A quarter of a percent, 0.25 percent. That's roughly where the savings rate on the largest banks' salary accounts, or transaction accounts, peaked. At the time, the Swedish Central Bank's repo rate was at 4.0 percent. And it took a long time, many rate hikes from the Swedish Central Bank, before the banks even considered giving any kind of interest on these accounts.
Not reasonable, thinks Johanna Hållén, Secretary-General of the Swedish Consumers' Association.
The banks have been super quick to raise mortgage rates. But woefully slow to raise rates on savings and salary accounts. And now that it's time to lower rates, they're super quick to lower them on savings and salary accounts, she says.
Lowered simultaneously
In recent weeks, the order has been restored, and three out of four major banks now offer no interest at all, while Nordea offers a barely measurable 0.10 percent. As if by coincidence, Handelsbanken and Swedbank lowered their rates to zero on the same day, September 3.
The question of the banks' slowness in raising, but speed in lowering savings rates was raised at a press conference with the Swedish Central Bank last week in connection with the announcement of the lowered repo rate.
Riksbank Governor Erik Thedéen notes with some irritation that the banks are acting exactly like that. But he downplays the idea that it's about poor competition. There are other accounts to move your savings to, either at your existing bank or at another savings institution. The banks are good at increasing their profit margins by taking advantage of the fact that too many people are unwilling to act in their own best interest, according to Thedéen.
"Compensate consumers"
Even on simple savings accounts, the rates have been lowered and are now around 1.50 percent or slightly higher for larger deposits, down from around 2.0 percent six months ago.
We have previously urged consumers to both switch banks and switch accounts. But it's quite clear that people think it's too difficult and cumbersome to get an overview. So we think that the banks now need to compensate consumers who have contributed to the banks' excess profits, says Johanna Hållén.
Niche banks are generally better, they offer higher savings rates, and for example, Skandiabanken offers 0.25 percent on salary accounts.
