SEB to start paying interest rates for money on current accounts for private customers
In response to changed market situation and raised base interest rates, this November SEB are introducing interest rates on current accounts for private customers and will pay 0,4 percent annual interest rates for funds up to 5,000 euros.
“After seven years of zero and negative interest rates, we have now, from a historical perspective, returned to a more usual interest rate situation. We now see that the interest rate situation has stabilised, the annual Euribor has been virtually unchanged since the beginning of the summer, and the announcements from the European Central Bank suggest that the record-breaking period of interest rate hikes may be over. Following the ECB's decisions, SEB has already raised interest rates on both its savings account and term deposits several times. The market situation now allows us to take the next logical step – offer private customers the opportunity to receive interest on their current accounts as well. Other leading banks in Scandinavia and Europe, including SEB Group, are doing the same. So, we now offer a full range of services to allow customer funds to work according to each individual's wishes and situation," says Arnis Škapars, member of the board and Head of Retail.
Now bank offers annual term deposit rates up to 3,8 percent and savings deposit interest rates of 2,15 percent.
“A term deposit stands as an attractive and convenient form of savings for a rainy day. These funds, by recommendations consisting of essential expenses spanning 3 to 6 months, should be kept separately from other funds but easily reachable in case of an unexpected situation. Another saving form – savings deposit – is convenient for customers who are worried that they may need the funds they have accumulated sooner, or those who prefer to avoid long-term commitments. The money in the savings account is very liquid, as you can withdraw the amount you need without a fee just three days in advance," continues Arnis Škapars.
According to SEB, in the second quarter of this year the demand for deposits was 176% higher and the amount deposited 98% higher than in the first quarter. Currently, people in term deposits and savings deposits have deposited around 27% of their money.
About interests for balances on current accounts
Interest on current account balances will be introduced in November this year. It will be paid on balances in all customers current accounts except credit card accounts.
Private customers will receive 0,4 percent annual interest rated for funds up to 5000 euros they have in their current accounts. Interest will be calculated daily and paid monthly on the funds in the account.
Customers will not be required to sign any additional agreements, and this will not change the conditions for using current accounts.