Does your bank work for you? Or maybe you work for your bank?

High banking costs may mean Poles spend several additional years on the labor market. This goes against the desire of most of them - to work less and have more freedom. Of course, no one talks loudly about the possibility of making this dream come true.

Do you work for your bank?

Savings and investments of Polish citizens are at record levels. Over the last 12 months, they have deposited almost PLN 25,56 billion in investment funds, and according to estimates, their deposit accounts contain over PLN XNUMX trillion.

Even though more and more Poles are looking for better investment conditions, in fact we still change partners more often than banks. This is problematic for several reasons. One consequence of the high level of loyalty is that many Poles today pay too much for the quality of the product they receive.

Currently, savings and pensions often end up in investment funds owned by banks. There are many good Polish investment funds, but this type of solution is often expensive. From the data Polish Financial Supervision Authority shows that in 2023, commercial banks operating in Poland earned almost PLN 21 billion.

Banks must, of course, be able to make money, provided, however - as in any other case - that the quality justifies the price. And this high price costs Poles dearly. Private clients who invest through a bank make much less profit on their investments due to high banking costs. Although 1% per year does not seem like a lot, even small costs can amount to hundreds of thousands of zlotys. Analyzes show, among other things, that just 1% of additional costs over your lifetime means you have to work four years longer for the same paycheck.

Cheaper alternatives

Nowadays, there are many cheaper alternatives available to everyone. There are many mutual funds on the market and the competition between them is fierce. The vast majority of Poles are able to make equally good - and often better - investment choices than, for example, their current bank.

Today, Poles are, to a greater or lesser extent, forced to work for their own interests bank for an additional four years. This is a paradox, considering that we want to have more and more time for ourselves and our loved ones. As our life expectancy increases, our savings must last longer. And this may turn out to be an expensive pleasure, contrary to the freedom that Poles dream of.

Perhaps we want to say goodbye to a bad boss or simply have additional funds at our disposal for unforeseen expenses. Whatever the reason, we should strive for a situation in which we work neither for the welfare state nor for our bank. We should work for ourselves - and our money should do the same. That's why I hope that more and more people will realize how often they can use better and cheaper alternatives.

Author Kim Fournais, president and founder Saxo Bank