The average interest rate on new term deposits for individuals increased from 1.26% in May to 1.58% in June, “the largest increase since October 2011”, the Bank of Portugal (BdP) announced today.
“The amount of new retail time deposit transactions amounted to €7.695 billion, €205 million more than in the previous month,” according to the statistics on interest rates and amounts of new loans and bank deposits of enterprises and households updated for last June.
“The breakdown by maturity shows that in June new deposits with a maturity of up to one year, which accounted for 79% of new time deposits, were remunerated at an average of 1.58% (1.18% in May).”
New one- to two-year deposits “recorded an average return of 1.47%, the same as in May”.
New deposits with a maturity of over two years accounted for 7% of new time deposit transactions and recorded a higher average return of 1.76% (1.61% in May).
With regard to firms, in June “the average return on new term deposits for firms was 2.65%, an increase of 0.28 percentage points compared with the previous month”.
New deposit operations amounted to €6.409 billion, €677 million more than in May, of which “99% were invested in term deposits of up to one year”.
According to the BdP, these statistics include transactions between banks resident in Portugal and households and companies resident in the euro area.