Swedish Tax Agency Offers Tax-Free Interest Rates Outperforming Bank Savings in 2025
Swedish tax accounts offer higher tax-free interest rates compared to near-zero bank savings rates in 2025, providing a better capital placement option for savers.
- • Swedish Tax Agency pays 1.12% tax-free interest on tax accounts, equivalent to 1.6% taxable bank interest.
- • Major banks offer near-zero interest on regular savings, with niche banks offering around 1% for locked deposits.
- • Approximately 140 billion SEK held in tax accounts; 50 billion SEK estimated as capital placements mainly from companies.
- • The tax account interest rate is linked to the base rate reflecting six-month government bond yields.
Key details
In 2025, Swedish savers are finding the tax accounts offered by the Swedish Tax Agency (Skatteverket) a more attractive option compared to traditional bank savings accounts, as they provide higher, tax-free interest rates. Skatteverket currently pays an interest rate of approximately 1.12% on funds in tax accounts, which corresponds to a taxable equivalent interest rate of about 1.6%. In contrast, major Swedish banks offer near-zero interest rates on regular savings accounts, with some niche banks offering around 1% only if the funds are locked for a minimum of three months.
Johan Schauman, a declaration expert at Skatteverket, explained that although the tax account is primarily designed for managing tax payments and refunds, it can serve as a reassuring capital placement for individuals and companies with surplus liquidity. Approximately 140 billion SEK is held in these tax accounts, of which an estimated 50 billion SEK represents pure capital placements, mainly from companies.
This trend originated about a decade ago when negative interest rates were implemented by Sweden's central bank, the Riksbank. This led businesses and households to deposit surplus funds in Skatteverket's tax accounts to earn interest. After a period of government caps and reduced interest rates, rising interest rates have restored the tax account's appeal. The interest rate on these accounts is set by the base rate, tied to the average yield of six-month government bonds.
Given the stark contrast, Johan Schauman highlighted that while the tax account is not designed for savings, it offers a beneficial and tax-free return for those holding excess funds with Skatteverket. This environment makes saving "with the state" notably more advantageous than traditional banking deposits in Sweden in 2025.