Treasury offers municipalities and regions an attractive savings account with immediate access to funds

Municipalities and regions will be able to use a new savings account in the Treasury from 1 October. Developed by the Czech National Bank (CNB) in cooperation with the Ministry of Finance, the new product combines the benefits of a current account and a savings account. It will offer local authorities attractive remuneration of 3.7% without requiring them to give up immediate access to their deposited funds. They will be able to manage their deposited funds through the CNB’s modern and user-friendly ABO-K internet banking application.

The new product expands the range of modern financial services offered by the Treasury, which the CNB operates for the Ministry of Finance. As a result, the remuneration offered is competitive with accounts available from commercial banks. “The Treasury is becoming ever faster and simpler. Last year, we introduced instant payments, so funds are now credited to state accounts immediately. Today, we are adding a savings account that municipalities and regions can open electronically and manage from anywhere. No paperwork, no waiting at the counter. As the bank of the state, we want to provide services of a high standard,” said CNB Governor Aleš Michl.

“Liquidity 2.0 is a solution that benefits municipalities, regions, the state and, above all, citizens, who rightly expect public funds to be managed efficiently. Local authorities will have an opportunity to earn attractive remuneration in a completely safe manner. Thanks to more efficient management of voluntarily deposited funds, the state will reduce its dependence on, and need for, more expensive financing on the financial market and lower debt servicing costs. At the same time, municipalities and regions will not lose control of a single koruna,” said Deputy Prime Minister and Minister of Finance Alena Schillerová.

“As before, we will continue with prudent but active cash pooling. Only a stable portion of the newly deposited funds may in future reduce the need to issue additional government bonds, while the necessary reserve will remain safely and short-term remunerated so that local authorities continue to enjoy full access to their funds, just as they do at their banks. The new product may therefore gradually reduce interest costs, ease pressure on growth in government debt and ultimately improve the state’s financial position,” added Petr Pavelek, Director of the Debt and Financial Assets Management Department at the Ministry of Finance.

From 1 October 2026, a savings account may be opened in the same way as a current account, i.e. entirely electronically, without the need to visit a CNB branch. Municipalities and regions will manage the account via ABO‑K, a modern and user-friendly internet banking application that offers straightforward operation and an immediate overview of all funds. The new service is therefore available to all municipalities and regions in the Czech Republic regardless of their location or distance from a CNB branch.

The new CNB savings account may be used to receive and send day-to-day payments, and debit cards may also be used with the account. At the same time, it offers remuneration of funds in the form of a monetary payment in lieu of interest, currently set at 3.7% p.a. Local authorities can thus manage their available funds and earn remuneration on them efficiently and transparently in one place, without the need to transfer them between a current account and a savings account.

The new account may be opened with the CNB by territorial self-governing units, i.e. municipalities and regions, as well as voluntary associations of municipalities and communities of municipalities. Account holders will receive remuneration in the form of a monetary payment in lieu of interest, which is paid by the Ministry of Finance. The rate is determined by the Ministry of Finance and published on its website (in Czech only).

Illustrative preview of the ABO-K internet banking application

Petra Vlčková
CNB spokesperson

Michal Žurovec
Ministry of Finance spokesperson