Banks raise interest rates again

The two major banks in the Faroes have announced that they are raising their interest rates.

This comes in response to recent rate hikes by the European Central Bank and the Danish National Bank.

On 1 December, Betri Bank will raise deposit rates on certain (unspecified) types of accounts by up to 0.60 percent and lending rates on certain types of accounts by up to 0.50 percent.

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BankNordik announced upcoming rate hikes last week but added that no changes will be made for regular deposit accounts such as salary accounts.

Deposit rates for savings and pension savings accounts will rise by up to 0.85 percent and lending rates by up to 0.50 percent. This applies to private and business customers alike.

BankNordik’s rate hikes come into effect on 18 November for business customers and on 5 December for private customers.

Read the Faroese versions of this article here and here.

More Faroese News in English.