Three times this year, the Swedish Central Bank has lowered the interest rate, which currently stands at 3.25 percent. On Thursday, a further reduction is expected, possibly by as much as 0.50 percentage points.
According to Christina Sahlberg, savings economist at Compricer, the banks are generally lowering their rates at the same pace as the Swedish Central Bank.
Some are quick and some are a bit slow. It's mainly the major banks that are a bit slower than the others, but it's not so surprising since it involves enormous sums for their part. They wait until they have to lower their rates, she says.
Trend break
Historically, all banks have waited for the Swedish Central Bank's decision before lowering their own rates, even if a reduction was imminent. But recently, a trend break has been noticed. Last week, for example, both SBAB and Swedbank lowered their variable rates, which are the rates most affected by the Swedish Central Bank's interest rate.
Some banks have started to lower their rates even before the Swedish Central Bank's decision is announced. It's a new approach, and I haven't seen it until now this autumn, says Christina Sahlberg.
She believes it's about gaining a competitive edge in the battle for customers.
We've seen that as soon as someone lowers their rate, it has a huge impact. All the newspapers write about it, and it's great advertising for the bank. I think it's important in these times when everyone is wondering if their bank is lowering their rate as much as the Swedish Central Bank, she says.
Keep track
Christina Sahlberg believes it's time to keep a closer eye on your bank when rates are falling. Since banks are lowering their rates at different times and at different rates, you need to look over time to see which banks offer the best rate.
If your bank doesn't lower its rate at the same pace as other banks, it's a good idea to contact the bank and ask for a lower rate – and then be willing to switch banks if you can get a better rate somewhere else. It's not as complicated as many think, she says.
Skandia: 4.08 percent
Swedbank: 4.25 percent
Handelsbanken: 4.21 percent
Danske bank: 4.12 percent
Nordea: 4.27 percent
SEB: 4.11 percent
Länsförsäkringar: 4.18 percent
SBAB: 4.14 percent
Source: Compricer
