Add organization

Did Danish banks have negative interest rates on deposits?

A short history of negative rates.

Answered at: Checked at:

Short answer

Yes, for a period. In early July 2012 Danmarks Nationalbank cut its rate on certificates of deposit to minus 0.20 %, the first time in about 200 years that one of its rates was below zero. From the start of 2021 private customers paid a net DKK 1.4 billion or so in interest on their deposits, mainly on amounts above a certain limit. After rate rises in July and September 2022, the average deposit rate for private customers was 0.17 % in September 2022, the first time since January 2021 it was not negative.

Practical info

Why

  1. Nationalbanken sets its rates to keep the krone stable against the euro.
  2. Banks passed the negative rates on mainly to large deposits.
  3. Rising rates in 2022 ended the period.

Details

On 9 September 2022 Nationalbanken raised its rate on certificates of deposit to 0.65 % a year.

Tip

Read the interest rates on your yearly statement of fees, where the bank shows the rates it has used.

What may differ

Deposit rates follow the general interest level and can change again.

Common misconception

Some newcomers believe Danish banks still charge negative interest on all deposits.

What actually happens

Deposit rates for private customers turned positive again in autumn 2022.

People also ask

  • Is my money safe in a Danish bank?
  • Do Danish banks charge account fees?
  • Why is the Danish krone pegged to the euro?

Sources

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

Practical info
Help