In September 2026, bank interest rates in Cyprus moved in different directions. Yields on time deposits increased for both individual customers and businesses. At the same time, the average cost of borrowing for households fell from 3.39% to 3.32%, while for non-financial companies it rose from 3.83% to 4.21%.
These figures are provided by the European Central Bank (ECB). They show that Cypriot depositors continue to receive relatively low returns compared to residents of other eurozone countries, while businesses are facing rising borrowing costs.
Deposits
For time deposits held by households with a maturity of up to one year, the rate in Cyprus rose to 1.62% in September, up from 1.35% in August. Despite the increase, the country ranked fifth from the bottom among eurozone countries.
The eurozone average for the same period rose from 2.13% to 2.33%. Rates were lower than Cyprus’s only in Slovenia (0.77%), Greece (1.28%), Bulgaria (1.49%), and Croatia (1.55%). Italy offered the highest returns on such deposits—2.91%. It was followed by Finland—2.82% and Latvia—2.75%.
The situation is similar for companies. The rate on time deposits with a maturity of up to one year in Cyprus rose from 1.56% to 1.7%, but remained the lowest in the eurozone. The average rate across the currency union increased from 2.24% to 2.46%. The highest rates on corporate deposits were recorded in France (2.65%), Italy (2.57%), and Finland (2.54%).
Consumer Loans
The overall average interest rate on loans to households in Cyprus fell to 3.32% in September from 3.39% in August. In the eurozone, by contrast, the rate rose slightly—from 3.60% to 3.62%.
The highest overall cost of borrowing for households was recorded in Latvia (4.53%), Estonia (4.45%), and Lithuania (4.32%). The lowest rates were recorded in Malta (1.93%), Bulgaria (2.41%), and Croatia (2.94%).
For housing loans with an initial fixed-rate period of up to one year, the rate in Cyprus fell from 4.16% to 3.88%. This is slightly below the eurozone average, which, by contrast, rose from 3.86% to 3.89%. Cyprus ranked eighth among eurozone countries in terms of interest rates.
The highest rates were in Belgium (4.79%), Germany (4.51%), and Latvia (4.38%). The lowest were in Bulgaria (2.41%) and Malta (2.43%).
For mortgage loans with an initial fixed-rate period of one to five years, the rate in Cyprus increased slightly—from 3.27% to 3.28%. However, it remained below the eurozone average, which rose from 3.59% to 3.63%. In this category, Cyprus ranked sixth from the bottom. The highest rate was recorded in Latvia—8.28%—while the lowest was in Malta, where it stood at 1.81%.
Consumer loan rates in Cyprus fell from 6.23% in August to 6.02% in September. The eurozone average also decreased—from 7.94% to 7.82%. Cyprus ranked sixth among the countries with the lowest rates in this category.
More favorable terms were recorded in Slovenia (5.96%), Finland (5.86%), Croatia (5.06%), Luxembourg—4.8%, and Malta—4.29%. The highest rates were recorded in Estonia—12.2%, Latvia—12.16%, and Greece—10.35%.
Business Loans
Unlike individual borrowers, companies faced rising borrowing costs. The overall average interest rate on loans to non-financial corporations in Cyprus rose from 3.83% in August to 4.21% in September. The eurozone average also rose, but remained lower—from 3.77% to 3.9%. The highest interest rates for businesses were recorded in Latvia (5.42%), Malta (5.21%), and Lithuania (5.19%). The lowest rate was in the Netherlands, at 3.12%.
For business loans of up to 250,000 euros with a floating rate or an initial fixed-rate period of up to three months, the rate in Cyprus rose from 4.43% to 4.59%. The eurozone average increased from 3.93% to 4.01%. Thus, the Cypriot rate remained above the European average.
In this category, Cyprus ranked seventh in terms of interest rate. The highest rate was recorded in Finland—6.76%—and the lowest in Spain—3.57%.
A particularly notable increase occurred in the category of business loans exceeding 1 million euros with a floating rate or an initial fixed-rate period of up to three months.
In Cyprus, the rate rose from 3.63% in August to 4.27% in September. This is the eighth-highest rate among eurozone countries. The average rate across the eurozone also rose—from 3.34% to 3.51%—but remained significantly lower than Cyprus’s.
The highest rates in this category were recorded in Latvia (5.58%), Lithuania (4.88%), and Estonia (4.83%). The lowest rate was in the Netherlands, at 3%.
September statistics show a continuing gap between banking conditions in Cyprus and those in the eurozone. Deposit yields on the island remain low, despite rising interest rates. For individuals, the lending situation has generally improved, although mortgage terms depend on the fixed-rate period. For businesses, however, the cost of borrowing has increased, especially for large loans.