Anyone with spare cash thinks about how to make their money grow effectively. Money left sitting in a current account is a thing of the past. It does not grow, and a significant portion of it is eaten away by inflation. So, how do you grow your money? There are two options: saving and investing. Saving is a safe alternative, but it will not multiply your money very much. It only partially protects against inflation. If you want a larger amount, investing is an option. Unlike saving, it carries more risk, and you can both make and lose money. Saving and investing are the basics of managing money.
Short answer. It is impossible to grow money without any risk, the only difference is the amount of risk you carry. Bank deposits are insured up to 100,000 EUR and government bonds are paid by the state, but the post-tax return on deposits and post-inflation return on bonds often only maintain the value of the money. Shares and funds can bring higher yields, at the cost of value fluctuations and the need to invest for years.
Saving products for growing money
There are several saving products on offer. With deposit products, you can be sure your money will be safe, although its value will not grow much. Compared to investing, this is a less risky option for growing money.
Building savings
Do you know you will not need your set-aside money for the next 6 years? Then building savings is a good choice for growing money. This 6-year period is regulated by the Building Savings Act and is one of the criteria for obtaining the state contribution. Once this period expires, you can terminate the contract and withdraw the money including the state contribution. Since 2024, the state contribution is 5% of deposits up to 20,000 CZK (about 920 USD), meaning a maximum of 1,000 CZK (about 46 USD) per year (Section 10 of Act No. 96/1993 Coll.). Whether the interest beats inflation depends on the rate agreed in the contract. Thanks to building savings, you can also get a discounted housing loan.
Savings accounts
You can put your money aside quickly and safely in a savings account. It is one of the most common ways to grow money. Maintaining it is usually free and banks offer instant access to the deposited funds. A savings account can be set up independently or as part of a current account. This makes it easy to transfer money from a current account to a savings account and vice versa. Its disadvantage is the low interest rate and frequent conditions for getting a better interest rate, such as a minimum turnover, card payment, etc.
Term deposits
Compared to savings accounts, term deposits usually offer higher interest in exchange for locking your money away for a pre-agreed period, ranging from months to several years. Money cannot be freely deposited and withdrawn; this is only possible after the savings period expires. If you withdraw money early, you lose the interest and sometimes pay a penalty. The undeniable advantage of term deposits is the guaranteed interest for the entire duration of the account, which tends to be higher than for savings accounts. This method of growing money is suitable for those who have a larger financial amount that they do not plan to use in the next few years. The minimum initial deposit is in the tens of thousands of CZK.
Pension savings
Pension savings help you prepare for retirement age. You therefore do not have to rely solely on the state pension system, which is very uncertain for the future. The state contributes 20% of your monthly deposit, from 100 CZK (about 4.6 USD) for a 500 CZK (about 23 USD) deposit up to 340 CZK (about 16 USD) for a deposit of 1,700 CZK (about 78 USD) or more, and supports it with further tax advantages. You can deduct from your tax base the part of your deposit above 1,700 CZK (about 78 USD) per month.
| Monthly contribution (CZK) | State contribution |
| 100 to 499 | no entitlement to a state contribution |
| 500 to 1,699 | 20% of the monthly contribution |
| 1,700 and more | 340 CZK (about 16 USD) |
Some employers use pension savings for their employees as a benefit. Pension savings is not saving in the true sense of the word. In fact, it is investing. This means that the growth of money is not guaranteed. Another disadvantage is that deposits are not insured. If you want to withdraw your money earlier, you will lose the state contributions and the deducted amounts will be taxed, details are in the article about withdrawing pension savings.
Passbooks
Although passbooks may seem outdated, they still exist. Due to strong market competition, they were forgotten over time and now you will encounter them only rarely. They are particularly popular among older people who have a clear record of money movements. Establishment, deposits and withdrawals are free. However, this simple product offers almost zero interest. It is therefore comparable to cash left in a current account. Only the owner can handle the passbook. If they do not handle the money for twenty years or present the book for record updates, the commitment is cancelled upon the expiry of this period. However, the owner still has the right to payment of the balance including interest as of the date of cancellation of the commitment (Section 2679 of the Civil Code). As long as you use the book, its validity is not limited.
Savings for children
Many parents want to secure a better future for their children. Therefore, more and more of them are turning to savings for children. This offers several variants. Apart from special and savings accounts for children, which offer almost zero or low money growth, building savings is popular. Parents choose this type of saving most often due to minimal risk and state support. The article on savings for children describes how to compare individual options for children.
Which savings are covered by deposit insurance
Deposits at banks, building societies and credit unions based in the Czech Republic are insured by the Financial Market Guarantee System. It covers current, savings and term accounts as well as passbooks including interest, up to 100,000 EUR per client at one institution.
The decisive day is the day the Guarantee System receives a notification from the ČNB that the institution cannot pay out deposits, or when a court decides on its bankruptcy. The limit is converted into crowns using the ČNB exchange rate for this day and the payout of compensation must begin within 7 working days from it.
Insurance does not apply to pension savings, life insurance, bonds, shares, unit certificates or investments within a long-term investment product (DIP). Money in a joint account is divided among the owners in equal shares, unless they have proven a different share. Anyone who has more than 100,000 EUR can spread their savings across several institutions.
A temporarily higher balance, such as money from the sale of an apartment, inheritance or severance pay credited at most 3 months before the decisive day, is covered by the Guarantee System by up to another 100,000 EUR. However, this increased compensation must be applied for within 2 months from the decisive day and it is necessary to prove where the money came from.
