What are Danmarks Nationalbank’s interest rates?
Danmarks Nationalbank sets four official monetary-policy interest rates:
- the currect account rate
- the certificates of deposit rate
- the lending rate
- the discount rate
The monetary-policy counterparties, which are the banks and mortgage credit institutions holding accounts with Danmarks Nationalbank, each have a current account, a certificates of deposit account and a lending account. The accounts accrue interest at the current account rate, the certificates of deposit rate and the lending rate. The discount rate is a signal interest rate and is not associated with an account.
Current account rate
The current account deposits of the monetary-policy counterparties accrue interest at the current account rate. Current-account deposits with Danmarks Nationalbank are on-demand deposits which the monetary-policy counterparties can use as a means of payment immediately and at their own initiative.
Certificates of deposit rate
The certificates of deposit rate is the interest rate at which Danmarks Nationalbank pays interest to the certificates of deposit account of monetary-policy counterparties. Danmarks Nationalbank sells certificates of deposit in its regular open-market operations on the last banking day of the week.
Lending rate
The lending rate is the interest rate paid by monetary-policy counterparties wishing to avail themselves of Danmarks Nationalbank’s offer of collateralised lending. Danmarks Nationalbank offers weekly collateralised lending in its regular open-market operations on the last banking day of the week.
Discount rate
The discount rate is a signal interest rate for the general level of monetary-policy interest rates in Denmark.
You can find further information on Danmarks Nationalbank's interest rates here.
What is DESTR?
We have collected the most frequently asked questions and answers about DESTR here.
What is default interest rate?
The default interest rate is not one of Danmarks Nationalbank’s official interest rates. It is the interest rate charged in the case of late payment in connection with consumer transactions. The default interest rate is regulated twice a year. Section 5(1) of the Danish Interest Act states that the default interest rate is fixed as an annual interest rate equal to Danmarks Nationalbank’s official lending rate on 1 January and 1 July of the year in question + a surcharge. Read about the default interest rate at forbrug.dk (Danish).