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

Authored by danskebank.com and submitted by Set1Less
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deezmfnuts on May 2nd, 2021 at 11:04 UTC »

For the people not understanding why or how negative rates happen, heres a simplified version:

*The central bank imposes negative rates on banks

*Banks impose negative rates on customer deposits

Why does the central bank do this? To encourage spending by making it less attractive to have deposits in the bank.

Not really caused by the commercial banks but rather the central bank :)

AllSaintsFlood on May 2nd, 2021 at 10:53 UTC »

They are planning to do the same in the Netherlands soon for savings over 100k (euro). Soms banks already issue negative interest.

edit: added euro clarification

Jozozozo on May 2nd, 2021 at 10:36 UTC »

A lot of German banks started forcing negative interest on their clients accounts.

It’s a complete joke and hopefully some people will move funds to crypto.