Romanians hold over RON 55 billion (EUR 12 billion) in very short term deposits with a maturity of one day, and the money does not produce substantial benefits for savers or for the economy, according to representatives of the largest investment funds in Romania who attended the event 'Spring Investment' organized by the Bucharest Stock Exchange (BVB).

Last year the household deposits increased, and almost RON 15 billion (EUR 3.3 billion) more went into overnight deposits, said Dragos Manolescu, deputy general manager of OTP Asset Management, reports local Agerpres.

Investment fund managers also say that the poor financial literacy is one of the main reason why Romanians prefer deposits instead of placing their money in investment funds or the capital market.

“In addition to the deposits, we need to take into account that over 90% of the invested money stays in quasi-deposits, those bond funds that bring more than a bank deposit, but they can’t seize the economic growth on the long term, unlike shares,” said Manolescu.

Aurel Bernat, deputy general director of BT Asset Management, said that most customers think that bonds are similar or identical to bank deposits. “However, few take into account the potential fluctuation that might occur with increasing interest.”

editor@romania-insider.com