Jyske Bank makes headlines again for charging wealthy clients on their deposits

By: Talat Mohsin

Jyske Bank, the third-largest lender in Denmark, is in news again as it has announced that instead of paying interest, it will charge the people who have more than 7.5 million Danish crowns (₹8 crore) 0.6 percent a year. The bank is planning to implement this rule by December.

“Market expectation indicates that the negative interest rate environment will last for several years”- the chief executive of Jyske Bank Anders Dam said in a statement on the bank’s website on Tuesday.

The CEO also added that the bank’s decision has been made after analyzing the effect of negative interest rates in Denmark, which is costing Jyske money to hold the millionaire’s savings. However, the bank is also open to negotiating rates with customers.

According to the statement by the bank, interest rates of 0 percent will be applied to the first 7.5 million kroner of all customers savings, with -0.6 percent applied thereafter unless alternative terms and conditions have been agreed. It’s been estimated that only a small amount of people would be affected by this change.

Jyske Bank was earlier in news for its offer of launching negative interest rates on house loans. Instead of paying money, the loans of people will be reduced by more amount that they will pay.

Denmark: Where Home Loans are offered at a negative Interest Rate