Greed, Bankers and Politics Star in Danish Negative-Rate Debacle

[trader99]

WTF! Danish retail savers are so royally screwed.

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https://finance.yahoo.com/news/greed-bankers-politics-star-danish-040000695.html

"
He commented a day after Danske Bank, Denmark’s biggest lender, said it was following others in the industry and more than halving its threshold for imposing a rate of minus 0.6%. As a result, retail depositors with more than 100,000 kroner ($16,000) will pay 0.6% to park savings exceeding that amount with the bank.

“My worry is that banks will continue tightening the screws on negative rates so that average Danes need to pay to keep their money in a bank,” the minister said in a written comment to Bloomberg.

Kollerup, who summoned the bankers’ association to talks, says there’s no excuse for passing negative rates on to private customers, and rejects the idea that monetary policy plays a role in determining commercial bank rates.

"

 

[BMK]

retail depositors with more than 100,000 kroner ($16,000) will pay 0.6% to park savings exceeding that amount with the bank.

Okay, so, for example...

If I have the equivalent of US $24,000 on deposit at a Danish bank...

I have to pay 0.6% per annum on US $8,000.

That's $48 per year, or four dollars each month.

 

[Nobert]

It's a Domocles Sword for the banks.

A great chance for Fintechs to take advantage of it.

Offering 2% or 3% on deposits, will sound like a dream deal, especially when some banks offer .15%

Other than that, it never hurts to keep it in physical cash.

 

[ZBZB]

You can get up to 10% a year interest on crypto at www.Abra.com

 

[JSOP]

WTF! Danish retail savers are so royally screwed.

======================
https://finance.yahoo.com/news/greed-bankers-politics-star-danish-040000695.html

"
He commented a day after Danske Bank, Denmark’s biggest lender, said it was following others in the industry and more than halving its threshold for imposing a rate of minus 0.6%. As a result, retail depositors with more than 100,000 kroner ($16,000) will pay 0.6% to park savings exceeding that amount with the bank.

“My worry is that banks will continue tightening the screws on negative rates so that average Danes need to pay to keep their money in a bank,” the minister said in a written comment to Bloomberg.

Kollerup, who summoned the bankers’ association to talks, says there’s no excuse for passing negative rates on to private customers, and rejects the idea that monetary policy plays a role in determining commercial bank rates.

"

If there is no matching increase in productivity, this is going to give rise to so much inflation!! Remember what was happening with the German economy before WWII?

 

[veronaruffin]

Maybe you should talk to the bank about it and familiarise yourself with the commercial banking rates and policies. Good luck.

 

[trader99]

Okay, so, for example...

If I have the equivalent of US $24,000 on deposit at a Danish bank...

I have to pay 0.6% per annum on US $8,000.

That's $48 per year, or four dollars each month.

It's not the $4/month but the fact you HAVE to pay to park your money in a bank. Ridiculous! They can earn it better rates with an online savings bank.