An increasing number of people are opening a stock savings account. This is especially true among younger Danes, who have contributed to nearly half a million Danes currently investing in this way. (Archive photo). Photo: Asger Ladefoged/Ritzau Scanpix
500,000 Danes adopt popular share savings accounts
The investment savings account, only six years old, has seen a 38% increase in users over the last year, reaching 490,000 in Denmark. According to Finans Danmark, the accounts are particularly appealing due to their simple and low taxation rate of 17% on returns, which is notably less than the standard tax rates on dividends. Investment Chief Kåre Valgreen credits the accounts with fostering a growing investment culture, especially among the youth, but suggests that the potential is limited by the current deposit ceiling. Advocating for an increase in the limit to 300,000 kroner, he points to the Nordic neighbors where Sweden and Norway have no cap and Finland allows up to 100,000 euros.