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    What is the late payment interest rate in Finland?

    How the rate is set and how often it changes.

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    Short answer

    The Bank of Finland announced that the reference rate under the Interest Act is 2.5% for 1 July to 31 December 2026. The general late payment interest, used for example when a consumer pays a bill late, is the reference rate plus 7 percentage points, so 9.5% a year. In commercial contracts between businesses it is the reference rate plus 8 points, so 10.5%. The reference rate is reviewed every six months.

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    Why

    1. The Bank of Finland publishes the reference rate and penalty interest rates.
    2. The general rate is the reference rate plus 7 points under section 4 of the Interest Act.
    3. The reference rate is based on the ECB main refinancing rate, rounded up to the next half point.

    Details

    Interest is counted for each day from the due date until the payment date.

    Tip

    Pay on time or agree on a new due date with the creditor before the bill is overdue.

    What may differ

    A contract can set a different interest rate. The rate also changes every January and July.

    Common misconception

    The late payment interest rate is fixed by law at 7%.

    What actually happens

    The law adds 7 points to a reference rate that changes twice a year.

    People also ask

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    Sources

    This answer is for reference only. Payment rules and fees change, so check the official sources or your bank before you pay.

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