Can a bank close a floating rate savings account?

For some time now, the Tyrolean Chamber of Labour has been receiving an increasing number of inquiries regarding termination letters from the Tyrolean Sparkasse, in which the bank informed that variable-rate savings accounts would be closed at the end of October. “This particularly affects long-term bank customers, who had to endure almost zero interest rates on savings products linked to the Euro Interbank Offered Rate during years of low interest rates. Now that the savings rates have risen slightly, people are justified in their anger,” AK said in response to an inquiry from Ö1-Morgenjournals. The Upper Austrian AK has also received many angry calls on the topic. However, it said: “We believe that terminations are legal in most cases, but not in individual cases. However, these individual cases must be adjudicated.” In any case, they are hostile to customers. A similar situation occurred in Carinthia this year.

‘No longer economically viable’

The Tyrolean Consumer Advocate has a similar view: You have to look at each individual case carefully. Specifically, it is always related to the corresponding termination agreement of the savings contract. In any case, the bank considers the termination to be permissible. In response to a request from ORF radio station, Tyrolean Savings Bank said: “Against the background of a changing interest rate landscape, Tyrolean Savings Bank is withdrawing permanent savings products with variable interest rates, depending on the development of the 3-month Euribor, from the portfolio. A regular review of the product range has shown that these savings products are no longer economically viable.”

Sparkasse Oberösterreich responded that the relevant products have not been on the market for a long time. It is also not recommended to deposit large amounts of money in everyday accounts, as these funds fluctuate every day. The bank has provided customers with alternative savings offers, and they are also taking advantage of this offer. Of course, some have already changed banks.

A tip from AK experts: “Compare the offered savings conditions with those of other banking institutions and, if necessary, change banks. However, in many cases, the succession conditions are limited to one year. After the current year is over, remember to compare the then conditions!”