The Central Bank of Cyprus published new data on interest rates for deposits and mortgage loans in June 2025. The overview covers the country's leading commercial banks and allows for a comparison of conditions for Eurozone residents, including depositors and individuals planning to purchase a home with bank financing.
Decline in deposit rates: Who remains in the lead?
According to the regulator, the average interest rate on household deposits fell from 1.16% in May to 1.13%, reflecting a slight correction amid the eurozone's overall stabilization of monetary policy. This is significantly lower than the European average, where the corresponding rate reached 1.77% in June. Nevertheless, some banks continue to offer competitive rates.
For instance, in June, Eurobank Cyprus customers could expect a yield of 1.5%. Next were Jordan Ahli Bank, at 1.38%, and National Bank of Greece, at 1.31%. Ancoria Bank strengthened its position in the competitive environment by increasing its rate to 1.14%.
Hellenic Bank and Alpha Bank offered more conservative returns, lowering their rates to 0.97% and 0.95%, respectively, in June. The other banks also adjusted their terms in line with general market trends: The Housing Finance Organization lowered its rate to 0.89%, Astrobank lowered its rate to 0.83%, and the Bank of Cyprus lowered its rate to 0.66%.
Mortgage lending: Average rates continue to rise
However, the mortgage lending segment is showing the opposite trend. In June, the average rate on new variable-rate housing loans with a fixed-rate period of up to one year increased from 3.74% in May to 3.97%. This indicates the ongoing influence of macroeconomic factors and inflation expectations on borrowing costs.
Despite a slight decrease compared to May, the Bank of Cyprus offered the highest interest rate on mortgage loans in June at 5%. It was followed by:
- Housing Finance Organization — 3.79%;
- Eurobank — 3.72%;
- CDB Bank — 3.69%;
- Hellenic Bank at 3.63%;
- Ancoria Bank — 3.32%;
In contrast, Astrobank (2.21%) and Alpha Bank Cyprus (2.57%) offered the most competitive rates in June.
Loans to enterprises of up to €1 million
Loans to small and medium-sized enterprises of up to €1 million became slightly cheaper in June. The average rate fell from 4.84% in May to 4.56%, but it is still significantly higher than in the eurozone, where the same indicator fell to 3.73%. This difference makes it difficult for Cypriot companies to compete, especially amid European pressure.
Banque SBA offered the highest rate in June at 6.37%. It was followed by:
- Astrobank — 5.94%;
- Bank of Cyprus — 4.97%;
- Ancoria Bank — 4.59%;
- Eurobank — 4.38%.
- National Bank of Greece — 4.37%;
- Hellenic Bank — 4.15%;
- Alpha Bank Cyprus —3.54%.
Loans for businesses over €1 million
The average interest rate on new loans to non-financial companies in Cyprus declined slightly in June 2025. These loans were provided at floating rates with an initial fixation period of up to one year. The average rate was 4.01%, compared to 4.51% in May and 4.34% in April.
The highest rates in June were offered by Astrobank at 5.56%. The lowest rates were offered by Eurobank Cyprus Ltd. (3.86%) and Bank of Cyprus (3.59%). Rates at other Cypriot banks:
- Hellenic Bank — 4.28%;
- Alpha Bank — 4.04%;
- National Bank of Greece —4.03%.
What's next for the financial landscape?
June data shows that lending conditions and deposit yields remain balanced. Although deposit rates are slowly decreasing, banks are trying to retain customers by offering competitive terms. However, rising mortgage rates highlight difficult lending conditions, especially given high real estate prices and cautious policies by European regulators.
Those planning to take out a mortgage or invest in a deposit in the coming months should closely monitor banks' offers and compare rates and conditions.