Average interest rate on new deposits falls again for the fifth consecutive month

The average interest rate on new private term deposits decreased for the fifth consecutive month, to 2.72% in May. The amount of new term deposit operations totaled 10.6 billion euros in May, a drop of 39 million compared to April (2947 million euros).

An evolution that Banco de Portugal explains is justified “to a large extent, by the reapplication in new term deposits of amounts previously invested in deposits of this type, without automatic renewals, which reached the maturity in May”.

In the information on the average interest rates on new deposits with a term of up to 1 year, the interest rate on new deposits fell by 0.04 percentage points (pp), to 2.75%, this being the term class with the “highest average return” representing 96% of new deposits in May.

The Bank of Portugal highlights this Thursday that “new deposits for more than 2 years also decreased, from 2.01% to 1.97%”, but “on the contrary, in new deposits from 1 to 2 years, the average interest rate increased by 0.13 pp, from 2.03% to 2.16%”.

Compared to the remaining countries in the euro zone, the evolution that dictates a higher average remuneration on deposits continues. In the euro area countries as a whole, “the average interest rate on new deposits decreased by 0.02 pp (a smaller drop than that seen in Portugal), standing at 3.09 %”. The country that offers the best remuneration is Estonia, followed by France, Finland and Malta. Six countries have an average interest rate lower than Portugal (2.72%), including Spain.

Average interest rate on credit falls again in May

“The average interest rate on new housing credit operations decreased for the eighth consecutive month, standing at 3.71% in May.”

The average interest rate on new housing credit operations rose from 3.75% in April to 3.71% in May. Taking into account that this rate of new operations includes renegotiated contracts, “the average interest rate on new housing credit contracts decreased by 0.02 pp, standing at 3.61 %, but “in renegotiated contracts, the average interest rate increased by 0.02 pp, to 4.06%”.

With regard to all new credit operations to individuals (totally new and renegotiated) the amount fell by 53 million euros to 2,542 million euros in May. An increase across all credit classes, including consumption.

With regard to the average interest rate for consumption in April, in Portugal the rate rose to 9.55%, higher than that practiced in all euro area countries, which was on April 7 .92%. The average consumer credit rate was the “first time it decreased in 2024”. The credit rate for other purposes reached 5.01%, increasing 0.11 pp.


Francesco Giganti

Journalist, social media, blogger and pop culture obsessive in newshubpro

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