Bank deposits turned into bonds, shares
The low level of interest rates on deposits has led to a shift in the saving behavior of Greeks, who are turning to bonds and mutual funds, according to the 15th edition of Allianz’s Global Wealth Report 2023, which shows that new savings in Greece increased by 36% to 5.4 billion euros.
However, Allianz noted that Greek savers reacted robustly to these interest rates withdrawing €2.2 billion from bank deposits and channeling them into debt and equity securities (€7.6 billion) with bonds being the biggest winners. Investments in insurance and pension products benefited by €500 million from new savings.
According to the asset management of banks, this trend continued in 2024 with inflows into mutual funds since the beginning of the year reaching €3.2 billion in the first half of the year, exceeding the €3 billion of 2023 placements. Savings in this category of financial assets represent 10% of the country’s GDP.
Another clear indication that depositors are seeking better returns in alternative investment options is the fact that household deposits decreased to €145.9 billion from €146.6 billion at the end of 2023, with the participation of term deposits recording only a marginal increase of €662 over the same period.
Government bills are another stable choice over the last 18 months, with individuals investing €4.5 billion (including purchases in the secondary market).
Greek households’ financial assets grew by 7.4% in 2023, recording the highest (with the exception of Sweden), growth rate in Western Europe, according to Allianz data. The main driver was debt and equity securities, which climbed by 23.9%, raising their proportion of the entire portfolio of Greeks to 38%.
