Growth in savings scheme for youths
Banking and financial markets
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Financial corporations, balance sheetJanuary 2009

As from 2016 the statistics is published with Banks and mortgage companies.



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Growth in savings scheme for youths

Home investment savings with tax deduction for young people (BSU) amounted to NOK 14.8 billion at end-January. The twelve-month growth in BSU was 11.6 per cent, which is the highest twelve-month growth since the scheme became established.

BSU deposits. July 2002-January 2009. NOK million and twelve-month growth

At end-January 2009, the total BSU deposits amounted to NOK 14.8 billion, up from NOK 13.3 billion at end-January 2008. The major part of the increase stems from the last month in 2008; in December the home investment savings increased by NOK 1.3 billion. The investments continued to increase in January this year by NOK 0.2 billion, which is a variance from the normal seasonal pattern for these deposits. One explanation can be the changed regulations for BSU deposits from 1 January 2009 (see box).

The bulk of the deposits are made in December in order to achieve tax deductions the same year (see the graph), while the withdrawal of the deposits for home investments are spread over the year. The concentration of deposits in December is due to the fact that investments in BSU are tax deductible. To withdraw money from a BSU account and avoid tax liability, several conditions have to be met (see box).

Home investment savings with tax deduction for young people (BSU)

Home investment savings with tax deduction for young people (BSU) is a savings scheme for people under 34 years of age. As from 2009, the total savings for one year are NOK 20 000 and total savings in the scheme are NOK 150 000. The scheme guarantees a loan four times the savings amount, and currently gives a yearly tax deduction of up to NOK 4 000. In order to avoid tax liability for withdrawals, the entire amount must be used for housing purposes. This includes buying a house or an apartment, or repayments on mortgages for a house purchased after the savings started.