PSS prepared a New Year’s surprise. More than 40,000 people will save on building savings from only 3% to 1.75%. This is a major change in game conditions. For many people, it is an impulse to move away from PSS to other financial products with higher value for money.
It all started this week. Since Monday, she has been calling me daily and writing a few people about PSS. Some just want to confirm that they understand the PSS letter correctly, some are offensive about whether PSS is entitled to it, and some are asking where they can earn more than PSS and what to do.
Therefore, I decided to write this article, which will only summarize the most relevant information that can help you find answers to your questions.
To whom PSS reduces interest?
PSS (First Building Savings Bank) does not reduce interest to anyone. She took the clients who have older contracts with interest of 3% pa. The change in interest will be made mainly on building savings contracts that meet the following criteria:
- 3% interest on savings
- over 6 years old
- meet the target allocation criteria.
How Many PSS People Will Reduce Interest?
According to the material that PSS sends to its partners, it is about 45,000 people. It’s really a lot. However, I have the feeling that people who are borrowing as those who are just saving are more important to the PSS. And parts of these people who just want to save, with 3% interest, are currently coming to change letters.
Why PSS cuts 3% interest to 1.75%?
PSS is a commercial institution and in every market situation it wants to achieve the highest possible profit. At the moment, rates on loans and also rates on bank deposits are falling on the market. The main source of PSS income is interest on construction loans and inter-loans.
Conversely, interest paid on building savings deposits is expenditure for PSS. And most of all it hurts to contract with a 3% interest rate on deposits. This is not a PSS opinion, it is my personal view of the situation.
I don’t write in the article what people said about this change to PSS. Maybe the same thing you think about it. And you will recognize that this is not very suitable here.
Is it still worth saving in building savings in PSS?
This is one of the most common questions asked by people saving in building savings. They start to bother them with decreasing yields in building savings, not only because of lowering interest rates, but also because of lowering the state premium, respectively. conditions for its acquisition.
Standard interest on most new building savings contracts in PSS is 2% pa Interest on contracts where you currently have 3% pa will be only 1.75% pa as of 1.1.2015
Interest on term deposits is currently at a maximum of 2.5% per annum, even in the best possible combination of deposit, commitment and banks, in most banks it is 1% pa. many term deposits. It’s not as bad as people think at first glance.
So who is worth returning to PSS and who is worth retiring?
Now I’ll be brief. If you are satisfied with the interest of 1.75% pa or you cannot tie the money in time, it is worth staying in PSS.
On the other hand, if you sleep poorly knowing that your money only earns 1.75% pa, which is low, it is worth retiring from building savings. There is a lot of products where you can earn more than in “improved” building savings.
Where can you earn more?
I’ll start with where you can make less money. If you are guessing bank products, you are triafate to black. Current accounts at zero, savings accounts without constraints and hidden conditions up to 1%, current time deposits mostly up to 1%, and those better only exceptionally exceed 2%. It’s a misery.
Of the commonly available products, more open-end mutual funds earn more. I have more personal experiences with more. Most of them earn me several times more than building savings.
How are the mutual funds with their revenues? To date, I have looked at the proceeds of the funds offered by the EIC trader. I found 189 funds that had a yield of more than 5% pa over the past 5 years
It is impossible to generalize that each mutual fund earns more than building savings. But on the market today you really have a lot to choose from. There is a lot of funds with decent returns that will give you more money than bank products. What is most important is the right choice and the appropriate setting to guarantee a reasonable return.
You have two options to choose from. Either you hurt yourself with choosing the right products by yourself or you reach your financial intermediary. An experienced broker can save you a lot of time in choosing and setting up your investments to make the most of you.