Finns are storing increasingly more cash in zero-interest financial institution accounts – the inventory market crash has made Finns cautious traders – Muricas News

Finns are resting increasingly more cash in near-zero curiosity checking accounts. In keeping with the statistics revealed by the Financial institution of Finland on Wednesday, the deposit inventory of Finnish households was greater than 113 billion euros in June.

92 p.c of the cash, or about 104 billion, was mendacity in present accounts. In keeping with the Financial institution of Finland, their common rate of interest was 0.02 p.c in June.

In June, the financial institution accounts of Finnish households had greater than 5 billion euros greater than in June 2021. The deposit inventory elevated by virtually 900 million euros in June of this yr.

Nevertheless, in line with the Financial institution of Finland, the annual development charge of the deposit inventory resting in accounts has slowed considerably. In June 2022, the expansion charge was 4.8 p.c. Only a yr in the past, the deposit base grew at an annual charge of greater than 7 p.c. The final time the expansion charge was slower than right now was in September 2018.

Within the course of Finns have turn into much more cautious traders. In June 2022, the worth of households’ inventory holdings was 44.6 billion euros. As lately as August 2021, the worth of share holdings was 56.1 billion euros.

The identical improvement can be seen in funding funds. Their worth has fallen by 4.5 billion euros from final yr’s peak. On the finish of June, households had a complete of 29.8 billion euros locked up in funding funds. Many of the investments, or 39 p.c, have been in fairness funds.

“The worth of holdings has decreased primarily as a result of lower within the worth of fairness funds, however the worth of bond funds has additionally decreased considerably,” the Financial institution of Finland’s press launch says.

The previous yr has been very unstable within the inventory market. For instance, the world’s most adopted inventory index S&P 500 has misplaced 13.5 p.c of its worth through the yr, and the technology-focused Nasdaq index has misplaced greater than 20 p.c. The final index of the Helsinki inventory change has fallen by about 15 p.c in the identical time.

This may be seen because the warning of the Finns. Households withdrew extra money from the funds in January–June than they made new investments.