Lunar Removes Deposit Limits with Monthly Returns
Published 23/08 2023.
As the only bank in Denmark, Lunar has decided to offer positive interest rates on all types of accounts without any demands for tying up the funds. Lunar is removing the upper limit on deposit interest rates, allowing all paying customers access to positive rates of up to 2.25%. This applies from the first Danish krone, with monthly payouts, regardless of the amount and account type. The previous limit was 100,000 Danish kroner, but the limit will be removed for customers with paid plans from Thursday, August 24.
Lunar Bank was the first Danish bank to reintroduce positive interest rates back in May 2021. Now, they are taking a step further by removing the deposit amount limit. This means that all paying customers can benefit from the positive interest rate, regardless of how much money they have in their account.
The previous deposit amount limit of 100,000 Danish kroner is now being lifted for paying customers. As the only bank in Denmark, this applies to all types of accounts without requirements for loans, salary accounts, “NemKonto”, or similar.
"At Lunar, we work to build the best everyday bank in the Nordics. In order to fulfill 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," says Anne Marie Kindberg, Chief Revenue Officer at Lunar Bank.
Danes are seeking higher interest rates, but that's not the only focus.
In May 2021, Lunar Bank introduced a positive interest rate of 0.5% on deposits up to 50,000 Danish kroner. 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. By choosing one of their three other paying account types, customers can even get up to 2.25%, and starting from August 24 this year, the deposit amount limit of 100,000 Danish kroner will be removed for these account types.
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. Anne Marie Kindberg highlights that Danes clearly demand better interest rates. Therefore, the removal of the deposit amount limit is a natural next step for Lunar Bank. However, Anne Marie Kindberg also emphasizes that the interest rate alone isn't enough.
"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."
The removal of the deposit amount limit will take effect from Thursday, August 24, 2023.
Lunar is a digital challenger bank. Lunar makes it easy for businesses and individuals to manage their finances, giving them control by building the best everyday bank in the Nordics. Founded in Aarhus, Lunar now employs around 450 people in Aarhus, Copenhagen, Stockholm, and Oslo. In 2019, Lunar obtained a banking license and is now one of the few banks with a Nordic banking platform. Today, Lunar has over 700,000 private and business customers throughout the Nordic region.