What interest rates did banks in Cyprus offer on loans and deposits in May?

On Thursday, July 10, the Central Bank of Cyprus published monthly statistics on changes in interest rates for mortgage loans and deposits at local financial institutions on the island. May 2025 was used as the reporting month.

Mortgages showed a trend reversal and an average rate increase.

The average floating rate on home loans in Cyprus increased slightly from 3.71% to 3.74% over the course of one month. This may indicate banks' attempts to secure a more stable margin in the changing economic environment.

In May, Bank of Cyprus offered the highest interest rates in this category at 5.15%, up from 5.14% in April. Following it were:

1. Housing Finance Organization: 3.75%, up from 3.59%;
2. Eurobank, at 3.5% compared to 3.92%;
3. Astrobank, at 3.01% versus 4.27%;
4. Ancoria Bank, at 2.93%, down from 3.33%;
5. Hellenic Bank: 2.19% versus 2.48%.

Alpha Bank Cyprus, CDB Bank, and Société Générale did not publish new data on mortgage loans for May.

The downward trend in interest rates on deposits continues.

Term deposits with a maturity of up to one year have become less attractive to depositors. In May, the average rate fell from 1.26% to 1.16%, confirming the steady downward trend. However, the dynamics were uneven:

1. National Bank of Greece stood out against the general trend by raising its rate from 1.29% to 1.37%.
2. Housing Finance Organization, on the other hand, continued to decline, from 1.17% to 1.03%.
3. Eurobank reduced its rate from 1.65% to 1.49%.
4. Societe Generale reduced its rate from 0.75% to 0.66%.
5. Ancoria Bank reduced its rate from 1.08% to 1.06%.
6. Alpha Bank Cyprus reduced its rate from 1.04% to 0.98%.
7. Astrobank reduced its rate from 0.90% to 0.83%.
8. The Bank of Cyprus reduced its rate from 0.86% to 0.72%.
9. CDB Bank reduced its rate from 1.11% to 1.08%.
10. Hellenic Bank was the only bank to keep its rate unchanged, at 0.99%.

What do these changes mean for depositors and borrowers?

An analysis of May data indicates increased volatility in banking strategies. Some banks continue to lower rates, while others are fixing or raising rates, especially in the mortgage lending segment.

These fluctuations may be due to changes in international markets and European Central Bank policy, as well as market participants' expectations regarding future interest rate decisions. For bank customers, this means they must carefully analyze terms and conditions, as well as monitor offers, especially when taking out long-term loans or placing savings.