Surveys show that the first and second waves of the coronavirus pandemic in the Czech Republic reduced the income of one in five Czechs. How can you deal with a lack of money during a crisis, and why is now the right time to open a savings account?
How has coronavirus affected Czech family finances?
It is no surprise that the coronavirus pandemic has had a major impact on many Czechs. A survey by the Stem/Mark agency confirms this and shows that Czech households are feeling economic pressure. One in five Czechs saw their income fall, 7% of Czechs even lost a third or more of their income, and another 22% of respondents said they were worried about what their financial situation would look like in the coming months.
One in ten respondents also took out a loan because of the measures linked to the spread of coronavirus. A survey by ING Bank showed that only one in three Czechs currently has their personal finances under control.
The sharpest drop in income is being felt by workers in sectors linked to tourism, such as hotel and restaurant staff.
The Stem/Mark survey also found that a third of people are spending less than before the crisis. According to data from ING Bank, one in five people put the money they save into a savings account. Data from Labour Offices (úřady práce, ÚP) at the end of June also show that 280,000 people are out of work and unemployment has risen from 2.7% last year to 3.8%. According to estimates, another 70,000 employees will lose their jobs by the end of 2020.
Help from the state
As in the first wave of coronavirus, a wide range of state benefits is also available during the second wave. Through the Labour Offices (úřady práce, ÚP), the state partly compensates companies for wage payments under the Antivirus Plus and Antivirus B programmes. Other measures include the postponement of electronic sales records (EET) until 2023, the postponement of toll payments, the automatic waiver of late payment interest, the abolition of the real estate acquisition tax and the waiver of administrative fees. As in the spring, people are entitled to carer’s allowance (ošetřovné) in the autumn for children under 10. Carer’s allowance is 70% of the daily assessment base (denní vyměřovací základ, DVZ), but at least 400 CZK (about 18 USD) a day. In the spring, parents were entitled to 80%.
Business owners can also use the grant and financial programmes Covid, Nájemné, Covid III, Covid, Kultura, Covid, Bus, Covid, Plus guarantees, other programmes for exporters, and the compensation bonus for selected self-employed persons and people working under agreements.
Tip, the Zlatá koruna guide “Money in a Face Mask” (Peníze v roušce)
If you have been hit by the coronavirus pandemic and need financial advice, you can send your question to the zlatakoruna.cz website, project Peníze v roušce, where 400 finance experts from the Zlatá koruna Financial Academy answer people’s questions in cooperation with representatives of the Ministry of Finance.
Which financial products can help you save during a crisis?
Well-chosen financial products can also help ease your budget. On which products can you save? On current and savings accounts, consumer loans, credit cards, loans from building savings banks and mortgages. Let’s take a closer look at some of them.
Current account
Most Czechs have a current account today, and many banks offer one. However, not all personal accounts are the same. With some, you have to pay a monthly account fee or meet certain conditions. If your account comes with a lot of fees, it is time to look for a new one that offers free account management.
Savings account
An emergency fund always comes in handy. According to experts, you should regularly set aside part of your salary and build savings of at least three times your salary. Ideally, you should send at least 10% of your salary to a savings account every month. Although you can keep your emergency fund in a current account, it is definitely worth opening a savings account, which offers a better interest rate and is free of charge. A savings account also keeps your savings separate from the money for everyday spending, so you will be less tempted to spend it. You should have savings even if the coronavirus pandemic has not affected you, because you never know when you will need an emergency fund.
How to choose a savings account?
Almost all Czech banks now offer savings accounts. When choosing one, focus mainly on the interest rate and the limits linked to the savings account, as some banks set a minimum and maximum deposit for the interest rate. Before opening an account, also read the terms and conditions, because some special offers require you to open a current account, for example.
ING savings account
Why choose the ING Konto savings account? It is the oldest modern account in the Czech Republic, opening the account is free and without any fees, and your money is available at any time with no transfer fees. You can easily open the account by phone or online from the comfort of your home, and you can look forward to an interest rate of 0.3% p.a. on balances up to 300,000 CZK (about 14,000 USD).
Credit cards
You can also save when paying by credit card. Some banks partner with retailers and companies that offer customer discounts for card payments in return, and these services are usually free. With credit cards, watch out for the interest-free period, during which the bank lends you money free of charge. However, if you do not repay the loan after this period ends, you will face often enormous interest rates, which can be as high as 20 to 30% p.a.
Mortgages
Did you know that housing loans make up 76% of all loans drawn? Following a recommendation from the Czech Banking Association, some banks are adjusting the option to defer repayments for people affected by the measures. If necessary, you can use the option to defer your repayments. If you have payment protection insurance, you can also contact your bank and claim your insurance benefit.
Read also our article on the effects of inflation or on how to make money online.
USD amounts are approximate, converted at the Czech National Bank rate of 21.80 CZK per USD on 2 October 2026.
