Opening a savings account means placing money with the bank to earn interest. A savings account is a safe way to save, as deposits are protected by the Swedish government deposit guarantee scheme. Below is a complete overview of the key features, conditions, and concepts you should know about savings accounts with Nordiska.
What is a savings account?
A savings account is designed for saving, not for everyday transactions. You deposit money and, depending on the account type, may also be able to withdraw it. The main purpose is to keep your savings safe while earning interest.
Types of savings accounts
Nordiska offers different account types, tailored to your needs:
Variable-rate savings account (no fixed term) – you can deposit and withdraw money at any time. The interest rate is variable, which means it can change over time.
Fixed-term savings account (time deposit) – your money is locked for a set period (e.g. 6 months, 1 year, 3 years). The interest rate is fixed for the entire term. Early withdrawals are normally not allowed, or may result in loss of interest.
Special accounts – sometimes Nordiska offers promotional accounts with specific terms, such as limited free withdrawals or higher introductory rates.
How does interest work?
Interest is the compensation you receive for keeping your money in the account.
Variable interest – can increase or decrease during the saving period, depending on market conditions.
Fixed interest – agreed upon in advance and does not change during the fixed term.
Example: If you deposit SEK 100,000 at 3 % annual interest, you earn SEK 3,000 in interest over one year (before tax).
Compound interest
If the interest you earn remains in the account, you begin earning interest not only on your initial deposit but also on the accumulated interest. This is called the compound interest effect, which makes savings grow faster over time.
Fees
Savings accounts with Nordiska generally have no fees for opening, deposits, or withdrawals. The full amount you save accrues interest. However, for fixed-term accounts, early withdrawals may result in losing accrued interest or paying a penalty fee.
Deposit guarantee – is my money safe?
Yes, all savings accounts with Nordiska are covered by the Swedish government deposit guarantee scheme:
Coverage up to SEK 1,150,000 per person and institution.
If you hold multiple accounts with Nordiska, the amounts are added together for the guarantee.
In special life events (e.g. sale of property, inheritance, insurance payout), coverage can be temporarily extended up to SEK 5 million for 12 months.
If the guarantee is activated, compensation is normally paid out within 7 working days.
Deposits and withdrawals
On variable-rate accounts you can deposit and withdraw money freely.
On fixed-term accounts you cannot withdraw funds until maturity, unless otherwise specified in the terms.
Deposits are made via transfer from your regular bank account, and withdrawals are typically paid to the same registered account.
Tax on interest income
Interest earned on your savings is taxable as capital income. Nordiska reports the interest to the Swedish Tax Agency automatically. Normally, 30 % tax is deducted before the interest is paid out to your account, so you don’t need to do anything manually.
Risks with savings accounts
Savings accounts are very safe, but there are a few points to consider:
On variable-rate accounts, the interest rate may decrease, reducing your return.
If your total balance with Nordiska exceeds SEK 1,150,000, the excess amount is not protected by the guarantee.
On fixed-term accounts, your money is locked until maturity, and early withdrawals may not be possible or may lead to loss of interest.
When is interest paid?
It depends on the account type:
Variable-rate accounts usually pay interest once per year.
Fixed-term accounts may pay interest at maturity or annually, depending on the agreement.
Summary
A savings account lets you earn interest on your deposited funds while keeping them safe.
Choose between variable accounts (flexibility, but changing interest) and fixed-term accounts (predictability, but money is locked).
All savings accounts with Nordiska are covered by the Swedish deposit guarantee up to SEK 1,150,000 per person and institution.
Interest is taxable, but tax is reported and handled automatically by the bank.
No account fees are charged, so your full balance grows with interest.