Facts: Interest rate increases
The Riksbank raised the key interest rate to 0.75 per cent on Thursday, an increase from the 0.25 per cent decided on 28 April.
The increase in April meant that the policy rate for the first time since April 2014 ended up above zero.
The Riksbank’s interest rate forecast was also changed – now more and faster increases are expected than previously stated. According to the Riksbank, the policy rate will be 2 per cent at the beginning of next year.
Source: The Riksbank
Following the Riksbank’s so-called “double increase” of 0.5 percentage points of the key interest rate on Thursday, the banks are beginning to rethink. Instead of zero interest on the savings, several banks are now starting to give a little, a little interest.
In May, when the Riksbank raised the key interest rate from zero to 0.25 per cent, the banks said that it would be a while before there was any interest on the savings accounts. This is despite the fact that the four major banks have just reported a combined 32 billion in profits for the second quarter. But the negative interest rate had lasted so long, according to the banks, and they explained that during the long zero interest rate period they have had to pay to take care of the savers’ money without charging any fee to customers for it.
But now they have changed.
Swedbank first out
Swedbank introduces 0.1 percent interest on all its savings accounts from June 12, says Mikael Björknert, head of Swedish banking at Swedbank.
– Now its time. For a long time, we have had a negative interest rate environment, but now we have taken a real step out of it, he says, referring to the Riksbank’s increase in the policy rate on Thursday.
But perhaps many wonder why the savings rate will only be 0.10 percent, when the policy rate is 0.75 percent now. Mikael Björknert explains that the negative interest rate has prevailed for a very long time, and that higher demands have also been placed on the banks through increased regulatory fees and a bank tax introduced during the period. This has meant that the banks have had large costs for their savings, and now the bank is raising the savings rate a little cautiously. Other types of accounts, where the money is tied up, may have higher interest rates, according to Mikael Björknert.
TT: But when the policy rate is raised, banks are quick to raise mortgage rates, how come savings rates are not raised as fast?
– We work to give customers an attractive comprehensive offer, with attractive interest rates on mortgages. Interest on savings accounts is now also being introduced. We are proud of that, says Mikael Björknert.
Swedbank is not alone in rethinking savings rates. SEB writes in an email to TT that the bank raises interest rates on certain savings accounts, with SEB they are called investment accounts and means that the assets are tied up for a certain period of time. The interest rates will now be between 0.1 and 0.5 percent as the money is tied up. But ordinary savings accounts and salary accounts will still be without interest at SEB.
“As always, we follow market developments and adapt to prevailing circumstances,” writes SEB’s press officer Niklas Magnusson in an email to TT.
Interest on restricted money
Nordea also states that the interest rate on fixed-rate accounts has been raised, but otherwise does not want to be interviewed. “We continuously review our pricing and always strive to be competitive. For example, we have recently changed the interest rate on our fixed interest rate accounts. If changes occur, we will only communicate them once they have been decided,” writes Henrik Devell, press officer at Nordea, in an email to TT.
Handelsbanken has not yet raised its interest rates, but it will, according to Anna Possne, head of products and offers at Handelsbanken.
“We are moving towards a period with higher interest rates, which of course affects both our deposit and lending rates. We intend to raise more deposit rates and will return in the near future with more detailed information to our customers,” she writes in an email to TT.