Finnish households have been transferring funds to deposit accounts with higher interest rates as interest rates have risen. In 2023, households transferred a total of 9.3 billion euros to time and investment deposit accounts, but the overall household deposit stock, EUR 108.7 billion, decreased by more than EUR 3 billion during the year. This was due to the decrease in funds in overnight deposit accounts, which amounted to EUR 12.4 billion during the same period.
Despite the decrease, most of household deposits, 65%, are still in overnight deposit accounts, including current accounts. At the end of 2023, there were EUR 70.6 billion in overnight deposits, EUR 10.9 billion in time deposits and EUR 27.2 billion in investment deposits. Households also had EUR 40.3 billion in listed Finnish shares and EUR 34.1 billion in domestic funds.
As interest rates have risen, the interest rate differences between 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% on term deposit portfolio and an average rate of 2.46% on investment deposit portfolio at the end of December