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Banks Just Changed the Rules of the Negative Rate Game for Danes

A cyclist passes Denmark's central bank in Copenhagen.

A cyclist passes Denmark's central bank in Copenhagen.

Photographer: Luke MacGregor/Bloomberg
Updated on

Denmark is about to become a test case for what happens when banks start charging a lot of customers to store their money.

That’s because one of the country’s biggest banking groups just changed the rules of the game, by removing the floodgate that had shielded most retail depositors. Until Friday, only people with roughly $1 million in surplus cash at their banks were facing a negative rate. Now, the threshold has been reduced to just over $100,000, with no guarantee it won’t go lower.