Bausparen Explained: How the Austrian Building Savings Contract Works
Bausparen — building savings — is one of Austria's most popular savings products. Wüstenrot, which brought the concept to Austria in 1925, still counts it among its core businesses.
The basic idea
A group of savers pays regularly into a common pool. From that pool, members receive loans for housing projects. You save for a fixed period, typically six years, and can later take a Bauspar loan.
Why Austrians like it
- Security and predictability over the long term.
- State support — an annual government premium (Bausparprämie) on deposits up to a limit.
- Flexible use — funds and loans can today be used for housing and also for education or care.
Wüstenrot cites a survey showing almost 40% of Austrians use Bausparen.
Tracking your contract online
In the service portal you can see your Bauspar balance, interest and annual statements. Documents arrive in the digital postbox.
Things to check before signing
- Interest terms (fixed vs variable) and any fees.
- What happens if you cancel early.
- Current state premium rate (it changes yearly).
This article is general information, not financial advice. Check current conditions on the official Wüstenrot website or with an advisor.
Frequently asked questions
How long does a Bausparvertrag run?
Typically six years is the minimum term to keep the state premium. Details depend on the specific contract.
Can Bauspar money be used for things other than housing?
Today Bauspar savings and loans can also be used for education and care, not only housing.
Pentoblog is an independent publication and is not affiliated with Wüstenrot. For account-specific questions contact Wüstenrot directly through its official website.