Danske Bank’s expected profit this year: 20 billion DKK; Nordea’s expected profit: 37 billion DKK. The banks are making money from the sky-high interest rates. How? The country’s banks and financial institutions have an account at Danmarks Nationalbank (Denmark’s National Bank), where they can deposit amounts and/or withdraw from. They get paid an interest rate of 3.6%. So basically, they are using the money you have deposited with them to make money. They may give you an interest rate of 1% (if you are lucky), while they keep the rest.
- For example, if you have 50,000 DKK in your bank account, you will get 500 DKK at a 1% interest rate. However, the bank will receive 1800 DKK from the national bank, so they get to keep 1300 DKK. Try the calculator here to see how much money your bank is making with your money.
- Of course, the banks are also making good money when they lend to you. So their revenues have increased from every direction. It’s a good time to start an online bank like Lunar or Revolut.
- The Business Minister is encouraging the population to ask the banks to raise the interest rates they provide on deposits and, if they refuse, to switch to another bank. There are 60 banks in Denmark.
- The main idea is that if you have money in your bank account, now it’s time to look into savings options.
