During 2023, Finnish households transferred a total of 9.3 billion euros to deposit accounts with higher interest rates as interest rates rose. However, the overall household deposit stock, EUR 108.7 billion, shrank by more than EUR 3 billion during the same period, mainly due to the decrease in funds in overnight deposit accounts. Despite this, the majority of household deposits, 65 percent, are still 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 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. At the end of December 2023, the average interest rate on the term deposit portfolio was 2.70 percent and the average interest rate on the investment deposit portfolio was 2.46 percent. The average overnight deposit rate has also risen: it was 0.46 percent at the end of December.
The average interest rate on household deposits as a whole was 1.18 percent at the end of December