Bank depositors in Cyprus seem to be taken for a ride since they get the lowest interest rate compared with all other eurozone member countries, Philenews reports.
And if inflation is taken into account then there is a negative return on their deposited money.
Latest Central Bank of Cyprus data shows that the interest rate on deposits from households with an agreed maturity of up to one year recorded a decrease to 0,24%, compared with 0,35% in the previous month.
The corresponding interest rate on deposits from non-financial corporations registered an increase to 0,70%, compared with 0,61% in the previous month.
In the eurozone, the average interest rate for deposits from households is at 1.53% with the difference compared to the rate in Cyprus at 1.29%.
And the average interest rate in the eurozone for deposits from businesses is at 1.97%, while the interest rate offered by banks in Cyprus is at 1.27%.
At the same time, banks in Cyprus seem to be in no hurry to raise deposit rates, unlike those on loans, especially those on a floating rate. These are directly affected by European Central Bank decisions.
This means that the interest rate widens further with each month and, as a result, interest income increases improving bank balance sheets.
