Experts warn that figures suggesting that the average Danish bank balance is DKK 179,000 (USD 28,700) may be misleading.
Since the global economic crisis began in September 2008, the Danish Central Bank has found that deposits into accounts have increased by DKK 11.9 billion (USD 1.9 billion) to DKK 773.5 billion (USD 124 billion). The figure equates to each of Denmark’s 4.3 million adults packing an average of DKK 179,000 (USD 28,700) into their savings.
Danske Bank economist Las Olsen said that averages were inflated by the country’s richest, and that higher incomes and lower consumption were usually associated with increased deposits.
“The only explanation is that we’re saving more. We have more and more money to spend but are actually spending less and less,” said Olsen in a report by the Copenhagen Post. He also added that the lack of a six-figure savings account does not automatically make you poor.
Olsen estimated that Danish bank accounts are presently around DKK 60 billion (USD $9 billion) higher than usual, but that the figure was unlikely to continue to rise, due in part to the levelling out of income growth. He went on to say that scepticism over traditional investments may also have prompted the rise in deposits, with cash in the hand being increasingly favoured over riskier ventures.