Nordea's new Finnish current account to yield higher interest
(Thomson Reuters ONE) - On 1 February 2010, Nordea will launch its new CurrentAccount for daily banking.The interest rate structure of the new account differs from traditional currentaccounts, since it has interest rate tiers that reward customers' savings andloyalty. Customers also benefit from rising interest rates.- We are restructuring personal customers' current accounts, and we now offercustomers a superior solution for their daily banking needs. Once interest ratesnormalise and start rising, all our customers will benefit from the interestrate tiers of our new account. The account will be especially beneficial to ourKey Customers, as the top tier is reserved for them, says Jussi Mekkonen, headof Household at Nordea in Finland.The higher the interest rate level and account balance, the higher the interestrateIn Finland interest rates on personal customers' current accounts are usuallylow and fixed, and customers do not benefit from rises in the interest ratelevel.- The new account yields better interest for customers both when the generalinterest rate level rises and when the account balance grows. The currentinterest rate level is exceptionally low, but if we look at the years 2000 -2009, the average Euribor rate exceeded four per cent in four of those years. Ifwe assume that the interest rate level is four per cent and the balance of thenew CurrentAccount at least 4,000 euros each month, the pre-tax annual benefitreceived by the customer compared to our old current account is at least 27euros. If the account balance exceeds 8,000 euros, the benefit is already morethan 100 euros per annum. As you can see, this is a significant change, saysMekkonen.Nordea DepositRate changes slower than market ratesThe interest rate of CurrentAccount is tied to a new reference rate calledNordea DepositRate, a reference rate that varies in line with market rates. Thedeposit interest payable on the new account equals Nordea DepositRate deductedwith the margin defined for the relevant interest rate tier. Nordea DepositRatewas quoted publicly for the first time today on 1 February 2010 at 1.75%. Withthis reference rate value, the interest rate of Nordea's Key Customers is 0.50%for funds exceeding 6,000 euros in the account.- The value of Nordea DepositRate is based on market rate trends, but it ismeant to change slower than the market rates. Minor interest rate changesestimated to prevail only briefly will not affect the level of NordeaDepositRate, says Jussi Mekkonen.The current value of Nordea DepositRate is available on Nordea's website.Similarly to Nordea Prime rate, changes in the reference rate are published atleast 14 days before the change enters into force.Further information on the new account is available at nordea.fi/newaccount.For further information:Jussi Mekkonen, Household and Group Marketing, Finland, +358 9 165 88128Kati Tommiska, Chief Press Officer, +358 9 165 42320[HUG#1378707]
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Datum: 01.02.2010 - 04:39 Uhr
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