Annual Report: Jyske Bank lowers exemption limit for negative interest on personal clients’ deposits

February 25, 2020

As it is expected that the negative interest-rate level will continue for several years, Jyske Bank finds it necessary - as from 1 May 2020 - to set a DKK 250,000 exemption limit for negative interest on personal clients’ credit balances. This was announced by Jyske Bank at the publication of its 2019 Financial Statements.

“The reason is the combination of the continued low interest-rate level and the higher deposits with the bank. The market anticipates negative interest rates for the next eight or nine years, and therefore Jyske Bank cannot continue offering an interest rate of zero percent. Even with the new exemption limit at DKK 250,000 for negative interest, Jyske Bank is still losing money on deposits. Fortunately, we have gained some experience offering our clients alternatives to negative interest rates, so if you are affected by the lower exemption limit, we recommend that you consult your account manager,” says Anders Dam, CEO and Managing Director of Jyske Bank.

The consequence of the new exemption limit is that you may have a credit balance of DKK 250,000 on your NemKonto "Easy Account" without having to pay negative interest.

On other accounts, negative interest is payable on all deposits. Deposit accounts for children and 'børneopsparing' (child savings accounts) are, however, subject to an exemption limit of DKK 100,000.

Jyske Bank’s 2019 financial statements revealed - as indicated in an update in January - a profit above DKK 2.4 bn. For 2020, Jyske Bank forecasts a profit in the range of DKK 1.8 bn - 2.2 bn.