In these difficult times, Czech households would rather need to strengthen themselves financially and at least be able to rely on the valid rules that we have had here for decades. But no, the state decided to dig everything possible from next year. He is also running out of money, and who else to take it from but households.
It should have been quite the opposite
That’s why the golden grail of savings products, which is nothing other than building savings, has been reached. It is one of the few financial instruments that enjoyed state support. If you met the conditions, you were entitled to support from the state.
First, it was 4500 CZK, which was very interesting, because it was a large percentage of the amount of 20 thousand crowns, which had to be deposited in order to win this bonus. Subsequently, the support was reduced to CZK 2,000, where it remained for a long time and where households got used to it.
At the same time, common sense would say that due to inflation and the general devaluation of money, this support should rather increase. But the opposite happened. The Ministry of Finance has decided to suppress construction savings very significantly. At first, it even flirted with canceling state support entirely, but in the end it decided to proceed with the salami method.
Use other products
From next year, the contribution will be reduced to just 1,000 CZK, while there are already rumors in the backroom that further steps should follow and indeed the gradual disappearance of this contribution, which would significantly disadvantage the so-called “construction site”.
At the same time, Czechs love this financial product and there are hundreds of thousands to millions of contracts throughout the country. Some households establish it for all their members. If there are, for example, four, they have so far collected 8,000 crowns per year. From next year, it will be only CZK 4,000. And further? Who knows.
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The argument of the Minister of Finance is that today building savings no longer serve their original purpose, but people use them mainly as a convenient depository for spare funds. And for that, they can use other products, such as a savings account or term deposit. The truth is that up until now all taxpayers have contributed to them, which may be somewhat unfair.