According to new data released by the European Central Bank on Thursday 9th January Cyprus ranks second among EU countries whose residents make deposits at the lowest rates.
In particular, the average interest rate for deposits of up to one year for households in Cyprus is 1.7%
The situation is only worse in Slovenia. Residents of this country open deposit accounts at 1.45%. At the same time, the average deposit rate for households in the euro area is 2.61%, while the highest deposit rates are paid in Italy (3.44%).
The corresponding deposit rate for non-financial corporations in Cyprus is 1.99% (last place), compared with 2.9% in the euro area. The leader in this category is France, with a deposit rate for non-financial corporations of 3.18%.
As for the average mortgage rate in Cyprus, it is 4.5%.
This compares with a rate of 4.27% in the euro area. Malta has the lowest mortgage rate in the EU (2.56%), while Germany has the highest (5.02%). Interest rates on loans to enterprises in Cyprus, at 5.45%, are the tenth highest in the euro area. Finally, the average interest rate on consumer loans in Cyprus reaches 8%.
Recall that in December 2024, Cypriot banks announced plans to introduce lower fees and more favourable mortgage rates from January 2025, under political pressure and in exchange for the parliament not imposing an excess profits tax on them. However, significant differences with the euro area average remain.