Norwegians are more interested to save through houses than Swedes and Danes


Four out of ten Norwegians believe down payment of mortgages is the best form of savings. In Sweden and Denmark, the view is different.

This is evident in an investigation Ipsos has done for DNB of people’s habits in Norway, Sweden and Denmark.

 While 40 per cent of Norwegians answered that down payment of mortgage loans on questions about what they think is the best form of savings, only 11 per cent of Swedes and 12 per cent of Danes said the same.

 Both among Swedes and Danes, 36 percent say that a savings account is the best form of savings, which only 11 percent of Norwegians agree.

 Housing and savings account

In Norway, the combination of strong house price growth and favorable tax rules has made housing a favorite saving and investment object.

 Next to savings account, most Norwegians save almost exclusively in their own homes, explains DNB’s personal marketing manager Trond Bentestuen.

 “This is because we are historically accustomed to own property, that it is favorable for tax purposes and that the housing market has achieved a good return. But it is important to remember that you need a a place to live, even in the future, “he says, adding:

 – With savings, like much else, it’s not wise to put all the eggs in the basket.

 High savings

The survey reveals that Norwegians, Swedes and Danes all prioritize savings high- but the it is most important for the Norwegians.

 In Norway, 89 percent say that they saves, while Sweden 86 percent and in Denmark 72 percent answers the same.

 Two out of three Swedes say they wants save more, and the same applies to four out of ten in Denmark. By comparison, only one in three Norwegians wants save more.

In Norway and Denmark, age plays an important role if we plan to save more. There are more young people who wants to save more and the proportion is falling with increasing age.

 A horse

In all three countries, people are happy to put savings in an account at the bank, but both Danes and Swedes are better than Norwegians to spread their investments.
Four out of ten Swedes save in funds, while 18 per cent of Danes save in shares.

 20 per cent of the Swedes also save in their own pension products – almost twice as high as in Norway. 17 per cent of the Danes save in such products.

 “Norwegians save, but we put all the money on one horse – and unfortunately it is not the prettiest,” says Bentestuen, indicating that Norwegians prefer to save in a  savings account.

 “Many of us are good savers by signing out fixed savings agreements. But here we can learn some of the Swedes when it comes to spreading the investments and putting some of the savings in the stock market. That way, we get more legs to stand on and the opportunity for a better return on savings.

 Savings goals

Norwegians are keen on setting goals with the savings. Three out of four Norwegians have fully or partially set such a goal. Among Swedes and Danes around four out of ten have not set a target.

 “Although we are better than our neighbors to set savings goals, it’s all six out of ten Norwegians who save without a clear goal. We know that without saving goal, it becomes less motivating to choose  to save rather than spending, “says Bentestuen.

 Both Norwegians, Danes and Swedes save mainly to have a safeguard in the future, Norwegians to the greatest extent.

 “This is contrary to the fact that so few of us save for retirement. Here we see that both the Swedes and Danes are better than us, says Bentestuen.

Source: NTB scanpix / Norway Today