– When we are not paying salaries, we have to use other means to get the good people with the high level of expertise we need, says communications director at Sparebank 1 SR-Bank, Øyvind Knoph Askeland. Until 29 February, the mortgage interest rate for employees at his bank was 3.9 per cent. On 1 March, it rose to 4.1 per cent. We who have written this article have to pay a little more to borrow money from the same bank. At least 5.46 percent, to be exact. This means that a loan of NOK 3 million from SR-Bank will cost you approximately NOK 750,000 more than it will for someone employed at the bank, if you have a repayment period of 25 years. This is how the calculation works A loan amount of 3 million with an interest rate of 4.1 per cent will cost you approximately NOK 16,000 a month. Over 25 years, this loan will cost you NOK 4.82 million. A loan amount of NOK 3 million with an interest rate of 5.46 per cent will cost you approximately NOK 18,400 a month. Over 25 years, this loan will cost you NOK 5.25 million. It is important to clarify that the employees of Sparebank 1 SR-Bank must pay tax on the benefit. Before interest rates started to rise, you had to pay NOK 14,000 every month for a loan of around NOK 3 million in SR-Bank. After the interest rate increases, it is 21,000. The increase is 50 percent. Good conditions for bank employees SR-Bank is not alone. Several of the banks news has contacted give their employees up to more than one percentage point off the best market interest rates. Both SR-Bank and the other banks state that the benefit is taxable. – It is a good that is counted as salary. It is a good thing we as a bank can offer to keep the good leaders and attract the best employees, says Askeland. The bank colleague next door, in Sandnes Sparebank, says they give employees almost the same. So probably the director of personal market Erik Kvia Hansen will pay 4.35 per cent from 1 March. In any case, employees at the bank are offered this. Erik Kvia Hansen is director of personal markets at Sandnes Sparebank. Sandnes and the “oil city” Stavanger are neighboring cities, and Hansen says those in South-West Norway must compete with the energy industry to get the best employees. Photo: Sandnes Sparebank – In our region, we compete with a number of other industries. Among other things, the energy industry, he says. Askeland at SR-Bank thinks it would have been stupid if the employees had their home loans in other banks. Øyvind Knoph Askeland points out that the interest discount is taxable. Photo: Jan Inge Haga / Sparebank 1 SR-Bank – The employees at SR-bank need to know what product we offer our customers so that they can further give the best possible advice. Raudt: – The state should pressure the banks The Eika Group is an alliance between many of the smaller savings banks in Norway. About ten banks offer a 0.5 percentage point interest rate discount for the bank’s employees. Nordea has a similar discount. Employees receive 5.01 percent. According to the websites, the best available interest rate is 5.49 per cent. – We continuously assess the housing loan interest rate for our employees in the same way as our customers, seen in connection with the policy interest rate set by Norges Bank, says Johannes Utvåg in the communications department. If the discounts do not make the Red party see red, the party believes that the banking sector should be pressured to provide better terms. Marie Sneve Martinussen in Raudt probably also has free coffee at work, but she thinks the state should work harder so that it costs less for Norwegians to have a loan. Photo: Torbjørn Brovold / news – The banks should lower interest rates for customers, not just for their employees. They can afford it, because the banks have spent huge sums on the high interest rates in recent years, says manager Marie Sneve Martinussen. The party believes the government should take more responsibility. – The state should use its ownership power in DNB to pressure the bank to show more social responsibility and offer better terms to customers. Not good for reputation The Home Owners’ National Association also reacts. – What good employees get is the banks’ own decision, but in terms of reputation I would have chosen something else if I were a bank manager, says general secretary Morten Andreas Meyer. Secretary General of the Home Owners’ National Association, Morten Andreas Meyer. Photo: Kjartan Rørslett / news He thinks it sends out a signal that the banks have something to go on. – My appeal is to use the power that lies in your customer relationship. Most have the opportunity to negotiate the loan down. So much so that it actually has a big positive impact on a stressed economy, he says.
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Interest rate discount for bank employees – have up to 1.5 per cent lower interest on the home loan – news Rogaland – Local news, TV and radio
