Denmark 2nd biggest bank Jyske Bank, charges 0.6% deposit yearly interest
Updated: Aug 30, 2019
It has now been less than two weeks since Denmark's second-largest bank, Jyske Bank, announced that it would be the world's first bank to offer negative-interest housing loans. Yesterday, the bank announced, wealthy gurus have to start paying the bank interest on deposits, Reuters writes.
The change concerns customers with at least DKK 7.5 million, or approximately $ 1.1 million, in their account. The deposit interest rate is minus 0.6 percent per annum.
"In Denmark, the era of negative interest rates began in spring 2012," said bank manager Anders Dam. "It was only in 2014 that there was a short break in negative interest rates, but now negative interest rates seem more of a permanent phenomenon."
The bank manager said that, according to market expectations, the negative interest environment will last for years to come.
The bank began offering housing loans to the municipalities, paying borrowers a half percent interest a year.
Denmark's largest bank, Danske Bank, announced that they would not impose negative deposit rates on private individuals.
In Switzerland, however, large banks have already done so for the wealthiest customers.
Denmark was the first developed country this month to have a negative interest rate on all government bonds.