How to get a better deal on interest rates from your Norwegian bank
Norwegian banks have been criticised for not giving competitive interest rates on savings to customers, with loan and mortgage repayments becoming more expensive at the same time. Here are The Local's tips for getting a better deal.
Norwegian consumers have been encouraged to push banks and financial institutions on better deals regarding interest rates. This applies to both interest paid to banks for loans and mortgages and the money you receive on savings accounts.
During the first half of this year, banks in Norway made 62.4 billion kroner more on interest than it paid out to savers. This is a record sum, according to the figures from Statistics Norway.
Inger Lise Blyverket, director of the Consumer Council, has urged people to negotiate a better interest deal. The encouragement comes after the consumer rights watchdog already criticised banks for not giving savers high enough interest.
Consumers are being encouraged to get a better deal on savings and any interest they are required to pay lenders.
Plan ahead
Ideally, getting the best interest rate deal on a loan or mortgage takes place before you've signed the dotted line. Therefore, you should put in the work to make sure you are getting a decent deal.
Shopping around for offers from different banks means you will get more of a picture of the kind of interest you should be paying rather than accepting the first offer you receive. In some cases, banks can run a credit check to see what offers you are eligible for. Having too many credit checks in a short amount of time can negatively affect your credit score, though. A lower score will also impact the offers you receive.
Planning also applies to setting up a savings account. Knowing which kind of account you will want will help determine the rate you get. For example, some accounts require minimum payments to achieve interest, while others only allow withdrawals a few times a year. It will be a case of balancing the best rate against the need for any financial flexibility. One thing that will apply to everyone, though, is that a standard bank account will offer much lower interest than a savings account.
Renegotiate with the bank
One of the first steps is going to your existing provider and negotiating a better deal with them. This can be done on either interest owed or interest you'd like to receive. There are a number of comparison sites out there which can let you figure out what kind of rate you can expect.
The Norwegian Consumer Council runs Finansportalen, which compares bank offers.
Going to your bank with the better offer and asking them to match it could be one way to do things. Getting a better deal can be as simple as using the chatbot in the mobile banking app.
Should your interest rate be up for renewal, negotiate a lower rate rather than let it automatically renew.
Don't be afraid to move provider
The bank you are currently with may not wish to offer you a more competitive deal. If that is the case, don't be afraid of switching providers to save some money or get a better return on your own money.
When moving, it may be worth checking to see what offers you may be eligible for through your union if you are a member.
As with renegotiating a mortgage in Norway, check out Finansportalen for an idea of the offers available to you.
In many cases, you will not change banks to change mortgage or loan providers. You can also keep your current bank with one provider, and your savings account with another. Changing providers should be relatively hassle-free.
If a provider does want you to try and completely transfer to them, it's worth thinking about whether they also require you to sign up for any other additional products – such as taking out an expensive insurance policy. In that case, moving may not actually be for the best.
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Norwegian consumers have been encouraged to push banks and financial institutions on better deals regarding interest rates. This applies to both interest paid to banks for loans and mortgages and the money you receive on savings accounts.
During the first half of this year, banks in Norway made 62.4 billion kroner more on interest than it paid out to savers. This is a record sum, according to the figures from Statistics Norway.
Inger Lise Blyverket, director of the Consumer Council, has urged people to negotiate a better interest deal. The encouragement comes after the consumer rights watchdog already criticised banks for not giving savers high enough interest.
Consumers are being encouraged to get a better deal on savings and any interest they are required to pay lenders.
Plan ahead
Ideally, getting the best interest rate deal on a loan or mortgage takes place before you've signed the dotted line. Therefore, you should put in the work to make sure you are getting a decent deal.
Shopping around for offers from different banks means you will get more of a picture of the kind of interest you should be paying rather than accepting the first offer you receive. In some cases, banks can run a credit check to see what offers you are eligible for. Having too many credit checks in a short amount of time can negatively affect your credit score, though. A lower score will also impact the offers you receive.
Planning also applies to setting up a savings account. Knowing which kind of account you will want will help determine the rate you get. For example, some accounts require minimum payments to achieve interest, while others only allow withdrawals a few times a year. It will be a case of balancing the best rate against the need for any financial flexibility. One thing that will apply to everyone, though, is that a standard bank account will offer much lower interest than a savings account.
Renegotiate with the bank
One of the first steps is going to your existing provider and negotiating a better deal with them. This can be done on either interest owed or interest you'd like to receive. There are a number of comparison sites out there which can let you figure out what kind of rate you can expect.
The Norwegian Consumer Council runs Finansportalen, which compares bank offers.
Going to your bank with the better offer and asking them to match it could be one way to do things. Getting a better deal can be as simple as using the chatbot in the mobile banking app.
Should your interest rate be up for renewal, negotiate a lower rate rather than let it automatically renew.
Don't be afraid to move provider
The bank you are currently with may not wish to offer you a more competitive deal. If that is the case, don't be afraid of switching providers to save some money or get a better return on your own money.
When moving, it may be worth checking to see what offers you may be eligible for through your union if you are a member.
As with renegotiating a mortgage in Norway, check out Finansportalen for an idea of the offers available to you.
In many cases, you will not change banks to change mortgage or loan providers. You can also keep your current bank with one provider, and your savings account with another. Changing providers should be relatively hassle-free.
If a provider does want you to try and completely transfer to them, it's worth thinking about whether they also require you to sign up for any other additional products – such as taking out an expensive insurance policy. In that case, moving may not actually be for the best.
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