diff --git a/packages/desktop-client/src/components/budget/misc.js b/packages/desktop-client/src/components/budget/misc.js
index 7ad19deb53923932ffc2d980fa5a1255669846a4..9ee02db87adca31d2f86a8eb500c10131c04b08b 100644
--- a/packages/desktop-client/src/components/budget/misc.js
+++ b/packages/desktop-client/src/components/budget/misc.js
@@ -1158,7 +1158,7 @@ const BudgetCategories = memo(
         });
       } else if (state === 'end') {
         setDragState(null);
-        setCollapsed(savedCollapsed);
+        setCollapsed(savedCollapsed || []);
       }
     }
 
diff --git a/packages/loot-core/src/client/actions/sync.ts b/packages/loot-core/src/client/actions/sync.ts
index bb5682cb6d8565e4da247efb17d489ee5a5f27f4..6c95ea3e86487c89db210d0a465d4e586a2b7c71 100644
--- a/packages/loot-core/src/client/actions/sync.ts
+++ b/packages/loot-core/src/client/actions/sync.ts
@@ -43,6 +43,7 @@ export function sync() {
       if ('error' in result) {
         return { error: result.error };
       }
+      return {};
     }
   };
 }
diff --git a/upcoming-release-notes/1289.md b/upcoming-release-notes/1289.md
new file mode 100644
index 0000000000000000000000000000000000000000..841964e20e22f424e3f2c2cbc8372f764d7e215c
--- /dev/null
+++ b/upcoming-release-notes/1289.md
@@ -0,0 +1,6 @@
+---
+category: Bugfix
+authors: [MatissJanis]
+---
+
+Fix Nordigen sync issue; fix sorting of budget categories