Thanks to the state premiums of 1.5 to 4 percent per year, the building savings contract is one of the most popular forms of savings for Austrians, despite times of low interest rates. In most cases, simply transfer 100 euros per month to the building society. But financial bottlenecks can always occur and then the saved thousands seem very tempting and even if this should not be the case, a building savings contract must be properly terminated to get the capital. In this article we explain the timely termination and early termination with some interesting details. Hopefully, this will clarify some pressing questions.
Cancel building society contract – on time
A large proportion of building savings contracts run for six years. During this time, the deposit is usually 1200 euros per year. Any amount above this will no longer be subsidized by the government and should consequently be invested in other financial products. In this beginner's investment guide, we provide information on this topic. Currently, 1.5% premium is paid by the state and many building societies guarantee a fixed interest rate of 0.5% for the first few years. For simplicity, let's assume these rates over the entire period, although the rates will probably go up again, as they are currently at their respective lower limits. We also ignored the potential decrease in interest rates (variable interest rate in the later years).