Danske Bank has so far exempted personal customers from having to pay negative interest rates, but from 1 June 2020, the interest rate in Denmark will be reduced to -0.75% for the following credit balances:
- DKK 1.5 million in total on own accounts – for customers with NemKonto agreements
- DKK 750,000 in total on own accounts – for customers without a NemKonto agreement.
- We must expect that the unusually low level of interest rates and negative interest rates will continue for years to come. At the same time, we can see increased interest in placing money with us from customers with whom we do not otherwise have other transactions. This is unsustainable in the long term and we feel obliged to pass on the unusual level of interest rates on very large deposits. The interest rate cut covers less than one per cent of our personal customers, says Thomas Mitchell, Danske Bank's head of personal customers in Denmark.
The interest rate change will take effect on 1 June, so customers with large deposits that will be affected by the interest rate cut will have time to get advice and decide on possible alternatives.
- When we set different limits for when negative interest rates will materialize, it is partly in the interests of our existing customers and partly in order to give specific benefits to customers who gather their business with us, says Thomas Mitchell. Danske Bank's head of personal customers in Denmark.
The interest rate applies to deposit accounts with the exception of pension savings, investment accounts (such as June, Flexinvest Fri, asset rent, etc.), child savings account, Danske Gave, Danske Gave Plus, skødekonto, buyer account, remortgaging account and building financing account. The priority account will only be affected by the credit balance that exceeds the priority.
Further information on interest rate changes is available at www.danskebank.dk