The key things you need to know about savings accounts in Norway
Savings accounts in Norway come in many forms. Whether it's a nest egg to put towards a home, a rainy day fund, or saving for your children's future, there are a few things you should know.
Norway is known for its high wages just as much as its high cost of living. After you've been paid, taxed and covered your monthly expenses, you'll (hopefully) have something to put away for the future.
Alternatively, you may have savings elsewhere and wish to move them to Norway to see if you can get a better rate or have greater access to your money.
When it comes to savings accounts in Norway, there are many different options available to savers at various stages of their life. Therefore, we've broken down some of the key things you need to know about savings accounts in Norway.
What kind of accounts are available?
Norwegian banks offer an abundance of offers to potential customers. There is a savings account to suit just about anyone's needs.
For example, there are the BSU and BSU-Plus accounts for those saving for a house. The benefit of these accounts is that you get a high-interest rate and a tax deduction for owning such an account. The downside is the inflexibility; in almost all cases, the money must be used towards the purchase or maintenance of the home.
Then, some accounts require you to deposit a certain amount each month to receive the agreed interest rate. The rate may be higher compared to other accounts, but you only receive it if you regularly make payments into the account.
Some accounts will come with limits on how often withdrawals will be made. And for those with a longer-term view of things, there are pension savings accounts and children's savings accounts. In terms of these two accounts, the most important thing will be the rate you receive.
How to choose an account
In many cases, choosing a savings account in Norway will depend on balancing flexibility with the best interest rate.
Once you have established which kind of savings account will be best for you, you can shop around to try and get the best rates available for that type of account.
The Norwegian Consumer Council runs Finansportalen, which compares bank offers.
If you see a better rate out there than your bank is offering, you can ask them to match it. Should they refuse, you can always set up another account with another bank. Most banks will not ask you to move all your accounts to them to open a savings pot.
How safe is the money?
For most people – at least those with deposits up to 2 million kroner – the short answer is that their deposits are safe.
In Norway, under the Financial Institutions Act, if your bank deposit becomes unavailable, and the situation is due to the bank's actions or adverse situation related to a bank that is a member of the Norwegian Banks' Guarantee Fund, you will be reimbursed the guaranteed deposits within seven working days. Examples of such situations include a bank losing your money or not being able to service its debts.
This "deposit guarantee" covers all deposits up to 2 million kroner (including accrued interests) per depositor, per member bank – and it covers deposits in Norwegian and foreign currency.
However, accounts are not covered if they are investments in financial instruments such as shares, fund units or other securities.
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Norway is known for its high wages just as much as its high cost of living. After you've been paid, taxed and covered your monthly expenses, you'll (hopefully) have something to put away for the future.
Alternatively, you may have savings elsewhere and wish to move them to Norway to see if you can get a better rate or have greater access to your money.
When it comes to savings accounts in Norway, there are many different options available to savers at various stages of their life. Therefore, we've broken down some of the key things you need to know about savings accounts in Norway.
What kind of accounts are available?
Norwegian banks offer an abundance of offers to potential customers. There is a savings account to suit just about anyone's needs.
For example, there are the BSU and BSU-Plus accounts for those saving for a house. The benefit of these accounts is that you get a high-interest rate and a tax deduction for owning such an account. The downside is the inflexibility; in almost all cases, the money must be used towards the purchase or maintenance of the home.
Then, some accounts require you to deposit a certain amount each month to receive the agreed interest rate. The rate may be higher compared to other accounts, but you only receive it if you regularly make payments into the account.
Some accounts will come with limits on how often withdrawals will be made. And for those with a longer-term view of things, there are pension savings accounts and children's savings accounts. In terms of these two accounts, the most important thing will be the rate you receive.
How to choose an account
In many cases, choosing a savings account in Norway will depend on balancing flexibility with the best interest rate.
Once you have established which kind of savings account will be best for you, you can shop around to try and get the best rates available for that type of account.
The Norwegian Consumer Council runs Finansportalen, which compares bank offers.
If you see a better rate out there than your bank is offering, you can ask them to match it. Should they refuse, you can always set up another account with another bank. Most banks will not ask you to move all your accounts to them to open a savings pot.
How safe is the money?
For most people – at least those with deposits up to 2 million kroner – the short answer is that their deposits are safe.
In Norway, under the Financial Institutions Act, if your bank deposit becomes unavailable, and the situation is due to the bank's actions or adverse situation related to a bank that is a member of the Norwegian Banks' Guarantee Fund, you will be reimbursed the guaranteed deposits within seven working days. Examples of such situations include a bank losing your money or not being able to service its debts.
This "deposit guarantee" covers all deposits up to 2 million kroner (including accrued interests) per depositor, per member bank – and it covers deposits in Norwegian and foreign currency.
However, accounts are not covered if they are investments in financial instruments such as shares, fund units or other securities.
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