<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper presents the impact of decreasing MFI interest rates on household deposits and saving goals in 12 Monetary Union member countries in the years 2009-2015. It analyses tendencies in household deposits (overnight, with agreed maturity and redeemable at notice), and attempts to link them with certain household saving motives (target, retirement and precautionary). The paper identifies those deposit categories which appeared as sensitive to declining interest rates and indicates the Eurozone countries whose populations are expected to revise their savings plans. Precise implications are drawn for target saving motives of households in Austria, Cyprus and Malta. However, in the case of two other motives, the analysis does not conclude on the impact of decreasing MFI interest rates.</p></abstract>

This paper presents the impact of decreasing MFI interest rates on household deposits and saving goals in 12 Monetary Union member countries in the years 2009-2015. It analyses tendencies in household deposits (overnight, with agreed maturity and redeemable at notice), and attempts to link them with certain household saving motives (target, retirement and precautionary). The paper identifies those deposit categories which appeared as sensitive to declining interest rates and indicates the Eurozone countries whose populations are expected to revise their savings plans. Precise implications are drawn for target saving motives of households in Austria, Cyprus and Malta. However, in the case of two other motives, the analysis does not conclude on the impact of decreasing MFI interest rates.

Low Interest Rates do they Revise Household Saving Motives in the Euro Area?

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Low Interest Rates do they Revise Household Saving Motives in the Euro Area?"}

This paper presents the impact of decreasing MFI interest rates on household deposits and saving goals in 12 Monetary Union member countries in the years...

Low Interest Rates do they Revise Household Saving Motives in the Euro Area?

Published Online: Feb 09, 2017

Page range: 43 - 56

Received: Aug 01, 2015

Accepted: Mar 20, 2016

DOI: https://doi.org/10.1515/fiqf-2016-0135

Keywords
household deposits, MFI interest rates, household saving motives

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Low Interest Rates do they Revise Household Saving Motives in the Euro Area?

Published Online: Feb 09, 2017

Page range: 43 - 56

Received: Aug 01, 2015

Accepted: Mar 20, 2016

DOI: https://doi.org/10.1515/fiqf-2016-0135

Keywordshousehold deposits, MFI interest rates, household saving motives

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
household deposits, MFI interest rates, household saving motives