In 2023, Finnish households shifted their funds to deposit accounts with higher interest rates as the interest rates have risen. During this year, households transferred a total of 7.3 billion euros to time deposit accounts and slightly over 2 billion euros to investment deposit accounts. However, despite the increase in deposits, the overall household deposit stock, EUR 108.7 billion, decreased by more than EUR 3 billion due to the decline in overnight deposit accounts by EUR 12.4 billion during the same period.
Despite the decrease, the majority of household deposits remain in overnight deposit accounts including current accounts. At the end of 2023, 70.6 billion euros of household deposits were overnight deposits, 10.9 billion euros were time deposits and 27.2 billion euros were investment deposits. Households had a total of 40.3 billion euros in listed Finnish shares and 34.1 billion euros in domestic funds.
As interest rates have risen, the interest rate differences between different deposit accounts have grown significantly. The average interest rate on household term deposits and investment deposits has increased rapidly during December 2023 when it was around 2.7% for term deposit portfolio and 2% for investment deposit portfolio respectively while average overnight deposit rate was at around 0%5 %. The average interest rate for all household deposits stood at around 1%5 % during December last year .
The average interest rate on new fixed-term deposit contracts entered into by Finnish households also decreased slightly from November to December this year from 3%.5% to 3%.4 %. The figures come from an announcement by Bank of Finland . This is contrary to what was reported earlier that new fixed-term