Savings contracts in danger: Terminations by banks increase!

Savings contracts in danger: Terminations by banks increase!

In the past few months, reports of banks have been increasing that cancel long -term savings contracts. Many unsettled savers have contacted the Styria Chamber of Labor in order to obtain clarity about the legal possibilities in such cases. The terminations primarily affect accounts with variable interest rates that are bound to the severely increased 3-month neuribor. These interest rates have now exceeded the 4 percent mark, which has become intolerable for some banks, and they react with the dissolution of the corresponding contracts, according to Situation for savers and banks is clear: Both sides can generally terminate savings contracts without giving reasons as long as the contractually agreed notice periods are observed. As a rule, this period is two months. However, the banks are obliged to bear all the costs incurred when the account is closed, including any closure fees, which affects older customers in particular who are severely affected by these terminations. Many new savings accounts that banks now offer are much more expensive, which makes the situation more difficult for the savers.

deposit insurance and alternatives

For savers in Austria, there is important information on deposit protection. Since 2019, a uniform regulation that ensures that customers are protected up to 100,000 euros per person and bank, including interest, in the bankruptcy case of the bank. For certain deposits, such as real estate transactions, this amount can even increase up to 500,000 euros. This safety precaution ensures that all customer funds, such as savings books and checking accounts, are secured in the event of bankruptcy, as the Chamber of Labor explains in another report (see

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