Time deposit

US investment bank Jefferies predicts a further increase in interest rates on time deposits in Greece for 2024, favoring a shift from ordinary savings accounts to time deposits.

To date, Greek banks have on average raised interest rates on deposits by just 15%, compared to a eurozone average of 20%, and based on estimates this rate will increase by 50% within 2024. 

Mortgage interest rates in Cyprus climbed to 4.91% in October 2023, according to data released by the Central Bank of Cyprus (CBC) in its November 2023 edition of Monetary and Financial Statistics. Concurrently, household fixed-term deposits with a one-year maturity dropped to 1.58% compared to the previous month.

The Central Bank has ended targeting conversion from foreign currency deposits to FX-protected Turkish Lira deposits (KKM) in a bid to support the lira time deposits.

Offering guaranteed yields of 1.5-1.7 percent on average, insurance savings products are now a major rival to time deposits, whose interest does not exceed 0.7 percent on an annual basis, while that rate seems set to drop further.