Depositors in Cyprus continue to receive lower returns on their savings than the eurozone average. At the same time, there are significant differences between banks in both deposit and lending rates.
Deposits in Cyprus
The average interest rate on household fixed-term deposits with a maturity of up to one year in Cyprus was 1.42% in June, compared to 2.03% across the eurozone. This represents a difference of 0.61 percentage points. The banks offering the highest rates were:
- Ancoria Bank — 1.66%
- National Bank of Greece (Cyprus) — 1.64%
- Eurobank Limited — 1.51%
The lowest rates were offered by:
- Bank of Cyprus — 0.96%
- Housing Finance Corporation — 0.84%
The difference between the highest and lowest rates among these banks reached 0.82 percentage points. For businesses, the average deposit rate in Cyprus stood at 1.41%, compared to 2.19% across the eurozone. The most attractive offer was provided by:
- Alpha Bank Cyprus — 2.05%
- Housing Finance Corporation — 0.43%
Mortgage Loans
The average interest rate on new residential mortgages in Cyprus was 3.28%, while the eurozone average reached 3.51%. The rates offered by banks were distributed as follows:
- Alpha Bank Cyprus — 2.71%
- Other banks — from 3.18% to 3.36%
- Cyprus Development Bank — 4.15%
For borrowers, this means that the average cost of new mortgage loans in Cyprus remains below the overall European level.
Business Loans
The most significant differences can be seen in business loans of up to €1 million. The average interest rate in Cyprus was 4.16%, but individual bank offers varied considerably:
- Alpha Bank Cyprus — 3.57%
- Banque SBA — 7.17%
As a result, the highest rate was almost twice as high as the lowest. For business loans exceeding €1 million, the average interest rate was 3.97%, while rates ranged from 3.53% to 4.69%, depending on the financial institution.
What These Figures Mean
The statistics show that choosing the right bank in Cyprus can have a significant impact on both investment returns and borrowing costs. The difference is particularly noticeable in the deposit market, where the average rate for savers remains below the eurozone average.
For borrowers, the situation is somewhat more favorable. The average interest rate on new mortgage loans in Cyprus stands at 3.28%, compared to 3.51% across the eurozone.
However, comparing banks solely on the advertised interest rate is not enough. The final return on a deposit or the actual cost of a loan can also be affected by the contract term, the amount involved, additional fees, and each bank's individual conditions.