How much of the interest is left after tax and inflation
Interest from a savings account or term deposit is not a net yield. The bank deducts a 15% tax from it (Section 36(2)(j) of the Income Tax Act) and inflation bites into the rest. The Czech National Bank targets inflation at 2% with a tolerance band of one percentage point in both directions.
In a model example, you deposit 100,000 CZK (about 4,600 USD) for a year at 3% interest per year. 3,000 CZK (about 140 USD) is credited, after tax 2,550 CZK (about 120 USD). If inflation were exactly at the ČNB target, the purchasing power of your money would rise by only about 0.5%, meaning roughly 540 CZK (about 25 USD). The 3% rate is a model rate, not an offer from a specific bank. The article 8 ways to protect money against inflation summarises how to defend against inflation.
For investments, profit is taxed differently. The sale of shares and unit certificates held for longer than three years is exempt from tax, the rules are explained in the article on the time test for shares and ETFs. The article on saving in times of crisis describes how to divide savings according to when you will need them.
Investment options for growing money
We turn to this path when we want to multiply our money. Everyone who decides to put their money into investments must count on the variant that they can lose these funds. You can also get rich through effective investing. Therefore, the ideal is to spread risks, in other words, to diversify. Let us outline a few investment opportunities.
We offer several tips for creating passive income.
Shares
Shares as a way of investing are talked about constantly. In the long term, they can yield more than savings, but you can also lose money on them. When buying shares, it is important to carefully consider the quality of the issuer, i.e., the joint-stock company. If you have no experience with buying shares, it is advisable to consult someone experienced. They will advise you on what shares to buy and where to trade them. A good choice of shares will help you to greater profits not only through the appreciation of these securities themselves, but also through the payout of dividends. Beware, not every company pays a dividend. For example, Google or Amazon do not pay a dividend and do not plan to do so in the future yet. You will pay a fee for buying and selling shares depending on the amount of securities purchased. If you are considering buying shares, or already have them bought, it is essential that you monitor developments in the financial market.
Commodities
Commodities are traded on the market in uniform quality and value by various manufacturers. This means that supplies from suppliers are interchangeable and we can therefore replace them.
Among commodities we include goods such as:
- metals (gold, silver, copper),
- energy (oil, natural gas, heating oil),
- agricultural products (corn, rice, soybeans),
- meat and livestock (live cattle),
- foodstuffs (coffee, cocoa, sugar),
- raw materials (cotton).
When investing in commodities, you must expect a high risk of loss as well as a high initial deposit. It is also possible to trade commodities virtually, so you do not have to deal with their storage. Investing in commodities is suitable for experienced investors who can estimate their future development. You must also watch out for fraudulent offers guaranteeing high returns.
Mutual funds
Mutual funds are suitable for everyone who is willing to invest their funds for a longer period. Indeed, the longer you hold your unit certificates (podílový list), the higher the return you can achieve. You obtain the return as the difference between the purchase and sale price minus fees. Sometimes the entry fees can be high. Furthermore, you also pay regular annual management fees. Mutual funds are characterised by a high degree of liquidity. This means that we can quickly convert them into cash. The investment company will buy back the unit certificates (podílový list) at the current price.
Bonds
Another way to appreciate money is bonds, which promise the holder a regular return if the issuer repays the debt. They oblige the issuer to pay out the monetary amount stated in the document, including interest, by a pre-determined date. The advantage of bonds lies in the fact that you know the pre-determined financial return (coupon) in advance. We divide bonds into government, corporate and municipal. In the market, we can encounter so-called financial scam artists who sell bonds of unverified and unreliable issuers.
Government bonds for citizens
Government bonds carry less credit risk than corporate bonds because they are repaid by the state. From 14 May 2026, the Ministry of Finance is again selling the Republic Bond (Dluhopis Republiky) to citizens. The five-year fixed and anti-inflation bond could be bought in the first subscription period from 14 May to 28 June 2026, while in the second period, ending on 4 October 2026, only the three-month Flexi Bond.
The current offer and dates are published on the dluhopisy.gov.cz website. You can purchase from 1,000 CZK (about 46 USD) to 3 million CZK (about 140,000 USD), electronically via the ministry portal or at selected bank branches. Both the fixed and anti-inflation bond can be repaid early once a year on a given date without fees, while for the anti-inflation one, the annual return is limited to 5%.
The return on bonds issued by EU member states is exempt from tax for individuals (Section 4(1)(x) of the Income Tax Act (zákon o daních z příjmů)). However, a government bond is not a deposit, therefore deposit insurance does not apply to it.
How to recognise a fraudulent appreciation offer
An offer of a guaranteed high return without risk should make you pause, because no such thing is offered by any of the products in this article. The Czech National Bank (ČNB) continuously publishes warnings about companies and online platforms that offer investments without its permission, and reminds people that money deposited with them is not insured or otherwise protected by law.
Before you send money to anyone, look them up in the lists of regulated and registered entities on the ČNB website and also go through the ČNB warnings. The ČNB also recommends checking the website domain, e-mail addresses and telephone numbers, because fraudsters also impersonate real regulated companies. The same caution applies to bonds of unverified companies, which we write about above.
USD amounts are approximate, converted at the Czech National Bank rate of 21.80 CZK per USD on 2 October 2026.
