Finnish households have been moving their funds to deposit accounts with higher interest rates as interest rates have risen. In 2023, households transferred a total of 7.3 billion euros to time deposit accounts and slightly more than 2 billion euros to investment deposit accounts. However, the overall household deposit stock, EUR 108.7 billion, shrank by more than EUR 3 billion during the year, as funds in overnight deposit accounts decreased by EUR 12.4 billion over the same period.
Despite the decrease in overall deposits, the majority of household deposits are still held in overnight deposit accounts, including current accounts. At the end of 2023, there were 70.6 billion euros in overnight deposits, 10.9 billion euros in time deposits and 27.2 billion euros in investment deposits. Households also had a total of 40.3 billion euros invested in listed Finnish shares and 34.1 billion euros invested in domestic funds.
As interest rates have risen, the differences between interest rates on different types of deposit accounts have grown significantly. The average interest rate on household term deposits and investment deposits has increased rapidly, with an average rate of 2.7% for term deposits and an average rate of 2.46% for investment deposits at the end of December