%. on a yearly basis. So anyone who decided on this form of saving and entrusted the bank 10 thousand. PLN, after 12 months can count on less than PLN 13 interest after tax.
The average results are also not encouraging. The client, who this year keeps cash on deposit in a Polish bank, should prepare for a real loss of their value by 2-3 percent.
Experts point out that this is not the first such noticeable decline in confidence in term deposits. The first crisis occurred in 2016, when a bank tax was introduced. The charge to which the banking institutions were charged was in fact passed on to the customers. Some of them had already bet on saving in the form of cash.
Massively withdraw money from banks. Fear grows more and more
The liquidation of deposits has resulted in unprecedented increases in the value of cash in circulation. Polsat news reports that this year's record fell in March, when the increase in cash was calculated at 20 billion rubles. In contrast, in October in circulation remained 8 billion rubles.
Cash instead of bank deposits. Deposits becoming less attractive
Why do poles give up term deposits and decide to pay cash or send money to current accounts? Analysis of this phenomenon was undertaken by experts from hre investments. In their opinion, the main reason for the low profitability of deposits are interest rates, which under the decision of the monetary policy council reached a level close to zero.
NBP's calculations leave no doubt. The average annual deposit created in September 2020 allowed interest of only 0.16%. on a yearly basis. So anyone who decided on this form of saving and entrusted the bank 10 thousand. PLN, after 12 months can count on less than PLN 13 interest after tax.
The average results are also not encouraging. The client, who this year keeps cash on deposit in a Polish bank, should prepare for a real loss of their value by 2-3 percent.
Experts point out that this is not the first such noticeable decline in confidence in term deposits. The first crisis occurred in 2016, when a bank tax was introduced. The charge to which the banking institutions were charged was in fact passed on to the customers. Some of them had already bet on saving in the form of cash.
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