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Negative interest: Danske Bank changes threshold for personal customers and standard interest rates for business customers in Denmark

Danske Bank lowers the threshold for the charging of negative interest on personal customer deposits from DKK 250,000 to DKK 100,000 and introduces an interest rate spread of -0.75% to -1.00% p.a. for business customers. Small businesses will be charged the least negative rate of -0.75% p.a. The changes will take effect on 1 July 2021.

The prospect of interest rate levels continuing to be negative combined with a steadily increasing deposit surplus means that Danske Bank will be changing the interest rate terms for standard deposits with effect from 1 July 2021 for both personal and business customers.

Change of the threshold for the charging of negative interest on personal customer deposits with effect from 1 July 2021
“We have experienced highly unusual interest rate levels for a long time now, and there is no prospect of this changing. At the same time, we see a significantly increasing deposit surplus, which in the current interest rate environment results in a considerable expense for the bank. This is obviously not sustainable for us in the long term, and we are therefore lowering the threshold for the charging of negative interest on deposits. We are of course ready to advise customers on how to adapt to the situation after 1 July 2021, including by discussing relevant alternatives to cash deposits,” says Mark Wraa-Hansen, Head of Personal Customers Denmark.

Changes for personal customers:
  • Personal customers with a NemKonto account with Danske Bank: The threshold for the charging of negative interest will be DKK 100,000 and will be calculated on the basis of the aggregate amount of deposits in all of the customer’s accounts. Any share of deposits in jointly held accounts is included in the DKK 100,000 threshold. The interest rate applicable to deposits will not change and will therefore still be -0.6% p.a.

  • Personal customers without a NemKonto account with Danske Bank: The threshold for the charging of negative interest will change from DKK 50,000 to DKK 0, meaning that customers without a NemKonto account with Danske Bank will be charged negative interest on all their deposits.

  • Some account types will remain exempt from negative interest: Account types such as child savings accounts, special accounts used for home purchases or sales, and accounts that are secure from attachment by creditors will continue to be exempt from negative interest.

Changes to standard rates for business customers at 1 July 2021
With effect from 1 July 2021, the standard interest rate for business customers will change from 0.60% p.a. to between -0.75% and -1.00% p.a. for deposits denominated in Danish kroner. Small businesses served by Business Direct will be charged a standard rate of -0.75% p.a., while other business customers will be charged a rate in the spread from -0.75% to -1.00% p.a.

“The change for business customers is a consequence of the protracted period with low interest rates that we expect to continue and the large amounts that our business customers have on deposit. We need to ensure that our deposit business is profitable also in future in order to run a financially viable bank. Small business customers will be charged the lowest standard interest rate in the spread due, among other things, to the uncertainty associated with the corona crisis. Naturally, we are ready to help and advise customers on alternatives to cash deposits,” says Niels Bang-Hansen, Head of Business Customers Denmark.

In the coming period, Danske Bank will contact all customers.

Read more about the changes at danskebank.dk

Danske Bank

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