28.09.2021

BANKS DO NOT PAY INTEREST ON SAVINGS

Loans for both businesses and households are getting cheaper

Interest rates on retail deposits continue to fall, averaging 0.0%, which means that banks do not pay interest to companies and households to dispose of their money. This shows the latest interest rate statistics of the BNB.

In August, compared to July, the average interest rates on corporate deposits in BGN and EUR decreased by 0.01 percentage points up to -0.20% and 0.00%, respectively.

The average interest rates on overnight deposits in BGN and EUR remain at 0.00%. The volume of new business on BGN deposits decreased by 20.7% (BGN 20.8 million) to BGN 79.4 million, and on those in EUR increased by 35.9% (BGN 16.2 million) up to BGN 61.2 million.

Last month, the average interest rate on household deposits in BGN increased by 0.02 percentage points up to 0.07%, and for those in euro - by 0.04 percentage points. up to 0.08%. The average interest rates on overnight deposits in BGN and EUR remain at 0.00%.

Interest rates on loans to individuals and companies also continue to decline. The annual percentage rate of charge (APR) on housing loans, which includes interest and all fees of banks, remains below 3% for August - an average of 2.98%, according to BNB data.

Business loans are also getting cheaper. Interest rates on BGN loans to companies amounting to less than BGN 1 million are on average 2.94%, which is a decrease of 0.10% compared to the previous month. Interest rates on BGN loans to businesses for over BGN 1 million decreased from 2.57% to 2.19%.