Poles massively retreat savings from banks: causes and consequences

In fresh months there has been a crucial trend in the withdrawal of savings from banks by Poles. According to the National Bank of Poland, from February 2024 until the end of the year, customers paid out over PLN 64 billion from banks. This trend intensified in May 2024, erstwhile nearly PLN 6 billion were withdrawn from the banks.

Reasons for withdrawing savings

1. Low interest rate on bank deposits: Although in January 2025 any banks increased their rates to 8% per year, deposit interest inactive does not compensate for inflation, resulting in a real failure of savings.
2. Increase in inflation: In September 2024 inflation accelerated, which negatively affects the real profits from bank investments. advanced inflation makes keeping money in low-interest accounts unprofitable.
3. Search for alternate forms of investment: In the face of a decline in the profitability of conventional investments, Poles increasingly turn to another forms of capital placement, specified as gold, which is considered a safe haven in times of economical uncertainty.
4. Payments from savings programmes: In the second 4th of 2024 there were evidence payouts from worker Capital Plans (PPK), reaching PLN 500 million. This suggests that participants treat PPK as a short-term deposit, from which they rapidly retreat funds.

Consequences for the banking and the economy

Massive withdrawal of savings from banks can lead to respective crucial consequences:

• Reduced bank deposit base: The decline in deposits limits banks’ credit capacity, which may affect the availability of finance for businesses and consumers.
• Increase in the cost of raising capital: In order to attract depositors, banks may be forced to rise interest on investments, which increases the cost of raising capital.
• Changes in the structure of savings: Transfer of funds to alternate forms of investment can affect the financial stableness of households, especially if more risky instruments are chosen.

Reactions of financial institutions

In consequence to the outflow of deposits, banks shall take action to hold customers:

• Increase in interest rates on investments: With the beginning of January 2025, any banks offered attractive rates, reaching 8% per year to attract savers.
• Introduction of fresh savings products: Banks effort to adapt their offer to the needs of customers by offering a variety of financial products that can better defend savings in the face of inflation.

When analysing the current situation, it is worth noting a fewer key aspects:

• Monetary policy: The decisions of the National Bank of Poland regarding interest rates will have a crucial impact on the interest rate on deposits and loans, which may affect savers' decisions.
• Financial education: Increased public financial awareness can encourage Poles to manage their savings more consciously and search for optimal forms of investment.
• Economic stability: The overall economical condition, including inflation and the labour marketplace situation, will find the ability and willingness of society to save.

The current trend of withdrawing savings from banks by Poles is the consequence of a combination of economical and social factors. In order to reverse this trend, coordinated action is needed by both financial institutions and policy-makers to make savings in banks more attractive and public financial education.