The latest data from the Central Bank of Cyprus confirms a widening gap in the local financial landscape. Deposit rates continue to fall, while mortgage rates are rising, placing Cypriot savers at a disadvantage, especially compared to the eurozone average.
Deposit Rates: Still Unreasonably Low
In June 2025, the average interest rate for 1-year term deposits in Cyprus dropped again to 1.13%, despite the ECB maintaining high policy rates. Most local banks are offering returns well below the euro area average of around 1.77%.
Here are the current deposit rates per bank:
Despite inflation and rising loan costs, savers in Cyprus continue to earn significantly less than their European peers. The reason lies in the banking system’s deep liquidity, Cypriot banks hold an LCR of 333%, far above the eurozone median. As a result, there’s little pressure to offer competitive rates on deposits.
Use Financy to compare all current deposit rates in Cyprus and make sure your savings are earning what they should.
Mortgage Rates: Climbing Back Up
On the lending side, mortgage rates in Cyprus rose again, reflecting broader monetary tightening. The average rate for new housing loans increased to 3.97% in June, up from 3.74% in May. This is roughly in line with the eurozone average, but the spread between lending and deposit rates in Cyprus remains unusually wide.
Here’s how each bank currently prices new housing loans:
With some banks offering mortgages at rates more than double their deposit returns, it’s crucial for both savers and borrowers to be well-informed.
On Financy, you can track all deposit and mortgage rates in one place updated regularly, across all major banks in Cyprus.
According to a recent bulletin from the Central Bank of Cyprus, which compares Cypriot interest rates with the eurozone average, Cyprus remains aligned with the EU median on loan rates, but stands out negatively when it comes to deposit rates. The analysis confirms that Cypriot depositors earn among the lowest returns in the euro area, despite operating under the same monetary framework. This reinforces the importance of actively comparing rates and demanding more transparency. As a result, savers are now looking outside the Cypriot market for better rates and return on their money.