Statistical news focuses on the latest figures and trends in Danmarks Nationalbank’s statistics. Statistical news is targeted at people who want quick insight into current financial data.
Private customers’ interest income halved since start of the year
Since the beginning of the year, the average interest rate on Danish private customers' deposits has fallen by 0.65 percentage points. This has resulted in accrued interest on their deposits decreasing from kr. 961 million in December to kr. 453 million in August – despite the fact that private customers' deposits have increased during the same period. The decline in interest rates largely reflects the development in monetary policy rates and that Danes have changed their preferences regarding the choice of deposit forms. However, the general decline in interest rates has also benefited private customers with bank debt, as the interest rate on private customers' bank loans has likewise fallen.
Danes’ interest income on deposits has fallen by 53 percent since the start of the year
Note:
The chart shows the monthly accrued interest on Danish private customers' (sector 1430) deposits since January 2021. Find chart data in the Statbank.
Deposit growth is no longer driven by fixed-term deposits
The decline in the average interest rate on private customers' deposits is partly due to a decreased interest in fixed-term deposits1. Private customers have thus reduced their interest-bearing fixed-term deposits by kr. 12.1 billion since the beginning of the year. In comparison, they have increased their demand deposits, which make up the majority of Danes' deposits, by kr. 65.4 billion. By the end of August, Danes had a total of kr. 1,250 billion in the bank, of which kr. 1,050 billion is interest-bearing, while the remaining portion is invested through pooled schemes2.
Fixed-term deposits were the primary driver behind the growth in deposits in 2023 and early 2024, where the higher interest rate level made this type of deposit more attractive. Following changes in the monetary policy rates, however, banks have since significantly lowered the interest rates on fixed-term deposit accounts. Thus, the annual average interest rate on new fixed-term deposits has fallen from around 3 percent at the beginning of 2024 to just over 1.2 percent in August 2025. In comparison, the average interest rate on demand deposits is currently 0.44 percent. Private customers' deposits are diverse, and the average interest rate covers several types of deposits with very different interest levels; for example, the interest rate on many regular transaction accounts is currently 0 percent.
Private customers are increasing their demand deposits
Note:
The chart shows the annual change in Danish private customers' (sector 1430) interest-bearing deposits, divided into fixed-term and demand deposits. Interest-bearing deposits refer to deposits placed in accounts with interest accrual. This means that deposits placed in pooled schemes are not included. Pooled schemes do not have a fixed interest accrual but instead provide a return based on the underlying investments.
The lending rate has fallen more than the deposit rate
Despite Danish private customers receiving lower deposit rates, the interest rate declines have also benefited customers in the form of lower interest rates on their bank loans. The average interest rate on their loans has fallen by 0.8 percentage points since the beginning of the year, which is 0.15 percentage points more than the deposit rate. This means that Danes, on average, would pay about kr. 670 less in interest3 per borrowed million in August 2025 compared to December 2024.
Similar to deposits, the composition of private customers' loans has influenced how much the average interest rate on their bank loans has decreased. Since the beginning of the year, private customers have increased the share of bank loans for housing purposes, where collateral is secured in real estate, making it possible to achieve a lower average interest rate. Loans for housing purposes accounted for 68.7 percent of private customers' bank loans at the end of August.