cyprus deposit — Cyprus deposit rates are currently the lowest in the euro area, according to the latest figures from the European Central Bank (ECB). This stark reality is juxtaposed with relatively cheaper borrowing costs for households, especially in the housing sector.
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Cyprus deposit: Current Borrowing Costs in Cyprus
As of November 2025, the average cost of borrowing for households in Cyprus for consumption stood at 6.2 per cent, notably below the euro area average of 7.33 per cent. For housing purchases, Cypriots benefit from an even more favourable rate of 3 per cent, compared to the euro area average of 3.3 per cent.
Photo: cyprus-mail.com
Corporate Borrowing Rates
However, the landscape shifts for corporations. In Cyprus, the cost of borrowing for businesses is higher, sitting at 4.29 per cent. This contrasts with the reduced average corporate borrowing rate across the euro area, which fell to 3.4 per cent.
Deposits: A Different Story
While borrowing costs are akin to a breath of fresh air for Cypriots, the same cannot be said for depositors. The ECB’s data highlights that household overnight deposit interest rates in Cyprus are at an alarming 0.00 per cent, making it the lowest in the euro area. Moreover, the total interest rate on household deposits with agreed maturity is 1.1 per cent, again the lowest in the region.
Comparison with Euro Area Averages
In comparison, the euro area average for household overnight deposits stands at 0.25 per cent, while the average for agreed maturity deposits is 1.8 per cent. For households with deposits maturing in under a year, Cyprus offers a rate of only 1.13 per cent, slightly above Slovenia and Greece but significantly below the euro area average of 1.75 per cent.
Long-term Deposits and Corporate Rates
The situation worsens for longer-term deposits. For household deposits with maturities between one and two years, Cyprus reports a meagre 0.69 per cent, in stark contrast to the euro area average of 1.97 per cent. Corporate overnight deposit rates in Cyprus are similarly dismal, at 0.02 per cent, once again the lowest in the euro area, while corporate deposits with agreed maturity average just 0.89 per cent.
Imbalance Between Lending and Savings
The ECB data illustrates a persistent imbalance in Cyprus, where borrowing conditions for households appear favourable compared to the rest of the euro area, yet depositors are left grappling with the weakest returns. This scenario highlights the challenges faced by savers in Cyprus, who continue to see minimal benefits from their deposits in an environment where borrowing costs are relatively manageable.
