Last year’s Barometer of the Popularity of Savings by the Association of Czech Building Savings Banks showed that half of the Czechs surveyed consider building savings to be a particularly interesting option for storing or saving money. In the last quarter of 2021, it was the second most popular savings and investment product after precious metals.
The popularity of building savings is undoubtedly due to the fact that it is one of the few financial products supported by the state. If the conditions are met, it is possible to obtain a state contribution of up to 2,000 CZK for the invested funds each year. In addition, deposits and state support in the building savings account bear interest. “Building savings is also one of the possible solutions to save on your own housing. From the money saved or with the help of a loan from a building society, people can partly finance not only the purchase of their own property, but also minor repairs and extensive renovations of their houses, various extensions and extensions,” adds Veronika Hegrová, sales director of fintech startup hyponamíru.
There is great interest in loans from building societies
The year 2021 was very successful for building societies. The Czechs negotiated over 520,000 new building savings contracts (source: ČTK), which was about 60,000 more than in 2020. Last year’s volume of loans was also record – building societies provided people with building savings loans worth more than 113 billion. crown.
In this context, Veronika Hegrová mentions some reasons for the growing interest in building savings loans: “The sharp rise in the prices of building materials and labor had a negative impact on the budgets of most builders in the past year. Therefore, people more often used building savings, for example, to co-finance their buildings or for renovations after the purchase, because they could borrow more money without the need for real estate guarantees. In some cases, a building society loan may have a lower interest rate than a mortgage and may also be more affordable. ”
At the end of 2020, the Ministry of Finance registered in its statistics a total of 3 242 740 building savings contracts in the savings phase.
Is building savings worthwhile?
Building savings pay off financially, mainly due to the state contribution. Currently, its amount is 10% of the amount saved in the & nbsp; calendar year for all contracts, but not more than 20,000 crowns. It is therefore possible to obtain up to 2,000 crowns from the state every year. State aid for building savings is granted if the deposit has not been used for a period of six years. However, if the client terminates the building savings contract earlier, the state aid is deducted.
Building savings therefore definitely pay off, but it is necessary not to forget to regularly deposit money in an account with a building society and save the required six years. “After this time, you can withdraw money no matter how you handle it. If you are planning your own home, you can use these savings to cover, for example, part of the purchase price of the property, “ adds Veronika Hegrová
Building societies strive to make their products even more attractive, which is why they are launching various building savings events. For example, when negotiating online, they may waive the negotiation fee or credit you with a bonus of several thousand. Just choose the best building savings.
If you are looking for a way to save on a house or a way to save on an apartment, building savings will be a suitable solution for him. Building savings can also be concluded for children.
A building savings loan will help you to co-finance a mortgage
When financing your own home, it is possible in certain cases to combine building savings with a mortgage loan. Hyponamer mortgage specialists confirm that this is especially the case when mortgage co-financing is needed, when the client does not have enough of his own funds. “For a 90% mortgage, it must be well calculated whether a 90% mortgage or a combination of an 80% mortgage and a building savings loan is more advantageous. Today, all banks can combine 80% of mortgages and 10% of building savings loans. But that may soon change. As of April this year, new limits on credit indicators will come into force, which lenders will have to follow, ” warns Veronika Hegrová.