Nicosia: The average interest rates for deposits from households and businesses in Cyprus experienced a decrease in May 2025, compared to the previous month. This is according to data published by the Central Bank of Cyprus on Thursday, which also indicates that the average interest rate for housing loans increased while those for business loans decreased.
According to Cyprus News Agency, the data reveals that the average interest rate for households purchasing homes, specifically eurozone residents in euros with new business contracts, saw an uptick. In May 2025, this rate rose to 3.74%, up from 3.71% in April 2025. Among financial institutions, the Bank of Cyprus offered the highest mortgage interest rate in May at 5.14%, slightly down from 5.15% in April. Conversely, the lowest rate was provided by Hellenic Bank at 2.19%, which saw a decrease from April’s 2.48%. The Housing Finance Corporation followed with the second-highest rate at 3.75%, increasing from April’s 3.59%, while Eurobank Cyprus, Astrobank, and Ancoria also saw various adjustments in their rates.
For business loans up to 1 million euros, the average interest rate decreased to 4.84% in May 2025 from 4.90% the previous month. Banque SBA had the highest rate at 6.58%, a slight decrease from April’s 6.74%, whereas the lowest rate was offered by Hellenic Bank at 3.83%, rising from 3.64% in April. Astrobank, Societe Generale, Bank of Cyprus, Eurobank, National Bank of Greece, and Alpha Bank showed different changes in their interest rates, reflecting a varied landscape for business loans.
The average interest rate on household deposits with an agreed maturity of up to 1 year fell by 10% in May 2025, remaining at 1.26% compared to the previous month, while the eurozone’s corresponding rate fell to 1.84% from 1.96% in April. Arab Jordan Investment Bank offered the highest interest rate at 1.70%, while Societe Generale provided the lowest at 0.66%. Other banks like Eurobank, Jordan Ahli Bank, and National Bank recorded different rates, contributing to the overall decline in deposit interest rates.
Interest rates on term deposits of up to 1 year from non-financial corporations decreased by 19%, with the average rate dropping to 1.18% in May 2025 from 1.37% in April. In the eurozone, this rate decreased to 2.05% from 2.15%. Alpha Bank had the highest corporate deposit interest rate at 1.71%, up from 1.42% in April, while the lowest was at the Housing Finance Corporation with 0.53%, up from 0.09%. Hellenic Bank, National Bank, Eurobank, Ancoria, Cyprus Development Bank, Astrobank, and Bank of Cyprus all showed various interest rate changes for corporate deposits.