Erste Bank Savings and Credit Forecast Q3 2015
Survey: Every second Austrian prefers fixed interest rates
- Loans: 51% prefer fixed rates, only 13% want to take out variable rate loans
- Average loan amount declines to EUR 65,700 (-5%)
- Average amount saved over 12 months: EUR 5,200
Desire to take out consumer loans increases
According to the most recent Integral survey on behalf of Erste Bank, more than a third of Austrians (33%) want to make a major purchase in the coming 12 months. Particularly young people up to the age of 29 are considering investments of this type. 81% (-5) thereof are planning to use their own savings for this purpose, while 13% (-1) want to take out a loan or a building society loan. Compared to Q3 2014, the average loan amount has declined from 69,200 euro to 65,700 euro (-5%).
Fixed rate beats floating rate
Austrians are more receptive toward fixed interest rates than ever before. According to the survey, 51% would currently be prepared to take out a loan at a fixed rate. “Only a few years ago, this would still have been unthinkable”, says Peter Bosek, member of the management board at Erste Bank. Until last year, variable rate loans were still highly popular at Erste Bank, but at present, 6 out of 10 new loans are actually taken out at a fixed rate. The 10-year fixed rate currently stands at around 2.25% p.a., the 15-year fixed rate at 2.5% p.a. At the moment the imposition of a penalty is waived as well, one is therefore able to accelerate repayment during the fixed interest rate period.
A forecast that interest rates will increase in 2017 could explain the rising popularity of fixed rate loans. It is definitely not too early to secure the current level of interest rates for oneself: “Once interest rates begin to rise, it will be too late”, says Bosek. “Markets are discounting such developments in advance.” According to the survey, currently a mere 13% of Austrians actually deem a variable rate loan worth considering, an interest rate cap is of interest to 9%, while 28% decline to give a response.
Fewer savings accounts and more non-savers
Austrians plan to save or invest an average of 5,200 euro over the coming 12 months. This is approximately 400 euro more than in the same period a year ago. The savings book remains the most popular form of saving, but is losing ground at 58% (-6). The building savings contract stands at 48% (-6), pension plans remain unchanged with 33%. Investment in securities was able to gain one percentage point to 24%. Real estate has lost 5 points, while gold remains the vehicle of choice for 11%. Every fifth respondent doesn't intend to make any financial investments over the coming 12 months. This represents an increase of 5 percentage points compared to Q3 2014.
About the study: Integral has interviewed 1,000 Austrians (representative of the population from the age of 14) via telephone and asked them about their savings and investment plans as well as their financing requirements. The survey has taken place in the 3rd quarter in the time period 4 September to 28 September 2015. Unless specified otherwise, comparative figures refer to the figures of the same quarter of the previous year.
Desire to take out consumer loans increases
According to the most recent Integral survey on behalf of Erste Bank, more than a third of Austrians (33%) want to make a major purchase in the coming 12 months. Particularly young people up to the age of 29 are considering investments of this type. 81% (-5) thereof are planning to use their own savings for this purpose, while 13% (-1) want to take out a loan or a building society loan. Compared to Q3 2014, the average loan amount has declined from 69,200 euro to 65,700 euro (-5%).
Fixed rate beats floating rate
Austrians are more receptive toward fixed interest rates than ever before. According to the survey, 51% would currently be prepared to take out a loan at a fixed rate. “Only a few years ago, this would still have been unthinkable”, says Peter Bosek, member of the management board at Erste Bank. Until last year, variable rate loans were still highly popular at Erste Bank, but at present, 6 out of 10 new loans are actually taken out at a fixed rate. The 10-year fixed rate currently stands at around 2.25% p.a., the 15-year fixed rate at 2.5% p.a. At the moment the imposition of a penalty is waived as well, one is therefore able to accelerate repayment during the fixed interest rate period.
A forecast that interest rates will increase in 2017 could explain the rising popularity of fixed rate loans. It is definitely not too early to secure the current level of interest rates for oneself: “Once interest rates begin to rise, it will be too late”, says Bosek. “Markets are discounting such developments in advance.” According to the survey, currently a mere 13% of Austrians actually deem a variable rate loan worth considering, an interest rate cap is of interest to 9%, while 28% decline to give a response.
Fewer savings accounts and more non-savers
Austrians plan to save or invest an average of 5,200 euro over the coming 12 months. This is approximately 400 euro more than in the same period a year ago. The savings book remains the most popular form of saving, but is losing ground at 58% (-6). The building savings contract stands at 48% (-6), pension plans remain unchanged with 33%. Investment in securities was able to gain one percentage point to 24%. Real estate has lost 5 points, while gold remains the vehicle of choice for 11%. Every fifth respondent doesn't intend to make any financial investments over the coming 12 months. This represents an increase of 5 percentage points compared to Q3 2014.
About the study: Integral has interviewed 1,000 Austrians (representative of the population from the age of 14) via telephone and asked them about their savings and investment plans as well as their financing requirements. The survey has taken place in the 3rd quarter in the time period 4 September to 28 September 2015. Unless specified otherwise, comparative figures refer to the figures of the same quarter of the previous year.
