Finnish neobank Saldo Bank has commenced operations in Sweden, offering interest rates of as much as 5% for a year's deposit.
Although Saldo Bank has a Finnish background, the core of the company's banking operations is in Lithuania and the operations are supervised by the Bank of Lithuania. In addition, Saldo Bank's technology development center is located in Vilnius.
Established in Lithuania in 2021, Saldo Bank opened for business in Finland in October 2023, taking on established banks with its market-beating interest rate offering.
In Sweden, the bank will aim to attract customers with interest rates of up to 5% on one year's fixed-term accounts, besting the next highest offer of 4.4%.
Jarkko Mäensivu, the CEO of Saldo Bank, says: "In our opinion, the interest paid on the fixed-term accounts has been very low for a long time. Interest rates paid to customers should reflect at least market interest rates. We want to increase fairness in borrowing."
The maximum amount of a fixed-term deposit is SEK 900,000 and the funds deposited in the fixed-term accounts are subject to deposit protection.
The deposits accrued will be directed towards the bank's lencding business.
"We want to grow in Sweden," says Mäensivu. "We use local funds to grow our loan portfolio in Sweden."
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