Interest rates hit historic new low in Portugal

The interest paid on term deposits at banks have suffered a new historic low in Portugal, paying out just 0.13%.

The interest rates on new savings products attained the new historic minimum in February, making Portugal the third country in the European Union offering the worst interest rates.
According to statistics from the European Central Bank published on Wednesday, the new 0.13% rate is lower than the 0.14% rate paid in January.
It represents the lowest interests rates set by the European Central Bank since Mario Draghi took the helm at the ECB in 2000.
At present, only two countries in the Euro Zone are paying lower interest rates on deposits than Portugal. Spain and Ireland where the average interest rates being paid at 0.05% and 0.04% respectively.
Holland is currently the country offering the best interest rates on deposits with an average interest of 1.31%, above the 1.22% paid in January.
Savings accounts have always been the traditional method in Portugal of saving. A disinterest among Portugal’s banks in trying to attract customer’s savings is also behind the low interest rates offered.
The strategy of Portugal’s banking system now is to maximise its revenues from bank charges and commissions as well as making it easier to take out loans.