SEB Banka Introduces Interest on Current Account Balances and Boosts Savings Rates

“After seven years of sub-zero benchmark interest rates, we are historically back to a more normal interest rate situation. At the moment, we see that the situation with rates has stabilized, the annual Euribor has practically not changed since the beginning of the summer, and announcements from the European Central Bank show that the period of record-breaking interest rate increases may be over.

Following the decisions of the ECB, SEB banka has already raised the interest rates for both savings accounts and time deposits several times.

At the moment, the market situation allows us to take the next logical step – to offer customers the opportunity to receive interest also on funds that are in their current accounts. Other leading banks in Scandinavia and Europe, including SEB Group, are also acting similarly.

Thus, we currently offer a full range of services to allow clients’ funds to work according to everyone’s wishes and situation,” explains Arnis Škapars, a member of the board of SEB banka.

At present, the interest rate of the annual term deposit in SEB bank is 3.8%, while 2.15% is paid per year for saving in the savings account.

“A time deposit is a good solution for keeping a financial “safety cushion”. These funds, which from a financial literacy point of view are the amount to cover 3 to 6 months of expenses, should be kept separate from everyday funds, yet they should be easily accessible in case of an unexpected situation. On the other hand, you can regularly add to the savings made in the savings account – this way you can save for larger purchases and vacations, and start building a “safety cushion” for those who don’t have it yet. The money stored in the savings account is very liquid, as the required amount can be withdrawn without a commission by applying only three days in advance,” continues Škapars.

According to SEB banka, in the second quarter of this year the demand for deposits was 176% higher, and the amount deposited was 98% higher than in the first quarter. Currently, residents have deposited around 27% of their money in term deposits and savings accounts.

Interest on cash balances in current accounts will be introduced in November this year. They will be paid on balances in all customer checking accounts, except the credit card account.

Interest of 0.4% per year will be paid for amounts from 1 cent to 5,000 euros. Interest on the funds in the account will be calculated daily and paid once a month.

Customers will not have to conclude any additional contracts, and this news will not change the terms of use of current accounts.

2023-09-14 06:16:00
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