New year, and a new opportunity for those under 34 to top up NOK 27,500 in a BSU account.
The BSU scheme aims to help young people enter the housing market, but this year the benefits are not as good as they were.
In the budget settlement between the government and SV, it was decided that the tax deduction will be lowered from 20 to 10 per cent.
This means that you get half as much back on tax if you complete the BSU and earn more than 87,000.
From this year, you will therefore only get NOK 2,750 in tax relief if you top up the account. Previously it had been NOK 5,500.
This is a BSU account
- The maximum payment is NOK 300,000, NOK 27,500 a year.
- If you have an income, you get 10 per cent of what you have put into BSU in tax relief.
- The savings form has the banks’ best savings rate.
- It applies to you under the age of 34.
- You can withdraw the money again throughout the year until 1 January. The money is then locked in the account.
- The money in the BSU account must be used for own housing. See all the rules at The tax authority.
– All into January
Consumer economist Espen Østvold Rølla at consumereconom.no believes it may be wise to set aside a fixed amount each month to top up the BSU account during the year.
ALL IN: Consumer economist Espen Østvold Rølla believes you should top up your BSU account straight away if you can. Photo: Torstein Ihle
– However, if you have the money ready, you will earn interest from January and should then deposit everything in January, he writes to TV 2.
The banks have good interest rates for keeping the money in a BSU account. This means that the money grows more in a BSU account, compared to having the same money in the savings account.
– If you have the money, there is no reason why it should be left somewhere else, writes consumer economist at Sparebank 1, Magne Gundersen.
RISK: Magne Gundersen in Sparebank 1 believes BSU is safer and smarter than the alternatives. Photo: Gorm Kallestad
He believes you can go for a bang if you put the money in a fund instead of putting it at BSU.
– The reason is high interest, safe placement and the tax deduction. You can occasionally get better returns in funds, but the uncertainty is so much greater that I don’t recommend it. It’s silly if your fund has dropped a lot just when you need the money to buy a home.
Consumer economist at Danske Bank, Thea Olsen, agrees.
– As a general rule, I would still say that if you are young and without a home, you should invest your money in BSU rather than in the stock market.
HIGHLY RECOMMENDED: Thea Olsen, consumer economist at Danske Bank, also believes that BSU is smart for many. Photo: Photo: Martin Berg Isaksen / TV 2
– Unbelievable shame
Finans Norge is among those who have reacted to the new percentages for tax deductions.
Tom Staavi, director of information at Finans Norge, writes to TV 2 that it is still wise to save money in BSU.
SYND: Director of Information at Finance Norway believes it is a shame that the benefits of BSU are worse. Photo: CF-Wesenberg
He believes that the combination of a high interest rate because the money is tied up over time and a tax deduction means that the saver cannot find other savings schemes with equally good returns without risk.
– But it is an unimaginable shame and difficult to understand that the government is attacking young people by reducing the value of the BSU scheme. The government should prioritize the young.
State Secretary Lars Vangen from the Center Party has previously replied that the BSU scheme will still be beneficial for those who save in it.
– But within a tight budget we have to prioritize, and in the budget settlement we prioritize several other measures that particularly apply to young people, including an increased tax-free card limit, increased study support and half price at the dentist for those aged between 23 and 26, Vangen told Rogaland’s newspaper.
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