Saldo Bank, which is starting its operations in Sweden, offers an interest rate of as much as 5% for a year's deposit. "We want to increase fairness in fixed-term deposits," says Jarkko Mäensivu, the CEO of Saldo Bank.

The digital neobank with a Finnish background, Saldo Bank, will lift the interest rate competition of the fixed-term deposits to a new level in Sweden.

The bank will start operating in Sweden in February and offers interest rates of up to 5% on one year's fixed-term accounts. According to the comparison website Compricer, the next highest offer is 4.4 percent.

"We increase fairness in borrowing"

Saldo Bank is a modern digital bank operating in Sweden, Finland, and Lithuania. It aims to always provide one of the best borrowing rates in the country. When the bank started in Finland in October 2023, several banks had to raise their interest rates.

Jarkko Mäensivu, the CEO of Saldo Bank, believes that the same will also happen in Sweden. Other banks follow suit.

"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," he says.

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 funds will be used for growth in Sweden

Saldo Bank pays higher interest rates than others because it collects funds for its growth. Established in Lithuania in 2021, the bank opened its operations in Finland last year.

Mäensivu says that Sweden plays a key role in the company's plans. The deposits in Sweden will continue to benefit the Swedish business scaling.

"We want to grow in Sweden. We use local funds to grow our loan portfolio in Sweden," he says.

Saldo Bank is developing into a digital international bank that aims to provide digital banking services to consumers and, in the future, businesses.

Saldo Bank has a Finnish background. However, 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.

Saldo Bank only operates online in Sweden. The bank has no intention of establishing a branch network in the country.