cyprus savers — Cyprus savers are currently earning less on their deposits compared to their eurozone counterparts, according to the latest data from the Central Bank of Cyprus (CBC). This week, the CBC revealed that while the gap in interest rates has narrowed in some categories, significant differences remain between the rates offered by Cypriot banks and the eurozone average.
Cyprus savers: Current Interest Rates for Household Deposits
For new household deposits with maturities of up to one year, the average interest rate in Cyprus is 1.20 per cent. In contrast, the eurozone average stands at 1.89 per cent, indicating a clear disparity in returns for savers. Among local banks, the National Bank of Greece offers the most competitive rate at 1.55 per cent, while the Bank of Cyprus lags behind with a rate of just 0.82 per cent.
Corporate Deposit Rates Lag Behind Eurozone Averages
When examining new deposits made by non-financial corporations with maturities of up to one year, the average interest rate in Cyprus has decreased to 1.23 per cent from 1.39 per cent the previous month. This rate is still significantly lower than the eurozone average of 1.98 per cent. In this category, Ancoria Bank provides the highest return at 1.64 per cent, while the Housing Finance Corporation offers the least attractive rate at 0.78 per cent.
Stagnant Returns on Existing Household Deposits
Rates for existing household time deposits maturing in up to two years remain stagnant at an average of 0.77 per cent. This figure has not changed in the past two months and is considerably lower than the eurozone rate of 1.72 per cent. Jordan Kuwait Bank offers the highest rate for this category at 1.56 per cent, whereas the Bank of Cyprus provides the lowest at 0.51 per cent. Notably, the Central Cooperative Bank and First Investment Bank reported zero interest rates in this category.
Corporate Deposits: A Slight Increase
For existing deposits held by non-financial corporations with maturities of up to two years, the average interest rate stands at 1.16 per cent. This marks a slight increase from 1.05 per cent in February but a decrease from 1.19 per cent in March. Even with this increase, the rate remains below the eurozone average of 2.04 per cent. The highest return is from the National Bank of Greece at 1.48 per cent, while Societe Generale offers the lowest at 0.75 per cent.
Housing Loan Rates: Mixed Trends
Turning to the lending market, the average interest rate on new housing loans in Cyprus has reached 3.10 per cent in April, a slight increase from 3.04 per cent in February and 3.09 per cent in March. This rate is still lower than the eurozone average of 3.45 per cent. The Cyprus Development Bank provides the most competitive rate at 2.00 per cent, while Ancoria Bank charges the highest rate at 3.44 per cent.
Corporate Loan Rates: Variability in Pricing
For new loans to non-financial corporations valued at up to €1 million, the average interest rate is 4.17 per cent. The lowest rate of 3.15 per cent is provided by Ancoria Bank, whereas Banque SBA has the highest rate at 6.80 per cent. In the category of new corporate loans exceeding €1 million, the average interest rate is slightly lower at 3.83 per cent, with Alpha Bank offering the most competitive rate at 3.52 per cent compared to the Bank of Cyprus’s 4.40 per cent.
Long-Term Loan Rates Remain High
For existing housing loans with maturities exceeding five years, the average rate is currently 3.48 per cent, which is marginally lower than previous months but still notably above the eurozone average of 2.46 per cent. The Housing Finance Corporation offers the best rate in this category at 2.91 per cent, while the Bank of Cyprus has the highest rate at 3.71 per cent.
Long-Term Corporate Loans
The average interest rate on existing loans to non-financial corporations with maturities exceeding five years is 4.07 per cent. This rate is consistent with levels recorded in February and March, yet it remains above the eurozone average of 3.09 per cent. Eurobank provides the lowest rate at 3.83 per cent, while Societe Generale records the highest rate at 4.99 per cent.
The CBC’s recent figures highlight the ongoing challenges faced by savers in Cyprus, who continue to find themselves at a disadvantage when compared to their eurozone peers. Despite some narrowing of the gap in various segments, the data underscores a persistent trend of lower returns on deposits and higher costs for borrowers in Cyprus.
