Four Billion Euros Invested in Federal Treasury Bonds

Approximately one year ago, the Austrian government reintroduced federal treasury bonds, providing private investors with a straightforward way to acquire government bonds without any fees or charges, starting from just 100 euros. As of now, over 110,000 accounts have been opened, with approximately 4 billion euros invested in these treasury bonds, as reported by the Ministry of Finance.

The federal treasury bonds are offered through the Austrian Federal Financing Agency (OeBFA) and come with maturities ranging from one month to ten years. Currently, interest rates for these bonds vary between 1.75% and 2.75%. For investments with a one-month term, the interest rate stands at 2%, while a 12-month term yields 1.60%. Those opting for a ten-year bond can expect a return of 2.75%. Additionally, green treasury bonds with a six-month term are offered at an interest rate of 1.75%, with four-year bonds at 2.15%.

Investors can purchase these treasury bonds online using ID Austria via the website www.bundesschatz.at, or through traditional methods. Initially, account creation was solely available online, which drew criticism from the Austrian Pensioners' Association. Nevertheless, more than 98% of accounts have been established digitally, with the average age of digital customers being 48 years, compared to 68 years for those using analog methods.

The reintroduction of federal treasury bonds has been met with significant success. Previously offered from 2002 until 2020, these bonds were suspended due to the prevailing low-interest-rate environment. The current investment volume has already reached twice that of the previous peak over 18 years, as stated by a spokesperson for OeBFA. The treasury bonds are recognized for their high security and transparent interest rates, which are equally beneficial for all customers.

Furthermore, the Finance Minister underscored the efficiency of the digital account setup process, expressing satisfaction as a customer himself. The State Secretary for Finance highlighted the innovative, secure, and citizen-friendly nature of these state offerings. As the first financial product in Austria utilizing ID Austria, the bonds facilitate account opening in just 60 seconds, making the process both simple and efficient.