Rates on new deposits in Cyprus rise to 1.62% — Cyprus Mail
In Cyprus, the average rate on new household term deposits with maturities of up to one year rose to 1.62% in September 2026, compared with 1.35% in August. At the same time, deposit yields in the country remain among the lowest in the eurozone, Cyprus Mail reports, citing an analysis by the Central Bank of Cyprus.
For non-financial companies, the average rate on new deposits increased to 1.70% from 1.56% a month earlier. The central bank noted that rates on both outstanding and new deposits in Cyprus remain at the lower end among eurozone countries.
Excess bank liquidity
The regulator attributes the low returns on savings, among other factors, to excess liquidity at Cypriot lending institutions, which is among the highest in the eurozone, as well as to the relatively short maturity profile of the banking sector. Cyprus’s liquidity coverage ratio stood at 305% in September 2026, while the median figure in the EU was 182% in June 2026 and the average was 158%.
More current news is available on the UA.News Telegram channel Telegram.
According to the central bank, Cypriot banks pass changes in market rates on to depositors—both households and businesses—to a lesser extent than banks in almost all other eurozone countries. At the same time, the transmission of monetary policy changes to rates on outstanding loans generally matched the level in other eurozone countries.
Cost of new loans
The average rate on new mortgage loans fell to 3.88% in September from 4.16% in August, while the rate on consumer loans declined to 6.45% from 7.12%. For businesses, loans became more expensive: the rate on new loans of up to €1 million rose to 4.76% from 4.45%, while the rate on loans exceeding €1 million increased to 4.40% from 3.67%.
Rates on new housing loans to households were 0.2 percentage points below the eurozone median, while rates on new business loans were 0.3 percentage points higher. The volume of purely new loans reached €596.2 million in September, compared with €251.4 million a month earlier. The share of new variable-rate mortgages has fallen from nearly 100% since the beginning of 2022 to 9.8% in September 2026.
