Interest rates for households/businesses deposits down, up for mortgage loans

The average interest rates for deposits from households and businesses (new business) in Cyprus decreased in May 2025, compared to the previous month, according to data published by the Central Bank of Cyprus (CBC), which also show that the average interest rate for housing loans increased and for loans to businesses decreased.

According to CBC data, the average interest rates for households for the purchase of a home, eurozone residents in euros (new business-new contracts), with a floating interest rate and an initial determination period of up to 1 year, increased in May 2025 to 3.74%, from 3.71% in April 2025. The highest mortgage interest rate in May 2025, according to available data, was offered by the Bank of Cyprus with 5.14% (from 5.15% in April) and the lowest was at the Hellenic Bank with 2.19% (from 2.48% in April). The Housing Finance Corporation had the second highest interest rate on loans for the purchase of a home with 3.75% (from 3.59% in April), followed by Eurobank Cyprus with 3.50% (from 3.92%), Astrobank with 3.01% (from 4.27%) and Ancoria with 2.93% (from 3.33% in April).

The average interest rate for new loans to businesses up to 1 million euro (floating rate and initial fixation period of up to 1 year) decreased to 4.84% in May 2025, from 4.90% in the previous month. Banque SBA had the highest interest rate at 6.58% (down from 6.74% in April) and Hellenic Bank had the lowest at 3.83% (3.64% in April). The second highest interest rate was at  Astrobank with 6.23% (from 4.86%), followed by Societe Generale with 5.51% (from 6.54%), Bank of Cyprus with 5.25% (from 5.19%), Eurobank with 4.69% (from 4.75%), National Bank of Greece with 4.05% (from 4.95%) and Alpha Bank with 4.02% (from 5.96%).

The average interest rate on deposits with an agreed maturity of up to 1 year for households fell by 10%  in May 2025, falling to 1.26%, compared to 1.26% in the previous month. The corresponding rate in the eurozone fell to 1.84%, from 1.96% in April. The highest interest rate was at Arab Jordan Investment Bank with 1.70% and the lowest at Societe Generale with 0.66%.

The second highest interest rate on household deposits was recorded at  Eurobank with 1.49% (from 1.65%), followed by Jordan Ahli Bank with 1.38%, National Bank with 1.37% (from 1.29%), Cyprus Development Bank with 1.08% (from 1.11%), Ancoria with 1.06% (from 1.08%), Housing Finance Corporation with 1.03% (from 1.17%), Hellenic Bank with 0.99% (also from 0.99%), Alpha Bank with 0.98% (from 1.04%), Astrobank at 0.83% (from 0.90%) and Bank of Cyprus with 0.72% (from 0.86%).

Interest rates on term deposits of up to 1 year from non-financial corporations decreased by 19%. According to the data, the average decreased in May 2025 to 1.18%, from 1.37% in April 2025, while in the eurozone the interest rate decreased to 2.05%, from 2.15%.

Alpha Bank had the highest interest rate with 1.71% (from 1.42% in April) and the lowest was at the Housing Finance Corporation with 0.53% (from 0.09%).

The second highest interest rate for corporate deposits was recorded by Hellenic Bank with 1.38% (from 1.58%), followed by the National Bank's interest rate at 1.25% (no data for April), Eurobank with 1.07% (from 1.20%), Ancoria with 1.05% (from 1.10%), Cyprus Development Bank with 1.00% (from 1.31%), Astrobank with 0.82% (from 2.12%) and Bank of Cyprus with 0.74% (from 0.78%).

(Source: Central Bank of Cyprus, CNA)