During the year 2023, Finnish households shifted their funds to higher interest rate deposit accounts, with a total of 7.3 billion euros transferred to time accounts and slightly more than 2 billion euros transferred to investment deposit accounts. However, the overall household deposit stock decreased by more than EUR 3 billion during the same period, as the funds in overnight deposit accounts decreased by EUR 12.4 billion. Despite this decrease, 65 percent of household deposits are still in overnight deposit accounts, including current accounts.
At the end of 2023, Finnish households had a total of 70.6 billion euros in overnight deposits, 10.9 billion euros in time deposits and 27.2 billion euros in investment deposits. They also had a combined total of 40.3 billion euros in listed Finnish shares and 34.1 billion euros in domestic funds. The average interest rate on household term deposits and investment deposits had risen rapidly at the end of December, reaching an average rate of 2.70 percent and 2.46 percent respectively, while the average overnight deposit rate was still relatively low at just under one percent (0.46 percent).
The average interest rate on new fixed-term deposit contracts entered into by Finnish households decreased slightly from November to December but remained higher than that of other countries in Europe due to rising rates throughout the year from July to December (average interest rate for new term deposit contracts was then at around three percent). The average interest rate on new time deposits was slightly higher than that of other countries in Europe as well (average interest rate for new term deposit contracts was then around three percent).
Overall, despite some fluctuations throughout the year, Finland’s household deposit market is becoming increasingly competitive as interest rates continue to rise and attract more investors seeking better returns on their savings account balances