Negative interest rates for personal customers


For several years, interest rates have been very low, and the Danish central bank’s official interest rate has been negative for a long time. There is no indication that this situation will change in the near future. 

So far, we have not required our retail customers to pay interest at a negative rate or, in other words, to pay for having money in the bank. However, with the prospect of interest rates remaining low, we are introducing an interest rate of -0.60% on total cash deposits of more than 

  • DKK 1.5 million in your own accounts – if you have your NemKonto account with us
  • DKK 750,000 in your own accounts – if you do not have your NemKonto account with us
  • DKK 750,000 in accounts you hold jointly with others

For cash deposits below the above limits, the interest rate will be 0%. The interest rate change takes effect on 1 June 2020.

You can have deposits of up to DKK 1.5 million without paying negative interest

If you have your NemKonto account with us, negative interest rates will only apply to you if the total cash deposits in your accounts exceed DKK 1.5 million. If you do not have your NemKonto account with us, you can have total deposits of up to DKK 750,000 without paying negative interest. And you will be charged negative interest only on the amount that exceeds the limits.

More specifically, you will not have to pay for having money in your accounts as long as your total deposits do not exceed the above limits. 

If you hold accounts jointly with one or more other persons, a special limit of DKK 750,000 applies to such accounts, regardless of whether they are linked to a NemKonto account or not.

Do you have a bank home loan?

If you have one of the following bank home loans, only the amount exceeding the loan amount will be included in the total balance on which negative interest is charged. The deposit rate that applies to the account linked to the home loan (the home loan account) is not changed. This means that you will retain your interest benefit on deposits below the home loan amount.

  • Loans secured on mortgages/pledges: Danske Prioritet or Danske Prioritet Plus
  • Supplementary home loans: Danske Boliglån Plus
  • Co-operative housing loans: Andelsboliglån/Danske Andelsboliglån Plus

What is negative interest and how will it affect you as a customer?


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What are your options?

The situation with negative interest rates is unusual. If your total cash deposits exceed the above limits, and you therefore have to pay negative interest, it may be a good idea for you to discuss your options with us.

The best option for you depends entirely on your individual situation and needs. You may want to invest some of the money, increase your pension savings, pay off debt or renovate your home or holiday home.

We will be happy to advise you about your options – book a meeting with us or call us on +45 70 123 456.


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Which accounts are subject to negative interest?

Generally, accounts in which you as a customer can deposit funds are subject to negative interest rates. This applies to accounts such as salary accounts, savings accounts and budget accounts. See a list of the accounts that are covered.


See list

Which accounts are not subject to negative interest?

Certain types of accounts are exempted from negative interest rates. This applies to accounts such as child savings accounts, pension accounts, investment accounts and special accounts used in property transactions. See a list of the accounts that are not covered.


See list


See examples of how we calculate negative interest

Q&A

  • What is negative interest?
    Previously, you would receive interest on cash deposits in your bank accounts because deposit rates were positive. In recent years, the market has changed leading to a situation with negative interest rates. So now we have the opposite situation, where it may cost you to have money in the bank because you will be required to pay negative interest instead of receiving interest. The main reason for this is that banks are charged negative interest for their bond investments and deposits with the Danish central bank. This is the reason why we, like other banks, are introducing negative interest rates to cover some of these costs.
  • Why are you introducing negative interest rates for my accounts?
    Over the past several years, we have generally had a situation with negative interest rates on bonds in Denmark, and the Danish central bank’s official interest rate is expected to remain negative for a long period of time. This means that we, as a bank, have to pay negative interest on our bond investments and deposits with the Danish central bank, which is very costly to us. This is the reason why we, like other banks, are introducing negative interest rates to cover some of these costs.
  • How will this affect me – will I have to pay negative interest?
    You will only be affected if you have total deposits of more than 1.5 million in your own accounts, provided you have your NemKonto account with us. If you do not have your NemKonto account with us, the limit is DKK 750,000. For accounts you hold jointly with others, the limit is DKK 750,000, regardless of the number of joint holders. You will be charged negative interest if your total deposits exceed the limit – but only on the amount exceeding the limit.
  • How do you calculate negative interest?
    Negative interest will be charged if your total cash deposits exceed the limit – but only on the amount exceeding the limit. Interest is calculated on a daily basis on deposits in accounts covered by negative interest rates, and it is allocated to the accounts in proportion to the individual account’s share of the total deposits. Negative interest will not be charged if your total cash deposits are below the limit. See the list of accounts that are subject to negative interest rates.
  • When will you charge negative interest on my accounts?
    If the total cash deposits in your accounts exceed the limit, you will be charged negative interest. You will pay negative interest at the end of each quarter, beginning on 30 June 2020. Negative interest will not be charged if your total cash deposits are below the limit.
  • Is negative interest tax-deductible?
    Yes, negative interest is tax-deductible. The negative interest you are charged will be stated as an interest expense in your tax assessment notice.
  • Can I open additional accounts to increase the limit?
    You are welcome to open additional accounts, but the limit will not be increased as the limit applies across your accounts. This means that a single limit will apply to you whether you have, for instance, one or ten accounts. If your NemKonto account is with us, a limit of DKK 1.5 million applies to your total cash deposits in accounts held by you alone. If you do not have your NemKonto account with us, the limit is DKK 750,000. Please note that a special limit of DKK 750,000 applies to accounts you hold jointly with others.
  • How do you include cash deposits in accounts that I hold jointly with others in the calculation of negative interest and which limit applies to them?
    A limit of DKK 750,000 applies to accounts that you hold jointly with others, regardless of the number of joint holders. Negative interest will be charged on any amount exceeding this limit. Negative interest on joint accounts is calculated separately from negative interest on accounts held by you alone. If you hold several accounts jointly with others, and these accounts are held by different joint holders, a separate limit of DKK 750,000 will apply to each account.
  • Are there any alternatives to having cash deposits – can I avoid paying negative interest?

    We will be happy to advise you about alternatives to having cash deposits. The best option for you depends entirely on your individual situation and needs. We always take a holistic view on your financial situation, and together with you, we will find the best solution. You may want to invest some of the money, increase your pension savings, pay off debt or renovate your home or holiday home.

    Let us advise you about your options – book a meeting with us or call us on +45 70 123 456.