Bank deposits offer highest rates in 11 years
The average interest rate on new fixed-term savings deposits increased 0.56% in January, the highest rate rise in 11 years.
It removes Portugal from the lower ranks of the Euro Zone interest on bank deposits league tables where for years Portuguese banks and financial institutions offered the lowest rates on deposits. However, despite better rates, Portugal is still below the Euro Zone average (1.64% in January) according to the Bank of Portugal.
Greece, Cyprus and Croatia are the countries with the lowest rates on a list headed by France and Italy, with interest rates for private depositors of over 2%.
According to the central bank, the amount of new private fixed-term deposits was €5,727 million in January, the month in which the banks lost savings in the order of €2.5Bn, a historic fall, as private depositors bought government savings bonds instead. The latest data shows that families are transferring money from their current accounts and putting it in fixed term savings accounts.