According to the Norwegian Statistical Office, deposits in BSU fell by NOK 4,4 billion in 2022. This corresponds to a decrease of 8,2 percent. from the end of 2021
At the end of December 2022, individuals in Norway invested NOK 49,1 billion in BSU, down from NOK 53,5 billion in the previous year, according to statistics from Norwegian banks and credit institutions .
– In 2022, for the second year in a row, we recorded a negative twelve-month increase in BSU savings. BSU deposits fell for the first time in a year in 2021, says Karl Henrik Nordbakken adviser to the Norwegian Statistical Office
BSU savings continue to fall
Deposits at BSU have steadily increased since the scheme was introduced in 1992 and peaked in January 2021 at NOK 60,5 billion. Compared to previous periods, BSU savings in January 2023 returned to the same level as in December 2017. This is as much as 17 percent less than the peak level recorded in January 2021.
Changes in regulations in recent years
“There could be many reasons why there is less savings at BSU right now. Changes in regulations in recent years have made saving at BSU less attractive. In addition, interest rates on deposits were extremely low during this period. So you can imagine that young people are considering alternative investments for their money, says adviser Karl Henrik Nordbakken.
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From 2021, there have been changes to the scheme and tax credits on BSU savings are now only granted to people who do not own a home. In addition, it became possible to use the funds saved in the BSU for housing costs and maintenance. In 2023, further restrictions were introduced and the tax credit on BSU savings was reduced from 20 to 10%.
Since the entry into force of regulatory changes in 2021, negative twelve-month growth was recorded for most of 2021 and all of 2022. Last year was the first year in which negative twelve-month growth was recorded in all months of the year. Chart 1 shows the twelve-month dynamics of deposits on BSU accounts, where a clear negative trend has been visible since mid-2021.
What is BSU? (Boligsparing for ungdom)
This is a form of saving for people who are under 34 years of age. You can save up to 27 NOK per year and get tax relief. The total amount of savings is NOK 300. Only you who do not already own a home can get tax relief by saving on BSU.
You can save in the year you turn 33
Even in the year you turn 33, you can save on your BSU account and get tax relief. There is no lower age limit for creating a BSU account, but you only get tax deductions if you have income. It is not recommended to open a BSU account if you are under 17 and have no taxable income.
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Source: Statistics Norway. Skateetaten
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