What 100,000 CZK became in 10 years: current account or stocks

Money in a current account loses the most over ten years: according to a model calculation, 100,000 crowns left earning no interest would be worth only 63,700 crowns in today’s purchasing power. Stocks preserved and grew savings best. These conclusions come from a personal finance podcast that compared what happened to 100,000 crowns in different instruments over 5, 10 and 20 years.

Inflation does not have to be in double digits to noticeably erode savings: its effect accumulates over time. What cost 100,000 crowns 20 years ago now costs 190,000. Prices rose by 90 percent over two decades at an average annual inflation of just 3.3 percent, by 57 percent over the past ten years and by almost 40 percent over five.

Inflation is accelerating again: in September it stood at 2.5 percent. According to the Czech National Bank, it was pushed up mainly by more expensive fuel and energy. The central bank expects price growth could temporarily exceed three percent early next year.

Who beat inflation

The model experiment compared what would remain after ten years of 100,000 crowns in a current, savings and term account, in Czech government bonds, Czech and US stocks, and gold. All values are adjusted for inflation, and for savings products the average rates published by the Czech National Bank were used.

Results in today’s money: current account — 63,700 crowns, savings account — about 71,000, term deposit — 78,000, ten-year government bonds — 80,000. None of these beat inflation. US stocks, on the other hand, would have turned into roughly 220,000 crowns, Czech stocks into 311,000, and gold into 162,000. Stock returns include dividends, and for Czech stocks they are after tax.

Over ten years Czech stocks beat US ones thanks to the last three years, when the large companies of the Prague exchange did well. But the index is highly concentrated: according to investment blogger Lukáš Nadvorník, more than half of its volume comes from three banks, plus the energy company ČEZ. So the result cannot be taken as a promise for the future. Over a twenty-year horizon the picture is different: US stocks would have yielded 416,000 crowns, Czech stocks 213,000, and gold about 300,000.

Why the current account is “expensive”

People often keep tens or even hundreds of thousands of crowns in a current account, although the bank pays practically nothing. Meanwhile the bank can place part of the funds with the Czech National Bank and earn interest. “We think a current account is free, but in fact it is one of the most expensive financial products in Czechia: there I give up almost 40 percent a year in favor of the bank,” says Nadvorník.

In his view, a current account is for everyday spending, while money for saving or investing should move on. A simple strategy is to keep your main account at your own bank plus additional savings accounts, for example at small banks, which often offer better rates.

A savings account is safe and suitable for money that may be needed soon, but it does not guarantee protection against inflation. The periods when it outpaced inflation were rather the exception, such as recent years with rates around four percent, often subject to extra conditions.

How much to keep in reserve

The usual rule is a reserve of three to six months of expenses. But even that need not be kept entirely in a savings account. Stocks are not suitable for money that may be needed soon, and Nadvorník puts the minimum horizon for them at ten years. “But keeping half a million in a savings account doesn’t seem normal to me,” he adds.

The first step is to look at how much money sits in your current account: moving the excess to a better-paying account will help you stop making inflation’s job easier.

Read also: Сберегательный счёт в Чехии: ставки банков 2026

Around Prague, based on reporting by seznamzpravy.cz