Denmark’s 100% digital bank, Lunar, has decided to offer positive interest rates on all types of accounts without any demands for tying up the funds.
The move will see the organisation remove its previous deposit limit of 100,000 Danish kroner from August 24, and also grant all paying customers access to positive monthly return rates of up to 2.25%.
The change is set to apply from the first Danish krone, with users receiving monthly payouts, regardless of the amount and account type.
Anne Marie Kindberg, Chief Revenue Officer at Lunar Bank, said: “At Lunar, we work to build the best everyday bank in the Nordics. In order to fulfil that promise, it’s important that as a bank, we listen to our customers.
“We want to make it possible for Danes to have an easy digital overview of their finances, the best banking conditions with transparent fees, and a good deposit interest rate. Therefore, it’s a natural step for us to remove the deposit amount limit.”
Lunar Bank was the first Danish bank to reintroduce positive interest rates back in May 2021. Since then, the rate has been raised multiple times and now stands at 1.5% for the bank’s free account, with a cap of 100,000 Danish kroner.
Every time the interest rate has been increased or the deposit limit has been raised, Lunar Bank has experienced an increase in its customer base, with existing customers choosing to add more money to their accounts.
However, Anne Marie Kindberg also emphasises that the interest rate alone isn’t enough, stating: “Of course, Danes look at the interest rate, but there are also other factors that matter. We pay out interest every month instead of annually.
“This gives our customers the opportunity to continuously receive benefits from their bank. We also give interest on your entire deposit, regardless of whether it is a savings or salary account. This is something the Danes understand.
“The Danes want high interest rates, but also a good user experience and a bank that understands them.”
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