Housing and Finance | You can save large sums in this banking step:

(electronic newspaper): While banks have raised interest rates on loans and deposits on several occasions, it may be a good idea to check the conditions under which you can insure yourself. Both on deposits, and not least on loans, Ingunn Andersen Randa, executive vice president of Obos in charge of Obos Bank, tells Nettavisen that there can be significant sums to save.

A survey conducted by YouGov on behalf of the company showed that many Norwegians do not believe there is much money that can be saved by switching between banks.

The CEO thinks this is a mistake.

good for wallet

In the Obos survey, 31 percent of respondents answered that they could not save more than 5,000 NOK per year if they changed banks. 19 per cent believe they have less than 1,000 NOK to save by switching banks.

Only 7 percent think they can save more than NOK 5,000, and up to 60 percent say they don’t know how much they can save, says the Obos manager.

But a small reduction in the interest rate, as a result of negotiations with your bank or switching banks, can lead to significant savings.

– For example, if you have a four million NOK loan, and the interest rate is reduced by 0.3 percentage points, this amounts to NOK 12,000 per year in reduced interest expense. Also on deposits and checking accounts, one must now pay more attention to conditions, and here too there can be money to be made on better terms and larger gaps between banks than before, says Randa.

The bank also compared it to changing electricity suppliers. They concluded that there is more to gain from switching the bank.

– Seemingly small spreads of a few tenths of a percentage point have a big annual effect when we talk about loans of several million kronor, or large deposits.

Even in everyday banking, there can actually be more to gain from a power switch. According to Finansportalen, there is, for example, a difference of a few thousand Swedish kronor per year between those with the best interest rate on deposits and little or no fees, versus those with low interest rates and a number of fees, Randa says.

This is how much the price has gone up in the last 12 months

It can cause a lot of headaches

Sparebank 1 consumer economist Magne Gundersen thinks there is clearly money to be saved by switching banks, if you look at mortgages:

Home loans are the biggest bank expenses you can get. Every penny counts in these times, Gundersen tells Netavizen.

However, there are many practical considerations that you should take into account when switching between banks, which should be well taken into account before starting the process.

– Creation fees and land registration fees may apply.

If you’re going to communicate the entire customer relationship, you should also be sure to get an overview of the different payment agreements or direct discounts that you have, Gundersen points out.

You must also change your account number for salary payments with your employer and tax authorities. Good advice, says Gundersen, is not to completely cancel the bank right away.

It is important to take care now

It is precisely at these times, when interest rates are raised at regular intervals, that Gundersen believes that consumers should exercise caution.

– You may be blinded by the fact that one bank has not yet raised the interest rate, while another has already done so in line with the rate hike at Norges Bank. They change interest rates at different times, and at worst you could end up with a worse interest rate.

However, he recommends going to Finansportalen for an overview.

– It’s a good place to start to learn about the interest rates offered by banks. It is important not to pay a higher interest rate than you have to pay.

If you are a member of a corporation, you should check if you can get a better interest rate.

Many large employee organizations, such as LO, have negotiated particularly low interest rates for their members, says Gundersen.

So you have a bad bank?

But at the same time, Luksusfallen expert assures that the best and easiest thing is to get a better interest rate from your bank.

“If your bank can’t give you about the same interest rate that you get from another bank, I think you have a bad bank,” says Gundersen.

Here he also presents some arguments that you can take with you on the road.

– First of all, you should refer to lower interest rates elsewhere.

You can also refer to the property price evolution.

– If you are under 50 years old, you should have a great interest

In addition, you must demonstrate a good payment history or a good price trend for the home.

– If you have paid the value of the property and it has increased in value, that may be a sufficient argument in and of itself. If you have a mortgage that is less than 75 percent or 60 percent of the home’s value, chances are good. If you are under 50, you should be very interested.

It is also a good idea to have a good payment history.

– If you have periods of bad payment history, this gives you a bad starting point towards your bank. Gundersen notes that payment is always made when due.

The consumer economist thinks it might be a good idea to start the conversation over the phone, and instead let the bank call you back.