The Central Bank of Cyprus has released detailed interest rate data for deposits and loans from each credit institution in Cyprus, aiming, as it emphasizes, to further enhance transparency.
The Central Bank published the data for the first time (reference month: July) following political reactions triggered by the publication of data showing that lending rates are rising, while deposit rates are falling. At the same time, average lending rates in Cyprus are among the highest in the EU.
According to the data from the Central Bank, in July 2024, the highest average weighted interest rate for term deposits up to 1 year for households resident in the Eurozone (new business) was offered in the following order: National Bank of Greece (Cyprus) 2.49%, Eurobank 2.46%, Jordan Ahli Bank 2.17%, Societe Generale Bank Cyprus Ltd 2.18%, and the Housing Finance Corporation (OHS) 2.17%. They are followed by Ancoria Bank 2.01%, Alpha Bank 2.00%, Astrobank 1.79%, Cyprus Development Bank 1.72%, Hellenic Bank 1.42%, and Bank of Cyprus 1.35%.
According to the Central Bank's data, the highest average weighted interest rate for deposits from non-financial corporations is offered by Cyprus Development Bank Public Company Ltd, reaching 2.67%. This is followed by Hellenic Bank with 2.62%, Societe Generale Bank Cyprus Ltd with 2.56%, National Bank of Greece with 2.50%, Astrobank with 2.41%, Bank of Cyprus with 2.30%, Ancoria Bank with 2.25%, Eurobank Cyprus with 2.18%, Alpha Bank with 2.01%, Jordan Ahli Bank with 1.90%, and Housing Finance Corporation (OHS) with 0.52%.
The average weighted interest rate for term deposits up to 2 years from households (existing balances) offered by banks in July is as follows: National Bank of Greece (Cyprus) 2.72%, Ancoria Bank 2.66%, Alpha Bank 2.20%, Eurobank Cyprus 2.13%, Bank of Cyprus 0.81%, Hellenic Bank 0.42%.
Loan Interest Rates
Regarding loans, the average weighted interest rate for housing loans to households with variable rates (new business - loans) in July was: Bank of Cyprus 5.04%, Cyprus Development Bank 5.22%, Eurobank Cyprus 4.79%, Ancoria Bank 4.08%, Astrobank 3.87%, Hellenic Bank 3.99%, Alpha Bank 3.41%, and Housing Finance Corporation (OHS) 2.96%.
The deposit rates offered by Cypriot banks remain extremely low compared to the rest of the European Union, where rates are generally higher due to more competitive economic conditions. This situation presents a significant challenge for savers in Cyprus, who are struggling to find secure yet rewarding places to grow their money and keep up with high inflation.Given the unattractive deposit rates in Cyprus, savers should consider exploring alternative investment options. This could include looking into other European banks with higher interest rates, investment in bonds, mutual funds, or other financial instruments that offer better returns. By diversifying their investments, savers can potentially achieve higher returns while managing risk more effectively. In this high inflation environment, it's crucial for savers to keep pace with rising costs and preserve their purchasing power.
