Fixed-term deposits growing in 2023
While major banks offered a rate of return of 1.5 percent on fixed-term deposits at the start of the year, this has risen to 2.5 percent by now. Smaller banks offer slightly better rates.
The interest rate on deposits depends on the price of money for banks. In the conditions of negative interest rates, banks saw no need to pay depositors more.
With money becoming more expensive, banks are going over their deposit policies and there is now competition between them in terms of fixed-term deposit rates offered.
Coop Pank said last week that that it has hiked the rate it offers on one-year fixed-term deposits to 2.6 percent. The bank offers a rate of 3 percent for a three-year deposit.
If as recently as earlier this year, Swedbank offered just 0.6 percent on fixed-term deposits, this has now grown to 1.25 percent for six-month deposits and 2.5 percent on one-year deposits. The bank has hiked the rates three times this year.
SEB pays 0,95 percent for a deposit fixed for six months, up from 0.6 percent at year's start. The rate for a one-year deposit has grown to 2.1 percent and 3 percent for a three-year period. SEB has raised the rates six times in the last six months.
Luminor pays 1 percent interest on a six-month deposit and 2,5 percent for a year.
Smaller banks have also started offering better rates for one and three-month deposits. Holm Bank offers an interest of 1.3 percent for a three-month deposit. This rises to 2.7 percent for a one-year deposit and 3.3 percent for three years. A fixed-term deposit with a term of 60 months fetches 3.5 percent return.
The rates are 1.5 percent for six months, 2.6 percent for a year and 3 percent for three years in the case of Bigbank.
Inbank rates are 1.3 percent for a six-month deposit, 2.6 percent for a year and 3.3 over three years.
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Editor: Barbara Oja, Marcus Turovski