According to Ross Nicolson, Customer Relationship Specialist working with international and corporate clients at OP Uusimaa, most problems he sees aren’t caused by bad decisions, but by timing. People often try to move money or invest before their Finnish setup is fully in place.

The biggest financial mistake people make in the first six months

The most common mistake is trying to move money or start investing before your Finnish setup is ready. To manage savings or investments‍ independently, you usually need a Finnish personal identity code, a registered Finnish address, and strong authentication for online banking. Getting all of this in place can take time, especially if you need a Finnish ID card, which can take several weeks.

Ross Nicolson says this is one of the most common surprises for newcomers, especially those moving from countries where cash deposits are still normal. Finland is largely cashless, and banks are required to verify where money comes from. Cash brought from abroad is often difficult to document, which can delay or prevent deposits altogether.

Read More: Cash usage and mobile payments in Finland: what newcomers need to know

Simple advice for month one: talk to your bank before transferring money and ask exactly what documents you’ll need before leaving the country of origin.

Moving money to Finland

What banks ask for depends on the situation. A salary account usually only requires an employment contract. Larger transfers, for example from a property sale or inheritance, require documentation proving the origin of the funds, such as sale agreements or bank statements. This applies to everyone and is part of standard regulation. Ross Nicolson points out that, “this isn’t about suspicion, it’s simply how Finnish banks are required to operate”.

Savings in Finland: Common misunderstandings

Savings accounts in Finland are mainly used as a buffer, not for growth. Savings account interest rates in Finland are generally modest and often follow the three-month Euribor, with the bank’s margin deducted. Savings account interest in Finland is subject to withholding tax, which is currently 30% regardless of the size of the deposit. This tax is deducted automatically from the interest earned. Capital income tax, which ranges from 30% to 34%, applies instead to certain investment returns, such as gains from funds, equities, or rental income from investment properties.

As a rough example, Ross Nicolson explains that a savings balance of around €50,000 might currently earn roughly 1.5 percent interest before tax, depending on the bank’s margin.

A common mistake is comparing savings interest rates across countries without considering currency changes. Nicolson often reminds clients that interest rates don’t exist in isolation. A higher savings rate abroad can still result in a loss once currency movements are taken into account.

Saving vs investing

Savings are usually for short-term needs and easy access to money. Investing is meant for longer-term growth.

Savings include current and savings accounts or fixed-term deposits. Investing includes funds, ETFs, and shares. Many investment plans begin with an initial deposit, followed by regular monthly contributions, often based on a percentage of a client’s salary. The exact amounts vary widely depending on each person’s financial situation and goals.

If your stay in Finland is uncertain

For people staying one to three years and unsure what comes next, Ross Nicolson says banks typically steer away from high-risk products to avoid unnecessary volatility. In these cases, the focus is usually on flexibility rather than maximising returns. Fixed-term savings or low-volatility bond funds are common starting points for clients who consider themselves conservative investors or have a short investment horizon. Most investment funds are not locked, even if a recommended holding period exists.

Tax residency and investing in Finland

One reason investing feels straightforward in Finland is that reporting is largely automatic. Investment activity is reported directly to the tax authorities, and capital income appears separately on your tax card. Your main responsibility is to check that the information is correct and pay tax when billed.

For many newcomers, this automated reporting removes a lot of stress, especially for those used to self-reporting systems in other countries.

Investment accounts people should understand

Finland offers different investment account types. Standard brokerage accounts are common and can be held at multiple banks. The Equity Savings Account allows taxes to be deferred until money is withdrawn, but only one is allowed per person. Opening more than one can lead to penalties.

Fees also matter. Index funds are usually cheaper, while actively managed funds can be significantly more expensive. Fees have a bigger impact when investment horizons are short.

One practical piece of advice

Ross Nicolsons advice to new arrivals is simple: get the basics in place first. Build a buffer, then start investing gradually if it suits your situation.

He also sees many newcomers delay investing because they assume they don’t have enough money to start. In reality, investing can begin with very small monthly amounts, and consistency matters more than timing or size.

If you’re unsure where to start or want to talk through your options, OP offers investment advice meetings at no cost. Speaking to an advisor early can help you avoid unnecessary delays and make decisions that fit your situation.

Read more 

How to start investing in mutual funds‍

Saving on behalf of a child‍

International services at OP Uusimaa‍‍