In July 2025, the trend of declining interest rates on deposits in Cyprus was confirmed. According to the Central Bank of Cyprus, the average rate on term deposits of up to one year fell from 1.13% in June to 1.08%.
Meanwhile, the mortgage lending market saw an average rate decrease from 3.97% in June to 3.9%. However, dynamics varied between banks: some lowered their rates, while others raised them.
Deposits: 2025 lows
Despite the overall downward trend, changes across banks were uneven. The National Bank of Greece, for example, raised its rate to 1.35% from 1.31% a month earlier. Ancoria Bank also increased its rates to 1.25% from 1.14%. Alpha Bank Cyprus increased the yield on deposits to 1.09% from 0.95%.
At the same time, many banks continued to lower their rates: Eurobank lowered its rate to 1.26% (previously 1.5%), Astrobank to 0.76% (previously 0.83%), and CDB Bank to 0.93% (previously 1.02%). Societe Generale set its rate at 0.6% (previously 0.62%), while the Housing Finance Organisation limited its reduction to 0.75% from 0.89%. Only Bank of Cyprus showed a notable improvement, raising its rate to 0.87% from 0.66%.
The market average fell to 1.08%, the lowest since 2025, making deposits less attractive to the population amid continuing eurozone inflation.
Mortgages showed mixed rate fluctuations
Unlike deposits, mortgage loans showed a more complex picture. The average rate fell to 3.9%, but there were sharp variations in dynamics between banks. Eurobank increased its rate to 3.83% from 3.72%. After a sharp drop in June, Astrobank increased its rate to 3.47% from 2.21%. Alpha Bank Cyprus increased its rate from 2.57% to 3.29%, while CDB Bank raised its rate from 3.69% to 4.07%.
At the same time, some banks lowered their rates: Hellenic Bank reduced its rate from 3.63% to 3.2%. The Bank of Cyprus lowered its rate from 5% to 4.96%, and Ancoria Bank lowered its rate from 3.32% to 3.22%. Notably, the National Bank of Greece reached 4.04%, a first for 2025. Societe Generale introduced a new rate of 4.83% in July.
What does this mean for customers and the economy?
The deposit market in Cyprus is becoming less and less profitable for depositors. Yields at most banks have fallen below 1%, reducing the population's interest in traditional savings. This is in line with trends in the eurozone, where the European Central Bank continues to ease monetary policy.
The mortgage market, on the other hand, remains extremely volatile. Spreads ranging from 3.2% to 4.96% demonstrate the importance of choosing the right bank for borrowers. The tightening of conditions at a number of banks is linked to increased risks in the construction industry and changes in international financial markets. According to analysts' forecasts, deposit rates may remain low in the second half of 2025, while mortgage conditions may diverge further depending on individual banks' lending policies.