The Riksbank has raised the policy rate at record speed, from 0 to 3.75 percent in just over a year. When the policy rate was low, it was difficult to find savings alternatives to the stock market. But the new interest rate situation has opened up more savings options. There are now, for example, accounts with the big banks where those who deposit money can get around 3.5 percent interest on savings.
– In the long run, the stock market will give more. But in the short term, it is possible to get a reasonable return on a savings account. If you are a little older, for example, it is attractive to have a savings account now. “No, but how nice with over 3 percent in interest, we’ll take that,” says the independent analyst Peter Malmqvist in Economic Agency.
Amortize as a form of savings
Since mortgage rates have also dropped, it has also become more attractive to amortize. When mortgage rates were low, large loans were cheap. But today, the new interest rate situation means significantly increased costs for households with high mortgages. The amortization can feel like a heavy expense item, even though it can also be a form of saving.
– It’s a healthy way to lower your interest rate sensitivity if you have a bit of a tight monthly budget. You can say that you take home a little profit, because you forget that many households have owned their homes for a long time and now that you see that interest rates are going up, you want to create extra space, says Kristin Magnusson Bernard, CEO of Första AP- the fund, i Economic Agency.
Alternatives to shares
The new economic climate has caused two financial acronyms, TINA and TIAA, to resurface. TINA stands for “There Is No Alternative” and refers to the stock market. This means that there is no reasonable alternative to shares for those who want to invest and see their money grow over time.
During periods of low interest rates and a lack of other savings options, the stock market has been the most attractive choice. TIAA, on the other hand, stands for “There Is An Alternative”. It simply means that there are options for those who want to save efficiently. For example, savings accounts with competitive interest rates or amortization of loans.
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